154 Amendments of Claudiu MANDA related to 2020/2140(DEC)
Amendment 2 #
Proposal for a decision 1
Paragraph 1
Paragraph 1
1. Grants the Commission discharge in respect of the implementation of the general budget of the European Union for the financial year 2019 / Postpones its decision on granting the Commission discharge in respect of the implementation of the general budget of the European Union for the financial year 2019;
Amendment 14 #
Motion for a resolution
Recital A
Recital A
A. the Union budget is a significant instrument for achieving common policy objectives, and on average represents 2,1 % of the Member States’ general government expenditure and total public spending in the Union1.0% of EU gross national income;
Amendment 20 #
Motion for a resolution
Paragraph 1
Paragraph 1
1. Highlights, with regard to the implementation of the Union budget, the importance of complying with the principle of sound financial management as enshrined in Article 317 of the Treaty on the Functioning of the European Union (TFEU);,), as well as the importance of achieving programmes priorities and objectives which contribute to strengthening the European integration and creating an ever closer Union .
Amendment 41 #
Motion for a resolution
Paragraph 1 a (new)
Paragraph 1 a (new)
1 a. Encourage the Commission to continue attaching the highest importance to the sound financial management of the EU budget, in particular through putting in place multiannual control strategies designed to prevent, detect and correct errors, as well as to continue carefully monitoring the implementation of the EU budget and to take immediate steps to correct the errors and to recover the funds incorrectly spent by Member States, intermediaries or final beneficiaries;
Amendment 42 #
Motion for a resolution
Paragraph 1 b (new)
Paragraph 1 b (new)
1 b. Considers, in line with the Commission's endeavour, that it is of utmost importance to strike the right balance between low level of errors, fast payments, reasonable costs of controls and added value of the EU Budget;
Amendment 43 #
Motion for a resolution
Paragraph 1 c (new)
Paragraph 1 c (new)
1 c. Stresses the crucial role of the EU policies and instruments for their realisation in the areas of cohesion, agriculture and rural development, research and innovations, home affairs and external relations for reducing disparities between Member States and regions, for promoting economic growth and employment, for combating poverty and social exclusion, for upholding and promoting EU values, security and justice for its citizens within the Union and in the wider world;
Amendment 44 #
Motion for a resolution
Paragraph 1 d (new)
Paragraph 1 d (new)
1 d. Welcomes that the Commission, as manager of the EU budget, appropriately tailors its common methodology to the specificities of the risk, control and management environments of the different spending areas, in order to effectively fulfil its reporting obligations and protect the EU Budget;
Amendment 89 #
Motion for a resolution
Paragraph 6 a (new)
Paragraph 6 a (new)
6 a. Acknowledges that the financial management of the EU budget has improved over time and that the error levels have decreased to ranges getting closer to the 2% materiality threshold in the recent years, except in some specific policy areas;
Amendment 90 #
Motion for a resolution
Paragraph 7
Paragraph 7
7. Deeply regrets, however,Is concerned that for the first time in four years the Court had tos issued an adverse opinion on the legality and regularity of the expenditure underlying the accounts;
Amendment 92 #
Motion for a resolution
Paragraph 7 a (new)
Paragraph 7 a (new)
Amendment 93 #
Motion for a resolution
Paragraph 8 – introductory part
Paragraph 8 – introductory part
8. Notes that the reasons for the adverse opinion are: on EU expenditure is the conclusion of the Court that the level of errors mainly in reimbursement-based payments is pervasive, and that due to the way the EU budget is composed and evolves over time, high risk expenditures in 2019 represents more than half of the audited spending (53,1%),in which the material error continues to be present at an estimated rate of 4,9% (compared to 4,5 % in 2018 and 3,7 % in 2017);
Amendment 94 #
Motion for a resolution
Paragraph 8 – point a
Paragraph 8 – point a
Amendment 95 #
Motion for a resolution
Paragraph 8 – point b
Paragraph 8 – point b
Amendment 101 #
Motion for a resolution
Paragraph 10
Paragraph 10
10. Deeply regretsTakes note of the Court’s observation that the Commission’s particular role, as reflected in its methodology, and weaknesses in ex- post checks, which are a critical part of the control system, affects the Commission’s estimates of errors; notes that Commission’s risk at payment for 2019, set at 2,1% as reported in its Annual Management and Performance Report (AMPR), is within the range of the ECA’s estimated level of error for the three most significant spending areas - competitiveness, cohesion and natural resources;
Amendment 106 #
Motion for a resolution
Paragraph 11
Paragraph 11
11. Notes that the Court provided in 2019 specific error rates for four MFF headings: ‘Competitiveness’ (4.0%), ‘Cohesion’, (4,4%),‘Natural resources’(1,9 %) and ‘Administration’; points out that, in 2019, the Court found the highest estimated level of error in spending under ‘Economic, social and territorial cohesion‘ (4,4 % (an estimated level of error below the materiality threshold);
Amendment 112 #
Motion for a resolution
Paragraph 12 a (new)
Paragraph 12 a (new)
12 a. Draws attention that the general estimate of the level of error in the EU budget, as presented in the Court’s Statement of Assurance, is neither a measure of fraud nor of inefficiency or waste, but it is an estimate of the money that should not have been paid out because it was not used in accordance with the applicable rules and regulations; notes that in 2019 the Court reported to OLAF 9 instances of suspected fraud found during its audits (also 9 in 2018),from which OLAF has opened 5 investigations and decided not to open an investigation in 4 cases;.
