What a load of nonsense! There's plenty wrong with EU research funding, but I think you are missing the mark completely.
> Add to that a large volume of EU funded "projects" which are just alternative names for transferring money to professors and other administration
Sure. And then the professors hire PhD students and postdocs to do the nitty gritty research, using that money. That's pretty much how grant money works – EU or no EU. It's far from perfect, but not specific to the EU.
> So everyone wants to work on a EU project, as they will get a lot of money for very little (if any) work.
I mean, they're a giant source for research funding, so of course. I have never experienced them being "little work" though! The oversight seems comparable to that of other grants.
> The money has to be spent on equipment etc
That's not true. In my field, almost all of it is spent on brains (and their attached life support systems), typically in the form of PhD students and postdocs.
> but usually that equipment (IT hardware/software, specialised equipment, vehicles, whatever) just ends up in the private hands
Citation needed! The universities I've worked at have had very strict rules about what happens to things like specialized equipment bought on grant money. They definitely do not just end up in private hands – it would be a scandal where I've worked. (IT hardware sometimes, because the depreciation on commodity compute hardware is often so significant that it's just not worth the hassle).
> Professors stopped teaching long ago, they just consider it a nuisance while making extremely good money with those projects, a lot of free time and high salaries.
The professors I've worked with all had pretty intense teaching loads, and essentially zero free time (in fact, to paraphrase a recent email from a tenured full professor I used to work with: "I finally took a Saturday off, so I didn't have time to look at what you wrote yet, but I will tomorrow"). The more senior ones have had decent salaries indeed, but that's typically after a decade of living on scraps, and often (but, granted, not always) with skills that industry would reward massively.