The European Public Prosecutor’s Office (EPPO) has launched an investigation into several bus companies in Luxembourg over suspected subsidy fraud related to electric vehicles, the agency said on Wednesday. The probe concerns claims that operators misrepresented diesel and hybrid bus services as electric, allowing them to receive public funds and avoid emissions-related penalties.
According to the EPPO, the companies allegedly received up to €12 million from the European Regional Development Fund (ERDF) between 2022 and 2023, and an additional €11 million from the national budget in 2024. The companies are suspected of having systematically billed public transport services as though they were operated using electric buses, even though a “significant proportion” were provided by non-electric vehicles.
By misclassifying services as zero-emission, the operators are believed to have obtained larger subsidies and avoided fines for not meeting fleet electrification targets. “All persons are presumed innocent until proven guilty by the competent Luxembourgish courts of law,” the EPPO said in a statement, without naming specific companies.
Luxembourg’s Judicial Police recently carried out coordinated searches at the offices of several major bus firms and the residence of a former senior transport official. The investigation has not yet resulted in formal charges.
In response, the Luxembourg Federation of Bus and Coach Operators (Fleaa) said it was “deeply surprised” by the allegations. Affected companies, according to Luxembourgish outlet Delano, have denied wrongdoing, arguing that all billing data came from state-run software systems and that no EU funds were received directly.
The case comes amid broader EU efforts to monitor the proper allocation of public funds and enforce compliance with environmental targets. If confirmed, it would mark one of the more substantial fraud cases involving the misuse of green mobility subsidies in the region.