Italian Investigators Uncover Large-Scale Fraud Involving EU Subsidies

Italian investigators have discovered a large-scale fraud involving EU subsidy funds. In a coordinated operation with authorities from Austria, Romania, and Slovakia, 22 individuals were arrested and assets worth approximately 600 million euros were seized. The group is suspected of illicitly obtaining funds through a network of fictitious companies from the EU-financed Next Generation EU recovery program. The criminal organization aimed to apply for subsidies from the Italian National Economic Recovery Plan (PNRR) for various projects. The suspects are alleged to have used front men and laundered the received money.

The Venice Financial Police, acting on a request from the European Public Prosecutor's Office, led the operation. Assets worth over 600 million euros were frozen by court order. While eight individuals were taken into custody, 14 others are under house arrest. Two people were additionally subjected to a professional and business ban. Several suspects have a prior criminal history.

The Next Generation EU Recovery Program, totaling more than 800 billion euros, aims to provide financial support to EU member states after the coronavirus crisis. Italy, one of the countries most affected by the pandemic, is expected to receive the largest individual sum of nearly 200 billion euros. Germany can expect an allocation of 28 billion euros. To receive the funds, member states must submit detailed plans with investment and reform projects.