A sprawling corruption scandal involving Greece’s misuse of European Union agricultural funds is set to cast a long shadow over the European Parliament’s upcoming decision on the discharge of the European Commission’s budget. This high-profile case, which has already triggered political upheaval in Greece and exposed systemic weaknesses in the management of EU subsidies, is drawing sharp scrutiny from Members of the European Parliament (MEPs) and EU institutions alike.
The “Fake Farmer” Fraud Scheme: A Crisis Unfolding
At the heart of the scandal is an alleged organized fraud scheme targeting EU agricultural subsidies managed by Greece’s Payment and Control Agency for Guidance and Guarantee Community Aids (OPEKEPE). According to the European Public Prosecutor’s Office (EPPO), a “significant number of individuals” received subsidies based on false declarations, including claims of owning or leasing pastureland that was actually public property. This fraudulent activity reportedly took place between 2019 and 2022, resulting in millions of euros being improperly distributed.
The EPPO investigation has revealed deep-rooted corruption involving public officials within OPEKEPE and has implicated several high-ranking Greek government figures. In June 2025, five senior officials, including a minister and three deputies, resigned amid allegations of involvement in the scandal. German Green MEP Daniel Freund, co-chair of the European Parliament’s Intergroup on Anti-Corruption, described the case as a “fake farmer” fraud scandal that has “triggered political turmoil in Greece and raised serious questions over the management of EU agricultural subsidies.”
Political Fallout in Greece and Institutional Challenges
The scandal has rocked the Greek government led by Prime Minister Kyriakos Mitsotakis, with resignations signaling the severity of the crisis. Migration Minister Makis Voridis, Deputy Foreign Minister Tasos Chatzivasileiou, Deputy Minister of Rural Development Dionysis Stamenitis, Deputy Minister of Digital Governance Christos Boukoros, and Secretary General for Rural Development and Food Giorgos Stratakos stepped down following their alleged links to the misuse of funds.
Adding to the gravity of the situation, new evidence has implicated the Greek Prime Minister’s office itself. An email from Evangelos Simandrakos, former head of OPEKEPE, to a deputy minister in the Prime Minister’s office indicated that the government was aware of and approved decisions to withhold payments to over 9,000 ineligible recipients, many from Mitsotakis’ political stronghold in Crete. This suggests high-level oversight or complicity in the alleged mismanagement of EU farm subsidies, contradicting previous claims of ignorance from the Prime Minister’s office.
Impact on the European Parliament’s Budget Discharge Process
The European Parliament’s annual budget discharge procedure is a critical accountability mechanism that assesses how the European Commission has implemented the EU budget. The Greek farm fund scandal has emerged as a significant factor influencing MEPs’ evaluation of the Commission’s financial stewardship.
Daniel Freund emphasized that this scandal
“will impact the European Parliament’s decision on the discharge of the European Commission’s budget later this year.”
He highlighted that the case exposes systemic failures in the management and control of agricultural funds, which represent a substantial portion of the EU budget. Freund’s warning underscores the Parliament’s growing impatience with persistent irregularities and the need for stronger oversight.
A spokesperson for the European Commission acknowledged the seriousness of the issues, stating that
“in September 2024, Greek authorities placed OPEKEPE’s accreditation on probation, and an action plan was designed to address the deficiencies identified.”
The Commission confirmed it is working closely with Greek authorities to rectify the situation but declined to comment on ongoing criminal investigations conducted by the EPPO.
The Scale of Financial Mismanagement and EU Sanctions
The European Commission has imposed a staggering fine of approximately €392 million on Greece for systemic irregularities and mismanagement of EU agricultural subsidies spanning from 2016 to 2023. This penalty is one of the largest ever levied against a member state for misuse of EU funds.
The Commission’s Executive Decision 2025/1147 detailed extensive violations, including a lack of essential administrative and on-site checks, delayed recovery of irregular payments, and the artificial creation of eligibility conditions for subsidies. These breaches contravene key EU regulations, such as Articles 52 of Regulation 1306/2013 and Article 55 of Regulation 2021/2116.
