BETA


2018/2210(DEC) Discharge in respect of the implementation of the budget of the European Union agencies for the financial year 2017: performance, financial management and control

Progress: Procedure completed, awaiting publication in Official Journal

RoleCommitteeRapporteurShadows
Lead CONT SARVAMAA Petri (icon: PPE PPE) KADENBACH Karin (icon: S&D S&D), CZARNECKI Ryszard (icon: ECR ECR), ALI Nedzhmi (icon: ALDE ALDE), DE JONG Dennis (icon: GUE/NGL GUE/NGL), STAES Bart (icon: Verts/ALE Verts/ALE), KAPPEL Barbara (icon: ENF ENF)
Committee Opinion AFET
Committee Opinion DEVE
Committee Opinion INTA
Committee Opinion BUDG
Committee Opinion ECON
Committee Opinion EMPL HARKIN Marian (icon: ALDE ALDE) Sergio GUTIÉRREZ PRIETO (icon: S&D S&D), Eduard KUKAN (icon: PPE PPE), Dominique MARTIN (icon: ENF ENF), Tamás MESZERICS (icon: Verts/ALE Verts/ALE), Ulrike TREBESIUS (icon: ECR ECR)
Committee Opinion ENVI
Committee Opinion ITRE
Committee Opinion IMCO
Committee Opinion TRAN
Committee Opinion REGI
Committee Opinion AGRI
Committee Opinion PECH
Committee Opinion CULT
Committee Opinion JURI
Committee Opinion LIBE FRANZ Romeo (icon: Verts/ALE Verts/ALE) Petr JEŽEK (icon: ALDE ALDE)
Committee Opinion AFCO
Committee Opinion FEMM
Committee Opinion PETI
Lead committee dossier:

Events

2019/03/26
   EP - Debate in Parliament
2019/03/26
   EP - Decision by Parliament, 1st reading/single reading
Details

The European Parliament adopted by 489 votes to 121, with 29 abstentions, a resolution concerning the discharge in relation to the implementation of the budget of the European Union agencies for the financial year 2017: performance, financial management and control.

Members emphasised that the agencies are highly visible in the Member States and have significant influence on policy, decision making and programme implementation in areas of vital importance to European citizens, such as security, safety, health, research, economic affairs, environment, gender equality, energy, transport, freedom and justice.

They welcomed the effective overall performance of the agencies, and the progress made in enhancing their visibility to European citizens.

Parliament noted that the Court issued an unqualified opinion on the reliability of the accounts of all agencies. They noted in addition that the Court issued an unqualified opinion on the legality and regularity of the transactions underlying the accounts for all agencies, except for the European Asylum Support Office (EASO).

On a budgetary level, for the 32 decentralised Union agencies, the 2017 budgets amounted to around EUR 2.35 billion in commitment appropriations, representing an increase of approximately 13.36 % compared to 2016, and to EUR 2.24 billion in payment appropriations, showing an increase of 10.31 % in comparison to 2016.

Moreover, of the EUR 2.24 billion, some EUR 1.62 billion were financed from the general budget of the Union, representing 72.08 % of the agencies’ total financing in 2017 (69.81 % in 2016). EUR 627 million were financed by fees and charges and by direct contributions from participating countries.

Once again, Members recalled their request to streamline and accelerate the discharge procedure towards deciding on granting discharge in the year immediately following the year for which the discharge is granted, closing the procedure within the year following the accounting year in question.

Budget and financial management

Parliament called on the Commission, the Network and the individual agencies to:

- work together and provide constructive feedback throughout the negotiations for the post-2020 Multiannual Financial Framework, and to explore new sources of financing for the agencies in addition to the existing Union budget contributions;

- work on streamlined and harmonised indicators and to automatically provide the discharge authority with the official budget (in commitment appropriations and in payment appropriations) and staff figures (establishment plan, contract agents and seconded national experts as of 31 December of the year in question) of the 32 decentralised agencies.

The Court and the Commission are invited to propose and define a consistent formula for the calculation of cancelled carry-overs.

Staff

Parliament noted the challenge of insufficient staff some of the agencies are facing, especially when new tasks are attributed without additional personnel envisaged for their implementation. It regretted that the Commission has not taken into consideration the request of the affected agencies for increase of their staff which puts in risk their good performance.

