Corruption scandals once again rock the European parliament.

This is part of a worrying trend, where research by investigative journalists in Brussels has revealed that almost a quarter of EU lawmakers were involved in scandals or breaking the law, on issues ranging from harassment to corruption.

Does this mean that EU democracy is on the same path as the US, where 80% of Americans now believe that politicians serve their donors rather than the people in their districts?

Or could it be that, actually, some low level corruption by a minority of its 720 parliament members, is REALLY NOT such a big deal in today’s turbulent world?

After all, if we, again, compare it to the US, what USED to be scandals is now just another Tuesday. A lawmaker like Nancy Pelosi outperforming all other hedge funds? don’t worry about it. Putting a key government contractor in charge of restructuring the government? That’s fine. A sitting president literally launching a MEME coin? there’s bigger things to worry about.

On top of that, highlighting low level corruption in the EU gives people like Hungary’s Victor Orban, under whose rule Hungary became Europe’s most corrupt country, an opportunity to say stuff like this

“””I think this body has some expertise when it comes to corruption

meaning that the EU cannot credibly criticize Hungary, even though the level of grand corruption is on a completely different scale. So, even if this is morally ABSOLUTELY wrong, could it actually be, that the CORRECTION decision FOR EUROPEANS IS —PARADOXICALLY— TO focus LESS on SMALL SCALE EU corruption, to ensure the public remains interested in large scale corruption and conflicts of interest like we see in Hungary and increasingly the US?

To answer that question, as always on this channel, I’ve done a deep dive into the scientific literature how corruption undermines democracy AND the other way around.

But, first, I set out to uncover how bad the problem really is. In other words,

Is the EU actually getting more corrupt and undemocratic?

To answer this question though, I think that as an academically trained researcher, I should be honest about my limitations. I may read a lot of research reports and papers, but I don’t walk around Brussels speaking truth to power.

This is where ‘Follow the Money’ EU comes in, one of the very few journalistic watchdogs focused on the European Union itself. They have essentially uncovered two very worrying trends about the European Union. The first is increased corruption scandals at the European parliament and the second is increased secrecy at the European commission, especially since Ursula von der Leyen became its president.

So, let’s first talk about increased corruption in the European parliament. Although, of course, it could be that the parliament was always this corrupt, but that now more scandals are uncovered thanks to better policing. In any case, the worrying trend of increased corruption scandals started in 2022, with what came to be known as Qatargate. In this scandalous episode high ranking members of the parliament, including one of its vice presidents, allegedly took hundreds of thousands of Euros from the Moroccan and Qatari governments to represent their interests. Then, just 2 years after promising better ethical controls, the parliament was again shook by a similar case where several members were allegedly paid considerable sums to speak favorably about Chinese telecom giant Huawei. This scandal came to be known as Huawei gate. And, finally, now we have what I could call Marine Le Pen gate, where far-right French politician Marine le Pen was convicted for misusing parliament money to fund activities from her own French party.

But, in this last case, things got even more shady as Follow the Money research has shown that this practice, for which Le Pen got convicted, was actually very wide spread…

In fact, hold on, perhaps it makes more sense for Lise Witteman, deputy editor in chief at Follow the Money Brussels, to explain this herself.

<add skype call sound?>

Lise, thanks for taking my call. Bedankt voor je hulp. Ben je er klaar voor?

<Interview MM ftm - Recording 1 - 1:15 Lise says: “kom maar op”>

So, Lise, Follow the Money has reported that this practice of siphoning of EU parliament money is actually very widespread. But not everyone gets into trouble for it. How does that work?

“””So that’s quite a painful issue because what we’ve seen is that over the last couple of years actually really more than a hundred members of the European Parliament have been misspending money meant to pay European Parliament assistance and only a few of them get actually sent through to the prosecutors to be dealt with.  And what we’ve noticed is that mostly members of the European Parliament who are part of far-right those cases are being sent to prosecutors while others may just get to hear just pay the money back and things will be fine. **So obviously the European Parliament hasn’t admitted it this but as we compare the numbers and the cases we’ve seen we worry that there is really sometimes a political system behind this and this is especially worrisome because I don’t think that Le Pan shouldn’t have been convicted. she did have this fraud case but I do think everybody should be treated the same. And this fuels obviously into the narrative of the populist and into the mistrust of citizens into the European Union.“””

which brings us to the second worrying trend which is… increased secrecy under commission president Ursula von der Leyen. For example, there’s the Pfizergate scandal where Ursula von der Leyen made a deal to buy vaccines at the height of the pandemic I believe. But, whereas usually the conditions of these types of deals would become public knowledge at some point, Lise’s colleague Alexander is still being stonewalled for the details

<maybe get sound somewhere from Lise’s interview here where she says: “Yes” or something similar then cut to Lise:>

“””when, Alexander Font one of follow the on his colleagues or when the European prosecutor or the European Court of Auditors or other journalists, everyone who were quiet require it after those, messages. Nobody has seen them up until now. So in that sense, we can’t hold, formal line accountable for it, which is one of the basics of, of a democracy that you can, that you are able to question the people in power.“””

