The European debt crisis has given way to a new wave ofcorruption as some of the most hard-hit countries in the turmoilhave tumbled in an annual graft ranking, watchdog groupTransparency International said.

Greece, in its fifth year of recession and crippled by rounds ofausterity, fell to 94th place from 80th — ranking it below Colombiaand Liberia, according to the group's Corruption Perceptions Index.Ireland, Austria, Malta and Italy were also among member states inthe single currency to slide.

“Transparency International has consistently warned Europe toaddress corruption risks in the public sector to tackle thefinancial crisis, calling for strengthened efforts tocorruption-proof public institutions,” the Berlin-based group saidin a statement accompanying its annual report.

A resolution to the crisis entering its fourth year continues toelude European leaders as a German-led strategy of scaling backpublic deficits has retreated amid recessions and economichardship. The crisis has been accompanied by scandals such astax-crime allegations in Greece and Italian corruptioninvestigations that brought down two regional governments.

Austria slid nine levels in the ranking to 25th, tying withIreland, which dropped from 19th place after slipping five rungslast year. Italy, the second-worst ranked among euro-area nations,fell another three to 72rd place.

Denmark, Finland and New Zealand held on to their top slots inthe ranking, while Afghanistan, North Korea and Somalia remained atthe bottom, in 174th place. The index has become a benchmark gaugeof perceptions of a country's corruption, an assessment of risksused by analysts and investors.

In addition to its status as the birthplace of the euro-areadebt crisis, Greece is ranked the most corrupt country in the27-nation European Union. Policy makers trying to tackle thecountry's mounting debt have also focused on its broken revenuesystem as the government attempts to track down tax evaders. Totalunpaid taxes in the country amounted to 42 billion euros, theFinance Ministry said in September 2011.

Greece in September froze bank accounts, shares and propertiesin 121 tax evasion cases, with Finance Minister Yannis Stournarassaying that “tolerance of tax evaders, no matter how high up theyare, is over.”

In Italy, probes this year toppled regional governments inLombardy and Lazio, home to Milan and Rome, respectively. FormerPrime Minister Silvio Berlusconi, whose party members ran the twodefunct regional administrations, was convicted by a Milan court inOctober on unrelated tax fraud charges and sentenced to four yearsin prison. Berlusconi, a billionaire media magnate, remains free ashis lawyers prepare an appeal.

Austrian Prosecutions

Austria has been gripped by a series of high-profile corruptioncases, many linked to the previous government that ruled from 2000to 2007 and backed by the late populist politician Joerg Haider.They were exposed by the financial crisis, investigative reportersand stepped-up prosecutions.

The U.S. jumped five points on the index, now ranking 19th, twopoints behind the U.K., which slid a slot. Russia, which has theworst score of any country in the Group of 20 most-industrializedcountries, climbed 10 spots to 133.

Egypt, where President Mohamed Mursi adopted sweeping powerslast month and faces protests over a draft constitution that heapproved, dropped six levels to 118th after plummeting 14 placeslast year. China lost five points to 80th place.

“Governments need to integrate anti-corruption actions into allpublic decision-making,” Huguette Labelle, TransparencyInternational's chief, said in a statement. “Priorities includebetter rules on lobbying and political financing, making publicspending and contracting more transparent and making public bodiesmore accountable.”

The index is an aggregate indicator that combines data from 13different surveys assembled by independent institutions, includingcountry experts and business leaders. Transparency Internationalused a new methodology this year that changes the way data arehandled and rates countries from zero to 100, the highest numberbeing the least corrupt. Finland has a score of 90, while Somaliahad eight.

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