Amendment 116 #
Motion for a resolution
Paragraph 15
Paragraph 15
15. RegretNotes the adoption of three amending budgets in 2019, adding EUR 0,4 billion to commitment appropriations and EUR 0,3 billion to payment appropriationswhich refer to the following;
Amendment 117 #
Motion for a resolution
Paragraph 15 – point i (new)
Paragraph 15 – point i (new)
(i) Amending Budget (AB) No1/2019 entered the surplus of EUR 1 802 988 329, resulting from the implementation of the budget year 2018, as revenue in the 2019 budget; this amount has reduced the annual GNI contributions for Member States;
Amendment 118 #
Motion for a resolution
Paragraph 15 – point ii (new)
Paragraph 15 – point ii (new)
(ii) Amending Budget (AB) No 2/2019 provided an additional EUR 100 million of commitment appropriations to Horizon2020 and Erasmus+ as decided by the European Parliament and the Council in their agreement on the budget 2019
Amendment 119 #
Motion for a resolution
Paragraph 15 – point iii (new)
Paragraph 15 – point iii (new)
(iii) Amending Budget (AB) No 3/2019 entered the necessary commitment and payment appropriations for the mobilisation of the European Union Solidarity Fund (EUSF) amounting to EUR 293 551 794 which aimed to provide assistance to Romania, Italy and Austria following natural disasters that took place in these Member States in the course of 2018:
Amendment 123 #
Motion for a resolution
Paragraph 15 a (new)
Paragraph 15 a (new)
15 a. Acknowledges that given the multi-annual nature of its expenditure and of its control strategies, the Commission may apply corrections until the closure of the funding programme; notes furthermore that while errors may be detected in a given year, they are corrected in the current or in subsequent years after the payment was made – up until the moment of closure; calls therefore on the Commission and Member States to continue exercising their corrective capacity, and the Commission to use the supervisory tools at its disposal, in line with its obligations under the different sectorial legal bases, in order to bring the real risk at closure ultimately well below 2% and closer to 0%;
Amendment 124 #
Motion for a resolution
Paragraph 15 b (new)
Paragraph 15 b (new)
15 b. Notes that in 2019 the corrective measures confirmed by the Commission amounted to EUR 1.5 billion (25% higher than in 2018), relating mainly to errors affecting payments made in previous years.
Amendment 137 #
Motion for a resolution
Paragraph 19
Paragraph 19
19. Notes that, as in previous years, substantial amounts of unused annual ESIF pre-financing, due mainly to delays in implementation, was returned to the Union budget (EUR 7,7 billion in 2019), due mainly to delayas assigned revenue; points out that EUR 5,0 billion of that amount was used to make payments ion implementationclaims from Member States over and above the approved budget for the year under the relevant ESIF budget lines, which has prevented them from being cancelled;
Amendment 141 #
Motion for a resolution
Paragraph 21
Paragraph 21
Amendment 163 #
Motion for a resolution
Paragraph 28 a (new)
Paragraph 28 a (new)
28 a. Welcomes the Court's observation that the Commission has started making systemic performance assessments and analysis leading to conclusions on the achieving of the programmes’ objectives; notes with satisfaction that the Court considers this as a significant positive step towards clearer, more transparent and comprehensive annual reporting on programme performance;
Amendment 172 #
Motion for a resolution
Paragraph 32
Paragraph 32
32. Underlines that according to the Financial Regulation, sound financial management implies effectiveness, efficiency and economy, and that the Commission and the Member States should ensure a focus on all three elements;
Amendment 184 #
Motion for a resolution
Paragraph 38
Paragraph 38
38. Observes that, for 2019, the Commission’'s estimate for the overall risk at closure was at 0,7 % (compared to 0,8 % in 2018) of the relevant expenditure; notes that due to the higher risk at payment in relation to cohesion spending, the overall risk at payment estimated by the Commission was higher than in previous years, at 2,1 % for 2019 (compared to 1,7 % in 2018), but as the estimated future corrections were also higher (1,4 %, compared to 0,9 % in 2018), the Commission arrived at a stable risk at closure, and with an estimate of risk at closure of less than 2 %, the Commission considered that its multiannual control systems ensured effective protection of the Union budget; points out furthermore that in the Commission’s own estimate, the expenditure with risk at payment above the materiality threshold was very high at EUR 67 billion;
Amendment 185 #
Motion for a resolution
Paragraph 38 a (new)
Paragraph 38 a (new)
38 a. Notes that the Commission subdivides its portfolio for 2019 into lower-risk and higher-risk strata, using criteria recognised also by the Court and related to the nature of the funding, notably the difference between rather complex reimbursement-based schemes (higher risk expenditure with risk at payment above 2%) and fairly straightforward entitlement-based payments (lower risk expenditure with risk at payment below 2%); points out furthermore that the Commission estimates that the higher risk expenditure stands at EUR 67 billion(46%), thus affecting smaller part of the budget than the lower risk expenditure, which stands at EUR 80 billion (54%);
Amendment 193 #
Motion for a resolution
Paragraph 39 a (new)
Paragraph 39 a (new)
39 a. Notes the Court’s conclusion that the Commission's performance reporting is becoming more balanced and that both the AMPR and the programme statements complement their reporting on programme achievements including information on lagging behind areas and persisting challenges for programmes;
Amendment 203 #
Motion for a resolution
Paragraph 44 a (new)
Paragraph 44 a (new)
44 a. Notes with satisfaction that the Commission is improving its risk assessment for the planning of the inspections and continues to strive to close long outstanding open points rapidly, depending also on Member States’ cooperation;
Amendment 204 #
Motion for a resolution
Paragraph 45
Paragraph 45
45. UnderlinNotes that two main systemic weaknesses concern thehe Commission’s TOR inspections and the Court’s work highlighted two main weaknesses in Member State’s controls to reduce the custom gap: - lack of Union- wide standards forharmonisation of the performance of customs controls for mitigating the risk of undervalued imports throughout the Customs Union,; as well the fact thatnd - inability of Member States are not able to identify the riskiest economic operators at Union level for post-release audits;
Amendment 210 #
Motion for a resolution
Paragraph 47 a (new)
Paragraph 47 a (new)
47 a. Acknowledges, however, that the Commission has made important steps to help identifying the riskiest economic operators at EU level for post-release audits, with the flagging of transactions considered to pose financial risk under the Financial Risk Criteria and the update of the Customs Audit Guide;
Amendment 211 #
Motion for a resolution
Paragraph 47 b (new)
Paragraph 47 b (new)
47 b. Welcomes that the Commission works closely with Member States to find solutions to identify importers operating in Member States other than where they are headquartered; calls on it for achieving further progress once an EU- wide database covering all imports is fully available.
