BETA

Procedure completed, awaiting publication in Official Journal



2014/2129(DEC) 2013 discharge: European Joint Undertaking for ITER and the Development of Fusion Energy (Fusion for Energy)
RoleCommitteeRapporteurShadows
Lead CONT VISTISEN Anders Primdahl (ECR) MARINESCU Marian-Jean (EPP), BALČYTIS Zigmantas (S&D), DLABAJOVÁ Martina (ALDE), ŠOLTES Igor (Verts/ALE), VALLI Marco (EFD)
Opinion ITRE
Lead committee dossier: CONT/8/01572

Activites

  • 2015/04/29 Decision by Parliament, 1st reading/single reading
    • T8-0168/2015 summary
  • 2015/04/28 Debate in Parliament
  • 2015/03/31 Committee report tabled for plenary, single reading
    • A8-0108/2015 summary
  • 2015/03/23 Vote in committee, 1st reading/single reading
  • 2014/10/20 Committee referral announced in Parliament, 1st reading/single reading
  • 2014/07/30 Non-legislative basic document published
    • COM(2014)0510 summary
    • DG {'url': 'http://ec.europa.eu/dgs/budget/', 'title': 'Budget'}, GEORGIEVA Kristalina

Documents

  • Non-legislative basic document published: COM(2014)0510
  • Committee report tabled for plenary, single reading: A8-0108/2015
  • Debate in Parliament: Debate in Parliament
  • Decision by Parliament, 1st reading/single reading: T8-0168/2015
AmendmentsDossier
24 2014/2129(DEC)
2015/03/05 CONT 24 amendments...
source: 549.351

History

(these mark the time of scraping, not the official date of the change)

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  • The European Parliament decided by 227 votes to 459, with 9 abstentions, to defer the decision to postpone the discharge to the Director of the Joint Undertaking for ITER and the Development of Fusion Energy for the financial year 2013. With the rejection of the decision to postpone, discharge shall be granted and the accounts shall be deemed closed (see Annex V, Article 5(1) of the Rules of Procedure).

    Parliament also adopted by 634 votes to 31, with 9 abstentions, a resolution containing a number of recommendations that form an integral part of the discharge decision and as well as the general recommendations that appear in the resolution on performance, financial management and control of EU agencies:

    Budgetary management and additional cost of the ITER project: Parliament was concerned that there was a significant risk of increase to which the amount of the Joint Undertaking's contribution to the construction phase of the ITER project was exposed. It wanted to see a realistic approach for an effective budget and financial management, with an overall realistic schedule for the whole project. It recalled that EUR 6.6 billion was approved in 2008 values, in order for the Joint Undertaking to contribute to the ITER construction phase of the project, but this amount was double compared to the initial budgeted costs and did not include an amount of EUR 663 000 000 proposed by the Commission and intended to cover potential contingencies.

    Parliament is deeply concerned that in November 2013 the Joint Undertaking estimated the budget shortfall until the finalisation of the construction phase of the project to be EUR 290 000 000, representing a deviation of 4.39% over the figure approved by the Council in 2010 and representing an increase of 10.7% compared to the initial budget of the project. In relation to these risks, the Joint Undertaking has not yet implemented a system at contract level to regularly monitor the cost deviations and has not updated the valuation of the Joint Undertaking to the ITER project beyond the finalisation of the construction phase.

    Parliament considered that the significant increase of the project might put into danger other programmes that were also financed by the Union’s budget and might be contradictory to the ''value for money'' principle. It pointed out with concern that the Joint Undertaking had not detailed in its financial statements the degree of advancement of the work in-progress. However, this information was essential in reflecting the status of the activities carried out so far. The resolution noted in regard to the Joint Undertaking's commitment appropriations that, out of EUR 1 254 000 000 which were available for operational activities, 61.7% were implemented through direct individual commitments while the remaining 38.3% were implemented through global commitments. Members were concerned that seven members had paid their 2013 annual membership contribution late, which might have had an impact on the way the project was run. Parliament awaited a report to the discharge authority concerning the contributions of all members other than the Commission, including the application of the evaluation rules for in-kind contributions, together with an assessment by the Commission.

