Britain is reportedly preparing to allocate tens of millions of pounds to EU development funds that have previously been marred by fraudulent activities. This move is part of a strategy to re-enter the EU's electricity market, according to a report by the Daily Mail.
The funds in question, including the 'cohesion fund' aimed at developing poorer EU regions, have been repeatedly targeted by fraudsters. Last year, the European anti-fraud office, Olaf, launched 11 investigations into the cohesion fund. One notable case uncovered alleged fraud and forgery related to water and wastewater infrastructure projects in Romania, involving over €100 million (£83 million) in EU funding.
The cohesion fund provides financial support to EU member states like Romania, Bulgaria, and Slovakia to enhance economic, social, and territorial cohesion within the bloc. A leaked draft joint EU-UK statement indicates that the EU is seeking UK contributions to these development funds as a condition for British energy companies to participate freely in the EU's single electricity market.
However, government sources have stated that no agreement has been reached regarding payments into these development funds, and negotiations on electricity market access are not expected to conclude before the upcoming EU-UK summit.
Nigel Farage, leader of Reform UK, criticized the potential move, calling it a 'betrayal of the British people' and accusing Andy Burnham of planning to 'throw away taxpayer cash to the EU with no reward whatsoever.'
A government spokesman declined to comment on the leaked information or the ongoing negotiations.