Cyprus Prioritises EU Anti-Fraud Reform Amid New OLAF Leadership

Cyprus has signalled a coordinated approach to safeguarding European Union finances, launching its anti-fraud agenda by hosting the inaugural meeting of the Working Party on Combating Fraud in Brussels. The gathering, held during the nation’s Council Presidency, marked the first session chaired by Cypriot officials and welcomed the new leadership of the European Anti-Fraud Office (OLAF).

Background and Context

According to a statement from the Cypriot general accounting office, the meeting highlighted the necessity of political will and institutional coherence to protect the Union’s budget. The Presidency emphasised that effective financial management is inextricably linked to the credibility of EU institutions and public trust. This initiative aligns with the Presidency’s motto, ‘An Autonomous Union, open to the world,’ aiming to foster closer cooperation between Member States and European bodies.

Key Figures and Entities

The session was chaired by the director of the Directorate of Financial Control of European Funds, setting the tone for Cyprus’ six-month term. A key attendee was Petr Klement, attending for the first time in his new capacity as Director-General of OLAF. Klement called for enhanced collaboration between Member States and his office, while placing particular emphasis on strengthening operational ties with the European Public Prosecutor’s Office (EPPO).

Legal and Financial Mechanisms

Discussions focused on several critical legislative and regulatory frameworks. Delegations examined the European Court of Auditors’ Special Report 26/2025, which reviews the efficacy of EU bodies in combating fraud, with a specific focus on improving information exchange. Furthermore, the Presidency introduced its first compromise text on the proposed Pericles V programme for 2028–2034. This programme is designed to support training and assistance to protect the euro against counterfeiting, a file welcomed by the European Commission despite substantive comments from a limited number of Member States. Klement also noted the upcoming evaluation of the OLAF Regulation due by June 2026, identifying it as a pivotal moment to remove legal obstacles to data sharing between OLAF, the EPPO, and Europol.

International Implications and Policy Response

The meeting also addressed the broader Single Market and Customs Programme, stressing the need for coordination between various Council working groups. The consensus points to a systemic need for better follow-up on fraud cases at the European level. By prioritising these issues, Cyprus aims to establish a results-focused framework that addresses current regulatory blind spots and enhances the overall resilience of the EU’s financial oversight mechanisms.

Sources

This report draws on statements from the Cypriot general accounting office and official information regarding the activities of the European Anti-Fraud Office, the European Public Prosecutor’s Office, and the European Court of Auditors.