Amendment 215 #
Motion for a resolution
Paragraph 52
Paragraph 52
52. RegretNotes that, for the fourth year in a row, the Directorate-General for Budgets (DG BUDG) issued a reservation on the value of TOR collected by the United Kingdom, due to that country’s failure to make available to the Union budget evaded customs duties on textiles and footwear imports, while the scope of undervaluation fraud had extended further to Union Member States, which results in further potential TOR losses;
Amendment 219 #
Motion for a resolution
Paragraph 52 a (new)
Paragraph 52 a (new)
52 a. Points out the measures regarding the case of TOR collected by the United Kingdom which the Commission took in 2018 (a formal infringement procedure) and 2019 (referral of the Case to the Court of Justice of the EU); notes from the written answers of the Commission for the hearing in CONT on 11 January 2021 that the oral hearing took place on 8 December 2020 and while the date of the final judgment is fully under the discretion of the Court, the Commission does not expect a ruling before summer 2021; notes with satisfaction that BREXIT has no adverse effect on recovery of the claimed amounts as they relate to imports before the end of the transition period;
Amendment 224 #
Motion for a resolution
Paragraph 58
Paragraph 58
58. Finds it worryingNotes that of the 130 transactions examined, 51 (39 %) contained errors;
Amendment 225 #
Motion for a resolution
Paragraph 59
Paragraph 59
59. Is deeply concerned that based on the 28 errors the Court has quantified, ithe estimated the level of error is 4,0 %for 2019 at 4,0 %, which is an increase compared to 2018 (2%); recalls that this figure is close to the rates the Court found in 2015, 2016 and 2017;
Amendment 231 #
Motion for a resolution
Paragraph 62
Paragraph 62
62. Finds it very regrettableNotes that ‘unlawful/discriminatory selection/award criteria’ accounted for 16% of errors and that ‘ineligible other direct costs (VAT, travel, equipment)’ accounted for 15% of errors;
Amendment 234 #
Motion for a resolution
Paragraph 63
Paragraph 63
Amendment 240 #
Motion for a resolution
Paragraph 67 a (new)
Paragraph 67 a (new)
67 a. Notes that research expenditure reimbursements based on claims submitted for costs incurred by the beneficiaries; notes that these claims are often subject to complex rules and can lead to errors as may be observed in the cases referred to by the ECA;
Amendment 241 #
Motion for a resolution
Paragraph 67 b (new)
Paragraph 67 b (new)
67 b. Considers therefore that reducing the error rate depends on a continuous simplification effort; welcomes the ECA’s acknowledgement of the Commission’s efforts to simplify the administrative and financial requirements of Horizon 2020;
Amendment 242 #
Motion for a resolution
Paragraph 67 c (new)
Paragraph 67 c (new)
Amendment 243 #
Motion for a resolution
Paragraph 67 d (new)
Paragraph 67 d (new)
67 d. Notes the Commission’s introduction of a sound system of ex-ante controls, which includes detailed automated checklists, written guidance and continuous training with the objective of reducing administrative burden allowing beneficiaries to focus on achieving their goals;
Amendment 251 #
Motion for a resolution
Paragraph 68 – indent 4 a (new)
Paragraph 68 – indent 4 a (new)
- To focus on the rules of the calculation and declaration of personal costs in the communication campaign related to Horizon 2020
Amendment 257 #
Motion for a resolution
Paragraph 71 a (new)
Paragraph 71 a (new)
71 a. Reiterates its concern about the very imbalanced allocation of funds to researchers across Member States via Horizon 2020;
Amendment 267 #
Motion for a resolution
Paragraph 80 a (new)
Paragraph 80 a (new)
80 a. Recalls the need EIB to provide clear and accessible information on the economic, social and environmental impact and added value achieved by EFSI funded projects; stresses that the additionally assessment of all EFSI- supported projects should be duly documented;
Amendment 271 #
Motion for a resolution
Paragraph 83 a (new)
Paragraph 83 a (new)
83 a. Notes that preventive measures undertaken by DG REGIO in 2019 brought positive results and there was no necessity of suspending ERDF and CF payments in 2019 since the programme authorities applied the required remedial action plans on time and interruptions for 16 payments amounting EUR 1.1 billion (out of 20amounting to EUR 1.2 billion) were waived; notes furthermore that DG REGIO was able to close 12 out of 19 warning letters for corrective measures for cases of system deficiencies due to the implementation of the necessary exit points;
Amendment 272 #
Motion for a resolution
Paragraph 83 b (new)
Paragraph 83 b (new)
83 b. Welcomes the positive follow up undertaken by the Commission to implement the Court’s recommendation from 2018 Annual Report and the started drafting of Closure Guidelines aiming to ensure that proper closure arrangements for the 2014-2020 period will be available in due time and in any case well before the closure in 2025;
Amendment 276 #
Motion for a resolution
Paragraph 84
Paragraph 84
84. Finds it worrying that on basisNotes the decrease in the estimated level of error for the Economic, social and territorial cohesion identified by the Court for 2019 (4.4%) compared to those for 2018 (5.0%) while the expenditure audited by the Court was higher in 2019 (EUR28.4 billion) than in 2018 (EUR 23.6 billion); Notes that of the 236 transactions examined, 29 errors had not been detected by audit authorities and 64 errors had previously been found by audit authorities and corrections applied by programme authorities (amounting to a total of EUR 334 million for both programming periods taken together), the Court estimates the level of error to be 4,4 %;; notes further that these errors concerned ineligible costs (39), public procurement (24) and missing supporting documentation (one error)
Amendment 278 #
Motion for a resolution
Paragraph 85
Paragraph 85
Amendment 281 #
Motion for a resolution
Paragraph 86
Paragraph 86
