Corruption impacts every sector, but some areas are particularly vulnerable, especially those handling large public funds or delivering essential services like healthcare. To better understand these vulnerabilities, the European Commission released the study “High-risk Areas of Corruption in EU Member States: A Mapping and In-Depth Analysis” (https://op.europa.eu/fr/publication-detail/-/publication/5c0730b2-9769-11ef-a130-01aa75ed71a1/language-en) on November 4, 2024. Launched in 2023, the study highlights six key sectors facing high corruption risks, examining the reasons for these risks and offering insights into how corruption damages critical systems.

The study’s findings highlight six specific areas—healthcare, finance, public procurement, defence and security, construction and infrastructure, and sports. Corruption in these areas not only undermines service quality and trust but also often involves cross-border elements that call for coordinated EU action. The findings of the study were a major point of discussion at the 2nd plenary meeting of the EU Network Against Corruption on October 3, 2024.

The study’s results also align with the EU’s 2023 Joint Communication on the fight against corruption, emphasizing that this research will inform the EU’s first full anti-corruption strategy.  A follow-up study will investigate actions that mitigate corruption in these high-risk areas.

Which sectors are most at risk, and what are the specific threats?

The study outlines six high-risk sectors in detail, each facing unique challenges that require tailored anti-corruption strategies:

Public Procurement: Why is it so vulnerable?

Public procurement—where governments spend on goods and services—makes up around 14% of the EU’s gross domestic product (GDP), with expenditures of over EUR 2 trillion each year. The large amounts of money, combined with complex and often opaque processes, make this sector a prime target for corruption. Here, common forms of corruption include bribery, collusion, and embezzlement. Corruption in public procurement not only diverts funds from their intended uses but can also lead to inflated costs, poor service quality, and weakened public trust. Improving transparency and enhancing oversight mechanisms are vital to reducing corruption in this sector.

How does corruption affect healthcare in the EU?

Healthcare is a vital sector, and corruption here can have direct consequences on public health and safety. With significant budgets, multi-layered supply chains, and a mix of public and private players, the sector faces risks that include fraudulent billing, conflicts of interest, and favouritism. The financial impact of healthcare-related corruption in the EU is estimated at up to EUR 56 billion each year. As healthcare access is often a matter of life and death, these vulnerabilities create serious risks for patients. Tackling healthcare corruption requires strengthening regulatory frameworks and improving transparency to safeguard both resources and patient outcomes.

What makes the financial sector so attractive for corrupt practices?

The financial sector, encompassing banking, insurance, and investments, is a cornerstone of the EU’s economy. However, it also harbours considerable corruption risks, including money laundering, tax evasion, and links to organized crime. Corruption in this sector often crosses borders, as criminal groups exploit jurisdictional differences to launder money or evade taxes. Such activities are estimated to cost the EU up to EUR 1 trillion annually. Addressing corruption here calls for coordinated regulatory responses across Member States, with robust measures to counter tax fraud and financial crime.

Why is the defence and security sector at such high risk?

Increased defence spending in response to EU security demands has made the sector more vulnerable to corruption. The high level of secrecy, significant funding, and involvement of both national and international supply chains all contribute to risks such as bribery, arms sales corruption, and the misuse of procurement funds. Corruption within the defence sector affects national security, while the sector’s opacity makes tracing and combating corruption challenging. Addressing these issues requires establishing clearer accountability standards and promoting transparency in defence-related spending.

How does corruption impact construction and infrastructure?

The construction and infrastructure sector is essential to economic growth, but its projects are often susceptible to corruption due to high value, complex procurement processes, and extensive timelines. Common practices include bid-rigging, use of substandard materials, and bribery, leading to costly projects and compromised safety standards. Corruption in this area not only raises costs but can also jeopardize public safety when corners are cut on safety requirements or materials. With the sector contributing approximately 5% to the EU’s total gross value added, reforms to improve oversight and regulatory compliance are essential to safeguard public resources.

How widespread is corruption in sports, and what are its effects?

Sports corruption in the EU is particularly evident in betting and match-fixing schemes, with football and tennis being prime targets for illicit activities. Corruption in this area not only damages the integrity of sports but also exploits players, fans, and communities, particularly through illegal betting networks. Match-fixing and other corrupt practices not only erode public trust in sports but also involve complex international crime networks. Addressing these issues requires coordinated efforts across borders, with enhanced regulatory frameworks that address sports betting, match-fixing, and associated financial crimes.

What is the Path Forward for Tackling Corruption in High-Risk Sectors?

The study’s conclusions stress the need for a strategic, multifaceted approach to effectively address corruption in these six sectors. Suggested actions include enhancing transparency, improving regulatory collaboration across borders, and bolstering enforcement capabilities to counter complex, evolving corruption risks. By implementing a robust anti-corruption framework across the EU, Member States can work together to protect public resources, enhance service quality, and rebuild trust in public institutions.

These findings will inform the EU’s forthcoming anti-corruption strategy, which will focus on prevention, enforcement, and accountability. Prioritizing these high-risk sectors offers an opportunity to mitigate the extensive impacts of corruption, fostering a safer, more transparent, and fair society for all Europeans.

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