EU Budget Watchdog, Prosecutors Clash Over Staff Immunity in Fraud Probe

Two key Luxembourg-based EU institutions are locked in a standoff over a fraud investigation, with the bloc’s budget watchdog refusing to lift staff immunity requested by prosecutors.

The European Court of Auditors (ECA), which positions itself as the “guardian of the EU’s finances,” has declined a request from the European Public Prosecutor’s Office (EPPO) to waive immunity for several employees. The ECA has also reportedly refused to allow searches of its premises and archives, according to a European Parliament document and recent media reports.

At the center of the controversy is former ECA President Klaus-Heiner Lehne, whose expenses were flagged in a 2021 report, triggering the ongoing investigation by EPPO.