Corruption is affecting every member state in the European Union and costing the bloc €120 billion a year, according to the first-ever EU Anti-Corruption Report, released this week by the European Commission.

While the 28 member states have undertaken recent anti-corruption measures, results vary widely due to factors like unaddressed systemic issues, less than vigorous enforcement, and a lack of political will in some cases to tackle the problem, the report said.

“Corruption undermines citizens' confidence in democratic institutions and the rule of law, it hurts the European economy and deprives states from much-needed tax revenue,” Home Affairs Commissioner Cecilia Malmström said in a statement. “Member states have done a lot in recent years to fight corruption, but today's report shows that it is far from enough. The report suggests what can be done, and I look forward to working with member states to follow it up.”

Commission officials hope the report will serve as a starting point for debate among the commission, European Parliament, and member states about anti-corruption measures. That doesn't necessarily mean new directives will be in the offing. In the report, the commission noted that there can be no one-size-fits-all solution for fighting corruption, and that many issues are “solely national competencies.”

A Eurobarometer survey released in conjunction with the report showed that 76 percent of Europeans polled believe corruption is widespread in their country, and 56 percent believe the extent of corruption has grown over the past three years. One in twelve of those polled said they either experienced or witnessed a case of corruption in the past year.

The 41-page report includes a critique of individual member states, detailing what they are doing right and what could be improved.

In the United Kingdom, only 5 out of the 1,115 citizens polled reported being expected to pay a bribe in the past year, which was the lowest rate in all of the EU. The report praised the U.K.'s efforts in combating foreign bribery by corporations, but suggested further efforts were needed in the defense sector. It also said more transparency is needed in out-of-court settlements of corruption cases, as well as more accountability for the governance of banks.

Other countries performing well, according to the report, included Denmark, Finland, Luxembourg, and Sweden, which all had low perceptions of corruption as well as low rates of respondents who had personally experienced corruption. Germany, the Netherlands, Belgium, Estonia, and France also had low instances of personal exposure to corruption, but those countries had higher perceptions that corruption is widespread.

Hungary, Poland, and Slovakia had higher rates of people who were expected to pay bribes in the past year, including 15 percent of respondents in Poland. Most of these revolved around the healthcare sector. In Spain, 63 percent of those polled said they are affected by corruption in their everyday lives, the highest percentage in the EU and much higher than the EU average of 26 percent.

Greece and Italy were the countries with the highest rates of perceived corruption, with 99 percent and 97 percent respectively reporting that corruption is widespread in their country. The report noted that public procurement is a particular area of risk in Greece, and said the country's anti-corruption framework is overly complex and ineffective. As for Italy, the report praised the passage of the country's anti-corruption law in 2012, but said corruption remains “a serious challenge.” Better efforts in preventing corruption in the private sector and public procurement are needed, as well as stronger ethical codes and accountability tools for government officials. Statute of limitations laws also should be revised in Italy.

Some trends found across the EU included ineffective prevention policies, weak or uncoordinated internal controls within public authorities, insufficient means of checking conflicts of interest, and ineffective sanctions for rule violations. The report found that the EU's framework on fighting corruption in the private sector has been implemented unevenly. Also uneven throughout the bloc is the effectiveness of law enforcement and prosecution of corruption cases. Some member states have “outstanding” results in prosecuting corruption cases, while others have very few successful prosecutions.

Overall, risks of corruption are higher at local and regional levels. Sectors particularly vulnerable to corruption are urban development, construction, and health care, the report said. In some member states, state-owned companies lack effective supervision.

Anti-corruption watch dog Transparency International said the EU report highlights the need for greater efforts to combat problems with conflicts of interest, public contracts, party financing, and revolving doors between public and private sector.

“Corruption crosses borders and is a threat to the integrity of the single market,” Carl Dolan, director of TI's EU office, said in a statement. “For these reasons, Europe needs coordinated action to tackle the failings identified in the report, such as EU legislation on whistleblower protection.”

The group said the report, which was initially scheduled for publication in June of last year, lacked specific recommendations in the area of whistleblowing laws, lobbying, and access to information. TI called on EU officials to follow the report with concrete action when ministers meet in March, but called the report an important first step in the collective attempt to boost anti-corruption efforts throughout the bloc.

The European Commission plans to release future anti-corruption reports every two years.

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