It also regretted the gender imbalance in some agencies and called on all agencies to constantly work on a balanced distribution on all levels of staff and report to the discharge authority on implemented measures and progress.

Procurement

Again, shortcomings persist in the management of procurements, with 14 agencies showing weaknesses in this area, mostly relating to procurements of services.

Conflicts of interests and transparency

The resolution noted that 77 % of agencies had already set up and implemented internal rules or guidelines on whistleblowing and the other 23 % are in the process of adopting them. The remaining agencies are urged to set up and implement internal rules on whistleblowing without further delay.

Members recalled that a number of agencies, in particular those issuing authorisations to third parties for bringing products on the market, are vulnerable if they do not have and implement clear and effective rules to prevent conflicts of interest.

Dual headquarters

Parliament noted with concern that some agencies continue to have dual operational and administrative headquarters. It considered that dual headquarters not offering any operational added value should be done away with at the earliest opportunity.

Brexit

Members recalled that on 29 March 2017 the United Kingdom (UK) notified the European Council of its decision to withdraw from the Union. Five of the agencies did not carry out a comprehensive analysis of the likely impact of the UK’s withdrawal on their organisation, operations and accounts.

Documents
2019/03/26
   EP - End of procedure in Parliament
2019/03/01
   EP - Committee report tabled for plenary, single reading
Details

The Committee on Budgetary Control adopted the report by Petri SARVAMAA (EPP, FI) on discharge in respect of the implementation of the budget of the European Union agencies for the financial year 2017: performance, financial management and control.

Members emphasised that the agencies are highly visible in the Member States and have significant influence on policy, decision making and programme implementation in areas of vital importance to European citizens, such as security, safety, health, research, economic affairs, environment, gender equality, energy, transport, freedom and justice.

They welcomed the effective overall performance of the agencies, and the progress made in enhancing their visibility to European citizens.

Members noted that the Court issued an unqualified opinion on the reliability of the accounts of all agencies. They noted in addition that the Court issued an unqualified opinion on the legality and regularity of the transactions underlying the accounts for all agencies, except for the European Asylum Support Office (EASO).

On a budgetary level, for the 32 decentralised Union agencies, the 2017 budgets amounted to around EUR 2.35 billion in commitment appropriations, representing an increase of approximately 13.36 % compared to 2016, and to EUR 2.24 billion in payment appropriations, showing an increase of 10.31 % in comparison to 2016.

Moreover, of the EUR 2.24 billion, some EUR 1.62 billion were financed from the general budget of the Union, representing 72.08 % of the agencies’ total financing in 2017 (69.81 % in 2016). EUR 627 million were financed by fees and charges and by direct contributions from participating countries.

Once again, Members recalled their request to streamline and accelerate the discharge procedure towards deciding on granting discharge in the year immediately following the year for which the discharge is granted, closing the procedure within the year following the accounting year in question.

Budget and financial management

Members called on the Commission, the Network and the individual agencies to:

- work together and provide constructive feedback throughout the negotiations for the post-2020 Multiannual Financial Framework, and to explore new sources of financing for the agencies in addition to the existing Union budget contributions;

- work on streamlined and harmonised indicators and to automatically provide the discharge authority with the official budget (in commitment appropriations and in payment appropriations) and staff figures (establishment plan, contract agents and seconded national experts as of 31 December of the year in question) of the 32 decentralised agencies.

The Court and the Commission are invited to propose and define a consistent formula for the calculation of cancelled carry-overs.

Staff

Members noted the challenge of insufficient staff some of the agencies are facing, especially when new tasks are attributed without additional personnel envisaged for their implementation. They regretted that the Commission has not taken into consideration the request of the affected agencies for increase of their staff which puts in risk their good performance.

Procurement

Again, shortcomings persist in the management of procurements, with 14 agencies showing weaknesses in this area, mostly relating to procurements of services.

Conflicts of interests and transparency

The report noted that 77 % of agencies had already set up and implemented internal rules or guidelines on whistleblowing and the other 23 % are in the process of adopting them. Members urged the remaining agencies to set up and implement internal rules on whistleblowing without further delay.

Members recalled that a number of agencies, in particular those issuing authorisations to third parties for bringing products on the market, are vulnerable if they do not have and implement clear and effective rules to prevent conflicts of interest.

Brexit

Members recalled that on 29 March 2017 the United Kingdom (UK) notified the European Council of its decision to withdraw from the Union. Five of the agencies did not carry out a comprehensive analysis of the likely impact of the UK’s withdrawal on their organisation, operations and accounts.

