The specialized prosecutor’s office has initiated pre-trial proceedings for illegal receipt of funds from European Union mainly under measures administered by the State Fund “Agriculture”.
In the course of the investigation against an organized crime group on February 11, a total of 18 searches and seizures were carried out in various properties on the territory of Sofia and the municipalities of Godech and Kostinbrod, the press center of the prosecutor’s office announced.
Investigations were carried out in office premises in the municipality of Godech, as well as in the regional food safety agency (BFSA) – Sofia district. Numerous papers, documents and wads of cash were seized during the searches. Several people are detained for a period of 24 hours, it is said in the laconic report.
Investigation is going on
Earlier, unofficial information came that the mayor of Godech, Radoslav Assenov, had been taken for questioning to the Specialized Prosecutor’s Office on Thursday morning.
According to a source of 24 Chasa daily from the town near the Serbian border, the state prosecution and Anti-Corruption Commission for Illegal Assets Forfeiture are working on a case involving subsidies for a livestock farm, with which the mayor has a connection.This is a story from a few years ago.
The farm was inspected by the BFSA-Sofia district, where prosecutors started a probe yesterday. According to the locals, the director Dr. Leonid Lavchev is on close terms with the mayor Assenov and some time ago he even was a jury in a horse pageant in the municipality.
The criminal network defrauded Dutch tax authorities of an estimated €9 million
On 10 February 2021, the investigation service of the Dutch tax authorities -FIOD (Fiscale Inlichtingen en OpsporingsDienst) busted a criminal network involved in international VAT fraud with electronic devices traded via an online company. Fraudsters established a complex trading scheme with Secure Digital (SD) memory cards for electronic devices, which is believed to have defrauded the Dutch treasury of an estimated €9 million between 2017 and 2019. The international sting involved the collaboration of judicial and law enforcement authorities in Croatia, Czech Republic, Hungary, and Poland with the support of Europol and Eurojust. During the action day, investigators carried out thirteen house searches and seized communications equipment and documents.
A complex missing trader intra-community fraud (MTIC)
The illegal VAT scheme consisted in the suspicion of a fake trading circuit of memory cards involving a string of companies in the EU. The criminal gang purchased SD cards with VAT from Dutch companies identified as missing traders. The goods were then sold to companies in Croatia, and the Czech Republic and exempted of VAT according to intra-EU tax rules. To evade tax payment, the scheme finally used conduit companies based in Croatia and Poland to sell back the VAT-exempt goods to the missing traders in the Netherlands.
The organised crime group also used “buffers” to conceal the illicit transaction chain. These companies purchased the SD cards from the missing traders and only paid VAT on a small margin made from the transactions. As a common practice in MTIC fraud the payment for the transactions was made in advance. It is believed that over the past three years, at least eight missing traders in the Netherlands were involved in this fraud. The criminal gang integrated this so-called ‘VAT carousel fraud’ into the regular commercial activity of an online company selling electronic devices in order to avoid paying VAT.
Europol Support
Europol actively supported the operation by providing analytical support and operational coordination for an effective cross-border cooperation. Moreover, Europol deployed a mobile office in the field to support the Dutch authorities in real-time.
Europol’s European Financial and Economic Crime Centre (EFECC) helps with identifying and dismantling organised criminal networks involved in cross-border VAT fraudand the tracing and confiscating of the proceeds of MTIC fraud. MTIC is committed through a chain of linked companies when the fraudsters sell goods or services from one EU country to another, taking advantage of the fact that it is legitimate not to charge VAT on such cross-border transactions. MTIC scammers obtain €60 billion in criminal profits every year in the EU by avoiding the payment of VAT or by corruptly claiming repayments of VAT from national authorities.
