On discharge in respect of the implementation of the general budget of the European Union for the financial year 2022 – Commission
EMPL-AD-752906
Committee on Employment and Social Affairs · Rapporteur: Romana Tomc
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The Committee on Employment and Social Affairs gives its opinion on the 2022 EU budget discharge, asking the Committee on Budgetary Control to include its suggestions in its resolution.¶ It notes record outstanding commitments of over €450 billion and asks the Commission to reduce them and help member states use EU funds faster.¶¶ It welcomes that cohesion, resilience and values took the largest share of 2022 spending (€79.1 billion, 40.4%) and stresses transparency, publication of final recipients and the role of the European Social Fund Plus (ESF+).¶¶ It is worried that the error rate rose to 4.2%, above the 2% threshold, mainly from cohesion spending, and calls for urgent action and Commission follow-up on all errors.¶¶ It asks the Commission to assess the budget impact of high inflation, protect legal and contractual commitments, promote good working conditions and implement all outstanding Court recommendations.¶¶¶
Committee position. The Committee on Employment and Social Affairs calls on the Committee on Budgetary Control to incorporate its suggestions into its motion for a resolution on the 2022 budget discharge. It proposes amendments on outstanding commitments, transparency, cohesion policy, error rates, inflation and staff retention.¶
Key points
- Calls on the Committee on Budgetary Control to incorporate its suggestions into its motion for a resolution.¶
- Notes that total outstanding commitments reached over €450 billion by end-2022, expected to fall to €314 billion by 2027.¶
- Welcomes that cohesion, resilience and values received €79.1 billion (40.4%) of 2022 spending and stresses ESF+ goals and regional involvement.¶
- Demands better transparency and accountability, including publication of final recipients of EU funding as a horizontal provision, and regrets the Commission's interpretation for the Recovery and Resilience Facility.¶
- Stresses cohesion policy's role in reducing disparities, supporting the European Pillar of Social Rights, and addressing globalisation, unemployment, poverty, digitalisation and skills.¶
- Is worried that the error rate rose to 4.2% (from 3.0% in 2021), above the 2% threshold, driven by cohesion spending (2.5%), and calls for urgent action and Commission help for agencies on procurement and state aid rules.¶
- Notes that inflation affects the EU budget, with €0.2 billion extra allocated to heading 7 in 2022, and asks the Commission to assess long-term inflation impact and protect commitments.¶¶
- Asks the Commission to reduce outstanding commitments and help member states accelerate use of shared management funds under the Common Provisions Regulation.¶
- Calls on the Commission to follow up on all errors found by the Court and make additional financial corrections where needed.¶
- Calls on the Commission to promote good working conditions and staff retention policies.¶
- Takes note of the Commission's commitment to work with audit authorities to strengthen error prevention and documentation.¶
- Asks the Commission to implement all outstanding Court recommendations as soon as possible.¶
Who is affected
- The Commission, which must act on errors, inflation risks, outstanding commitments and staff retention.¶¶¶
- Member states, which should accelerate the use of EU funds and improve transparency.¶
- EU agencies, which should improve internal procedures on public procurement and state aid rules.¶
- Regional actors, who should be closely involved in ESF+ funded activities.¶
Figures and deadlines
- over €450 billion: total outstanding commitments by end-2022¶
- €460 billion: expected outstanding commitments in 2023
- €314 billion: expected outstanding commitments by 2027
- EUR 79.1 billion, or 40.4 %: 2022 spending on Heading 2¶
- 4.2 %: estimated overall error rate for 2022¶
- 3.0 %: overall error rate in 2021
- 2 %: materiality threshold
- €0.2 billion: additional allocation to heading 7 in 2022 due to inflation and energy prices¶