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DRAFT OPINION (2023/2155(DEC))

On discharge in respect of the implementation of the budget of the European Labour Authority

EMPL-PA-752904

Committee on Employment and Social Affairs · Rapporteur: Romana Tomc

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The Committee on Employment and Social Affairs gives its opinion on discharge for the European Labour Authority's 2022 budget. It recommends granting discharge to the Executive Director and asks the Committee on Budgetary Control to include its suggestions in its resolution. It welcomes the Court of Auditors' finding that the Authority's 2022 accounts are legal and regular, and notes the budget was EUR 54 million and executed by 97%. It praises the Authority's response to people fleeing the Russian war of aggression against Ukraine and its work on labour mobility and social security enforcement. It raises concerns about the high share of temporary workers, weaknesses in public procurement and systematic weaknesses in management and control systems, and calls for action.

Committee position. The Committee on Employment and Social Affairs recommends granting discharge to the Executive Director of the European Labour Authority for the 2022 financial year, and asks the Committee on Budgetary Control to incorporate its suggestions into its resolution.

Key points

  1. The committee calls on the Committee on Budgetary Control to incorporate its suggestions into its motion for a resolution.
  2. It expresses satisfaction that the Court declared the Authority's 2022 transactions legal and regular and its financial position fairly represented.
  3. It notes 2022 was the first year after the Authority gained financial autonomy in May 2021, that the Authority reaches full resources only in 2024, and that its 2022 budget was EUR 54 million, executed by 97%.
  4. It notes with concern the high rates of carry-overs of available 2022 commitment appropriations to 2023.
  5. It appreciates the Authority's prompt reaction to people fleeing the Russian war of aggression against Ukraine, with information and enforcement activities to protect them from undeclared work and exploitation.
  6. It appreciates the Authority's work assisting member states and the Commission on labour mobility and social security enforcement, and its European Employment Services (EURES) activities.
  7. It highlights that temporary workers made up 58% of staff at the end of 2022, the highest among EU decentralised agencies, and calls for converting some seconded national experts (SNEs) posts into temporary agents (TAs) posts.
  8. It notes that high reliance on temporary workers leads to high staff turnover, risking loss of expertise and affecting operational capabilities and business continuity.
  9. It notes with concern the Court's reported weaknesses in public procurement procedures and calls on the Authority to improve them for full compliance and best value for money.
  10. It regrets the Court's finding of systematic weaknesses in the Authority's management and control systems and calls on the Authority to address them.
  11. It emphasizes that despite difficult set-up circumstances the staff is very engaged, but stresses the staff needs support in human resources.
  12. It recommends, on the basis of the facts available, that discharge be granted to the Executive Director of the European Labour Authority for the 2022 financial year.

Who is affected

  • The European Labour Authority: faces calls to improve procurement, address management weaknesses, and convert some temporary posts.
  • The Executive Director of the European Labour Authority: recommended to be granted discharge for the 2022 budget.
  • The Committee on Budgetary Control: asked to incorporate the suggestions into its motion for a resolution.

Figures and deadlines

  • EUR 54 million: the Authority's budget for the 2022 financial year.
  • EUR 31 million: the Authority's budget for 2021.
  • 97%: execution rate of the Authority's 2022 budget.
  • 95,8%: execution rate of the Authority's 2021 budget.
  • 58%: proportion of temporary workers at the Authority at the end of 2022.
  • May 2021: when the Authority gained financial autonomy.
  • 2024: when the Authority reaches full resources.
  • 31 December 2022: date as at which the Authority's financial position is fairly represented.