Compendium of relevant reference materials and resources on ethical sourcing and prevention of trafficking in human beings for labour exploitation in supply chains
The objective of the Compendium of Resources is to take stock of the existing legislation, policies, guidelines, recommendations, reports, studies, and other types of initiatives developed to better understand and respond to the global problem of trafficking in human beings through its prevention in supply chains. The resources included in the Compendium do not represent by any means an exhaustive list and are only intended to illustrate the initiatives identified by the OSCE Office of the Special Representative and Co-ordinator for Combating Trafficking in Human Beings during the development of this project. The Compendium is intended for the use by government officials involved in policy making, as well as businesses and other stakeholders interested to learn from current practices in order to further enhance their own measures on ethical sourcing and the prevention of human trafficking in supply chains.
On 10 February, the Criminal Asset Bureau of the Irish National Police (An Garda Síochána) took action against a criminal gang suspected of large-scale money laundering.
Fund transfers in excess of €4 million were identified from other jurisdictions to Irish bank accounts linked to members of this criminal network. The gang is believed to have made this money from illegal activity across Europe.
The search operation in the cities of Tipperary and Kilkenny involved searches of 4 residential properties and 1 business premises, as a result of which €100 000 in cash and a car worth €75 000 were seized. A total of 16 bank accounts linked to members of the crime group were also frozen. The accounts contained cumulative funds of €540,000.
Such results were made possible thanks to the model of non-conviction based forfeiture operated by the Irish Criminal Assets Bureau.
International Asset Recovery
International cooperation is essential for the successful recovery of assets hidden abroad. Europol’s position at the heart of the European security architecture helps facilitate such a mechanism.
In this case, Europol’s European Financial and Economic Crime Centre (EFECC) pieced together the intelligence provided by different countries on this one same criminal network and put all the involved countries around one table.
The partners have since worked closely together on this case to uncover the actual magnitude of the criminal activity of this gang and to establish a joint strategy for the final phase of the investigation.
Raiffeisenverband Salzburg (RVS) and the European Investment Bank (EIB) are intensifying their cooperation. Due to high demand for loans, RVS has signed a further €30 million financing agreement with the EU bank. This is the first tranche of an overall sum of €50 million for which RVS has secured the EIB’s agreement. To provide clear impetus for investment in the region, the new loan volume will also be doubled by Raiffeisen Salzburg to €100 million in the coming years.
The two banks have been working closely since 2017. Over this period, RVS has been cooperating with the EU bank directly to support companies in the region by granting loans on favourable terms. Projects that meet EIB criteria enjoy low interest rates. Since 2017, the EIB has granted promotional loans totalling €100 million to selected projects as part of this cooperation, with RVS doubling this amount to €200 million.
The scope of the EIB’s refinancing is broad: in previous years, the low-interest EU loans went towards supporting new expansion and modernisation projects conducted by small and medium-sized enterprises (SMEs) in the state of Salzburg and neighbouring regions, with a focus on environmentally friendly investment. These initiatives included renovation projects at tourism companies, which have reduced their CO2 emissions significantly thanks to new heating and ventilation technologies, thermal insulation and/or the use of energy management systems. The funds were also used for switching to energy-efficient production machinery and processes as well as constructing low-energy buildings for commercial use.
These newly signed agreements place even greater emphasis on climate action, with a particular focus on innovation. These favourable refinancing packages are primarily intended for companies operating in innovative fields and investments in pioneering products and processes.
Salzburg-based businesses and their future are particularly important to RVS General Manager Dr Heinz Konrad: “Small and medium-sized enterprises in particular form the backbone of the local economy. They create jobs and provide young people with training, thereby safeguarding the success of future generations. Even amid today’s economic challenges, we intend to keep looking to the future and ensure that increasingly important issues such as sustainability and business continuity do not fall by the wayside. Thanks to this refinancing, we can support our clients’ projects by granting medium- and long-term loans with favourable terms, while keeping red tape to a minimum.”
Raiffeisenverband Salzburg (RVS) is on the one hand a regional universal bank and on the other hand the regional headquarters of the Raiffeisen banking group Salzburg and is, together with the 41 independent Raiffeisen banks and a total of 119 bank branches, the largest banking group in the state of Salzburg. Since May 1st, 2020 Mr. Heinz Konrad is CEO of the Raiffeisenverband Salzburg.