Documents
2019/02/20
   EP - Vote in committee, 1st reading/single reading
2019/01/31
   EP - Amendments tabled in committee
Documents
2019/01/25
   EP - Committee opinion
Documents
2019/01/17
   EP - Committee opinion
Documents
2018/12/17
   EP - Committee draft report
Documents
2018/10/18
   EP - FRANZ Romeo (Verts/ALE) appointed as rapporteur in LIBE
2018/10/09
   EP - HARKIN Marian (ALDE) appointed as rapporteur in EMPL
2018/09/11
   EP - Committee referral announced in Parliament, 1st reading/single reading
2018/07/26
   EP - SARVAMAA Petri (PPE) appointed as rapporteur in CONT
2018/06/28
   EC - Non-legislative basic document published
Details

PURPOSE: presentation by the Commission of the consolidated annual accounts of the European Union for the financial year 2017, as part of the 2017 discharge procedure: performance, financial management and control.

The document focuses on the performance, financial management and control of the EU’s accounts in general.

CONTENT: the organisational governance of the EU consists of institutions, agencies and other EU bodies whose expenditure is included in the general budget of the Union.

This Commission document concerns the EU's consolidated accounts for the year 2017 and details how spending by the EU institutions and bodies was carried out. The consolidated annual accounts of the EU provide financial information on the activities of the institutions, agencies and other bodies of the EU from an accrual accounting and budgetary perspective.

It is the responsibility of the Commission's Accounting Officer to prepare the EU's consolidated annual accounts and ensure that they present fairly, in all material aspects, the financial position, the result of the operations and the cash flows of the EU institutions and bodies with a view to granting discharge.

Performance : implementing robust performance frameworks is essential for ensuring a strong focus on results, EU added value and sound management of EU programmes. The Commission is committed to ensuring that the EU budget achieves better outcomes for citizens and that supports the political priorities. To ensure resources are allocated to priorities and that every action brings high performance and added value, the Commission implements its EU Budget Focused on Results initiative. Building on the 2014–2020 performance framework, it promotes a better balance between compliance and performance.

The 2014-2020 performance frameworks have been included as a new compulsory element and as a key pillar of the increased result orientation of this programming period. It foresees the establishment of clear and measureable objectives, indicators and targets as well as monitoring, reporting and evaluation arrangements.

Controls : the European Court of Auditors (the Court) is the external auditor of the EU institutions (and bodies). The Court's mission is to contribute to improving EU financial management, promote accountability and transparency, and act as the independent guardian of the financial interests of the citizens of the EU. The Court’s role as the EU’s independent external auditor is to check that EU funds are correctly accounted for, are raised and spent in accordance with the relevant rules and regulations and have achieved value for money.

The EU’s annual accounts and its resource management are audited by the Court, which, as part of its activities, draws up for the European Parliament and the Council:

an annual report on the activities financed from the general budget, detailing its observations on the annual accounts and underlying transactions; an opinion , based on its audits and given in the annual report in the form of a statement of assurance; the reliability of the accounts and the legality and regularity of the underlying transactions; special reports covering specific areas.

Discharge procedure : the final step of a budget lifecycle is the discharge . It is the decision by which the European Parliament ‘releases’ the Commission from its responsibility for management of a given budget by marking the end of that budget's existence. It is granted by the European Parliament on the recommendation of the Council.

The decision is based in particular on the European Court of Auditors reports, in particular its annual report, in which the Court provides a Statement of Assurance (DAS) on the legality and regularity of transactions (payments and commitments).

The procedure results in the granting, postponement or refusal of discharge.

The final discharge report including specific recommendations to the Commission for action is adopted in plenary by the European Parliament and are subject to an annual follow up report in which the Commission outlines the concrete actions it has taken to implement the recommendations made.

