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REPORT (2023/2178(DEC))

On discharge in respect of the implementation of the budget of the European Joint Undertaking for ITER and the Development of Fusion Energy (Fusion for Energy) for the financial year 2022

A-9-2024-0090

Committee on Budgetary Control · Rapporteur: Michal Wiezik

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Parliament's committee report proposes granting discharge to the Director of Fusion for Energy for the 2022 budget and approving the closure of its 2022 accounts. It notes the Court of Auditors found the 2022 accounts fair and the underlying transactions legal and regular. It raises concerns over the ITER project's cost estimate, delays, contract management weaknesses, senior management instability and the use of external staff. It asks the Joint Undertaking to improve transparency on members' contributions and to keep improving gender and geographical balance.

Committee position. The Committee on Budgetary Control proposes that Parliament grant discharge to the Director of Fusion for Energy for the 2022 budget, approve the closure of the 2022 accounts, and adopt observations on the ITER project's costs, risks, contract management, staff and transparency.

Key points

  1. Parliament grants the Director of Fusion for Energy discharge for the implementation of the 2022 budget.
  2. Parliament approves the closure of the Joint Undertaking's accounts for the financial year 2022.
  3. The Court found the 2022 annual accounts fair and the underlying transactions legal and regular.
  4. The Court notes the estimate at completion for the ITER project at EUR 19,1 billion (in 2022 values), based on 2016 assumptions and subject to significant revision.
  5. Inflation is estimated to add EUR 144 million (2008 values) to the estimate at completion, expected as extra spending in 2023-2026.
  6. Russia's membership of the ITER-IO, with component deliveries and annual contributions, is seen as a high risk of delays and higher costs; solutions should safeguard Union interests.
  7. The 31st ITER Council agreed a baseline update in November 2022 and the 32nd meeting commissioned a proposal for the updated baseline for approval in 2024.
  8. Budget management risk is rated medium due to possible delays and cost increases, sanctions on Russia and French Nuclear Safety Authority approval delays.
  9. The 2022 execution rate was 72% in commitments and 91% in payments, down from 2021, due to slowed operational activities.
  10. The Court found weaknesses in contract management, including a 2013 contract of EUR 500 million and cost claims of EUR 150 million and EUR 30 million.
  11. The Court considered senior management unstable, with personnel changes in four of seven senior positions, posing a risk to sound management.
  12. The Joint Undertaking should disclose members' contributions at programme level and continue improving transparency, gender and geographical balance.

Who is affected

  • Fusion for Energy and its Director: granted discharge and account closure for 2022.
  • ITER project partners and the ITER-IO: affected by risks from Russia's membership and baseline changes.
  • Fusion for Energy staff: affected by management instability, external staff use and working environment concerns.
  • Euratom member states and third countries: members of the Joint Undertaking contributing to its budget.

Figures and deadlines

  • EUR 15 billion (in current values): Commission estimate of total Euratom budget needed up to 2035.
  • EUR 3,2 billion (in current values): additional contribution from France and Euratom member states.
  • EUR 19,1 billion (in 2022 values): estimate at completion for the ITER project.
  • EUR 9,2 billion: total payments made up to end of 2022; EUR 9,9 billion: estimate of future payments.
  • EUR 144 million (2008 values): estimated inflation impact on the estimate at completion.
  • EUR 5 614 million (in current values): Euratom contribution to ITER for 2021-2027, of which EUR 5 560 million direct.
  • EUR 500 million: 2013 contract for ITER buildings; cost claims of EUR 150 million and EUR 30 million.
  • 45,4%: Union share of construction costs; 9,1% each for other partners; 34% of operating costs in testing phase.

Legal basis: Article 319 of the Treaty on the Functioning of the European Union and Article 106a of the Treaty establishing the European Atomic Energy Community.