86. Regrets the fact that 55 % of errors were made up by ‘Ineligible projects’; notes that there were five ERDF projects, from the 2014-2020 programming period, for which aid was granted to beneficiaries or operations that did not meet the eligibility conditions set out in the applicable regulation and OPs;Notes with concern that the majority of the errors are related to three main categories:
Amendment 282 #
Motion for a resolution
Paragraph 86 – indent 1 (new)
Paragraph 86 – indent 1 (new)
- 55 % of errors were made up by ‘Ineligible projects’: there were five ERDF projects, from the 2014-2020 programming period, for which aid was granted to beneficiaries or operations that did not meet the eligibility conditions set out in the applicable regulation and OPs;
Amendment 283 #
Motion for a resolution
Paragraph 86 – indent 2 (new)
Paragraph 86 – indent 2 (new)
- 24 % of errors were made up by ‘Infringements of internal market rules’ (such as infringements of state aid rules - 9% and serious on-compliance with public procurement rules - 15%);
Amendment 284 #
Motion for a resolution
Paragraph 86 – indent 3 (new)
Paragraph 86 – indent 3 (new)
- 12% of errors were made up by ‘Ineligible expenditure’;
Amendment 285 #
Motion for a resolution
Paragraph 86 a (new)
Paragraph 86 a (new)
86 a. stresses that complex rules contribute to a higher risk of error; acknowledges the Commission’s efforts to continuously working on simplifying rules and increasing the use of simpler delivery mechanisms such as simplified cost options;
Amendment 286 #
Motion for a resolution
Paragraph 87
Paragraph 87
Amendment 287 #
Motion for a resolution
Paragraph 88
Paragraph 88
Amendment 289 #
Motion for a resolution
Paragraph 89
Paragraph 89
89. Is very concerned about the weaknesses found in the work of several18out of 116 audit authorities in the Member States covered by the Court’s sample, which currently limit the reliance that can be placed on that work (the recalculated rate was above the 2 % materiality threshold in nine out of 20 assurance packages for the 2014- 2020 period, the Commission adjusted the residual error rates for eight assurance packag; notes the Court observation that the Commission arrived at similar results for eight of these packages and adjusted the residual error rates to a figure above 2 %);
Amendment 291 #
Motion for a resolution
Paragraph 89 a (new)
Paragraph 89 a (new)
89 a. Notes that the Commission reports, in the Annual Management and Performance Report and in the Annual Activity Reports of the concerned Directorates-General, an error range for cohesion policy, which is within the error range calculated by the ECA;
Amendment 293 #
Motion for a resolution
Paragraph 93 a (new)
Paragraph 93 a (new)
93 a. Shares the Court’s welcoming of the Commission’s and audit authorities’ joint initiative and coordinated efforts to improve the documentation of audit authorities work and the elaboration of a ‘Reflection paper on audit documentation’ in December 2019, which, although not mandatory, represents a first step in improving the way audit authorities perform and document their work;
Amendment 324 #
Motion for a resolution
Paragraph 94 – indent 2 a (new)
Paragraph 94 – indent 2 a (new)
- continue consistently and extensively cooperating with the audit authorities to ensure robust control framework, improve the quality of the assurance work when needed and ensure the necessary detection and corrective capacities;
Amendment 325 #
Motion for a resolution
Paragraph 94 – indent 2 b (new)
Paragraph 94 – indent 2 b (new)
Amendment 346 #
Motion for a resolution
Paragraph 94 a (new)
Paragraph 94 a (new)
94 a. Invites the Commission to continue providing guidance and support, as well as to identify and disseminate good practices to Member States;
Amendment 352 #
Motion for a resolution
Paragraph 96 a (new)
Paragraph 96 a (new)
96 a. Is pleased to see that in its first Annual Report on performance by the end of 2019 the Court gives ERDF programme performance overview as a positive example of clearly formulated conclusions on general objective; encourages DG REGIO to continue to present clear conclusions in the performance sections both for general and specific objectives, and invites other DGs to follow this good example and to improve their conclusions by making them more informative and clearer;
Amendment 353 #
Motion for a resolution
Paragraph 97
Paragraph 97
Amendment 355 #
Motion for a resolution
Paragraph 98
Paragraph 98
Amendment 358 #
Motion for a resolution
Paragraph 99
Paragraph 99
99. Underlines that in cohesion policy, characterised by large-scale infrastructure projects, there can be a time lag between the start of the programme, its implementation and the realisation of outputs and results; finds it worrisome that progress is also likely to be affected by the relatively low levels of implementation in respect of cohesion policy, compared to the rest of Union budget; notes that these factors, together with the fact that the latest data available (in an implementation period lasting until the end of 2023) relates to the end of 2018, are outlined by the Court as making it harder at this stage for it to conclude on the achievement of the objectives;
Amendment 362 #
Motion for a resolution
Paragraph 100
Paragraph 100
100. StressesTakes note of other factors relevant to the Court analysis of performance, which explain that Cohesion policy objectives, such as those relating to employment rates, economic development, and climate and energy, are heavily influenced by a wide range of national and external factors, in Europe and the world; underline, as well as that in many Member States, cohesion policy funding typically represents a small proportion of the funds dedicated to these issues, and so can have only a very limited impact on these Member States' progress towards meeting these objectives;
Amendment 364 #
Motion for a resolution
Paragraph 101
Paragraph 101
