EU Investigates Greece Over Misuse of €11.9 Million in Recycling Funds

The European Union is investigating Greece for the potential misuse of at least €11.9 million in EU funds allocated to a recycling project. This scrutiny highlights ongoing challenges Greece faces in meeting EU waste management standards. The investigation follows reports from Greek auditors that identified significant irregularities in the project’s costs and management.

Investigative Findings Raise Concerns

One report, reviewed by POLITICO, detailed various operational issues at recycling centers across Greece. It pointed out a troubling absence of controls regarding the fate of collected waste. Specifically, the report indicated that the Attica waste management authority, known as EDSNA, provided no information about the waste after it was collected, aside from a report on its storage at a facility operated by the recycling company TEXAN for the year 2023.

The European Public Prosecutor’s Office (EPPO) is spearheading the investigation, which is based on findings from the audit committee among other documents. The project, which includes a network of recycling kiosks in regions such as Attica, Peloponnese, and Crete, was co-financed by the EU under a €220 million European Operational Program. In 2023, an audit resulted in a €2.9 million penalty imposed on EDSNA due to serious irregularities linked to the purchasing contract awarded to TEXAN.

Concerns escalated when it was revealed that TEXAN’s bid was significantly higher than market rates, suggesting a lack of competitive bidding. The company won the tender with cost estimates that were reportedly five times greater than expected based on prevailing market conditions.

Ongoing Challenges in Waste Management

Greece’s struggles with recycling and compliance with EU waste management laws are well-documented. According to data from the European statistical office Eurostat, the municipal waste recycling rate in Greece was only 17 percent in 2022, starkly below the EU average of 49 percent. The country is on course to miss its obligations to recycle 55 percent of municipal waste and 65 percent of packaging waste this year, as noted in the European Commission’s 2025 environmental implementation review.

Additionally, Greece failed to meet the 2020 target of recycling 50 percent of its municipal waste, which has led to significant fines. To date, Greece has paid approximately €230 million in penalties for environmental non-compliance. The country currently faces 19 open infringement cases related to environmental issues, six of which are specifically tied to waste management practices.

Local non-governmental organizations (NGOs) have frequently raised alarms regarding systemic issues within Greece’s waste management sector. The ongoing EU investigation may lead to further scrutiny and pressure on Greek authorities to address these long-standing challenges effectively.