The Malta Government has confirmed the appointment of lawyer Omar Caruana as the country's next European Prosecutor within the European Public Prosecutor's Office (EPPO), a role that will see him stationed in Luxembourg from July 2026 with a six-year, non-renewable mandate. The position carries direct authority to investigate and prosecute crimes against the EU's financial interests, including fraud, corruption, and cross-border VAT schemes exceeding €10 million—cases that collectively cost European taxpayers billions annually.
Why This Matters
• Direct prosecutorial reach: Unlike advisory EU bodies, EPPO prosecutors can initiate criminal investigations and bring cases to trial across 24 member states without waiting for national authorities.
• Malta's exposure: As of March 2026, EPPO is actively investigating 17 cases in Malta involving an estimated €253.5 M in damages to EU funds.
• Jurisdictional clarity: The appointment clarifies who handles major EU fraud cases, removing previous grey areas where national and European competences overlapped.
Caruana's Appointment Follows European-Level Vetting
The Council of the European Union approved Caruana's appointment as part of a partial renewal of the EPPO College, the Luxembourg-based decision-making body that sets strategic priorities and supervises prosecutions across participating member states. He will replace Yvonne Farrugia, who held the post since July 2020 and whose term expires this summer.
Caruana's selection followed a national public call issued by Malta, after which candidates underwent vetting at the European level. The appointment reflects Malta's continued participation in the EPPO framework, which the country joined in August 2018.
The new European Prosecutor will work alongside European Delegated Prosecutors (EDPs) based in Malta—currently Geoffrey Azzopardi and Martin Sammut—who handle the ground-level investigative work. EDPs operate with complete independence from national authorities in their EPPO duties, though they apply Malta's criminal laws and procedures when bringing cases before local courts.
What This Means for Residents
For individuals and businesses in Malta, Caruana's appointment has several practical implications:
Increased scrutiny of public contracts and EU-funded projects: EPPO has jurisdiction over fraud involving EU grants, embezzlement of funds, and undue subsidies. Companies bidding for contracts tied to EU money should expect heightened due diligence and potential investigation if irregularities surface. This is particularly relevant for Malta's sectors that rely heavily on EU funding, including agriculture, infrastructure development, and gaming-related business operations.
Cross-border VAT fraud enforcement: EPPO can prosecute VAT carousel schemes and other trans-national tax evasion where total damages exceed €10 M. This threshold means large-scale operators face European-level prosecution rather than fragmented national cases.
Corruption cases involving public officials: Any bribery or misappropriation by national or European officials that causes economic damage to the EU falls under EPPO's mandate. This includes cases where Maltese officials interact with EU funds or procurement processes.
Reporting mechanisms: Individuals, entities, and companies can report suspected crimes directly to EPPO, bypassing national channels if they believe local authorities are unresponsive. This is particularly relevant in a jurisdiction where white-collar crimes have historically been described as "underreported, underestimated, and often tolerated".
How EPPO Operates in Malta
The European Public Prosecutor's Office functions through a two-tier structure: a central office in Luxembourg and a decentralized network of European Delegated Prosecutors embedded in national justice systems. Malta's EDPs handle the investigative work, while the European Prosecutor—Caruana, starting July 2026—supervises cases and participates in the EPPO College, which sets office-wide policy and adopts internal rules.
Malta has made formal notifications under Article 105(3) of the EPPO Regulation, designating EPPO as the competent authority for applying EU judicial cooperation instruments, including the European Arrest Warrant, mutual assistance conventions, and regulations on freezing and confiscation orders. This means EPPO can act as both an issuing and executing authority for cross-border investigative measures, bypassing traditional diplomatic channels.
Despite these legal frameworks, cooperation between EPPO and Malta's national police has faced friction. EPPO officials have consistently pressed for more financial crime investigators to be dedicated to its probes, a request that reflects broader compliance challenges across member states regarding the independence of EDPs and their ability to obtain investigative measures without undue hindrance from national law.
Broader Context: Malta's Exposure to EU Financial Crimes
The appointment comes as Malta faces scrutiny over its handling of EU funds and anti-money laundering controls. The island's real estate sector, gaming industry, and reliance on foreign direct investment have all been flagged as vulnerable to illicit financial flows. EPPO's active caseload in Malta—17 investigations involving €253.5 M—underscores the scale of potential misuse.
Cross-border VAT fraud is a particular concern. Criminal networks exploit Malta's position as an EU member state to route fraudulent transactions through multiple jurisdictions, often exceeding the €10 M threshold that triggers EPPO jurisdiction. The office's ability to coordinate investigations across borders makes it uniquely suited to dismantle these schemes, which national authorities struggled to address before EPPO became operational in June 2021.
Jurisdictional Scope and Limitations
EPPO's mandate is defined by Directive (EU) 2017/1371 (the PIF Directive) and Regulation (EU) 2017/1939. In 2026, this includes:
• Fraud against the EU budget (grants, subsidies, embezzlement)
• Cross-border VAT fraud exceeding €10 M
• Corruption and bribery involving EU funds
• Misappropriation by public officials
• Money laundering linked to EU financial crimes
• Participation in criminal organizations focused on PIF offenses
Proposals to extend EPPO's mandate to cover violations of EU sanctions have not gained sufficient support, and the office's 2026 review offers another opportunity to revisit this issue. For now, jurisdiction remains focused on crimes against the EU's financial interests, not broader sanctions enforcement.
What Happens Next
Caruana's six-year term begins in July 2026, and his first tasks will likely include familiarizing himself with Malta's active EPPO cases and establishing working relationships with the EPPO College in Luxembourg. The non-renewable nature of the mandate is designed to insulate prosecutors from political pressure.
For Malta, the appointment signals continued participation in the EPPO framework and reinforces the country's commitment to combating EU financial crimes. How this tenure strengthens Malta's relationship with European prosecutorial oversight will depend on effective coordination between EPPO and national authorities in addressing the island's complex fraud and money laundering challenges.