101. Notes furthermore the Court’s observation regarding additional factors such as that the Union has at its disposal a range of policy tools for meeting its high- level cohesion policy objectives, of which the ERDF and CF constitute one part, that other funds and legislative initiatives are also designed to address the objectives, therefore, that it iswhich make it often not possible to distinguish the effects of different policy tools on the progress towards meeting targets;
Amendment 365 #
Motion for a resolution
Paragraph 102
Paragraph 102
102. Regrets that the Court’s analysis based on scarce available data as of the end of 2018 shows that of 72 indicators in total, only just above one third of the indicators are on track to meet their targets and that about half of the indicators are not on track and that for the remaining indicators it was not possible for the Court to conclude; regrets that of 9 indicators linked to the general objectives, only two are on track, meanwhile; notes, however, that about one third of the indicators haveing a mid- term milestone target set for 2018 the Court concludes that 70% have either been achieved or are likely to be achieved soon;
Amendment 376 #
Motion for a resolution
Paragraph 107
Paragraph 107
107. Finds itself in agreement withIs concerned by the Court’s opinion that there are strong indications that the Union will not meet the 2030 climate and energy targets; notes that according to the Commission, there was only limited progress in the reduction of the negative environmental impacts stemming from the use of natural resources; highlights its agreement with the Courtthe Court observation that half of the Union Member States were at risk of not generating enough electricity from renewable energy to meet their 2020 targets; notes that in the Court’s landscape review of Union action on energy and climate change, the Court reported that the reduction in greenhouse gas emissions projected by Member States falls short of the 40 % target for 2030;
Amendment 378 #
Motion for a resolution
Paragraph 108
Paragraph 108
Amendment 393 #
Motion for a resolution
Paragraph 115
Paragraph 115
Amendment 400 #
Motion for a resolution
Subheading 18 a (new)
Subheading 18 a (new)
Performance: European Social Fund (ESF) and Youth Employment Initiative (YEI)
Amendment 401 #
Motion for a resolution
Paragraph 116 a (new)
Paragraph 116 a (new)
116 a. Notes that the Court has not selected ESF and FEAD to be covered by its first annual report on performance of the EU budget at the end of 2019;
Amendment 402 #
Motion for a resolution
Paragraph 116 b (new)
Paragraph 116 b (new)
116 b. Welcomes the findings within the Commission Evaluation(February 2021) on of the 2014-2018 ESF support to employment and labour mobility, social inclusion and education and training; notes with satisfaction that for the period 2014-2018, approximately 23 million persons participated in ESF actions and that 52% of participants were women; notes furthermore that of those participating, nearly 3.2 million persons have already found employment and 3.9 million successfully gained a qualification;
Amendment 403 #
Motion for a resolution
Paragraph 116 c (new)
Paragraph 116 c (new)
116 c. Notes that by 2018 EUR 10,4 billion have been spent - from both the ESF and the YEI, that 3.8 million people under age of 30 participated in youth- employment support projects and that 1.4 million people entered employment immediately after participation;
Amendment 404 #
Motion for a resolution
Paragraph 116 d (new)
Paragraph 116 d (new)
116 d. Notes furthermore that by the end of 2018, EUR 33.8 billion from the ESF have been invested for social inclusion and nearly 6.2 million persons had participated in social-inclusion actions, and that out of them nearly 700,000 individuals have found employment, with nearly 400,000 achieving a qualification;
Amendment 407 #
Motion for a resolution
Paragraph 118 a (new)
Paragraph 118 a (new)
118 a. Notes the positive evolution for the policy area “natural resources”, which continues its downtrend with a further decrease of the overall level of error established by the Court to an estimated level of error of 1.9%, below the materiality threshold; welcomes the fact that the error rate established by the Court tallies very closely with the overall error rate for the CAP given in DG AGRIʼs 2019annual activity report;
Amendment 408 #
Motion for a resolution
Paragraph 118 b (new)
Paragraph 118 b (new)
118 b. Welcomes the Court's finding that EAGF direct payments, representing 70% of spending under natural resources, continues to be free of material error and the estimated level of error for all the chapter is below the materiality threshold, which demonstrates that the effectiveness of the remedial action plans that Member States have implemented in previous years;
Amendment 409 #
Motion for a resolution
Paragraph 118 c (new)
Paragraph 118 c (new)
118 c. Notes that for both CAP funds, the continuous decrease in error-rates is due to the efficient management and control systems applied, in particular the Integrated Administration and Control System (IACS);
Amendment 412 #
Motion for a resolution
Paragraph 119
Paragraph 119
119. Finds it worryingNotes that of the 251 transactions examined7 by the Court, 44 (18 %) contained errors while 207 (82 %) were error-free; is concerned that based on the 36 errors ECA has quantified and other evidence produced by the control system ECA finds the level of error for ‘Natural resources’ to be close to the materiality threshold; _________________ 7The sample consisted of 136 payments under rural development programmes, 95 direct payments, 14 market measures and 6 payments for fisheries, the environment and climate action.notes furthermore that 70 % of errors were made up by ‘Ineligible beneficiary/activity/project/expenditure’;
Amendment 416 #
Motion for a resolution
Paragraph 120
Paragraph 120
Amendment 425 #
Motion for a resolution
Paragraph 126
Paragraph 126
