Fraud probe risks plunging EU into biggest crisis in decades

 

Fraud probe risks plunging EU into biggest crisis in decades

 

“People who don’t like von der Leyen will use this against her,” an EU official said after two prominent European figures were taken into custody.

 

December 3, 2025 4:00 am CET

By Zoya Sheftalovich, Nicholas Vinocur, Gerardo Fortuna and Max Griera

https://www.politico.eu/article/ursula-von-der-leyen-fraud-probe-federica-mogherini-stefano-sannino-european-external-action-service/

 

BRUSSELS ― Ursula von der Leyen is facing the starkest challenge to the EU’s accountability in a generation ― with a fraud probe ensnaring two of the biggest names in Brussels and threatening to explode into a full-scale crisis.

 

Exactly a year into her second term as Commission president, von der Leyen, already plagued by questions over her commitment to transparency and amid simmering tension with the bloc’s foreign policy wing, must now find a way to avoid being embroiled in a scandal that dates back to her first years in office.

 

An announcement by the European Public Prosecutor’s Office that the EU’s former foreign affairs chief and a senior diplomat currently working in von der Leyen’s Commission had been detained on Tuesday was seized on by her critics, with renewed calls that she face a fourth vote of no confidence.

 

“The credibility of our institutions is at stake,” said Manon Aubry, co-chair of The Left in the European Parliament.

 

If proven, the allegations would set in motion the biggest scandal to engulf Brussels since the mass resignation of the Jacques Santer Commission in 1999 over allegations of financial mismanagement.

 

Police detained former Commission Vice President Federica Mogherini, a center-left Italian politician who headed the EU’s foreign policy wing, the European External Action Service, from 2014-2019, and Stefano Sannino, an Italian civil servant who was the EEAS secretary-general from 2021 until he was replaced earlier this year.

 

The European Public Prosecutor’s Office said it had “strong suspicions” that a 2021-2022 tendering process to set up a diplomatic academy attached to the College of Europe, where Mogherini is rector, hadn’t been fair and that the facts, if proven, “could constitute procurement fraud, corruption, conflict of interest and violation of professional secrecy.”

 

The saga looks set to inflame already strained relations between von der Leyen and the current boss of the EEAS, EU High Representative Kaja Kallas, four EU officials told POLITICO. Earlier this year Sannino left his secretary-general job and took up a prominent role in von der Leyen’s Commission.

 

An EU official defended von der Leyen, instead blaming the EEAS, an autonomous service under the EU treaties that operates under the bloc’s high representative, Kallas — who is one of the 27 European commissioners.

 

“I know the people who don’t like von der Leyen will use this against her, but they use everything against her,” the official said.

 

“Because President von der Leyen is the most identifiable leader in Brussels, we lay everything at her door,” the official added. “And it’s not fair that she would face a motion of censure for something the External Action Service may have done. She’s not accountable for all of the institutions.”

 

Mogherini, Sannino and a third person have not been charged and their detention does not imply guilt. An investigative judge has 48 hours from the start of their questioning to decide on further action.

 

When contacted about Sannino, the Commission declined to comment. When contacted about Mogherini, the College of Europe declined to answer specific questions. In a statement it said it remained “committed to the highest standards of integrity, fairness, and compliance — both in academic and administrative matters.”

 

‘Crime series’

The investigation comes as Euroskeptic, populist and far-right parties ride a wave of voter dissatisfaction and at a time when the EU is pressuring countries both within and outside the bloc over their own corruption scandals.

 

“Funny how Brussels lectures everyone on ‘rule of law’ while its own institutions look more like a crime series than a functioning union,” Zoltán Kovács, spokesperson for the government of Hungary, which has faced EU criticism, said on X.

 

Romanian MEP Gheorghe Piperea, a member of the right-wing European Conservatives and Reformists group, who was behind a failed no-confidence vote in von der Leyen in July, told POLITICO he was considering trying to trigger a fresh motion.

 

Russian foreign ministry spokesperson Maria Zakharova told state media that EU officials “prefer to ignore their own problems, while constantly lecturing everyone else.”

 

The EU has struggled to shake off a series of corruption scandals since this decade began. Tuesday’s raids come on the back of the 2022 “Qatargate” scandal, when the Gulf state was accused of seeking to influence MEPs through bribes and gifts, as well as this year’s bribery probe into Chinese tech giant Huawei’s lobbying activities in Europe.

 

Those investigations implicated members of the European Parliament, and at the time Commission officials were quick to point the finger at lawmakers and distance themselves from the scandals.

 

But the Commission hasn’t been immune to allegations of impropriety. In 2012, then-Health Commissioner John Dalli resigned over a tobacco lobbying scandal. Von der Leyen herself was on the receiving end of a slap-down by the EU’s General Court, which ruled earlier this year that she shouldn’t have withheld from the public text messages that she exchanged with the CEO of drug giant Pfizer during the Covid-19 pandemic.

 

Tuesday’s revelations are far more dangerous for the Commission, given the high profile of the suspects and the gravity of the allegations they face.

 

‘Disastrous impact’

After serving as a European Commission vice president and head of the EEAS, Mogherini was appointed rector of the College of Europe in 2020, amid criticism she wasn’t qualified for the post, didn’t meet the criteria, and had entered the race months after the deadline. In 2022 she became the director of the European Union Diplomatic Academy, the project at the heart of Tuesday’s dawn raids.

 

Sannino, a former Italian diplomat, was the EEAS’s top civil servant and is now the director-general for the Middle East, North Africa and the Gulf department in the Commission.

 

Cristiano Sebastiani, the staff representative of one of the EU’s major trade unions, Renouveau & Démocratie, said that if proven, the allegations would have “a disastrous impact on the credibility of the institutions concerned, and more broadly on citizens’ perception of all European institutions.” He said he had received “tens of messages” from EU staff concerned about reputational damage.

 

“This is not good for EU institutions and for the Commission services. It is not good for Europe, it steers attention away from other things,” said a Commission official granted anonymity to speak freely. “It conveys this idea of elitism, of an informal network doing favors. Also, Mogherini was one of the most successful [EU high representatives], it’s not good in terms of public diplomacy.”