Politico: EU Probes Greece Over Mismanagement of Recycling Funds

The European Union is conducting an extensive investigation into the possible mismanagement of at least €11.9 million in EU funds for recycling projects in Greece, as the country continues to struggle to comply with EU waste management rules.

The probe began after audits ordered by the EU revealed irregularities in the cost and operation of the project.

“Black holes” in recycling center operations

One of the reports obtained by POLITICO records serious shortcomings in the operation of recycling centers, including a complete lack of oversight over what happens to the collected waste.

The investigation is being led by the European Public Prosecutor’s Office (EPPO), following Greece’s long-standing problems with implementing EU environmental legislation — issues that have led to hefty fines against the country.

The project involves a network of “recycling units” or kiosks built by the company TEXAN, installed in Attica, the Peloponnese, and Crete. Citizens can earn money by returning plastic, metal, and glass items.

According to the report, no information is available from the Special Intermunicipal Waste Management Association of Attica (EDSNA) on waste management after collection. Furthermore, not all planned storage units have been installed.

Overpricing concerns and new fines

The project, valued at €220 million, was partially funded by a European Operational Program.

• In 2023, EDSNA was forced to return €2.9 million due to “serious irregularities” in its contract with TEXAN.
• TEXAN submitted the only bid, with kiosk costs five times higher than market prices.
• A subsequent audit in July imposed an additional €3 million fine, representing half of the EU funds allocated for the units in the three regions.

Greece lagging far behind in recycling

The country remains permanently under scrutiny for its recycling performance and compliance with EU environmental law.

• According to Eurostat (2022), Greece’s municipal waste recycling rate was 17%, compared to the EU average of 49%.
• Greece missed the 2020 target of 50% recycling and is expected to fail this year’s goals as well: 55% for municipal waste and 65% for packaging waste.
• To date, Greece has paid approximately €230 million in fines to the EU for environmental violations.

Of the 19 open infringement cases against Greece on environmental issues, 6 involve waste management — from illegal landfills to insufficient enforcement of packaging regulations.

Local NGOs consistently point out that the recycling sector suffers from structural problems, plagued by opacity and mismanagement.

Source: pagenews.gr