Hmmm that’s very worrying indeed, and where I thought it was particularly interesting is that they used the fact that the deal was made by text message to say: “look there is no official document that you can obtain, because it was a text message.” That’s not an official text message. On top of that, Lise’s team has written that von der Leyen has employed other sneaky tactics like moving more and more text from minutes that are officially available to annexes or footnotes that are allowed to be kept secret in the interest of national security. On top of that Follow the Money has covered how von der Leyen’s party, the EPP has increasingly tried to DEFUND NGO’s that are part of the Brussels system of checks and balances, to hold politicians to account on issues that are counter to the interest of industry lobbying groups such as the environment. So, Lise, is von der Leyen following in Orban’s footsteps? “””Well, luckily we are not there yet. You know, these watchdogs are still in place. They are still able to do their work to a certain extent. So for now, I would say, the European Commission is not in the same place as, so Hungary or the the way that the European, the United States is now heading towards. But there are worrying trends. And if we don't do anything, then you can say, we're not we're not that bad yet, but things can go very quickly, very bad. And that we've seen also in certain, European countries that once there is, there is not enough respect anymore for the importance of watchdogs. Things can deteriorate and then you only need one very bad leader, with bad intentions and, yeah, democracy can go down the hill fast.“”” So could we say that corruption is essentially a slippery slope. If you if you allow a little bit of it, you're going to normalize it, and then more and more corruption will follow it. Is that what you're saying? “””Super slippery.“”” Okay, thanks Lise! That sounds logical. It’s a slippery slope to more corruption, and perhaps, eventually becoming a flawed democracy or even dictatorship. <*remove headphones*> But, is that actually true? To find, out, as always on this channel, I delved into the scientific and professional literature to find out: ## Is corruption indeed a slippery slope undermining democracy? where this graph makes one thing very clear, the most democratic nations according to the Economist’s democracy index, are also the least corrupt, according to the corruption perception index from Transparency international. Interestingly, there’s one flawed democracy, that is really not corrupt at all, this is Singapore. Also, note that some autocratic regimes are really not that corrupt. But overall, the trend SEEMS really clear. But, I’m emphasizing SEEMs really clear, because this graph I think represents exactly one of the biggest misconceptions in social science, which is correlation is not causation. That is, while the correlation seems really clear, also in more e[xtensive](https://v-dem.net/media/publications/brief_6.pdf) studies, we simply do not know if becoming more autocratic causes corruption, or if corruption actually is a slippery slope that makes democracies become more autocratic. It could easily be just that becoming more democratic makes you less corrupt. For example, as you can see here, many s[tudies tend](https://v-dem.net/media/publications/brief_6.pdf) to find that there is a non-linear relationship between corruption and democracy, where autocratic regimes that just became democratic tended to more corrupt than purely autocratic regimes. For example, have a look at this red line, which could show that very autocratic countries get more corrupt as they become democratic, only to become less corrupt as they then become better democracies over time. Now, that relationship SEEMS to suggest that actually democratic strength reduces corruption, at least in its final form. But, again, correlation is not causation. We do not know exactly which causes what, but we do know that **democracy and corruption are related.** We also know from journalists from countries that recently became both more dictatorial and corrupt, that they describe the process as a **slippery slope.** For example, various journalists from countries ranging from Russia to Turkey recently [advised](https://www.ft.com/content/804a0309-763d-4515-b3ce-08d44df60482) in the FT that “If there is no effective pushback, would-be authoritarians will go further and faster.” Similarly, we do know from po[litical scientis](https://www.u4.no/publications/literature-review-on-social-norms-and-corruption.pdf)t that there is something [lik](https://www.cambridge.org/core/journals/political-science-research-and-methods/article/abs/political-corruption-traps/DE24AF14E0DD314FD040DA3BBCDFB048)e a [**corruption trap](https://academic.oup.com/wbro/article-abstract/35/2/192/5857269?login=false),** meaning that corruption can create a self-perpetuating cycle, where as corruption becomes normalized, it can lead to more people engaging in corrupt practices. So, overall, I’d say that there is a lot of evidence out there that corruption and increased anti-democratic behavior like von der Leyen’s secrecy can be a very slippery slope indeed. To make matters even worse, the scientific literature [mentiones](https://www.transparency.org/en/news/cpi-2018-global-analysis) that **paradoxically** perceived high corruption can provide a platform for authoritarian leaders that then promise to fight that corruption, only to then be even more corrupt themselves when they get in office. So, could there still be a paradoxical case made for staying silent on minor EU corruption to prevent people like Orban from exploiting it? It seemed far fetched to me, but I still wanted to ask Lise, who told me that “””Well, it's like this. I do think that some of our stories feed into the playbook of Orban or Putin. They are saying, look, Brussels is just as bad as the other ones. They are corrupt. They are also, we are they are not better than we are. But I think that the big difference between countries such as, Hungary, such as Russia and the European, Union as it is still today, is that do you stand up against corruption? Do you send people to prison who are, foreigners who are corrupt, or do you let it go? And you see that indeed, in Hungary, for instance, the prosecutor is a watchdog on a leash, and that's the situation that you want to prevent. Because if you are there, then nothing can stop. The theorization of the rule of law and democracy. So let's make sure that we are not getting there and step up against corruption. As long as that's the case, I'm still very happy to live in the European Union.””” This is exactly **why I teamed up with Follow the Money for this episode.** To me it makes sense that precisely to keep corruption at bay, to avoid normalizing it as seems to have happened in the US, we need to ensure policy makers are held accountable. ## CTA **So, even though they did not sponsor this video, they did not pay me anything, I do really want to implore you to support this type of investigative journalism on the** European level. So, if you want to support work like the articles I linked in the description and top comment below, please go to [ftm.eu/become-member](http://ftm.eu/become-member) to support and get access to unique European investigative journalism, which is also really fun to read honestly, or if you want to know more buy their book “Who’s watching Europe” at ftm.eu/products. And, finally, if you are not in Europe, and want me to do more collaborations like this, with investigative journalists in your region of choice, please let me know in the comments, and also consider supporting Money & Macro on Patreon. I’m not an investigative journalist, but I do try to do my part protecting democracy, by trying to provide deep, accurate, balanced videos about the world today. To make more though, I really need a bigger team of experts, which I think I can start hiring when I hit 3k$ per month Patreon target, if you want to contribute consider checking out [patreon.com/moneymacro](http://patreon.com/moneymacro).