EPPO Croatia: Launches Urgent RRF Funds Abuse Probe

• The European Public Prosecutor's Office in Zagreb launched an investigation on October 29, 2026.
• The probe targets potential abuse of office involving funds from the EU's Recovery and Resilience Facility and Croatia's state budget.
• EPPO is coordinating with Croatia's USKOK, which is conducting parallel national measures.
• All investigative actions are being carried out by the National Police Office for Suppression of Corruption and Organised Crime (PNUSKOK).
• EPPO will announce further actions after questioning suspects, with all individuals presumed innocent until proven guilty.

This ongoing EPPO Croatia RRF funds abuse probe carries significant implications, particularly for entities in Croatia that have either received or are anticipating Recovery and Resilience Facility funds.

The European Public Prosecutor's Office (EPPO) in Zagreb, Croatia, initiated urgent evidentiary actions on October 29, 2026, as part of an ongoing investigation. This probe centers on potential abuse of office and authority, specifically concerning the utilization of funds from the European Union's Recovery and Resilience Facility (RRF) and the national budget of the Republic of Croatia. These immediate investigative steps underscore a concerted effort to address alleged financial irregularities within the country.

The EPPO's current activities are the result of coordinated efforts with Croatia's Office for the Suppression of Corruption and Organised Crime (USKOK). This collaboration highlights a dual approach to tackling corruption, with USKOK simultaneously conducting its own parallel measures as part of a distinct national inquiry. The involvement of both European and national bodies signals a comprehensive examination of the allegations.

All investigative measures related to this EPPO Croatia RRF funds abuse probe are being executed by the National Police Office for Suppression of Corruption and Organised Crime (PNUSKOK). This specialized police unit is responsible for carrying out the practical aspects of the inquiry, ensuring that all necessary evidence is gathered efficiently and effectively. The coordinated action between these agencies demonstrates a robust framework for addressing complex financial crimes.

Following the interrogation of the individuals identified as suspects in this case, the European Public Prosecutor's Office will make a determination regarding the subsequent actions to be taken. This decision will be publicly communicated in due course, ensuring transparency once the initial investigative phase is complete. Until that point, no additional specific details about the ongoing investigation will be released, adhering to standard legal protocols. It is crucial to remember that, in accordance with legal principles, all individuals involved are presumed innocent until their guilt is established in the competent Croatian courts of law.

The European Public Prosecutor's Office (EPPO) operates as the independent public prosecution body of the European Union, playing a critical role in safeguarding the bloc's financial integrity. Its core responsibility involves the investigation, prosecution, and bringing to judgment of criminal offenses that adversely affect the financial interests of the EU. This mandate empowers EPPO to act across member states, ensuring a unified approach to combating EU financial interests crime Croatia.

The current EPPO investigation in Croatia, focusing on the Recovery and Resilience Facility (RRF) funds, falls directly within this jurisdiction. The RRF represents a significant portion of EU funding allocated to member states for post-pandemic recovery and resilience building. Therefore, any alleged misuse or fraud related to these funds constitutes a direct threat to the EU's financial interests, making it a priority for the European Public Prosecutor's Office Croatia.

This ongoing EPPO Croatia RRF funds abuse probe carries significant implications, particularly for entities in Croatia that have either received or are anticipating Recovery and Resilience Facility funds. The investigation signals a heightened level of scrutiny over the allocation and expenditure of substantial EU financial aid, underscoring the critical need for robust compliance. This development should prompt a thorough review of internal controls and governance frameworks by all beneficiaries of such funding.

The coordinated efforts by the European Public Prosecutor's Office and national bodies like USKOK and PNUSKOK highlight a zero-tolerance approach to abuse of office or authority involving EU funds. Lawyers advising clients in Croatia should proactively guide them in strengthening transparency measures and ensuring strict adherence to regulatory requirements. Mitigating legal and reputational risks associated with potential Recovery and Resilience Facility fraud is paramount, as this investigation sets a precedent for rigorous oversight of EU investments across the region.

Lawyers advising entities in Croatia that have received or are planning to receive Recovery and Resilience Facility (RRF) funds should immediately review their clients' internal controls and compliance frameworks. This ongoing EPPO investigation signals heightened scrutiny over the use of EU funds, necessitating proactive measures to ensure transparency and prevent potential abuse of office or authority, thereby mitigating legal and reputational risks.

Source: Original reporting via EPPO press release