Corruption in EU Funds? Europe-wide evidence on the corruption effect of EU funded public contracting

Fazekas, M. and Tóth, I. J. (2015). Corruption in EU Funds? Europe-wide evidence on the corruption effect of EU funded public contracting. GTI-WP/2015:01, Budapest: Government Transparency Institute.

It is theoretically ambiguous and empirically contested whether EU Funds contribute to lower corruption and better governance or the opposite. Many recipient countries benefit to a substantial degree with allocations amounting to 2-4% of their annual GDP. A range of positive and negative cases has been uncovered by the European Commission, national governments and the media, however, there has been no Europe-wide quantitative evaluation looking at the micro-level, arguably where corruption takes place. …

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Are EU funds a corruption risk? – The impact of EU funds on grand corruption in Central and Eastern Europe

Fazekas, M., Chvalkovska, J., Skuhrovec, J., Tóth, I. J., King,  L. P. (2013). Are EU funds a corruption risk? – The impact of EU funds on grand corruption in Central and Eastern Europe. GTI-WP/2013:03, Budapest: Government Transparency Institute.

The paper explores the impact of EU funds on institutionalised grand corruption in public procurement between 2009-2012 in three countries: Czech Republic, Hungary, and Slovakia. We analyse a unique pooled database containing contract-level public procurement information for all three countries. We develop a composite corruption risks indicator based on the incidence and logical structure of ‘red flags’ in individual public procurement transactions. …

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The Political Economy of Grand Corruption in Public Procurement in the Construction Sector of Hungary

Fazekas, M. – Lukács, P. A. – Tóth, I. J.: The Political Economy of Grand Corruption in Public Procurement in the Construction Sector of Hungary. In: Alina Mungiu-Pippidi (ed.): Government Favouritism in Europe. The Anticorruption Report Vol. 3., Barbara Budrich Publishers. Opladen – Berlin – Toronto. 2015. pp. 53-68.

Bidding companies linked to political officeholders are more likely to win in procurement tenders overall in Hungary. The share of companies that are openly connected politically winning public procurement tenders in 2005-2012 was between 5% and 31% depending on how narrowly connections are defined. This significant association is stronger in the …

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Are EU Funds a Corruption Risk? The Impact of EU Funds on Grand Corruption in Central and Eastern Europe

Fazekas, M. – Chvalkovska, J. – Skuhrovec, J. – Tóth, I. J. – King, L. P.: Are EU Funds a Corruption Risk? The Impact of EU Funds on Grand Corruption in Central and Eastern Europe. In Alina Mungiu-Pippidi (ed.): The Anticorruption Frontline. The ANTICORRP Project Vol. 2., Barbara Budrich Publishers. Opladen – Berlin – Toronto. 2014. pp. 68-89.

There is an intensifying public debate about EU Structural and Cohesion Fund’s impact on government quality in recipient countries. We test the hypothesis that EU Funds increase high-level corruption in public procurement between 2009 and 2012 in Central and Eastern Europe (Czech …

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Hidden Depths. The Case of Hungary

Fazekas, M. – King, L. P. – Tóth, I. J.: Hidden Depths. The Case of Hungary. In: Alina Mungiu-Pippidi (ed.): Controlling Corruption in Europe. The Anticorruption Report Vol. 1., Barbara Budrich Publishers. Opladen – Berlin – Toronto. 2013. pp. 74-85.

This report investigates corruption risk of EU funds spending in Hungary within the framework of the Public Procurement Law. Its finding is that in spite of what is a tight regulatory framework EU funds are likely to fuel the abuse of public spending. Even though public procurement using EU funds faces considerably more stringent regulation, their use poses much greater …

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