Sittings · Document

DRAFT OPINION (2024/2085(INI)) 2025-02-19

On the implementation report on the Recovery and Resilience Facility

Committee on Budgetary Control · Rapporteur: Carla Tavares

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AMENDMENTS

The Committee on Budgetary Control submits the following to the Committee on Budgets and the Committee on Economic and Monetary Affairs, as the committees responsible:

Amendment 1

Motion for a resolution

Paragraph 12

Motion for a resolutionAmendment
12. Stresses that the RRF is the first major performance-based instrument at EU level which is exclusively based on financing not linked to costs (FNLC); regrets that the Council did not agree to insert specific rules in the Financial Regulation to address the risks of this delivery model, such as double funding;12. Stresses that the RRF is the first major performance-based instrument at EU level which is exclusively based on financing not linked to costs (FNLC); regrets that the Council did not agree to insert specific rules in the Financial Regulation to address the risks of this delivery model, such as double funding; regrets that the model of using milestones and targets to trigger disbursement was not accompanied by adequate budgetary control mechanisms, resulting in a diminished role for Parliament compared to its scrutiny of MFF spending;

Or. en

Amendment 2

Motion for a resolution

Paragraph 17

Motion for a resolutionAmendment
17. Notes that 47 % of the available RRF funds had been disbursed by 31 December 2024, with grants reaching 55 % and loans 37 %; is concerned, however, about the ECA’s finding that only 50 % of disbursed funds had reached final beneficiaries in 15 out of 22 Member States by October 2023;17. Notes that 47 % of the available RRF funds had been disbursed by 31 December 2024, with grants reaching 55 % and loans 37 %; is concerned, however, about the ECA’s finding that only 50 % of disbursed funds had reached final beneficiaries in 15 out of 22 Member States by October 2023; expects the second half of the RRF’s implementation period to be more challenging for Member States owing to a shift from reforms to investments and a high proportion of measures due for completion in the final year of the RFF;

Or. en

Amendment 3

Motion for a resolution

Paragraph 30

Motion for a resolutionAmendment
30. Notes that the Commission relies on its own methodologies when calculating partial payments and suspensions of funds;30. Notes that the Commission relies on its own methodologies when calculating partial payments and suspensions of funds; notes with concern that, as stated by the Commission in its mid-term evaluation of the RRF of 21 February 2024, a majority of Member States consider the payment suspension methodology still to be unclear when it comes to reforms because of the discretion given to the Commission in applying the methodology; urges the Commission to revise this methodology in order to avoid any double standards in its application;

Or. en

Amendment 4

Motion for a resolution

Paragraph 32

Motion for a resolutionAmendment
32. Regrets the lack of a proper RRF audit trail and the persistent lack of transparency despite the bi-annual reporting requirement for Member States on the 100 largest final recipients, which was introduced into REPowerEU upon Parliament’s request; regrets the delays in reporting by some Member States and the limited informative value of the information provided, which ultimately prevents compliance checks by the Commission or the ECA; reiterates its call for the lists of the largest final recipients for each Member State to include information on the economic operators involved and their beneficial owners;32. Regrets the lack of a proper RRF audit trail and the persistent lack of transparency despite the bi-annual reporting requirement for Member States on the 100 largest final recipients, which was introduced into REPowerEU upon Parliament’s request; regrets the delays in reporting by some Member States and the limited informative value of the information provided, which ultimately prevents compliance checks by the Commission or the ECA; expresses concern over the interpretation of the concept of ‘final recipient’ under the RRF, as final recipients are often listed only at the ministry level, and over the fact that the descriptions provided by Member States are vague; reiterates its call that the list of the 100 largest final recipients for each Member State provide the actual natural person or entity that is the last in the chain of money transfers; is concerned that, otherwise, measuring the impact of RRF funds and guaranteeing their visibility to EU citizens will be problematic;

