What changed

PA_NonLegDec

PA_NonLegBudDec

OPINION

The Committee on ForeignEmployment and Social Affairs calls on the Committee on Budgetary Control, as the committee responsible, to incorporate the following into its motion for a resolution:

1. Points out to the unprecedented challenges in the global environment, peace and geopolitical instability in the current year of audit; recalls that since Russian’s invasion of Ukraine, the EU has provided economic, humanitarian and military support for Ukraine worth over €88 billion;

– having regard to the Court of Auditors’ annual report on the implementation of the budget for the financial year 2023, together with the institutions’ replies, and to the Court of Auditors’ special reports;

2. Underlines that expenditures in heading 4 ‘Global Europe’ are considered high-risk except for budget support payments and administrative expenditure which represent around 20%; notes that most errors found in this area concern expenditure not incurred, ineligible costs and non-compliance with public procurement rules;

1. Expresses its satisfaction that the Court of Auditors has declared that the consolidated accounts of the Union for the year 2023 present fairly, in all material respects, the Union’s financial position at this date;

3. Stresses that the Union budget must continue to provide support to build peace and stability in the Middle East region, to combat hate and fundamentalism and to promote human rights; notes that following the heinous terror attacks of 7 October 2023 by Hamas and serious allegations of misuse of EU funds for terrorism, a funding review was conducted which found that generally EU funds are being well implemented, but certain additional safeguards were deemed necessary;

2. Observes that the total outstanding commitments reached a record high of EUR 543 billion by the end of 2023, mainly due to an increased commitment of shared management funds, as well as NextGenerationEU (NGEU), but notices that the total outstanding commitments are expected to decrease in the 2024-2026 period;

3. Notes with concerns that the Court of Auditors estimates that the level of error for MFF heading 2 ‘Cohesion, resilience and values’ in 2023 reached 9,3 %, compared with 6,4 % in 2022; recognises that the majority of spending in this area is deemed high-risk expenditure as mainly reimbursement-based and often subject to complex rules; calls for urgent action to decrease the error rate in the future;

4. Expresses concerns that the Commission forecast decommitments for cohesion policy funds, including the European Social Fund Plus, at EUR 2,2 billion for the 2024-2027 period, five times higher its 2022 forecast, mainly due to persistent low absorption;

5. Notes that high inflation (6,4 %) continued to affect the Union budget; warns that, based on the Commission’s inflation forecast, the Union budget could lose about 13 % of its purchasing power by end of 2025;

6. Asks the Commission to implement as soon as possible all outstanding Court of Auditors' recommendations.

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

The rapporteur for opinion declares under her exclusive responsibility that she did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.