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

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SUGGESTIONS

The Committee on Employment and Social Affairs calls on the Committee on Budgetary Control, as the committee responsible, to incorporate the following suggestions into its motion for a resolution:

– having regard to the European Court of Auditors’ Annual report on the implementation of the EU budget for the 2022 financial year;

– having regard to the European Court of Auditors’ Annual report on EU agencies for the financial year 2022;

– having regard to the European Labour Authority’s Consolidated Annual Activity Report (CAAR) 2022;

1. Expresses its satisfaction that the European Court of Auditors (the ‘Court’) has declared the transactions underlying the European Labour Authority’s (Authority) annual accounts for the financial year 2022 to be legal and regular and that its financial position as at 31 December 2022 is fairly represented;

2. Notes that the year 2022 was the first year after the Authority gained financial autonomy (in May 2021) and that the Authority is still in a growing stage reaching full resources only in 2024; notes that the budget of the Authority for the financial year 2022 was EUR 54 million (EUR 31 million in 2021) ; expresses its satisfaction that the Authority’s budget for 2022 was executed by 97% (95,8% in 2021); nevertheless, notes with concern the high rates of carry-overs of available 2022 commitment appropriations to 2023;

3. Appreciates the fact that the Authority reacted promptly to the situation of those fleeing the Russian war of aggression against Ukraine and implemented information and enforcement activities focused on supporting Member States in protecting these vulnerable people from the risks of undeclared work and exploitation in the workplace;

4. Appreciates the Authority’s work to assist Member States and the Commission in ensuring a fair and effective enforcement of Union rules on labour mobility and social security, and in facilitating effective labour mobility in Europe through European Employment Services (EURES) activities;

5. Highlights that at the end of 2022, the proportion of temporary workers (seconded national experts (SNEs) and interims) at the Authority was 58 %, the highest proportion compared to all EU decentralised agencies; calls for the conversion of some of the SNEs posts into temporary agents posts (TAs) to ensure the need for appropriate staffing for the Authority to be able to continue fulfilling its mission; notes that high reliance on temporary workers leads to a regular high staff turnover, entailing the risk of losing expertise (specialised knowledge, contact networks built with stakeholders), which could negatively affect ELA’s operational capabilities; notes that a high staff turnover may also impact business continuity;

6. Notes with concern that the Court reported weaknesses in public procurement procedures; calls on the Authority to further improve its public procurement procedures, ensuring full compliance with the applicable rules, to ensure they achieve the best possible value for money;

7. Regrets that the Court found systematic weaknesses in the Authority’s management and control systems and calls on the Authority to address these weaknesses;

8. Emphasizes that despite the fact that the Authority has been set up in difficult circumstances, the staff is very much engaged; stresses, however, that the staff needs support in the area of human resources;

9. Recommends, on the basis of the facts available, that discharge be granted to the Executive Director of the European Labour Authority in respect of the implementation of the Authority’s budget for the financial year 2022.