EU Funding Probe Puts Political Successor Liability Under Scrutiny

The European Public Prosecutor’s Office (EPPO) searched administrative offices used by the Patriots for Europe (PfE) group at the European Parliament in Brussels and Strasbourg on 21 October, as part of an investigation into the alleged misuse of EU funds by its predecessor, Identity and Democracy (ID). The inquiry concerns expenditure between 2019 and 2024, when ID brought together members of several nationalist and Eurosceptic parties, including France’s National Rally, Italy’s Lega and Germany’s Alternative for Germany. The European Parliament confirmed that the searches were linked to the investigation into the former group, while the EPPO declined to disclose further details that could compromise the proceedings. The searches did not, in themselves, establish criminal wrongdoing by the current parliamentary group or its members.

The investigation was launched in July 2025 following scrutiny of ID’s financial management. A review by the European Parliament’s financial administration identified approximately €4.33 million in expenditure considered improper, raising questions about how parliamentary funding had been allocated and whether the relevant rules had been followed. The concerns included donations to organisations unrelated to the group’s parliamentary activities and contracts awarded to service providers, in some cases without competitive tendering. Some of the companies involved were reported to have links to France’s National Rally, making the handling of parliamentary funds a particular focus of the investigation.

The latest searches follow an earlier operation on 30 June 2026, when investigators conducted searches in France, Belgium, Spain and Italy as part of the same inquiry. The investigation has examined potential irregularities in the awarding of contracts and the use of public money during ID’s parliamentary term. The geographical spread of the operations reflects the cross-border nature of the arrangements under examination, involving political organisations, service providers and financial transactions in several EU member states. Investigators have not publicly established a final account of responsibility for the disputed expenditure.

The dispute over financial succession

The case has become more complicated because Identity and Democracy was dissolved following the 2024 European elections, while many of its constituent political parties subsequently joined Patriots for Europe. The new group includes the National Rally, Lega and Hungary’s Fidesz, alongside Spain’s Vox and other political movements. PfE has rejected the suggestion that it is legally continuous with its predecessor, arguing that the investigation concerns a separate parliamentary formation that ceased to exist in 2024. The distinction matters because the potential recovery of funds depends not only on whether expenditure was improper, but also on which entity can legally be held responsible for the resulting liabilities.

However, the European Parliament’s rules allow a new political group to be treated as the successor to a dissolved formation under certain conditions. Relevant considerations include whether a decisive proportion of the former group’s members moved into the new organisation, whether assets or operational infrastructure were transferred, and whether the new group presented itself as the direct continuation of its predecessor. These criteria are intended to prevent organisations from escaping outstanding financial obligations simply by changing their name or institutional structure. In September, the Parliament’s Committee on Budgetary Control supported the position that PfE could be required to repay funds found to have been improperly spent by ID, subject to the outcome of the investigation and the applicable rules.

The distinction between political continuity and legal liability will therefore be central to the eventual outcome. Similarities in membership or political orientation do not, by themselves, establish that a successor group is responsible for every obligation incurred by its predecessor. Investigators and the relevant parliamentary authorities must determine whether the specific legal and financial conditions for succession have been met. Until those questions are resolved, the potential repayment of more than €4 million remains a matter under examination rather than a final liability imposed on PfE.

Implications for EU financial oversight

The investigation tests the European Parliament’s ability to enforce financial accountability across successive political formations. Parliamentary groups receive public funding to support their institutional and political work, making transparent expenditure, proper procurement and auditable financial records essential to the legitimacy of the system. Where spending is found to have breached the rules, recovery mechanisms must operate independently of the political influence or electoral strength of the organisations involved. The case also illustrates the practical difficulty of enforcing those rules when political groups dissolve, staff move between organisations and administrative arrangements continue under a different structure.

The proceedings carry particular significance for the Patriots for Europe group, the European Parliament’s third-largest political formation. Its members include parties with substantial national political influence, and the dispute over the group’s relationship with ID could create financial and reputational consequences if the investigation establishes grounds for repayment or further action. At the same time, the existence of an investigation should not be treated as proof that the current group or its individual members committed an offence. The final findings will determine whether the disputed expenditure warrants further legal action and whether any financial obligations can be transferred to a successor entity.