    Other observations: Parliament also made a series of observations on conflicts of interests at the JU as well as on public procurement and the legal framework of the Undertaking. It called on the Joint Undertaking to submit in a due term a report to the discharge authority concerning the actual level of project implementation, potential risks and future development of the project, together with an assessment by the Commission.

    Parliament noted that the Joint Undertaking had not yet adopted and implemented certain measures aimed at mitigating specific risks related to the protection of the intellectual property rights and the dissemination of research results. It acknowledged the Joint Undertaking's opinion that the costs of implementation of such measures did not appear proportionate to the size of the residual risk and would be difficult to implement in practice. Moreover, it noted that the Joint Undertaking’s contractors are offered exclusive exploitation rights over intellectual property produced in fields outside fusion, while in the field of fusion the contractors have non-exclusive rights.

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  • type: Decision by Parliament, 1st reading/single reading title: T8-0168/2015
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  • The Committee on Budgetary Control adopted the report by Anders Primdahl VISTISEN (ECR, DK) on discharge in respect of the implementation of the budget of the Joint Undertaking for ITER and the Development of Fusion Energy for the financial year 2013.

    It called on the European Parliament to postpone its decision on granting the Director of the Joint Undertaking discharge in respect of the implementation of the joint undertaking’s budget for the financial year 2013.

    The committee called on Parliament to postpone the closure of the accounts of the Joint Undertaking for the financial year 2013.

    It made a number of recommendations that needed to be taken into account when the discharge is granted, in addition to the general recommendations that appear in the draft resolution on performance, financial management and control of EU agencies.

    Budgetary and financial management: Members were concerned that there was a significant risk of increase to which the amount of the Joint Undertaking's contribution to the construction phase of the ITER project was exposed. They wanted to see a realistic approach for an effective budget and financial management, with an overall realistic schedule for the whole project. They recalled that EUR 6.6 billion was approved in 2008 values, in order for the Joint Undertaking to contribute to the ITER construction phase of the project, but this amount was double compared to the initial budgeted costs and did not include an amount of EUR 663 000 000 proposed by the Commission and intended to cover potential contingencies. Members considered that the significant increase of the project might put into danger other programmes that were also financed by the Union’s budget and might be contradictory to the ''value for money'' principle. They pointed out with concern that the Joint Undertaking had not detailed in its financial statements the degree of advancement of the work in-progress. However, this information was essential in reflecting the status of the activities carried out so far. The report noted in regard to the Joint Undertaking's commitment appropriations that, out of EUR 1 254 000 000 which were available for operational activities, 61.7 % were implemented through direct individual commitments while the remaining 38.3 % were implemented through global commitments. Members were concerned that seven members had paid their 2013 annual membership contribution late, which might have had an impact on the way the project was run. They awaited a report to the discharge authority concerning the contributions of all members other than the Commission, including the application of the evaluation rules for in-kind contributions, together with an assessment by the Commission.

    Members also made a series of observations on conflicts of interests at the JU as well as on public procurement and the legal framework of the Undertaking. They called on the Joint Undertaking to submit in a due term a report to the discharge authority concerning the actual level of project implementation, potential risks and future development of the project, together with an assessment by the Commission.

    Other observations: lastly, Members noted that the Joint Undertaking had not yet adopted and implemented certain measures aimed at mitigating specific risks related to the protection of the intellectual property rights and the dissemination of research results. They acknowledged the Joint Undertaking's opinion that the costs of implementation of such measures did not appear proportionate to the size of the residual risk and would be difficult to implement in practice.

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  • PURPOSE: presentation by the Commission of the consolidated annual accounts of the European Union for the financial year 2013, as part of the 2013 discharge procedure.

    Analysis of the accounts of the Fusion for Energy Joint Undertaking – ITER project.

    CONTENT: this Commission document sets out the consolidated annual accounts of the European Union for the financial year 2013 as prepared on the basis of the information presented by the institutions, organisations and bodies of the EU, in accordance with Article 129 (2) of the Financial Regulation applicable to the EU's General Budget, including the F4E Joint Undertaking for the ITER project.

    The document contains the figures on which the discharge procedure is based.

