Which objective(s) does the Commission pursue?

The overall purpose of the proposal was to strengthen the protection of the Union's financial interests. This can be divided in two more specific objectives:

- to adapt the operation of OLAF to the establishment of the European Public Prosecutor's Office (EPPO) to ensure full complementarity between the two bodies; and

- to enhance the effectiveness of OLAF’s investigative function.

Adaptation of the operation of OLAF to the establishment of the EPPO

In October 2017, the Council adopted Regulation (EU) 2017/1939 implementing enhanced cooperation on the establishment of the European Public Prosecutor's Office (EPPO). As a consequence of the adoption of the EPPO Regulation, Regulation No 883/2013 needed to be adapted in order to define the future relationship between OLAF and the EPPO.

Concerning the relationship with the EPPO, the proposal :

- defines how the EPPO can ask OLAF to support or complement the EPPO's activity in accordance with Article 101(3) of the EPPO Regulation;

- provides that, in duly justified cases, OLAF (on own initiative) may open or continue an administrative investigation to complement a criminal investigation being carried out by the EPPO (so-called ‘complementary investigations’). The aim is to enable precautionary measures or financial, disciplinary or administrative action to be taken. The conduct of complementary investigations by OLAF would be notified to the EPPO and the absence of EPPO's objection within a certain deadline would be deemed to constitute approval.

Enhancing the effectiveness of OLAF's investigations

The Commission evaluation of the application of Regulation No 883/2013¹ concluded that the changes introduced by that Regulation brought clear improvements. At the same time, it highlighted shortcomings that impact the effectiveness and efficiency of OLAF’s investigations. The proposal therefore contains a limited number of targeted changes, based on the most unambiguous evaluation findings. These are essential changes necessary in the short term to strengthen the framework for OLAF investigations.

As regards the conduct and effectiveness of investigations, the proposal seeks to:

- Provide more clarity on the application of national law or Union law in the conduct of on-the-spot checks and inspections. The General Court² has ruled that where the economic operator concerned does not oppose such a check, Union law alone is applicable. The Regulation codifies this case law. Only where OLAF needs the assistance of national authorities to overcome opposition, this assistance would be provided in accordance with national rules.

- The same article is also amended to ensure that on-the-spot checks and inspections are available to OLAF in all areas of its mandate, including investigations in the field of VAT.

- The proposal also improves the admissibility of evidence collected by OLAF in national non-criminal proceedings.

- It also regulates the transmission to OLAF of bank account information through the national competent authorities or the Financial Intelligence Units, as part of their general duty to assist the Office.

Estimated savings and benefits

It is very difficult to measure the direct financial impact of the revised OLAF Regulation and of the estimated savings/benefits brought by the new legal framework. However, the overall purpose of the proposal was to strengthen the protection of the Union's financial interests by facilitating cooperation with the EPPO and making OLAF’s investigations more effective. The complementarity between the two bodies’ activities should help ensure no case of fraud goes undetected and to avoid duplication of efforts where possible. Therefore, the amendments to the Regulation will indirectly lead to savings through better fraud prevention and increased recovery of amounts unduly spent.

1 Report from the Commission to the European Parliament and the Council, Evaluation of the application of Regulation (EU, EURATOM) No 883/2013 of the European Parliament and of the Council of 11 September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF), COM(2017) 589 final.

2 In Case T-48/16, Sigma Orionis SA/Commission, paragraphs 73-118.

The Regulation establishes that the two bodies will work in close cooperation but within their respective mandates, powers and competences, ensuring complementarity and non-duplication. On 1 June 2021, the EPPO began its operations. On 5 July 2021, the Director-General of OLAF and the European Chief Prosecutor signed the working arrangement between the two Offices. This working arrangement governs all topics concerning the operational relationship between OLAF and EPPO.