Numerous ministers and deputy ministers have resigned due to their alleged involvement in the scandal. The EU has fined Athens €400 million after uncovering systemic failures in the management of farm subsidies from 2016 to 2023. Greece risks losing its EU farm subsidies unless it submits a better action plan to prevent funds from being misappropriated. The initial deadline was Oct. 2, now extended to Nov. 4.
“The Commission is awaiting the submission of the revised action plan and remains in contact with Greek authorities,” a European Commission spokesperson told POLITICO earlier this month.
Wednesday’s operation focused on a criminal network accused of illegally obtaining EU farm subsidies through false declarations submitted to the Greek organization responsible for distributing EU farm funds, OPEKEPE.
According to the EPPO, during the preliminary investigation, 324 individuals were identified as subsidy recipients, costing the EU budget over €19.6 million. Of these, 42 are suspected to be involved in this case and are considered current members of the criminal group.
Most appear to have no genuine connection to farming or production, according to Greek and EU authorities.
Since at least 2018, the group allegedly exploited procedural gaps in applications using falsified documents to claim subsidies from OPEKEPE, declaring non-eligible pastureland and inflating livestock numbers to increase entitlements. They allegedly issued fictitious invoices, routed funds through multiple bank accounts, and mixed them with legitimate income to hide their illicit origins. Part of the stolen funds was purportedly spent on luxury goods, travel, and vehicles.
Greece’s anti-money laundering authority is investigating Giorgos Xylouris, a Crete farmer and former New Democracy member. Xylouris is a key figure in EPPO case files, known by the nickname Frappé regarding the OPEKEPE scandal.
About €2.5 million was found in his bank accounts during a random inspection, Greek officials said. Authorities discovered that Xylouris failed to provide the required financial documentation and could not justify the large sum. Eight vehicles were identified in his possession, including a Jaguar luxury car. Prosecutors are examining potential anti-bribery law violations, and an investigation into potential money laundering is ongoing.
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