EPPO probes 17 Bulgarian railway contracts

Bulgaria's transport minister Georgi Peev says the European Public Prosecutor's Office (EPPO, the EU's criminal prosecutor for fraud involving European funds) is investigating 17 railway contracts signed between 2019 and 2021. According to Peev, Bulgaria's national railway infrastructure company NKZHI accepted roughly EUR 765 million in rail obligations without secured financing (24 Chasa, Boulevard Bulgaria).

On the public record, the proven problem is not yet criminal fraud. It is that a state company signed contracts it could not fund. Whether EU money was lost along the way is now a criminal question.

EPPO itself has not confirmed the investigation (Fakti). The claim rests entirely on Peev's public statements and Bulgarian media reports. But the minister volunteered the information, named the number of contracts, and declared his ministry's full cooperation with prosecutors. This reads like a new government exposing its predecessor's record, not a leak from the prosecutor's office.

If violations are confirmed, Bulgaria could face repayments or funding cuts of more than EUR 400 million in connected EU money (BNR News, Fakti). Which EU funding programme is exposed remains unclear. OLAF, the EU's administrative anti-fraud body, is separately checking two contracts for rolling-stock delivery.

An EU Prosecutor Working Through National Courts

EPPO is not an EU police force. Strategic direction comes from Luxembourg, but cases run inside member states through European Delegated Prosecutors who rely on national police, national courts and national evidence rules (EPPO, Regulation 2017/1939). In Bulgaria, an EU prosecutorial chain can take command of a case involving European money, but Bulgarian investigators and judges still carry it through.

This hybrid design matters for the rail file. EPPO can direct the investigation and make sure it is not buried domestically. It cannot overcome poor procurement records or missing documentation at the source. In 2024, the office processed 6,547 crime reports and detected estimated damage exceeding EUR 24.8 billion, according to its annual report. Those are suspected amounts, not proven losses. The gap between suspicion and courtroom proof is where many cases die, especially when original records were never built to withstand scrutiny.

The contrast with non-participating states shows why EPPO membership matters. Countries that opt in face uncomfortable investigations, but gain a prosecutorial channel partly outside domestic political control. Countries that stay out, like Hungary, leave suspected fraud with national prosecutors alone (EPPO participating states).

Where Execution Breaks Down

Bulgaria's rail file points to a vulnerability that extends beyond one country: the execution chain underneath political funding decisions. Procurement, permits, financing verification, delivery, audit trails. The European Court of Auditors has repeatedly flagged weaknesses in the systems meant to find and punish fraud against EU money (ECA), and EPPO has conducted coordinated raids across multiple member states in funds investigations (Euronews). Romania faces parallel warnings about losing billions in recovery funds if projects fail to meet EU payment deadlines (Libertatea).

A project can pass through formal national approval while the question that actually determines whether money was wasted goes unexamined. In Bulgaria's case, that question was basic: did the contract have confirmed financing? The minister's own statements say it did not.

The 17 contracts, the contractors, the specific funding programmes and the suspected offences remain undisclosed. Until EPPO or a court confirms the scope of the file, the strongest conclusion is the one Peev himself delivered: Bulgaria's railway system absorbed hundreds of millions in commitments it could not back. The criminal investigation will determine whether EU funds went with them, and whether anyone answers for it.