The fine covers various subsidy schemes, including direct payments, small farmer schemes, eco-friendly initiatives, and optional coupled support. A notable contributing factor was systemic flaws in Greece’s Land Parcel Identification System (LPIS) for 2021, which triggered a blanket 5% corrective penalty amounting to hundreds of millions of euros.
Greece’s appeal against the sanction was dismissed by the EU General Court in March 2025, which upheld the Commission’s decision and ordered Greece to cover all legal costs. This ruling further cements the EU’s position on the gravity of the mismanagement and the need for corrective action.
Legal and Constitutional Complexities
The EPPO’s investigation has encountered legal hurdles due to Greece’s constitutional provisions. According to Article 86 of the Greek Constitution, only the national Parliament can investigate and prosecute serving or former ministers for crimes committed during their official duties. As a result, the EPPO was compelled to submit information regarding two former Ministers of Rural Development and Food to the Hellenic Parliament for further action.
This constitutional safeguard has complicated the EPPO’s efforts to fully pursue criminal liability among top government officials. It also highlights the challenges of coordinating EU-level investigations with national legal frameworks, especially when high-ranking politicians are involved.
Calls for Reform and Restoring Trust in EU Controls
The scandal has intensified calls within the European Parliament and civil society for stronger anti-corruption measures and more robust financial controls over EU funds. MEPs like Daniel Freund have stressed the urgent need to restore public trust in the EU’s financial management system.
In a parliamentary question submitted earlier this year, MEPs Christine Singer, Joachim Streit, Engin Eroglu, and Benoit Cassart urged the European Commission to support the EPPO’s efforts in uncovering criminal misuse of agricultural funds and to draw lessons for improving fraud prevention and risk mitigation in future Common Agricultural Policy (CAP) funding cycles.
They emphasized that
“a strong and reliable financial framework is particularly crucial for agriculture, given current geopolitical challenges,”
and warned that the effective mobilisation of CAP funds depends heavily on public confidence that these resources are properly managed and allocated for their intended purpose.
The Broader Implications for EU Governance
The Greek farm fund scandal is not an isolated incident but part of a wider pattern of challenges facing the EU in safeguarding its budget from fraud and corruption. It follows previous high-profile cases such as the “Qatargate” lobbying scandal and raises questions about the EU’s capacity to enforce ethical standards and financial discipline across member states.
The case also underscores the political sensitivities involved when national governments are implicated in the mismanagement of EU funds. The involvement of Greece’s Prime Minister’s office adds a layer of complexity and raises concerns about political interference in the administration of EU subsidies.
For the European Parliament, the scandal represents a test of its oversight role and its ability to hold the European Commission accountable for ensuring the integrity of EU spending. The upcoming budget discharge vote will be closely watched as a barometer of the Parliament’s commitment to transparency and good governance.
The Greek farm fund scandal has emerged as a defining issue for the European Parliament’s 2025 budget discharge process. With millions of euros in EU agricultural subsidies allegedly misappropriated through fraudulent claims and systemic mismanagement, the case exposes deep vulnerabilities in the EU’s financial control mechanisms.
As German Green MEP Daniel Freund warned, this scandal will
“impact the discharge of the Commission’s budget later this year,”
signaling that MEPs are demanding accountability and reform to prevent future abuses. The resignations of high-level Greek officials and the involvement of the Prime Minister’s office have elevated the crisis to a political and institutional crossroads.
The European Commission’s hefty fine and ongoing cooperation with Greek authorities demonstrate the EU’s determination to address these failings. However, the constitutional and legal challenges in prosecuting implicated ministers highlight the need for enhanced coordination between EU institutions and member states.
Ultimately, the Greek farm fund scandal serves as a stark reminder that protecting the integrity of EU funds requires vigilance, transparency, and the political will to confront corruption wherever it arises. The European Parliament’s forthcoming decisions will be crucial in shaping the future of EU financial governance and restoring public trust in the bloc’s stewardship of taxpayer money.