Documents

Votes

A8-0140/2019 - Petri Sarvamaa - Am 7/1 26/03/2019 17:43:10.000

2019/03/26 Outcome: +: 374, -: 196, 0: 64
IT GB FR DE ES BE DK SE AT NL CZ EL PT FI EE BG IE CY LU HR LT MT LV SI SK RO HU PL
Total
66
59
62
89
46
20
11
18
16
25
18
8
21
10
5
17
7
1
6
9
8
6
8
8
13
19
12
46
icon: S&D S&D
156

Netherlands S&D

3

Czechia S&D

3

Estonia S&D

For (1)

1

Luxembourg S&D

For (1)

1

Croatia S&D

2

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1

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3

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1

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1

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2
icon: ALDE ALDE
62

United Kingdom ALDE

1

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1
3

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A8-0140/2019 - Petri Sarvamaa - Am 7/2 26/03/2019 17:43:22.000

2019/03/26 Outcome: -: 353, +: 185, 0: 87
DK FI NL IE EL CY BE SE EE CZ LU LT LV ES HR SI MT AT BG SK PT HU IT GB RO FR PL DE
Total
10
10
25
7
8
1
20
18
4
17
6
8
8
46
9
8
6
17
17
13
21
13
63
57
19
62
46
86
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2

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A8-0140/2019 - Petri Sarvamaa - Résolution 26/03/2019 17:43:58.000

2019/03/26 Outcome: +: 489, -: 121, 0: 29
DE ES IT FR RO PT NL SE BG CZ BE AT HU FI LT SI HR PL SK LU LV MT EE IE DK CY EL GB
Total
88
48
66
62
19
21
25
18
17
18
20
16
13
12
8
8
9
47
13
6
8
6
5
7
11
1
8
59
icon: PPE PPE
184

Luxembourg PPE

3

Estonia PPE

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1
3

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1

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157

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3

Czechia S&D

3

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1

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1

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2

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1

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4

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1

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1

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1

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1
icon: NI NI
14

Germany NI

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1

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1

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3
icon: EFDD EFDD
36

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1

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1

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1
icon: ENF ENF
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1

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3

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1

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2

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2
icon: ECR ECR
65
4

Romania ECR

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1

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2

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2

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2

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2

Belgium ECR

3

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2

Croatia ECR

Against (1)

1

Latvia ECR

Against (1)

1

A8-0140/2019 - Petri Sarvamaa - Am 7/1

2019/03/26 Outcome: +: 374, -: 196, 0: 64
IT GB FR DE ES BE DK SE AT NL CZ EL PT FI EE BG IE CY LU HR LT MT LV SI SK RO HU PL
Total
66
59
62
89
46
20
11
18
16
25
18
8
21
10
5
17
7
1
6
9
8
6
8
8
13
19
12
46
icon: S&D S&D
156

Netherlands S&D

3

Czechia S&D

3

Estonia S&D

For (1)

1

Luxembourg S&D

For (1)

1

Croatia S&D

2

Lithuania S&D

1

Malta S&D

3

Latvia S&D

1

Slovenia S&D

For (1)

1

Hungary S&D

2
icon: ALDE ALDE
62

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1

Austria ALDE

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1

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1
3

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2

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1

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1
icon: Verts/ALE Verts/ALE
49

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1

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2

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1

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3

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2

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1

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1

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1
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1

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1

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1

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1

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3

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1

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3

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1
icon: ECR ECR
65

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2

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2

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2

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2

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2

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1

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1

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1
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36

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1

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1

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1

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1
icon: ENF ENF
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2

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1

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1

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3

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2
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Germany NI

For (1)

1

Hungary NI

For (1)

1
icon: PPE PPE
180

United Kingdom PPE

2

Greece PPE

Against (1)

1

Finland PPE

2

Estonia PPE

Against (1)

1

Ireland PPE

3

Luxembourg PPE

3

A8-0140/2019 - Petri Sarvamaa - Am 7/2

2019/03/26 Outcome: -: 353, +: 185, 0: 87
DK FI NL IE EL CY BE SE EE CZ LU LT LV ES HR SI MT AT BG SK PT HU IT GB RO FR PL DE
Total
10
10
25
7
8
1
20
18
4
17
6
8
8
46
9
8
6
17
17
13
21
13
63
57
19
62
46
86
icon: ALDE ALDE
60

Denmark ALDE

2

Ireland ALDE

For (1)

1

Estonia ALDE

2

Luxembourg ALDE

For (1)

1

Lithuania ALDE

2

Latvia ALDE

1

Croatia ALDE

For (1)

1

Slovenia ALDE

For (1)

1

Austria ALDE

For (1)

1

Portugal ALDE

1

United Kingdom ALDE

1

Romania ALDE

For (1)

1
icon: Verts/ALE Verts/ALE
48

Denmark Verts/ALE

For (1)

