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DRAFT OPINION (2023/2129(DEC))

On discharge in respect of the implementation of the general budget of the European Union for the financial year 2022 – Commission

EMPL-PA-752906

Committee on Employment and Social Affairs · Rapporteur: Romana Tomc

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The Committee on Employment and Social Affairs gives its suggestions for the discharge resolution on the 2022 EU budget, asking the Committee on Budgetary Control to include them. It is worried by record outstanding commitments of over €450 billion and by a material error rate of 4.2%, driven mainly by the 'Cohesion, resilience and values' heading. It calls for urgent action to cut errors, for Commission follow-up on all errors found by the Court, and for the Commission to implement all outstanding Court recommendations. It also asks the Commission to assess the budget impact of high inflation over several years and to protect the budget's ability to meet its legal and contractual commitments.

Committee position. The Committee on Employment and Social Affairs asks the Committee on Budgetary Control to incorporate its suggestions into the discharge resolution. It wants stronger action on errors, Commission follow-up on Court findings, and measures to protect the budget from inflation.

Key points

  1. The committee calls on the Committee on Budgetary Control to incorporate its suggestions into its motion for a resolution.
  2. It is worried that total outstanding commitments reached a record level of over €450 billion by the end of 2022.
  3. It notes that outstanding commitments should decrease during 2024 to 2027 to €314 billion.
  4. It welcomes that the biggest part of 2022 spending went to Heading 2 'Cohesion, resilience and values' (EUR 79.1 billion, or 40.4%).
  5. It stresses the importance of cohesion policy in supporting the European Pillar of Social Rights and in addressing challenges such as globalisation, unemployment, industrial change, digitalisation, up and re-skilling and lifelong learning.
  6. It is greatly worried that the overall error level was material at 4.2%, compared to 3.0% in 2021, driven mainly by 'Cohesion, resilience and values' (2.5%).
  7. It notes that most cohesion spending is high-risk, reimbursement-based and subject to complex rules, with common errors being ineligible projects and breaches of public procurement and state aid rules.
  8. It calls for urgent action to decrease the error rate, especially for the new funding period, and for the Commission to help agencies improve internal procedures on public procurement and state aid rules.
  9. It notes that inflation reduced the budget's purchasing power, with the Commission allocating an additional €0.2 billion to heading 7 – European Public Administration – in 2022.
  10. It says the Commission should assess the impact of high inflation continuing over several years and protect the budget's ability to meet legal and contractual commitments, such as rising financing costs.
  11. It calls on the Commission to follow up on all errors found by the Court and to request additional financial corrections where necessary.
  12. It takes note of the Commission's commitment to work with audit authorities to strengthen their capacity to prevent and correct errors, and asks it to implement all outstanding Court recommendations as soon as possible.

Who is affected

  • The Commission, which must follow up on errors, request corrections, assess inflation risks and implement Court recommendations.
  • EU agencies, which the Commission should help to improve internal procedures on public procurement and state aid rules.
  • Member States and regions, which benefit from cohesion policy aimed at reducing development disparities.

Figures and deadlines

  • over €450 billion – total outstanding commitments at the end of 2022
  • €314 billion – expected level of outstanding commitments during 2024 to 2027
  • EUR 79.1 billion, or 40.4% – 2022 spending on Heading 2 'Cohesion, resilience and values'
  • 4.2% – overall level of error in 2022
  • 3.0% – overall level of error in 2021
  • 2.5% – contribution of 'Cohesion, resilience and values' to the 2022 error rate
  • €0.2 billion – additional allocation to heading 7 – European Public Administration – in 2022