A new report by WHO/Europe about women and the tobacco epidemic has been launched. The report, “Through a gender lens: women and tobacco in the WHO European Region”, has revealed that, although tobacco use among women is decreasing overall, the rate is going down at a much slower pace than in men, and in some countries it is increasing.
The global noncommunicable diseases action plan includes a target to reduce global prevalence of tobacco use by 30% by 2025 relative to 2010. However, estimates project the Region will miss this target entirely and will be the only WHO region in the world expected to fall short, by as much as 3.8%, of the 30% relative reduction target among women.
In light of these figures, it is important to refocus tobacco control efforts across the Region to actively confront tobacco industry attempts to hook women and girls on tobacco products and to promote gender-transformative policies as a high priority.
The tobacco industry is finding innovative ways to promote its deadly products to women, such as via social media influencers and the funding of women’s groups. Old tactics of gendered product design and packaging remain a challenge for tobacco control. Substantive action on this element of tobacco marketing is critical to tackle the high smoking rates among women and girls.
There is a pressing need for interventions that prevent the uptake of smoking among girls. The tobacco industry is actively aiming at young women and girls in a number of ways to encourage addiction to tobacco products, so early prevention is crucial. The situation is challenging: WHO estimates that 12% of girls aged 13–15 are current tobacco users in the Region – 1.5 times the global average of 8%.
Women advocates have been at the frontline of the struggle against tobacco for generations, pushing to prioritize the empowerment of women and girls in the face of the public health crisis. Margaretha Haglund has been working tirelessly for action on women and tobacco throughout her career. She was President of the International Network of Women Against Tobacco (INWAT) from 1997–2006 and has worked as an expert for thinktanks and governments, implementing women-tailored policies for tobacco prevention and cessation.
“This publication can be an important tool to inspire countries to implement gender-sensitive strategies in tobacco control,” she says. “So far, not enough countries have taken action, so inspiration is hugely important. Sharing examples of the tobacco industry’s marketing towards women and girls and information on novel products are particularly welcome.”
Significant obstacles – the tobacco industry and lack of political will
Mrs Haglund identifies 2 significant obstacles for women-focused tobacco control that she has encountered in her career: the tobacco industry itself and lack of political support for tobacco control action. “The tobacco industry uses the lack of political will to stop, delay and weaken tobacco control legislation,” she says, “The industry is gradually becoming aware that the conventional cigarette will no longer be accepted by society due to its dramatic effects on health, environment and economy. Therefore, we’re also seeing an increase in ‘pure’ nicotine products, flavoured to entice new generations into nicotine addiction.”
Mrs Haglund emphasizes a central strategy for fighting against the tobacco industry: the importance of countries ratifying and observing the WHO Framework Convention on Tobacco Control (FCTC), a treaty adopted by the World Health Assembly in 2003, in full. “There is no magic bullet to reduce smoking prevalence in women,” she says. “But all countries need the same thing: the implementation of the FCTC at its highest level.”
The WHO FCTC is a strong policy framework that covers every angle of tobacco control. One of the most significant elements of the treaty is Article 13, which advocates a comprehensive ban on tobacco advertising, promotion and sponsorship (TAPS). This is an important policy plank for countries to consider, which would close the loopholes that allow the continued promotion of tobacco products to women and girls. Nonetheless, as of 2019, only 7 countries in the Region had a comprehensive ban on all forms of direct and indirect tobacco advertising.
Protecting women from the harms of tobacco is enshrined in the WHO FCTC as a guiding principle which declares “the need to take measures to address gender-specific risks when developing tobacco control strategies” (Article 4.2.d). To support this, countries should ensure tobacco control data is gender-disaggregated, and that questions of gender are mainstreamed throughout all policy, planning and decision-making.