126. Is concerned byNotes the Court’s opinion that the2015 expansion of certification bodies’ role to provide an opinion on the regularity of expenditure was a positive development, as well as the Court’s recognition that it identified some areas in which there is scope for further improvement, similar in type to those identified by the Commission; calls on the Commission to take the necessary measures in order to overcome the limitations in the reliability of the results of the certification bodies’ work, due to weaknesses the Courtwhich DG AGRI identified in some certification bodies’ checks and sampling methodologies;
Amendment 429 #
Motion for a resolution
Paragraph 127 a (new)
Paragraph 127 a (new)
Amendment 460 #
Motion for a resolution
Paragraph 128 – introductory part
Paragraph 128 – introductory part
128. Finds it worryingTakes note of the Court’s explanation in its Annual Report on Performance of the EU budget at the end of 2019 regarding some limitations of its assessment of the CAP indicators and that it considers this as only a first step in analysing CAP performance; notes that the Court has identified weaknesses in the set of CAP performance indicators:
Amendment 462 #
Motion for a resolution
Paragraph 128 – indent 1 – introductory part
Paragraph 128 – indent 1 – introductory part
- The 2019 AMPR provides little quantified information about the results and impact of the CAP, and presents an overly positive narrative about policy achievements by focusing on outputs rather than resultsMore indicators relate to inputs or outputs and thus they show the level of absorption rather than the results or impacts of the policy:
Amendment 463 #
Motion for a resolution
Paragraph 128 – indent 1 – point a
Paragraph 128 – indent 1 – point a
Amendment 465 #
Motion for a resolution
Paragraph 128 – indent 2 – introductory part
Paragraph 128 – indent 2 – introductory part
- The impact indicators in the programme statements mainly provide information about outputs, which are more easily measurable and less affected by external factors than results and impacts:are based on general macroeconomic variables, on which the effects of CAP can be both unclear and difficult to measure;
Amendment 467 #
Motion for a resolution
Paragraph 128 – indent 2 – point a
Paragraph 128 – indent 2 – point a
Amendment 469 #
Motion for a resolution
Paragraph 128 – indent 2 – point b
Paragraph 128 – indent 2 – point b
Amendment 470 #
Motion for a resolution
Paragraph 128 – indent 2 – point c
Paragraph 128 – indent 2 – point c
Amendment 472 #
Motion for a resolution
Paragraph 128 – indent 3 – introductory part
Paragraph 128 – indent 3 – introductory part
- In relation to the general objective on viable food production, direct payments have reduced farmers’ income volatility. At the same time, the absence of benchmarks for a fair standard of living and of further targeting of the spending has reduced the efficiency of direct support14 indicators do not have a specific, quantified target and therefore, they only indicate trends:
Amendment 473 #
Motion for a resolution
Paragraph 128 – indent 3 – point a
Paragraph 128 – indent 3 – point a
Amendment 477 #
Motion for a resolution
Paragraph 128 – indent 3 – point b
Paragraph 128 – indent 3 – point b
Amendment 478 #
Amendment 480 #
Motion for a resolution
Paragraph 128 – indent 3 – point d
Paragraph 128 – indent 3 – point d
d. in 2016 about two thirds9 of farms in the Union were smaller than 5 ha. As direct payments are linked to farm area, around 80 % of the support goes to around 20 % of beneficiaries. In fact, more than 30 % of the payments goes to 2 % of the beneficiaries, who each receive more than EUR 50 000 in direct payments. Various redistributive mechanisms have had only a marginal effect; _________________ 9 according to Eurostateleted
Amendment 483 #
Motion for a resolution
Paragraph 128 – indent 3 – point e
Paragraph 128 – indent 3 – point e
Amendment 487 #
Motion for a resolution
Paragraph 128 – indent 3 – point f
Paragraph 128 – indent 3 – point f
Amendment 488 #
Motion for a resolution
Paragraph 128 – indent 3 a (new)
Paragraph 128 – indent 3 a (new)
- seven indicators do not relate to the performance of the CAP, but to assurance on regularity of spending, public awareness of the CAP and policy information support within DG AGRI;
Amendment 489 #
Motion for a resolution
Paragraph 128 – indent 4
Paragraph 128 – indent 4
Amendment 502 #
Motion for a resolution
Paragraph 128 – indent 5
Paragraph 128 – indent 5
Amendment 520 #
Motion for a resolution
Paragraph 128 a (new)
Paragraph 128 a (new)
128 a. Notes the Court’s observation that the information in the AMPR is aligned with the underlying data in the programme statements, but the APMR gives an over optimistic view of achievements and it does not discuss the efficiency of spending; calls on the Commission to report to the discharge authority on the measures undertaken to overcome the significant challenges noted by it in achieving policy objectives for the period 2014-2020;
Amendment 521 #
Motion for a resolution
Paragraph 128 b (new)
Paragraph 128 b (new)
128 b. Takes note of the Court’s observation that the direct payments reduce income volatility (by around 30% as suggested by an evaluation study using data for 2010-2015), but they are largely untargeted; asks the Commission to ensure that better consistency between the targets addressed by the indicators and the policy objectives of increasing the individual earnings of people engaged in agriculture while limiting the need for direct support;
Amendment 522 #
Motion for a resolution
Paragraph 128 c (new)
Paragraph 128 c (new)
128 c. Notes with concern the Commission’s data for the distribution of direct payments by payments class in2019 demonstrating that the biggest share of the direct payment envelope (58%)goes to 15 % of all beneficiaries, while most beneficiaries (75%) account for even smaller share of the direct payments (15 %) than the only 0,5% of all beneficiaries obtaining 16,3% of the total direct payments; Reiterates its call on the Commission for a fairer distribution of the direct payments;
Amendment 523 #
Motion for a resolution
Paragraph 128 d (new)
