Author: Ilaria Sticchi
Committee: Academic Committee
Date: 06/03/2026
Italy has emerged as the central theatre in Europe’s fight against fraud against the EU budget, according to the 2025 Annual Report of the European Public Prosecutor’s Office (EPPO), published on 2nd March 2026.
With nearly 1,000 active investigations and an estimated €28.71 billion in financial damage under scrutiny, Italy accounts for the largest share of EPPO’s caseload across participating Member States.
A Record Year for EU Prosecutions
Across Europe, EPPO closed 2025 with 3,602 active cases, representing an estimated €67.27 billion in damage to EU financial interests. Revenue fraud — primarily VAT and customs schemes — continues to dominate investigations, making up more than two-thirds of the total estimated damage.
The office opened 2,030 new investigations in 2025, a 35% increase compared to the previous year, and filed 275 indictments before national courts. The conviction rate over the last two years stands close to 95%, underscoring the growing effectiveness of the EU’s first transnational prosecution office.
But it is Italy that stands out.
Italy: The Largest Caseload in the EU
Italian authorities working under EPPO supervision handled:
- 991 active cases
- 792 crime reports received in 2025 alone
- 635 new investigations opened during the year
- 310 indictments filed before Italian courts
No other Member State reported comparable volumes.
The figures reflect both Italy’s significant exposure to EU funds and its structural vulnerability to complex fraud schemes — particularly those involving organised criminal networks operating across borders.
VAT Fraud and Organised Crime
Of the €28.71 billion in estimated damage under investigation in Italy, €25.83 billion relates to revenue fraud, especially large-scale VAT carousel schemes.
These cases often involve intricate cross-border operations, shell companies, and organised crime groups exploiting weaknesses in EU tax coordination.
Italy’s geographical and economic position makes it a strategic hub for such activities — but also a key operational base for EPPO’s crackdown.
Recovery Funds Under Scrutiny
A substantial share of Italian investigations concerns projects financed under the EU’s Recovery and Resilience Facility (RRF).
The report lists 331 active cases linked to recovery programmes, reflecting heightened oversight as Italy remains the largest beneficiary of post-pandemic EU funding.
Agricultural, regional development, and structural funds are also areas of significant investigative activity.
Courtroom Results and Asset Freezing
Judicial activity in Italy is accelerating.
- 279 cases are currently in the trial phase
- 29 final convictions were recorded
- 70 individuals were convicted
In 2025 alone, Italian courts granted €23.5 billion in freezing orders, while authorities effectively froze €370.65 million in assets.
The country deploys one of the largest EPPO teams in Europe, with 21 European Delegated Prosecutors and 49 dedicated investigators.
A Testing Ground for Europe’s Judicial Integration
Since becoming operational in 2021, EPPO has sought to prove that a supranational prosecution office can effectively dismantle cross-border financial crime.
In 2025, Italy has become the clearest demonstration of that ambition — and its challenges.
The sheer scale of investigations suggests that fraud against EU funds remains deeply embedded. At the same time, the rising number of indictments and asset seizures signals a more coordinated and assertive European response.
As EU funding flows continue and organised crime adapts, Italy will likely remain both a vulnerability and a laboratory for Europe’s evolving system of financial justice.