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REPORT (2023/2181(DEC))

On discharge in respect of the implementation of the budget of the Single European Sky ATM Research 3 Joint Undertaking for the financial year 2022

A-9-2024-0094

Committee on Budgetary Control · Rapporteur: Michal Wiezik

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Parliament's committee report proposes granting discharge to the Executive Director of the SESAR 3 Joint Undertaking for the 2022 budget and approving the closure of its 2022 accounts. It sets out observations on the Joint Undertaking's budget, financial management, risk controls, procurement and staff, and calls for improvements in risk monitoring and transparency.

Committee position. The Committee on Budgetary Control proposes that Parliament grant discharge to the Executive Director of the SESAR 3 Joint Undertaking for the 2022 budget and approve the closure of its 2022 accounts, while setting out observations on financial management, risk controls, procurement and staff.

Key points

  1. Parliament grants the Executive Director of the SESAR 3 Joint Undertaking discharge for the implementation of its 2022 budget and approves the closure of its 2022 accounts.
  2. The Joint Undertaking should disclose in its annual accounts information on members' contributions per programme and member category, including legal targets, contributions received and legal commitments.
  3. In 2022 the Digital European Sky programme began with two calls; 48 of 127 proposals were selected, representing EUR 350 million in investment.
  4. The Joint Undertaking contributed to reacting to the Russian war of aggression against Ukraine, which affected traffic flows and required reworking air traffic control operations.
  5. The 2022 budget was EUR 146.9 million in payment appropriations and EUR 158.8 million in commitment appropriations; the surplus was EUR 107.2 million.
  6. Under Horizon 2020, the maximum EU operational contribution of EUR 555.8 million was fully committed, with around EUR 65.7 million remaining to be paid; private members committed EUR 280 million and Eurocontrol EUR 467 million.
  7. The 2022 operational budget implementation rate was 54%, down from 93% in 2021, due to rising costs and delivery problems after COVID-19 and the war in Ukraine.
  8. The Joint Undertaking managed 71 projects with 300 beneficiaries, nearly 20% SMEs, 17% higher education institutions and 9% research organisations.
  9. The Court found that the Joint Undertaking lacked a structured risk-based approach to ex-ante controls for Horizon 2020 grants and excluded potentially risky beneficiaries from risk assessment.
  10. Parliament calls on the Joint Undertaking to enhance its risk monitoring to include unaudited beneficiaries and newcomers, and to address weaknesses in the reinforced monitoring tool.
  11. The Joint Undertaking committed to adapting its risk-based approach to ex-ante controls and to putting in place new tools for assessing risks at project level and for newcomers.
  12. The 2022 staff establishment plan allows for 37 temporary agents, one contract agent and two seconded national experts; the vacancy rate at the end of 2022 was 8.1%.

Who is affected

  • The SESAR 3 Joint Undertaking and its Executive Director, who is granted discharge and must improve risk controls and transparency.
  • The Joint Undertaking's members: the Union, Eurocontrol and more than 50 aviation organisations, whose contributions are reported.
  • Beneficiaries of Horizon 2020 and Horizon Europe grants, including SMEs, newcomers and larger consortia, who face ex-ante controls.

Figures and deadlines

  • EUR 350 million: total investment of the 48 selected projects.
  • EUR 146.9 million: 2022 payment appropriations.
  • EUR 158.8 million: 2022 commitment appropriations.
  • EUR 555.8 million: maximum EU operational contribution fully committed under Horizon 2020.
  • EUR 65.7 million (or 11.8%): remaining to be paid for Horizon 2020 projects.
  • EUR 280 million: private members' in-kind contributions target; EUR 278.5 million (99.5%) reported.
  • EUR 467 million: Eurocontrol's operational contributions target; EUR 313.6 million (67%) reported.
  • 54% in 2022 and 93% in 2021: operational budget implementation rates.

Legal basis: Article 319 of the Treaty on the Functioning of the European Union.