No structure, framework or roadmap to fight Corruption in the EU
Corruption is a complex occurrence in the corporate world with economic, collective, cultural and political dimensions and consequences. Without an effective policy response, it cannot be reduced or simply eliminated. There is no ‘one size fits all’ solution. Past and future newsletters will continue to focus on the most relevant BFC issues, in a business context.
Let's first consider a few key weaknesses of any anti-corruption structure and effective public governance.
- Lack of transparency in public expenditures
- Lack of disclosure of assets by public officials
- Lack of qualified public administrators
- Lack of legal frameworks to implement anti-corruption laws.
The above concerns do not belong to Asian and African countries, at the bottom of the annual corruption perception index. These fundamental corruption and governance flaws on the European Commission are in the first report on the state of anti-corruption programs across the EU. The report's broader themes are universal: political instability, lack of transparency, poor public administration, and weak rule of law.
To acknowledge the fundamental gaps in how Europeans and Americans see corruption and how to address its threats, look at the EU information to understand business conditions in Europe. The cultural differences will explain how US and European compliance and audit executives want to know the different challenges the countries face. After all facilitation payments to foreign officials are permitted under the US FCPA jurisdiction, but prohibited by the EU directives or the UKBA.
The report does not specify concrete areas where people want to pay bribes, or wish to take bribes, and like the western world, most people in almost any country dislike participating in corruption. But when weak political institutions affect the wicked few to prosper, that is a roadmap that much of Europe still needs to develop. But without a BFC roadmap or a framework it will get the EU commission nowhere.
The report reviews many types of corruption, across all member states of the European Union. Become acquainted with the anti-corruption agencies in Latvia, Slovenia, or Catalonia, and how well they make their jobs in spite of the intricacies of European bureaucracy.
Details on how European Union is embracing its own version of the Foreign Corrupt Practices Act are covered briefly, but the report focuses more on the embedded cultures of political corruption in Europe. In other words, the US Foreign Corrupt Practices Act is not unknown to the corrupt practices in Europe.
Several countries in Western Europe or Scandinavia all boasts about rather strong ethical cultures. Scandinavian countries are often characterized to be role models for anti BFC measures for the rest of the world. The United Kingdom took a substantial step forward by passing the UK Bribery Act in 2010, even if prosecutions are still inadequate if companies do not have adequate procedures to combat bribery and corruption. German companies have learnt a lot from the Siemens scandal. Therefore, a good portion of Europe is making satisfactory progress against corruption.
The European Union is a union of sovereign states, making it difficult for EU-wide enforcement of anti-corruption efforts and understand what corruption risks actually are, and which political structures work best to prevent them.
Source: The Compliance Week, FT, The Economist.
European Commission first-ever report on the state of anti-corruption programs across the European Union.
