The Economic Cost of Corruption in Europe

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The European Parliament commissioned RAND Europe to conduct an econometric analysis to estimate the potential harm of corruption on the EU and its member states. The results have just been published in “The Cost of Non-Europe in the area of Organised Crime and Corruption”.

What are the economic, social and political costs of corruption in the EU? What are the gaps and barriers in the existing regulatory framework that hinder the effectiveness of measures to combat corruption in the EU? What potential is there for action at EU level that might add value and address the challenges identified?

In order to answer to those research questions, the research paper uses a mix of methodologies to quantify the overall costs of corruption in the EU in economic, social and political terms.

The study’s key findings show:

-Corruption costs the EU between €179bn and €990bn in GDP terms on an annual basis.
-Corruption in the EU has significant social costs and political costs.
-The cost of corruption risk in EU public procurement is around €5bn per year.

Download “The Cost of Non- Europe in the area of Organised Crime and Corruption” research paper here.