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Purpose

The purpose of this paper is to examine the arrangements and institutions that have been put in place at both the transnational and the national levels to fight fraud against the European budget. It also seeks to consider the experiences of two new Member States, Romania and the Czech Republic, in seeking to build effective anti‐fraud structures and to co‐operate effectively with Brussels.

Design/methodology/approach

Semi‐structured interviews are undertaken with officials of the European Anti‐Fraud Office (OLAF), as well as with officials in both Romania and the Czech Republic. A review of secondary materials such as official reports and academic articles is also undertaken.

Findings

The fight against European Union (EU) fraud is hampered by a number of factors. Fragmentation occurs at different levels, transnational, national and legal. The lead transnational agency OLAF has not been given the support it requires and has been subjected to a long period of uncertainty regarding its powers and responsibilities. New Member States have been admitted to the EU, but some of them have not been ready in terms of their ability to tackle fraud effectively. These problems are to a large extent self‐inflicted, and make the fight against fraud all the more complex and difficult.

Originality/value

The paper provides an insight into the difficulties facing both OLAF and the agencies of new Member States in terms of fragmentation and seeking to acquire investigative and other technical skills in a very short period of time. It is an addition to a body of literature which is not particularly extensive.

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