Or. en

Amendment 5

Motion for a resolution

Paragraph 33

Motion for a resolutionAmendment
33. Is concerned about persistent weaknesses in national reporting and control mechanisms, due in part to absorption pressure affecting the capacity to detect ineligible expenditure; regrets the reliance on manual cross-checks and self-declarations in the absence of interoperable IT tools and harmonised standards, which entail the risk that expenditure is declared twice;33. Is concerned about persistent weaknesses in national reporting and control mechanisms, due in part to absorption pressure affecting the capacity to detect ineligible expenditure; considers that these pose a risk to the availability of complete and accurate data underlying payment requests, access to those requests for control purposes, and the effective functioning of Member State control systems to protect the Union’s financial interests; regrets the reliance on manual cross-checks and self-declarations by recipients of EU funds in the absence of interoperable IT tools and harmonised standards, which entail the risk that expenditure is declared twice; stresses that, in this respect, a centralised interoperable data collection and mining system would facilitate efficient data collection and reporting, while fragmented systems underscore the need for streamlined approaches;

Or. en

Amendment 6

Motion for a resolution

Paragraph 33 a (new)

Motion for a resolutionAmendment
33a. Underlines that, owing to the fact that the support which the RRF may provide can be additional to support provided under other Union programmes and instruments, and given the differences in the model of implementation and the different types of beneficiaries and recipients under the RRF compared to most other Union funds, double funding between the RRF and other EU financing instruments might not be easy to identify; urges the Commission to remain vigilant and proactive in identifying any potential double funding, and, furthermore, to issue further guidance in order to facilitate the implementation of the RRF in a consistent way;

Or. en

Amendment 7

Motion for a resolution

Paragraph 33 b (new)

Motion for a resolutionAmendment
33b. Welcomes the fact that the recast Financial Regulation establishes horizontal measures for a centralised website (Financial Transparency System) at Union level, covering all recipients of EU funding, and notes that this website is designed to overcome the current fragmentation, enhance transparency and facilitate public scrutiny of recipients; stresses, furthermore, that all Member States will have an obligation to provide the Commission with access to this data, which is to be fed into Arachne by automated means; regrets that the use of Arachne by Member States is not compulsory;

Or. en

Amendment 8

Motion for a resolution

Paragraph 33 c (new)

Motion for a resolutionAmendment
33c. Expresses concern about the ECA’s findings that the reporting of fraud involving RRF expenditure still lacks a standardised approach with strong coordination and cooperation between Member States; regrets that there are no clear guidelines about when suspected fraud should be reported, whether there is a reporting threshold, what standard information should be reported and what remedial measures should be taken;

Or. en

Amendment 9

Motion for a resolution

Paragraph 42 a (new)

Motion for a resolutionAmendment
42a. Calls on the Commission to closely monitor the continued fulfilment of milestones and targets, in particular those related to audit, monitoring and control, and to proactively keep Parliament duly informed;

Or. en

Amendment 10

Motion for a resolution

Paragraph 44

Motion for a resolutionAmendment
44. Highlights the importance of mitigating the risk of double funding; suggests the deployment of an integrated and interoperable IT and data mining system and the development of clear standards for datasets to be applied across Member States, with a view to allowing comprehensive and automated expenditure tracking; calls for greater coordination of the different bodies involved in the implementation of the various EU and national programmes;44. Highlights the importance of mitigating the risk of double funding and of double counting; suggests the harmonisation of data collection and reporting through the deployment of a unified, integrated and interoperable data mining and reporting system and the development of clear standards, including standard definitions and a harmonised methodology for datasets to be applied across Member States, with a view to allowing comprehensive and automated expenditure tracking in order to avoid overlapping projects; calls for greater coordination of the different bodies involved in the implementation of the various EU and national programmes;

Or. en

Amendment 11

Motion for a resolution

Paragraph 45 a (new)

Motion for a resolutionAmendment
45a. Urges the Commission to strengthen the design of any future performance-based instruments by developing adequate governance that allows Parliament to act as budgetary authority and provides a structured framework for strategic alignment between all EU funds at both the programming and implementation stages; calls on the Commission to strengthen, in a timely manner, the administrative capacity, within Member States, of authorities involved in managing EU funds; recalls that administrative capacity is considered critical for achieving performance targets, fund absorption and compliance with audit and control requirements;

Or. en

Amendment 12

Motion for a resolution

Paragraph 46

Motion for a resolutionAmendment
46. Reiterates its call for an open platform which contains data on all projects, final recipients and the regional distribution of funding, thereby facilitating auditing and democratic oversight;46. Reiterates its call for an open platform which contains data on all projects, actual final recipients and the regional distribution of funding, thereby facilitating auditing and democratic oversight;

Or. en