The Cost of Non-Europe in the area of Organised Crime and Corruption

Corruption is a phenomenon with significant negative consequences for the EU and its Member States. This research paper uses a mix of methodologies to quantify the overall costs of corruption in the EU in economic, social and political terms. The findings, based on new analysis, suggest that corruption costs the EU between €179bn and €990bn in GDP terms on an annual basis. Current anti-corruption measures relevant to Member States and the EU as a whole are described and their effectiveness in reducing the levels of, and opportunities for, corruption are assessed. Eight potential areas for EU action are identified that might address the barriers to the effectiveness of current measures. The costs of non-Europe are calculated in relation to two of these, as well as in relation to the implementation of recently created EU laws. 1 Wouter van Ballegooij, Thomas Zandstra, Organised Crime and Corruption: Cost of Non-Europe Report, PE 558.779, European Added Value Unit, March 2016. Annex II: Corruption PE 579.319 3 AUTHORS This study has been written by Marco Hafner, Jirka Taylor, Emma Disley, Sonja Thebes, Matteo Barberi and Martin Stepanek at RAND Europe and by Professor Mike Levi at the request of the European Added Value Unit of the Directorate for Impact Assessment and European Added Value within the Directorate General for Parliamentary Research Services (DG EPRS) of the General Secretariat of the European Parliament. This report has been peer-reviewed in accordance with RAND’s quality assurance standards. RESPONSIBLE ADMINISTRATORS Wouter van Ballegooij and Thomas Zandstra, European Added Value Unit To contact the Unit, please email: EPRS-EuropeanAddedValue@ep.europa.eu LINGUISTIC VERSIONS Original: EN DISCLAIMER The opinions expressed in this document are the sole responsibility of the author and do not necessarily represent the official position of the European Parliament. Reproduction and translation for non-commercial purposes are authorised, provided the source is acknowledged and the publisher is given prior notice and sent a copy. Manuscript completed in March 2016. Brussels © European Union, 2016. PE 579.319 ISBN 978-92-823-8873-0 doi:10.2861/369191 QA-04-16-192-EN-N The Cost of Non-Europe in the area of Organised Crime and Corruption PE 579.319 4 Table of

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