The Role of OLAF and EPPO in the Western Balkans: Combating Fraud Ahead of EU Membership

This project is financed with the contribution of the Ministry of Foreign Affairs and International Cooperation of the Italian Republic. The content of this document represents the views of its authors and in no way represents the position of the Ministry of Foreign Affairs and International Cooperation.

Despite having an EU perspective since 2003, the Western Balkans continues to face persistent corruption-related challenges, underscoring the need for stronger oversight mechanisms. As reflected in the 2024 Corruption Perceptions Index, Montenegro ranks as the least corrupt country among the Western Balkans Six (WB6) at 65^th place globally, followed by Kosovo (73), Albania (80), North Macedonia (88), Serbia (105), and Bosnia and Herzegovina (114), which ranks the lowest. Although some countries have registered modest improvements in recent years[1], others still struggle with long-standing problems such as weak institutions, limited oversight, and poor governance practices. These issues continue to slow institutional development and undermine public trust. These risks are not just abstract. The tragic canopy collapse in Novi Sad on 1 November 2024 further highlighted the consequences of unchecked corruption, weak procurement oversight, and misuse of funds. As the WB6 advance on their path toward EU membership, in particular Montenegro and Albania as frontrunners, the urgency of strengthening cooperation with European anti-fraud bodies becomes increasingly important.  Against this backdrop, this paper seeks to assess the current state of cooperation between the WB6 and the European Anti-Fraud Office (OLAF) and the European Public Prosecutor’s Office (EPPO).

Although the role of these institutions is essential in safeguarding EU financial interests, their work remains largely unknown in the region and even underexplored in the existing analyses. Accordingly, and in line with the ongoing attempts to gradually integrate the region with the EU even before membership, the paper examines both the extent of existing engagement between these bodies and regional authorities and the prospects for its further enhancement. The research drew on an in-depth review of publicly available reports and documents, complemented by interviews with representatives of OLAF and the EPPO, as well as Western Balkan officials working in the area of anti-corruption. This multilayered approach ensured a comprehensive, evidence-based analysis that informed the development of policy recommendations intended to guide key stakeholders and raise awareness among the wider public. The basic argument is that deeper engagement with the OLAF and the EPPO is essential, not only to protect EU financial interests but also to reinforce the rule of law and enhance public confidence in these countries as they prepare to assume obligations of EU membership.

[1] Montenegro, Kosovo, Bosnia and Herzegovina