1

Finland Verts/ALE

For (1)

1

Netherlands Verts/ALE

2

Belgium Verts/ALE

2

Luxembourg Verts/ALE

For (1)

1

Lithuania Verts/ALE

For (1)

1

Latvia Verts/ALE

1

Croatia Verts/ALE

For (1)

1

Slovenia Verts/ALE

For (1)

1

Austria Verts/ALE

3

Hungary Verts/ALE

1

Italy Verts/ALE

For (1)

1
icon: GUE/NGL GUE/NGL
39

Denmark GUE/NGL

For (1)

1

Netherlands GUE/NGL

3

Ireland GUE/NGL

3

Greece GUE/NGL

1

Cyprus GUE/NGL

1

Sweden GUE/NGL

For (1)

1

Italy GUE/NGL

1

United Kingdom GUE/NGL

1
icon: EFDD EFDD
35

Czechia EFDD

Abstain (1)

1

Lithuania EFDD

Against (1)

1

Poland EFDD

1

Germany EFDD

Against (1)

1
icon: ECR ECR
63

Finland ECR

2

Netherlands ECR

2

Belgium ECR

3

Sweden ECR

2

Czechia ECR

For (1)

Abstain (1)

2

Latvia ECR

Abstain (1)

1

Croatia ECR

Abstain (1)

1

Bulgaria ECR

2

Romania ECR

Against (1)

1
icon: NI NI
13

Hungary NI

For (1)

1

Italy NI

For (1)

1

United Kingdom NI

Against (2)

Abstain (1)

3

France NI

2

Poland NI

Abstain (1)

2

Germany NI

Against (1)

1
icon: ENF ENF
32

Netherlands ENF

3

Belgium ENF

Abstain (1)

1

United Kingdom ENF

2

Poland ENF

2

Germany ENF

Against (1)

1
icon: S&D S&D
157
3

Finland S&D

2

Netherlands S&D

3

Greece S&D

3

Estonia S&D

Against (1)

1

Czechia S&D

3

Luxembourg S&D

Against (1)

1

Lithuania S&D

1

Latvia S&D

Against (1)

1

Croatia S&D

2

Slovenia S&D

Against (1)

1

Malta S&D

For (1)

3

Hungary S&D

3
icon: PPE PPE
178

Finland PPE

Against (1)

1

Ireland PPE

3

Greece PPE

Against (1)

1

Estonia PPE

Against (1)

1

Luxembourg PPE

3

United Kingdom PPE

2

A8-0140/2019 - Petri Sarvamaa - Résolution

2019/03/26 Outcome: +: 489, -: 121, 0: 29
DE ES IT FR RO PT NL SE BG CZ BE AT HU FI LT SI HR PL SK LU LV MT EE IE DK CY EL GB
Total
88
48
66
62
19
21
25
18
17
18
20
16
13
12
8
8
9
47
13
6
8
6
5
7
11
1
8
59
icon: PPE PPE
184

Luxembourg PPE

3

Estonia PPE

For (1)

1
3

Greece PPE

For (1)

1

United Kingdom PPE

2
icon: S&D S&D
157

Netherlands S&D

3

Czechia S&D

3

Lithuania S&D

1

Slovenia S&D

For (1)

1

Croatia S&D

2

Luxembourg S&D

For (1)

1

Latvia S&D

1

Malta S&D

3

Estonia S&D

For (1)

1
icon: ALDE ALDE
64

Romania ALDE

For (1)

1

Portugal ALDE

1

Austria ALDE

For (1)

1

Lithuania ALDE

2

Slovenia ALDE

For (1)

1

Croatia ALDE

For (1)

1

Luxembourg ALDE

For (1)

1

Latvia ALDE

1

Estonia ALDE

3

Ireland ALDE

For (1)

1

United Kingdom ALDE

1
icon: Verts/ALE Verts/ALE
47

Italy Verts/ALE

For (1)

1

Netherlands Verts/ALE

2

Belgium Verts/ALE

2

Austria Verts/ALE

2

Hungary Verts/ALE

1

Finland Verts/ALE

For (1)

1

Lithuania Verts/ALE

For (1)

1

Slovenia Verts/ALE

For (1)

1

Croatia Verts/ALE

For (1)

1

Luxembourg Verts/ALE

For (1)

1

Latvia Verts/ALE

1

Denmark Verts/ALE

For (1)

1