The European Union’s long-anticipated Anti-Corruption Directive is at a critical impasse, raising the stakes for the incoming Danish Presidency of the Council of the EU. After months of negotiations among the European Parliament, the Council, and the European Commission, trilogue talks have repeatedly stalled, exposing deep divisions among member states over the scope and strength of the proposed legislation. With Denmark set to take over the Council presidency on July 1, 2025, expectations are mounting for a breakthrough that could define the EU’s commitment to tackling corruption at a time when public trust in institutions is waning.
The Directive’s Ambitious Goals and Legal Framework
The proposed Anti-Corruption Directive, first introduced by the European Commission in May 2023, aims to modernize and harmonize the EU’s fragmented legal framework on corruption. Currently, corruption in the EU is governed by separate instruments: a 1997 convention against bribery of officials and a 2003 legal act addressing corruption in the private sector. The new directive seeks to consolidate these into a single, comprehensive legal instrument that sets minimum standards across all member states.
Key provisions include harmonized definitions of corruption offenses, preventive measures, and enhanced rules for investigation and prosecution. The directive also proposes lifting immunity for high-ranking officials in serious corruption cases, imposing significant fines on companies involved in corrupt practices—ranging from 5% to 10% of global turnover—and supporting Deferred Prosecution Agreements to encourage corporate compliance.
The European Parliament’s Committee on Civil Liberties, Justice and Home Affairs (LIBE) has been particularly active in shaping the directive, advocating for broader definitions of persons of interest to include any individual entrusted with public tasks, including EU Commissioners and Members of the European Parliament. The committee also stresses the importance of national anti-corruption strategies and victim rights, pushing for more specific sanctions and procedural guarantees.
Political Roadblocks and Member State Divisions
Despite the directive’s broad support, negotiations have been hampered by resistance from several member states, notably Germany, Austria, Hungary, and Italy. Austria, for example, while welcoming EU-level anti-corruption measures, insists on preserving constitutional provisions such as parliamentary immunity and calls for improvements in criminal and statute of limitations provisions. This reflects a broader tension between harmonizing EU-wide standards and respecting national legal traditions.
Hungary’s role has been particularly controversial. The European Parliament postponed trilogue negotiations until the Polish Presidency began in January 2025, citing concerns about Hungary’s credibility.
Lead rapporteur Raquel García Hermida-Van Der Walle bluntly stated,
“This Hungarian government cannot be in the driver’s seat on the Anti-Corruption Directive. It would be like discussing the fences of the hen pen with the fox himself. The Fidesz government’s history of deteriorating the rule of law, widespread state corruption and cronyism, and lack of transparency severely undermines its credibility in leading negotiations on this Directive designed to strengthen anti-corruption measures in the EU.”
This pointed criticism underscores the political complexities that have stalled progress.
The Council’s general approach, approved in June 2024, emphasizes the institutional and administrative autonomy of member states, which some see as a concession that may weaken the directive’s effectiveness. The Council has also modified key articles, including those defining high-level officials and criminal offenses such as misappropriation and illicit enrichment.
The Urgency of Strong Anti-Corruption Measures
The EU faces mounting pressure to strengthen its anti-corruption framework amid growing public disillusionment and high-profile scandals involving member state governments. Transparency International EU estimates that corruption costs the European economy nearly €990 billion annually, undermining democratic institutions, distorting markets, and eroding citizens’ trust.
European Commissioner Michael McGrath, responsible for Justice and Consumers, has emphasized the EU’s commitment to tackling corruption as part of a broader internal security strategy. The Commission plans to develop the first EU-wide anti-corruption strategy, involving broad consultations with stakeholders. McGrath’s vision includes dismantling organized crime networks, disrupting criminal business models, and addressing money laundering and asset recovery.
The EU’s anti-corruption directive is seen as a cornerstone of this strategy, aiming to provide the legal tools necessary for effective prevention, investigation, and prosecution. However, the directive’s success depends on overcoming political resistance and achieving a strong, unified text.
The Danish Presidency’s Crucial Role
With the Danish Council Presidency beginning on July 1, 2025, expectations are high for renewed momentum in the stalled negotiations. Denmark has a reputation for transparency and good governance, which could help bridge divides and push for a more ambitious directive.
The Polish Presidency, which ended on June 30, 2025, was unable to finalize a joint text, with trilogue talks ending without agreement. According to reports, Austria and Germany remain key obstacles, alongside Hungary and Italy, reflecting divergent national interests and legal traditions.
The Danish Presidency faces the challenge of balancing respect for member states’ sovereignty with the imperative to deliver a directive that meaningfully strengthens the EU’s anti-corruption framework. Success would not only enhance legal coherence but also restore public confidence in the EU’s capacity to uphold the rule of law.
Broader Implications for EU Governance and Security
Corruption is not merely a legal issue but a fundamental threat to the EU’s democratic values and security. Organized crime networks often exploit corruption to infiltrate public institutions and influence decision-making. The EU’s Internal Security Strategy, unveiled in April 2025, highlights the need for robust legal frameworks to combat these threats.
The directive also aligns with international standards, incorporating provisions from the United Nations Convention against Corruption and other global instruments. By harmonizing laws and enhancing cooperation, the EU aims to close loopholes that criminals exploit across borders.
Failure to adopt a strong directive risks perpetuating uneven enforcement and undermining the EU’s credibility on the global stage. It could also embolden corrupt actors within member states, further eroding democratic governance.
The stalled negotiations on the EU Anti-Corruption Directive represent a critical juncture for the European Union. The incoming Danish Presidency has a unique opportunity to break the deadlock and deliver a directive that sets clear, enforceable standards across all member states. As Raquel García Hermida-Van Der Walle warned, allowing governments with poor records on rule of law to lead these talks risks undermining the entire process.
The directive’s adoption would mark a significant step forward in the EU’s fight against corruption, enhancing transparency, accountability, and justice. It would also send a powerful message that the EU is committed to protecting its democratic institutions and citizens from the corrosive effects of corruption.
As the EU grapples with internal divisions and external challenges, the success or failure of these negotiations will shape its governance and security landscape for years to come. The Danish Presidency’s leadership will be pivotal in ensuring that the EU lives up to its promise of integrity and the rule of laws.
