New European Chief Prosecutor: what changes for companies with EU funds

Key data

Companies receiving European funds in Spain have a new institutional counterpart with real investigative and criminal prosecution powers. Decision (EU) 2026/800, adopted by the European Parliament and the Council on 25 March 2026, formalises the appointment of the European Chief Prosecutor of the European Public Prosecutor's Office (EPPO), the EU institution competent to investigate and prosecute offences against the financial interests of the European Union.

This is not a minor administrative change. The EPPO has direct jurisdiction in Spain and can act completely autonomously in cases of fraud involving subsidies, public procurement and structural funds. The institutional reinforcement represented by this appointment sends a clear signal: scrutiny over the use of European funds is intensifying.

What does this regulation establish?

Decision (EU) 2026/800 has a specific and high-impact purpose: to formalise the appointment of the head of the European Public Prosecutor's Office (EPPO), the EU institution responsible for investigating and criminally prosecuting offences that harm the financial interests of the Union.

The EPPO is not an administrative supervisory body. It is a prosecutor's office with real criminal investigation powers that can act directly in participating Member States, including Spain, without depending on national authorities to initiate or direct its investigations.

The new leadership at the helm of the EPPO may imply changes in investigative priorities. For companies, this means that the prosecutor's areas of focus may shift towards certain sectors, types of funds or forms of irregularity. Keeping abreast of this evolution is part of responsible risk management.

Economic and operational impact

The impact of this appointment is not measured in fees or new direct formal obligations. It is measured in criminal investigation risk and in the consequences that an EPPO investigation can have on a company's operational continuity.

An EPPO investigation may entail:

• Documentation requests and audits on the use of European funds received.
• Blocking or recovery of subsidies or aid received in the event of detected irregularities.
• Criminal liability for the directors and managers involved in the management of the funds.
• Significant reputational damage to the investigated company, with an impact on future tenders and access to new aid.

The institutional reinforcement represented by the appointment of the new European Chief Prosecutor, combined with the greater coordination expected with national prosecutors, raises the level of effective scrutiny on companies operating with EU funds in Spain. Companies receiving Next Generation EU funds or structural programmes are those that should pay closest attention to this change.

Who is affected?

This decision directly affects all economic operators and entities that interact with European funds in Spain and in the other Member States participating in the EPPO:

• Companies receiving Next Generation EU funds (PERTE, strategic projects, digitalisation, energy transition).
• Entities receiving structural funds (ERDF, ESF+, Cohesion Fund).
• Companies awarded public contracts wholly or partially financed with European funds.
• Public administrations that manage and distribute European funds at national, regional or local level.
• Non-profit entities and intermediate bodies that channel European subsidies.
• Advisors, consultancies and managers involved in the processing or justification of European aid.

Practical example

A Spanish industrial company that has received a grant of 2 million euros from the Next Generation EU programme for a digitalisation project at its production plant must be aware of the following:

The EPPO has direct jurisdiction to investigate whether those funds have been used in accordance with the objectives declared in the application. If an internal or external audit detects that part of the justified expenses do not actually correspond to the subsidised project, the company not only faces repayment of the funds to the Spanish administration, but also a potential autonomous criminal investigation by the EPPO, without the Spanish prosecutor's office having to intervene first.

With the new European Chief Prosecutor in office since 25 March 2026, and the greater coordination expected with national prosecutors, the likelihood that irregularities detected at national level will escalate to an EPPO investigation is higher. Rigorous documentation of the use of funds and the traceability of each justified expense cease to be a formality and become the first line of defence.

What should companies do now?

1. Audit the supporting documentation for all European funds received or in progress: subsidies, co-financed public contracts, structural aid. Verify that each expense is correctly supported and is consistent with the purpose of the approved project.
2. Review internal control procedures for the management of European funds. If there is no formal compliance protocol for projects co-financed with EU funds, now is the time to implement one.
3. Proactively identify potential irregularities. Acting before an external investigation begins is always more favourable than doing so under pressure. If errors are detected, assess with legal advice whether it is advisable to voluntarily report them to the managing authority.
4. Monitor the evolution of the EPPO's investigative priorities under the new leadership. Changes in the investigative focus may affect specific sectors or types of funds. Staying informed allows risks to be anticipated.
5. Train the teams responsible for the management and justification of European projects on the EPPO's competences and procedures, especially regarding its autonomous investigative powers in Spain.

Official source

View full regulation at the official source

Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific decisions, please consult a qualified professional. Source: https://eur-lex.europa.eu/./legal-content/AUTO/?uri=CELEX:32026D0800