“Through a gender lens: women and tobacco in the WHO European Region” also highlights the need to tailor interventions to different groups of women. This means using an intersectional lens that understands that “women” is not one homogeneous group, but that women’s experiences overlap with a great number of social determinants of health and identities. Successful strategies to reduce women’s smoking prevalence are sensitive to these contexts. They are also gender-transformative and challenge – rather than reproduce – harmful gender stereotyping in their campaigns and messages.
The health situation for women and tobacco in the Region is deeply concerning: many countries are behind the curve in challenging the deadly strategies of the tobacco industry. But examples of best practice in tobacco control are readily available, and concrete steps forward can be taken to turn the tide on tobacco. With strong political will, it is possible to ensure the health and well-being of women and girls across the Region.
The euro area economy is forecast to recover at a slower-than-expected pace this year, as the resurgence of the Covid-19 infections, together with more contagious variants of the virus forced many economies to tighten containment measures, the European Commission said in its interim Winter forecast, released Thursday.
The currency bloc is expected to grow 3.8 percent this year, instead of 4.2 percent projected in the autumn forecast. However, the outlook for 2022 was lifted to 3.8 percent from 3 percent citing the start of mass vaccination campaigns.
“Today’s forecast provides real hope at a time of great uncertainty for us all,” Valdis Dombrovskis, Executive Vice-President for an Economy that Works for People said. “The solid expected pick-up of growth in the second half of this year shows very clearly that we are turning the corner in overcoming this crisis.”
The EU cautioned that projections are subject to significant uncertainty and elevated risks, predominately linked to the evolution of the pandemic and the success of vaccination campaigns.
The economic impact of the pandemic remains uneven across member states and the speed of the recovery was also projected to vary significantly.
Germany’s real GDP is forecast to rebound by 3.2 percent in 2021, returning to its pre-crisis level at the turn of the year. In 2022, the economy should continue growing by 3.1 percent, the EU said.
France’s real GDP is projected to expand by 5.5 percent in 2021 and by 4.4 percent in 2022.
Italy’s GDP is projected to expand by 3.4 percent in 2021. Real output is set to grow at almost similar pace in 2022 on the back of the momentum gained in the second half of this year on the back of continued recovery of the services sector.
Spain‘s GDP is forecast to grow by 5.6 percent in 2021. In 2022, driven by the tourism recovery, the region is set to expand 5.3 percent.
The European Union is forecast to rebound 3.7 percent this year, before advancing 3.9 percent in 2022.
Inflation in the euro area is expected to be slightly higher in 2021 compared to last autumn, but to remain subdued despite a temporary boost from base effects, EU said.
Inflation is seen at 1.4 percent in 2021, up from the prior forecast of 1.1 percent. As supply side adjusts and base effects taper out, inflation is projected to moderate to 1.3 percent in 2022, which was unchanged from the prior forecast.
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UK Brexit minister Michael Gove and European Commission Vice President Maros Sefcovic are meeting in London later Thursday to try to smooth out the problems, but few expect a quick resolution.
LONDON: Breaking up is proving hard to do for Britain and the European Union, whose divorce deal is in choppy waters just six weeks after the UK made its economic split from the bloc.
UK Brexit minister Michael Gove and European Commission Vice President Maros Sefcovic are meeting in London later Thursday to try to smooth out the problems, but few expect a quick resolution.
The turbulence centers on Northern Ireland, whose complex status has been one of the trickiest issues in the UK-EU divorce.
Michel Barnier, the bloc’s chief negotiator during years of Brexit talks, said both sides “must be conscious of their responsibilities” to Northern Ireland.
“The situation has never been easy in Ireland and everything is complex,” he said at a European business summit on Thursday.
“I recommend personally to everybody on both sides to be responsible and take care.” Since Britain left the EU’s economic structures on Dec.31, goods moving between the UK and the bloc have faced customs and veterinary checks under the terms of a new trade deal.
Checks have also been imposed on some British goods going to Northern Ireland because it shares a border with EU member-state Ireland.
Those checks have unsettled the delicate political balance in Northern Ireland, a part of the U.K. where some people identify as British and some as Irish.