Paragraph 128 d (new)
128 d. Welcomes the revision of the indicators and objectives in the Commission’s post-2020 CAP proposals which is based on the identified weaknesses by its Internal Audit Service and by the Court regarding CMEF indicators, as well as on the recognition of the need to develop further the indicators;
Amendment 524 #
Motion for a resolution
Paragraph 128 e (new)
Paragraph 128 e (new)
128 e. Notes the Court’s observation that the CAP has potential to contribute to the sustainable use of natural resources, but there is not enough data to assess effectiveness; notes further its findings that greening had had little measurable effect on farming practices and the environment and that it remained essentially an income-support scheme;
Amendment 525 #
Motion for a resolution
Paragraph 128 f (new)
Paragraph 128 f (new)
128 f. Takes note of the constrain, identified by the Court for successful contribution of agri-environment-climate measures to biodiversity and invites the Commission to suggest measures for increasing schemes coverage of a substantial portion of the farmed landscape and on specific risks;
Amendment 526 #
Motion for a resolution
Paragraph 128 g (new)
Paragraph 128 g (new)
128 g. Takes note of the modest achievement by foresty measures under EAFRD, the achievement of 60% in2018 of the target for more efficient irrigation systems established for 2023and the need for further reduction of greenhouse emissions from agriculture and calls on the Commission to report on measures undertaken to improve the results of CAP implementation in these areas;
Amendment 527 #
Motion for a resolution
Paragraph 128 h (new)
Paragraph 128 h (new)
128 h. Notes the Courts observation that the AMPR contains information on jobs and broadband access, but does not provide any relevant performance information for the balanced territorial development objective;
Amendment 528 #
128 i. Welcomes the increase in the rural employment rate from 63,4% in 2012 to 68,1 % in 2018;
Amendment 529 #
Motion for a resolution
Paragraph 128 j (new)
Paragraph 128 j (new)
128 j. Notes the figures which the Court comments for LEADER as at the end of 2018 (13 337 jobs recorder representing 30% of the 2023 target) as well as that the Commission does not have reliable data on jobs created under LEADER; asks the commission to work together with Member States for improving the availability of reliable data for LEADER implementation;
Amendment 545 #
Motion for a resolution
Subheading 24
Subheading 24
Court findings: Member States’ AMIF/ISF annual accounts
Amendment 547 #
Motion for a resolution
Paragraph 131
Paragraph 131
131. Notes that, regarding the regularity of transactions, seven (37 %) of the 19 transactions examined by ECA were affected by errors (i.e. overstatement of salary costs)the Court have not estimated the error rate for this MFF heading but examined a sample of regarding 19 transactions designed to contribute to its overall statement of assurance rather than be representative of spending under this MFF heading; notes that the sample covered 8 transactions under shared management, 8 transactions under direct management and 1 under indirect management, and that the Court identified seven transactions (37%) were affected by errors;
Amendment 550 #
Motion for a resolution
Paragraph 132
Paragraph 132
132. Regrets thatNotes that the Court has not provided information about the financial impact which the three quantifiable errors had a financial impactidentified by it had on the amounts charged to the Union budget;
Amendment 552 #
Motion for a resolution
Paragraph 133 a (new)
Paragraph 133 a (new)
133 a. Notes that the Court audited the work done by eight authorities responsible for auditing their respective Member States’ AMIF/ISF annual accounts8 and providing the Commission with an annual control report;
Amendment 553 #
Motion for a resolution
Paragraph 134
Paragraph 134
134. NoteWelcomes the Court’s findings that the audit authorities in the Member States17[1] selected by the ECA for a check had developed and implemented detailed procedures of sufficient quality to report as required by the rules; _________________ 17Germany, Greece, Italy, Cyprus, Lithuania, Poland, as well as they had detailed audit programmes and tche United Kingdom for AMIF; Slovenia for the ISFcklists to support their conclusions.
Amendment 555 #
Motion for a resolution
Paragraph 135 – introductory part
Paragraph 135 – introductory part
135. Takes into account certain shortcomings in annual control reports issued by the Member Stataudit authorities, whose impact on the accounts were not material enough to detract from the audit authorities’ conclusions but creating potential risk of unreliability of reported data and of limited assurance, such as:
Amendment 556 #
Motion for a resolution
Paragraph 135 – indent 1
Paragraph 135 – indent 1
Amendment 557 #
Amendment 558 #
Motion for a resolution
Paragraph 135 – indent 3
Paragraph 135 – indent 3
Amendment 559 #
Motion for a resolution
Paragraph 135 – indent 4
Paragraph 135 – indent 4
Amendment 560 #
Motion for a resolution
Paragraph 135 – indent 5
Paragraph 135 – indent 5
Amendment 561 #
Motion for a resolution
Paragraph 136
Paragraph 136
Amendment 562 #
Motion for a resolution
Paragraph 137
Paragraph 137
Amendment 565 #
Motion for a resolution
Paragraph 138 a (new)
Paragraph 138 a (new)
138 a. Asks the Commission and Member States’ audit authorities to address the shortcomings identified by the Court and to report to the discharge authority;
Amendment 569 #
Motion for a resolution
Paragraph 139
Paragraph 139
Amendment 573 #
Motion for a resolution
Paragraph 139 a (new)
Paragraph 139 a (new)
139 a. Welcomes the Court’s observation that the Commission’s interim evaluation indicates that AMIF is relevant and that it funded interventions that corresponded to the needs of Member States;
Amendment 574 #
Motion for a resolution
Paragraph 140
Paragraph 140
