Fading with EU funds for recovery after Cove, Italy estimates 600m euros and arrests 23 people

Tens of arrests were conducted in Italy, Austria, Romania and Slovakia, as a result of an investigation into an alleged criminal network, thought to have received the funds, the European Public Prosecutor's Office said in a statement.

The criminal organisation, “, allegedly benefited by fraud 600m euros from the Luxembourg-based EU Recovery and Resistance Centre (RRF) for Italy”, Luxembourg-based EPO said.

He added that the Venice Office of Italy's financial police unit, Guardia di Finanza, froze assets worth over 600m euros, with the authority of a judge of the preliminary procedure.

Of the 23 suspects arrested, eight were placed in custody pending trial and 14 others in house arrest.

EPO said it was focused on an alleged criminal network that between 2021 and 2023 staged a fraud scheme to receive money from Italy's RRF share.

The RRF, established to help the bloc's countries return from the economic shock caused by Pandemia Covid, was worth more than 720 billion euros, financed in a large part through joint EU borrowing.

This model, especially common borrowing, has been praised by several EU countries as a pattern for repeating, while the European Union increases the defence industry and co-operation in response to the threat from Russia and to support Ukraine.