    Discharge procedure of the EU Joint Undertakings: the EU Budget finances a wide range of policies and programmes throughout the EU. In accordance with the priorities set by the European Parliament and the Council in the multi-annual financial framework (MFF), the European Commission carries out specific programmes, activities and projects in the field with the technical support of some specialised agencies.

    The consolidated annual accounts of the EU provide information on the activities of the institutions, agencies and other bodies of the EU from a budgetary and accrual accounting perspective.

    The consolidated reports on the implementation of the general budget of the EU include the budget implementation of all Institutions. Agencies and Joint Undertakings (JUs) do not have a separate budget inside the EU budget; and they are partially financed by a Commission budget subsidy.

    Each JU is subject to its own discharge procedure.

    F4E: in 2013, the tasks and budget of the Joint Undertaking were as follows:

    • F4E and ITER: the F4E Joint Undertaking, located in Barcelona (ES), is the technical and organisational structure to provide Euratom’s contribution to the ITER international project (whose main facilities are located in Cadarache - FR). The JU was set up under Council Decision 2007/198/Euratom for a period of 35 years. ITER involves the EU and China, India, Russia, South Korea, Japan and USA. It was created to manage the ITER facilities, to encourage the exploitation of the ITER facilities, to promote public understanding and acceptance of fusion energy, and to undertake any other activities that are necessary to achieve its purpose;
    • accounts of the JU: the EU (Euratom) contribution to ITER International is given through the Fusion for Energy Agency, including also the contributions from Member States and from Switzerland. The total contribution is legally considered as a Euratom contribution to ITER since the Member States and Switzerland do not have ownership interests in ITER. As the EU legally holds the participation in the joint venture ITER International, the Commission must recognise the participation in its accounts. At 31 December 2013, the Commission held 43.33% of the ownership participation in ITER. The total (indicative) Euratom contribution foreseen for ITER (from 2007 to 2014) is EUR 8 949 million. The accounts of the JU for the year 2013 as presented by the Commission in its document on the consolidated annual accounts of the European Union are as follows:

    §         Commitment appropriations :

    - committed : EUR 1.297 billion;

    - paid : EUR 1.297 billion;

    - carried-over : 0.

    §         Payment appropriations :

    - committed : EUR 439 million;

    - paid : EUR 393 million;

    - carried-over : EUR 23 million.

    N.B.: the Fusion for Energy Agency recorded an important amout of RAL over the term of the contract (EUR 2.035 billion in the context of the ITER project).

    Please also consult the final accounts of the Fusion4Energy Joint Undertaking.

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activities
  • date: 2014-07-30T00:00:00 docs: url: http://www.europarl.europa.eu/registre/docs_autres_institutions/commission_europeenne/com/2014/0510/COM_COM(2014)0510_FR.pdf celexid: CELEX:52014DC0510:EN type: Non-legislative basic document published title: COM(2014)0510 body: EC type: Non-legislative basic document published commission:
  • date: 2014-10-20T00:00:00 body: EP type: Committee referral announced in Parliament, 1st reading/single reading committees: body: EP shadows: group: EPP name: MARINESCU Marian-Jean group: NI name: ALIOT Louis responsible: True committee: CONT date: 2014-09-26T00:00:00 committee_full: Budgetary Control rapporteur: group: ECR name: CZARNECKI Ryszard body: EP responsible: False committee_full: Industry, Research and Energy committee: ITRE
  • date: 2015-03-24T00:00:00 body: EP type: Vote scheduled in committee, 1st reading/single reading
  • date: 2015-04-28T00:00:00 body: EP type: Indicative plenary sitting date, 1st reading/single reading
committees
  • body: EP shadows: group: EPP name: MARINESCU Marian-Jean group: NI name: ALIOT Louis responsible: True committee: CONT date: 2014-09-26T00:00:00 committee_full: Budgetary Control rapporteur: group: ECR name: CZARNECKI Ryszard
  • body: EP responsible: False committee_full: Industry, Research and Energy committee: ITRE
links
other
    procedure
    dossier_of_the_committee
    CONT/8/01572
    reference
    2014/2129(DEC)
    title
    2013 discharge: European Joint Undertaking for ITER and the Development of Fusion Energy (Fusion for Energy)
    stage_reached
    Awaiting committee decision
    type
    DEC - Discharge procedure
    subject
    8.70.03.03 2013 discharge