Financial Security: EU Deploys “The Triad” Against Tax Evasion

New rules to break down bureaucratic barriers and strike the criminal networks siphoning billions from European citizens.

The European Commission has introduced a critical legislative proposal to safeguard public budgets: an unprecedented strengthening of the partnership between the European Public Prosecutor’s Office (EPPO), the European Anti-Fraud Office (OLAF), and the Eurofisc network. The goal is to establish direct and centralized access to VAT data, eliminating the delays caused by fragmented national investigations.

Economic Impact: Estimated losses from Missing Trader Intra-Community (MTIC) fraud range between €12.5 billion and €32.8 billion annually. This massive sum currently funds organized crime instead of supporting essential public services.

Why Is This Reform Necessary?

Until now, EPPO and OLAF operated through bilateral agreements with individual states. However, modern fraud is cross-border by nature, exploiting communication lags between different jurisdictions. Under the new proposal, these agencies will have a direct line to Eurofisc, enabling rapid intervention and a comprehensive, EU-wide perspective.

Operation “Admiral”

€2.9 Billion

The largest VAT fraud ever investigated in the EU.

Operation “Midas”

€195 Million

Recovered in an investigation spanning 17 countries.

Fraudster Tactics: Carousel Fraud and Customs Abuse

The EU’s action aims to dismantle two primary schemes:

Missing Trader (MTIC): “Ghost” companies that purchase VAT-free goods from other EU countries, sell them on the domestic market while collecting tax, and then vanish without remitting a single cent to the authorities.
Abuse of Customs Procedure 42: A scheme that exploits simplified import procedures. Goods enter the EU tax-free under the pretext of being shipped to another Member State, but are instead sold on the local black market.

Operation “Calypso”

A prime example of cooperation: OLAF and EPPO joined forces against a criminal network flooding Europe with Chinese imports. The result? €700 million in potential losses were uncovered, with €450 million linked specifically to unpaid VAT.

The proposal will now be reviewed by the European Parliament and the Council. If approved, it will mark a decisive step toward a fairer single market where honest businesses no longer have to compete with those playing outside the rules.