I thought it would be useful to have a thread for news and discussion relating to the European Union, since there doesn't seem to be one yet.
The main EU treaties require member states to prosecute cases involving EU funds (misappropriation etc.). There is a federal detection agency, the European Anti-Fraud Office (OLAF), but no federal power to initiate proceedings. This creates some difficulty if member states do not want to prosecute suspects - in Hungary, for example, the courts are largely controlled by those they should be prosecuting... Anyway, this causes some splits in the EU as wealthier nations are reluctant to contribute, fearing the money will simply subsidise fraud.
Recently, a new body, the European Public Prosecutors' Office (EPPO), has been formed and can file charges over criminal misuse of funds as well as customs fraud. It is based in Luxembourg and headed by a woman who used to run Romania's anti-corruption agency. It is overseen by a prosecutor from each participating country who in groups of three will decide whether or not to file charges. The trials will be run by member states' prosecutors but they will be approved by the EPPO.
However, this does not go the whole way. 5 of 27 countries have not signed up to this, notably Hungary and Poland. (Sweden says it will join soon.) The prosecutions will still take place in national courts. But the EPPO's independence will hopefully help: it has already rejected 6 Bulgarian nominees. Finally, prosecutors are not actually allowed to supervise cases involving their own country; and cannot be recalled.
The first cases should be decided by the end of the year.
Source.