Rethinking Financial Rewards for Whistle- Blowers Under the Proposal for a Directive on the Protection of Whistle-blowers Reporting Breaches of EU Law

Abstract

The European Commission recently published a proposal for a Directive on the protection of whistle-blowers reporting breaches of EU law. This proposal is welcomed not only by the legal community but also by many citizens who desire more transparency. The recent scandals revealed by whistle-blowers along with the active role of the European Parliament have led the European Commission to propose this important text of the proposed Directive. The whistle-blower is recognised as an enforcement tool for the EU and is a key component in helping to ensure the successful enforcement of EU law. There is one element, however, that is not discussed by the European Commission: financial rewards for the whistle-blowers.1 The United States, especially in the financial sector, has adopted a system of financial awards. Europe, on the other hand, is resistant to introducing such incentives. The aim of this paper is to introduce the proposal for a Directive and to highlight the problems that such a step may create at the EU level.