Slashdot Mirror
EU Commission: Corruption Across EU Costs €120 Billion
cold fjord writes with news that the EU has completed its first report on corruption in member states, and the results aren't looking too good. From the article: "'The extent of corruption in Europe is 'breathtaking' and it costs the EU economy at least 120bn euros (£99bn) annually, the European Commission says. EU Home Affairs Commissioner Cecilia Malmstroem has presented a full report on the problem. She said the true cost of corruption was 'probably much higher' than € 120bn. Three-quarters of Europeans surveyed for the Commission study said that corruption was widespread, and more than half said the level had increased. 'The extent of the problem in Europe is breathtaking, although Sweden is among the countries with the least problems,' Ms Malmstroem wrote in Sweden's Goeteborgs-Posten daily. The cost to the EU economy is equivalent to the bloc's annual budget. For the report the Commission studied corruption in all 28 EU member states. The Commission says it is the first time it has done such a survey. "
120 billion euro? Internets, you so funny.
To put things in perspective:
1. Estimates of just medicare/medicaid fraud in the US easily approach $100 billion. I'd bet those estimates are conservative.
2. Medicare/medicaid spending is only about a fifth of the US budget. (That doesn't necessarily mean that total US fraud is 5 times the above figure, but suggests it's much larger than $100B.).
3. The Eurozone's GDP is about equal to (slightly larger than) that of the US.
Put it all together, and tell me with a straight face that fraud in the Eurozone is 120 billion euro (about $160 billion). Keep in mind that for every Sweden there's an Italy.
Yeah, it's "probably" much higher, like the Broncos "probably" lost.
The website was made by a company that was contracted under the bush administration to do general IT service work for the government. They did a piss poor job at substantial expense, to be sure, but it was not a no-bid contract - they were one of four eligible companies which bid on the contract for the website.
The no-bid and Michelle Obama nonsense is parroted by people who consume right wing news (propaganda) and mistakenly believe it to be true.
It all depends on how you measure corruption. The study seems to have measured how many Europeans have come into direct contact with corruption, i,e, offering or being offered a bribe. My country (the Netherlands) scores quite well on that score; no need to pay of anyone at city hall unless you want to get something done in real estate or construction. Bribery is so uncommon here that the vast majority of people never suspect that a bribe is asked for when their request is turned down. But below the surface, where most ordinary citizens don't venture, it exists. Some have compared the nature and level of corruption here to that of Japan.
The study does lighlight such factors, and as far as I know Sweden also has a lot less of this hidden corruption compared to NL. Not because they are a nanny state, but because of functional transparency laws. In the Netherlands, comparatively few people bother to check on their government, and when they do, they find transparency laws that are ranked amongst the worst in the world. Corrpution exists where it is profitable, undetected or unpunished. In that light, I shudder to think about what we can find in the EU offices themselves...
If construction was anything like programming, an incorrectly fitted lock would bring down the entire building...
But it's not a constant, it's changing over time. Many of the Eastern European nations have seen healthy declines in corruption towards the Western European and Scandinavian standards which is my point. There are still problem countries i.e. Greece and Italy but the financial crisis brought those glaring exceptions to the forefront of scrutiny such that even they can no longer get away with it and are being forced to deal with it.
Income differences are continuously decreasing too as new entrants become more prosperous over time from having their cheap starting base opened up to the demands of the wealthier nations creating jobs.
It isn't going to happen overnight, but it most definitely is happening. It's not like things are stagnant, it's not as if all EU nations are in the same place they were when they joined and nothing has improved or changed, that view is very much wrong.