140. Notes, however some limitations in AMIF performance indicators, identified by the Court such as that two thirds of the indicators are output indicators and that 5 of the 24 indicator milestones for 2020 have already been achieved in previous years, but targets have not been adjusted upwards in line with good financial management practice to reflect the potential for more efficiency gains;
Amendment 576 #
Motion for a resolution
Paragraph 140 a (new)
Paragraph 140 a (new)
140 a. Notes that some AMIF indicators are not on track to meet their targets, that the Commission has not developed a performance monitoring framework for EMAS funded projects and that AMPR and programme statements provide little information on the progress achieved under important indicators;
Amendment 577 #
Motion for a resolution
Paragraph 140 b (new)
Paragraph 140 b (new)
140 b. Asks the Commission to take measures to address the shortcoming identified by the Court and to improve the information included in AMPR and programme statements, which will allow for better monitoring of the progress achieved by the Fund;
Amendment 579 #
Motion for a resolution
Paragraph 141
Paragraph 141
Amendment 584 #
Motion for a resolution
Paragraph 142
Paragraph 142
Amendment 586 #
Motion for a resolution
Paragraph 143
Paragraph 143
Amendment 592 #
Motion for a resolution
Paragraph 144
Paragraph 144
Amendment 594 #
Motion for a resolution
Paragraph 145
Paragraph 145
Amendment 598 #
Motion for a resolution
Paragraph 146
Paragraph 146
Amendment 603 #
Motion for a resolution
Paragraph 147
Paragraph 147
Amendment 615 #
Motion for a resolution
Paragraph 148
Paragraph 148
148. Is concerned in relation toNotes the existence of two parallel Union funded schemes supporting the same type of return activities (AMIF NPs and Frontex return support), and insufficient coordination between both for forced return operations well as that the coordination is mainly responsibility of the Member States; calls therefore on them to ensure better coordination between both schemes;
Amendment 620 #
Motion for a resolution
Paragraph 149 – indent 4
Paragraph 149 – indent 4
Amendment 643 #
Motion for a resolution
Paragraph 156 a (new)
Paragraph 156 a (new)
156 a. Welcomes that transactions related to budget support and projects implemented by international organisations under the ‘notional approach’ were less prone to error and that in 2019 the Court did not detect any errors in these areas.
Amendment 649 #
Motion for a resolution
Paragraph 157
Paragraph 157
Amendment 668 #
Motion for a resolution
Paragraph 164 – introductory part
Paragraph 164 – introductory part
164. Notes with deep concern, as to the DG DEVCO residual error rate studythat DG DEVCO implements most of the external aid instruments financed from both the EU general budget and the EDFs; takes note that the Court presented within its Annual Report on the activities funded by the 8th, 9that:, 10th and11th EDFs for the 2019 financial year its observations on systems, there liability of the AAR and the Director-General’s declaration for 2019 which refer to DG DEVCO’s entire area of responsibility;
Amendment 669 #
Motion for a resolution
Paragraph 164 – indent 1
Paragraph 164 – indent 1
Amendment 670 #
Motion for a resolution
Paragraph 164 – indent 2
Paragraph 164 – indent 2
Amendment 671 #
Motion for a resolution
Paragraph 164 – indent 3
Paragraph 164 – indent 3
Amendment 672 #
Motion for a resolution
Paragraph 164 – indent 4
Paragraph 164 – indent 4
Amendment 673 #
Motion for a resolution
Paragraph 164 – indent 5
Paragraph 164 – indent 5
- Notes the Court’s observation that the Commission and its implementing partners made more errors in transactions relating to programme estimates, grants, contribution agreements with IOs and delegation agreements with EU Member States’ cooperation agencies than they did with other forms of support (such as those covering works, supply and service contracts). Of the 65 transactions of this type 25 (38 %) contained quantifiable errors, which accounted for 71,7 % of the estimated level of error;
Amendment 674 #
Motion for a resolution
Paragraph 164 – indent 6
Paragraph 164 – indent 6
- Takes note of the Court’s opinion that the DG DEVCO’s residual error rate study does not constitute an assurance engagement or an audit; it is based on the residual error rate methodology and manual provided by DG DEVCO;
Amendment 675 #
Motion for a resolution
Paragraph 164 – indent 7
Paragraph 164 – indent 7
Amendment 676 #
Motion for a resolution
Paragraph 164 – indent 8
Paragraph 164 – indent 8
- Takes note of the Court’s observation that the director-general’s declaration of assurance in the 2019 AAR does not include any reservations, as the two reservations remaining in 2018 have been lifted and no new ones have been issued; before lifting these reservations in 2019, DG DEVCO had significantly reduced their scope (i.e. the share of expenditure covered by them) in 2017 and 2018, which consequently does not give a true and fair view of the risks in DG DEVCO’s overall area of responsibility;
Amendment 677 #
Motion for a resolution
Paragraph 164 a (new)
Paragraph 164 a (new)
164 a. Takes note from the written answers of the Commission for the hearing in CONT on 1December 2020 that uned the DG DEVCO 2019 Action Plan a task was implemented responding to the Court’s recommendation from 2018 and that the RER manual and methodology was adapted mainly as concerns the guidance on reliance on prior control work and on the procedures relating to procurement and a new way to deal with estimations; welcomes that the changes are fully applied to the 2020 RER study;
Amendment 678 #
Motion for a resolution
Paragraph 164 b (new)
Paragraph 164 b (new)
164 b. Notes, furthermore, that the Commission is currently working on implementation of additional Court’s recommendation for another adaptation of RER manual and methodology made in its 2019 Annual EDF Report and encourages the Commission to finalise the implementation of this recommendation by the end of 2021;
Amendment 693 #
Motion for a resolution
Paragraph 170 – indent 4
Paragraph 170 – indent 4