Funds embezzlement within the European communities budgets

• Author: Ionut Casuneanu
• Position: Legal adviser
• Pages: 44-48

44

FUNDS EMBEZZLEMENT WITHIN THE EUROPEAN

COMMUNITIES BUDGETS

Legal adviser Ionut Casuneanu

Abstract:

Regarding the financial interests of the community when it comes to costs,

changing the funds destination means to use them, even if they are legally obtained,

otherwise than their initial destination.

To commit a fraud regarding the financial interests of the community means

to change the funds destination which is obtained legally and as a result to

unlawfully get profits and in the same time the community budget diminishes.

For embezzlement, the material element is the action to change the

destination of the funds and to use them otherwise than initially agreed. It is not

compulsory in this case that the funds are legally obtained as in the case of

changing the destination of the profits.

Key words: embezzlement, budget, European communities.

1. Embezzlement of the funds

Regarding the financial interests of the community when it comes to costs,

changing the funds destination means to use them, even if they are legally obtained,

otherwise than their initial destination.70

In Greece and Ireland, the fraud committed by changing the destination of the

funds appears in the legislation, following the ratification of the PIF Convention

and keeping its provisions.

In Belgium, Germany, Portugal and Finland, the changing of the funds

destination is a form of fraud which appears in special laws or dispositions in the

Criminal Code regarding fraud in the field of aids and subventions. In all these

countries changing the funds destination which is neither aids nor subventions falls

under the criminal law if we have all the constitutive elements for abuse of trust.

Moreover, art. 37 from the legislative decree in Portugal no. 28/84 limit the

implementation of the criminal provisions only for aids and subventions given to a

company for its development. Chapter 29(5) in the Criminal Law in Finland does

not incriminate fraud when it comes to the financial aid given for personal use.

In Criminal Codes from Austria71, Denmark72, Germany73, Italy74

Luxembourg75, Spain76, Sweden77 changing the funds destination falls under

70 Explanatory report of the Convention, PIF, JOCE no. C 191 from June 23rd 1997.