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REPORT (2023/2155(DEC))

On discharge in respect of the implementation of the budget of the European Labour Authority for the financial year 2022

A-9-2024-0131

Committee on Budgetary Control · Rapporteur: Petri Sarvamaa

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Parliament's Committee on Budgetary Control proposes granting discharge to the Executive Director of the European Labour Authority for the 2022 budget and approving the closure of its 2022 accounts. It sets out observations in a resolution, noting the Authority's EUR 34 689 842 budget, its 96,52 % commitment rate and 34,93 % payment rate, and its continued growth since gaining financial autonomy in 2021. It raises concerns over carry-overs of EUR 21,8 million, the late publication of the budget, an irregular procurement award, weak ex-ante and ex-post controls, and irregular allowances paid to a national liaison officer. It calls on the Authority to improve procurement, internal control and gender balance, and on member states to increase cooperation and participation in the Authority's activities.

Committee position. The Committee on Budgetary Control proposes that Parliament grant discharge to the Executive Director of the European Labour Authority for the 2022 budget and approve the closure of its 2022 accounts, while setting out observations on budget management, performance, staff, procurement, transparency and internal control.

Key points

  1. Grants the Executive Director of the European Labour Authority discharge for the implementation of the Authority's 2022 budget and approves the closure of its 2022 accounts.
  2. Notes the 2022 budget of EUR 34 689 842, a 43,23 % increase on 2021, with a commitment rate of 96,52 % and a payment rate of 34,93 %.
  3. Notes with concern that the 2022 budget was adopted on 17 December 2021 but published in the Official Journal only on 31 May 2023, contrary to Article 31 of the Authority's financial rules.
  4. Observes carry-overs of EUR 21,8 million (65 %) to 2023, including EUR 3,4 million under Title II and EUR 16,4 million under Title III, and says high carry-over rates contradict the principle of annuality.
  5. Calls on member states to acknowledge the benefits of the Authority and to enhance collaboration between their competent authorities and the Authority.
  6. Welcomes the Authority's achievements, including the road transport action framework, 33 concerted and joint inspections with 25 member states, the IMI-PROVE programme, the TECH conference 2022 and its mediation service.
  7. Notes with concern reductions of 77 % in the job registration rate and 37 % in the employer registration rate of the EURES portal due to EU Login requirements, and calls for simplification.
  8. Notes that the establishment plan was 86 % implemented with 49 of 57 temporary agents appointed, plus 13 contract agents and 55 seconded national experts, and that 58 % of workers were temporary.
  9. Notes that interim staff were granted ABAC access rights for budget closure, contrary to Article 41(1) of the financial rules, and that the Authority cites business continuity reasons.
  10. Takes note that a contract with a maximum value of EUR 6 million was awarded to a tenderer offering EUR 12,9 million, which the Court found irregular, and calls for full compliance with procurement rules.
  11. Notes with concern that allowances totalling EUR 83 734, of which EUR 50 700 was paid in 2022, to a national liaison officer were irregular because proof of residence in Bratislava could not be provided.
  12. Urges the Authority to reassess and update its internal processes, ex-ante controls and ex-post methodology, and to report back on measures taken.

Who is affected

  • The European Labour Authority, which must address the observations on budget management, procurement, internal control and staff policy.
  • Member states, which are called on to increase cooperation and participation in the Authority's activities.
  • The Commission and member states, which are asked to consider gender balance when nominating management board members.
  • The Authority's management board, whose members' declarations of interest are published and whose CVs are to be published.

Figures and deadlines

  • EUR 34 689 842, the Authority's final budget for 2022.
  • 43,23 %, the increase in the 2022 budget compared to 2021.
  • 96,52 %, the budget implementation rate for current year commitment appropriations.
  • 34,93 %, the current year payment appropriations execution rate.
  • EUR 21,8 million (65 %), the carry-over of available 2022 commitment appropriations to 2023.
  • EUR 6 million over four years, the maximum contract value in a procurement procedure.
  • EUR 12,9 million, the financial offer of the tenderer awarded the contract.
  • EUR 83 734, of which EUR 50 700 was paid in 2022, the allowances received by a national liaison officer found irregular.

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