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DRAFT REPORT (2025/2156(DEC))

On discharge in respect of the implementation of the budget of the European Union agencies for the financial year 2024

CONT-PR-776806

Committee on Budgetary Control · Rapporteur: Monika Hohlmeier

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This draft report proposes decisions on granting discharge and closing accounts for 31 EU agencies for 2024, with a resolution of observations. It grants discharge to most agencies but postpones decisions for some, and includes recommendations on procurement, cybersecurity, and staffing. The resolution notes that agencies face challenges including high staff turnover, reliance on external contractors, and procurement irregularities. It calls for improved transparency, conflict-of-interest controls, and performance indicators. It urges agencies to address specific issues raised by the Court of Auditors, such as irregular payments, cybersecurity weaknesses, and inadequate business continuity plans. It also calls for increased funding for agencies with expanding mandates like Europol and Eurojust. The report highlights concerns about the financial sustainability of some agencies, including CdT's declining revenue and EMA's London premises liability. It recommends measures to improve budget management and reduce carry-overs.

Committee position. The Committee on Budgetary Control proposes to grant discharge to most agencies but postpone decisions for some, including the European Labour Authority and the European Union Agency for Asylum, pending corrective actions.

Key points

  1. Grants discharge to the directors of most agencies for 2024, but postpones the decision for some, including the European Labour Authority and the European Union Agency for Asylum.
  2. Approves the closure of accounts for most agencies, but postpones closure for those where discharge is postponed.
  3. Calls on agencies to adopt minimum transparency standards, including the 4-eye principle, codes of conduct, and internal transparency registers, to prevent conflicts of interest.
  4. Urges the Commission and member states to allow longer contracts for contract agents and more temporary agents to reduce high staff turnover and preserve knowledge.
  5. Calls for improved key performance indicators in annual activity reports, based on SMART principles, to enhance comparability and performance assessment.
  6. Urges agencies to include break-out clauses in lease contracts to limit financial exposure, learning from EMA's experience with its London premises.
  7. Calls for separate cost accounting for activities funded by Union contributions and national contributions in the European supervisory authorities (EBA, EIOPA, ESMA).
  8. Expresses concern about CdT's negative economic outcome and declining revenue, and encourages it to identify new services and revenue sources.
  9. Calls on agencies with excessive carry-overs to improve budget forecasting and project scheduling to minimize unplanned carry-overs.
  10. Urges agencies to adhere to legal time limits for payments and avoid late-payment interest.
  11. Calls on specific agencies to address Court observations, including EIGE's procurement practices, eu-LISA's systemic procurement weaknesses, and Eurojust's business continuity plans.

Who is affected

  • EU decentralised agencies covered by the discharge procedure, including ACER, BEREC Office, CdT, Cedefop, CEPOL, EASA, EBA, ECDC, ECHA, EEA, EFCA, EFSA, EIGE, EIOPA, EIT, ELA, EMA, EUDA, EMSA, ENISA, ERA, ESA, ESMA, ETF, EUAA, eu-LISA, EU-OSHA, Eurofound, Eurojust, Europol, EUSPA, FRA, Frontex.
  • Agencies with postponed discharge decisions, including the European Labour Authority and the European Union Agency for Asylum, must address specific concerns before discharge is granted.
  • Agencies with expanding mandates, such as Europol and Eurojust, are urged to receive increased funding and staffing to meet new responsibilities.
  • The European Medicines Agency faces ongoing financial liability for its former London premises, with a maximum exposure of EUR 543 million.
  • The Translation Centre for the Bodies of the European Union (CdT) is encouraged to find new revenue sources due to declining translation volumes.

Figures and deadlines

  • 11 491 staff members employed by 33 decentralised agencies in 2024, an increase of 8.61% compared to 2023.
  • Staff turnover rate exceeded 5% in 16 agencies and 10% in two agencies (EIT, ETF) in 2024.
  • CdT's negative economic outcome was EUR 5.7 million in 2024, with invoiced pages dropping by 11.4%.
  • 11 agencies had carry-over levels exceeding 15% in 2024, with Frontex and ESA exceeding 40% and 30% respectively.
  • The Court made 72 observations in 2024, including 34 on procurement, 11 on management and control systems, and 27 on budget management.
  • ELA's qualified opinion relates to payments of EUR 2.6 million in 2024, representing 5.7% of total payment appropriations.
  • EMA's maximum exposure for its London premises is EUR 543 million, with a provision of EUR 122.1 million at end 2024.
  • EIT's estimated amount to be recovered from OLAF investigations is in the region of EUR 15-20 million.

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