The new measures are designed to prevent a hard border being imposed between Ireland and the north — something that could undermine the Irish peace process — but they are opposed by pro-British Unionists, who say they drive a wedge between Northern Ireland and the rest of the UK.
Northern Ireland authorities halted veterinary checks and withdrew border staff from ports for several days this month after threatening graffiti appeared referring to port workers as targets.
The sensitivity of Northern Ireland’s status was underscored earlier this month when the EU briefly threatened to ban shipments of coronavirus vaccines to Northern Ireland amid a dispute with Anglo-Swedish drugmaker AstraZeneca.
That would have drawn a hard border between Northern Ireland and Ireland — exactly what the Brexit trade deal was crafted to avoid.
The EU quickly dropped the idea after British, Irish and Northern Ireland politicians expressed alarm.
But Britain has seized on the gaffe to accuse the EU of undermining the Brexit divorce agreement.
Prime Minister Boris Johnson’s spokesman, Jamie Davies, said the bloc’s move had caused “shock and anger” in Northern Ireland.
He said there was a need “to take urgent steps to restore confidence as a result.” The U.K. wants the EU to take a more light-touch approach to border checks, which have already led to shortages and delays in getting some goods to Northern Ireland.
Britain has asked for short-term grace periods that have delayed imposition of full red tape on supermarket supplies, parcels and medicines extended until at least 2023.
The EU says some economic friction is the inevitable outcome of Britain’s decision to leave the bloc’s single market and customs union, and insists the Northern Ireland Protocol can’t be significantly renegotiated.
In a letter to Gove before their meeting, Sefcovic pointed to “shortcomings” in Britain’s implementation of the agreement, saying border facilities were fully up and running and only limited checks were taking place.
Irish Prime Minister Micheal Martin urged both sides to “dial down the rhetoric.” “There are bound to be teething issues and teething problems,” he told Irish broadcaster RTE.
Andrew Bailey has accused the European Union of holding the UK to standards it would “not agree to be held to itself” and said the UK would not be a post-Brexit “rule-taker”.
The EU has yet to grant “equivalence” status to the UK, instead demanding UK banks continue to comply with standards set in Brussels. The bloc has said it wanted to wait and see how far the UK’s new rules diverged from its own before agreeing to recognise them.
But the Bank of England governor noted in his Mansion House speech on Wednesday (10 February) that this was in contrast to all other countries the bloc has agreed trade deals with.
“The EU has argued it must better understand how the UK intends to amend or alter the rules going forwards,” Bailey said. “This is a standard that the EU holds no other country to and would, I suspect, not agree to be held to itself.”
The governor said there were two ways of interpreting the EU’s stance, “neither of which stands up to scrutiny”. The first was that the EU believes rules should never change, which he described as “unrealistic, dangerous and inconsistent”.
The second was that the EU would only grant equivalence if the UK agreed to change its rules whenever the EU did. This, Bailey countered, was “rule-taking, pure and simple”.
“It is not acceptable when UK rules govern a system ten times the size of the UK GDP and is not the test up to now to assess equivalence.”
The governor suggested that a common framework of global standards ought to be enough for both sides, noting that “less than this was enough when Canada, the US, Australia, Hong Kong and Brazil were all deemed equivalent”.
Bailey warned the UK, though, that the City must relinquish some control over its standards and rules, should the financial services industry want to agree a deal with its continental counterparts.
“The alternative of narrow domestic control is illusory – it would jeopardise achieving the very things we want, safe open markets, and likewise open economies. Above all, these bodies enable us to build the trust that enables our financial systems to stay open,” he said.
“But, we do not for a moment believe that we can maintain the arrangements we have without change. As the world around us changes, so too do we have to adapt how we achieve these public goods.
“Also, we do not participate in these global institutions with the intention to water them down, misguidedly because we think this would preserve some notion of our competitiveness as a nation. The UK could not be a global financial centre for long if we did.”
