Cypriot Member of the European Parliament (MEP) Fidias Panayiotou faces accusations of misusing EU funds allocated for a 2024 European election campaign event, prompting investigations by Cypriot authorities and the European Public Prosecutor’s Office (EPPO). The controversy centres on claims of overcharging for catering services at a Nicosia event, with Panayiotou denying wrongdoing and vowing to pursue legal action against detractors.
Key Developments in the Scandal
Greek City Times reporter Konstantinos Balafas detailed on 21 January 2026 that Fidias Panayiotou, the independent Cypriot MEP, is under scrutiny for the alleged misuse of European Parliament funds during his 2024 election campaign. The report highlights a specific event in Nicosia where catering services were reportedly overcharged, leading to complaints filed with both Cypriot police and the EPPO. Panayiotou has categorically rejected the allegations, labelling them as politically motivated attacks.
Cypriot authorities confirmed the initiation of a preliminary investigation into the matter, focusing on financial transactions linked to the event. The EPPO, responsible for probing fraud involving EU budgets, has also been notified, signalling potential cross-border implications. No arrests or formal charges have been announced as of the latest updates.
Event Details and Financial Irregularities
The controversy stems from a campaign event organised by Panayiotou’s team in Nicosia ahead of the June 2024 European Parliament elections. According to Konstantinos Balafas of Greek City Times, invoices for catering services exceeded standard market rates significantly, raising red flags about the legitimacy of expenditures claimed under EU funding provisions.
“The event, meant to showcase Panayiotou’s platform, now serves as the focal point of allegations that public funds were siphoned for personal or undue gain,”
Balafas wrote.
Panayiotou’s office submitted reimbursement requests to the European Parliament for costs associated with the gathering, which included food, beverages, and logistical arrangements. Sources close to the investigation, as cited in the Greek City Times article, indicate that discrepancies between quoted prices and actual service values prompted whistleblower complaints. The MEP’s rapid rise to prominence—garnering over 100,000 votes without a party backing—has amplified scrutiny on his financial practices.
Panayiotou’s Response and Defence
In a strongly worded statement, Fidias Panayiotou dismissed the accusations as “fabricated smears” orchestrated by political rivals envious of his independent success.
“I have always been transparent with my finances, and these claims are nothing but a desperate attempt to tarnish my reputation ahead of key parliamentary votes,”
Panayiotou declared, according to Greek City Times. He pledged full cooperation with investigators while announcing plans to file defamation lawsuits against those spreading the allegations.
Panayiotou, a 24-year-old YouTuber-turned-politician, emphasised his commitment to accountability. His team released documentation purporting to validate all expenditures, arguing that any pricing variances stemmed from premium services during peak demand. Supporters rallied online, portraying the MEP as a victim of establishment backlash against his anti-corruption stance.
Official Investigations Underway
Cypriot police have launched a formal probe, interviewing event organisers, caterers, and Panayiotou’s staff. The Auditor General’s office in Cyprus, often pivotal in public fund mismanagement cases, has been looped in to review compliance with national and EU procurement rules. Konstantinos Balafas noted that the EPPO’s involvement underscores the seriousness, as it handles cases exceeding €10,000 in potential misuse— a threshold this scandal appears to meet.
The European Parliament’s transparency register mandates strict reporting for campaign reimbursements, typically capped at €1.5 million per candidate. Violations can result in repayment demands, fines, or disqualification. Past cases, such as those involving other MEPs, have led to repayments exceeding hundreds of thousands of euros.
Timeline of Reported Events
- June 2024: Panayiotou’s Nicosia campaign event takes place, with catering invoices submitted for EU reimbursement.
- Late 2025: Whistleblower complaints surface, prompting initial reviews.
- January 2026: Cypriot police and EPPO receive formal dossiers; Panayiotou issues public denial.
Broader Context of EU Funds Scrutiny
This scandal unfolds amid heightened EU-wide vigilance on fund allocation, particularly post-2024 elections. The Recovery and Resilience Facility, alongside parliamentary budgets, has faced multiple audits revealing irregularities across member states. In Cyprus, prior probes into public procurement have implicated officials in sectors beyond politics.
Panayiotou’s profile adds intrigue: Elected as a political novice, he campaigned on disrupting Cyprus’s entrenched party system, drawing youth support via social media. Critics, including established parties like DISY and AKEL, have long questioned his preparedness for fiscal oversight roles.
“Panayiotou’s meteoric rise bypassed traditional vetting, leaving gaps in accountability,”
observed Konstantinos Balafas.
Reactions from Political Figures and Public
Cypriot opposition leaders called for swift justice, with AKEL’s Georgios Loukaides stating, “EU taxpayers deserve ironclad assurance that funds meant for democracy are not diverted.” Conversely, Panayiotou’s allies, including independent MPs, decried the timing as suspicious, coinciding with debates on EU digital policy where he holds sway.
Public sentiment in Cyprus remains polarised. Social media trends under #FidiasGate show supporters defending his outsider status, while detractors demand audits of all his expenses. Nicosia protests, though small, highlighted calls for MEP term limits.
Implications for Panayiotou’s Career
Should substantiated, the allegations could jeopardise Panayiotou’s re-election prospects in 2029 and influence his committee assignments. The EPPO’s track record—securing convictions in 40% of cases—poses real risks. Legal experts note that even if cleared, the reputational damage might linger.
Panayiotou plans a press conference in Brussels, vowing to
“expose the real culprits behind this witch hunt.”
His office reiterated that all records are public via the EU transparency portal.
EU Parliament’s Oversight Mechanisms
The European Parliament enforces rigorous controls, including pre-approval for events and post-hoc audits. In 2025 alone, it recovered €5.2 million from ineligible claims. Spokeswoman Olof Gill confirmed standard procedures apply, declining further comment on active probes.
Comparative Past Cases
| Case | MEP Involved | Allegation | Outcome |
|---|---|---|---|
| 2023 Latvian MEP | Tatjana Ždanoka | Overclaimed travel | Repaid €45,000; warning issued |
| 2024 Greek MEP | Nikolas Farantouris | Event misuse | Fined €20,000; suspended |
| 2025 Maltese MEP | David Casa (cleared) | Procurement query | Investigation dropped [ context] |
International Media Coverage
While Greek City Times broke much of the detail, Cypriot outlets like Phileleftheros and Politis echoed the claims, attributing initial leaks to parliamentary insiders. No major international wires like Reuters have corroborated yet, but monitoring continues.
In Greece, coverage framed it as a Cyprus-EU tension point, with Kathimerini noting,
“Panayiotou’s case tests the bloc’s anti-fraud resolve.”
Ongoing Developments and Next Steps
Investigators anticipate witness testimonies within weeks, with EPPO potentially escalating to full indictment. Panayiotou’s legal team prepares countersuits, targeting anonymous sources.
This story, emblematic of rising populism versus institutional trust, will shape discourse on EU accountability. As Cyprus navigates its EU role, the outcome could set precedents for non-party MEPs.
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