2020/2246(INI) Protection of the EU’s financial interests - combatting fraud - annual report 2019
Next event: Indicative plenary sitting date 2021/07/05
Lead committee dossier:
Next event: Indicative plenary sitting date 2021/07/05
Progress: Awaiting Parliament's vote
| Role | Committee | Rapporteur | Shadows |
|---|---|---|---|
| Lead | CONT |
CHINNICI Caterina ( S&D)
|
HOHLMEIER Monika ( EPP),
CSEH Katalin ( Renew),
PEKSA Mikuláš ( Verts/ALE),
ADINOLFI Matteo ( ID),
CZARNECKI Ryszard ( ECR),
FLANAGAN Luke Ming ( GUE/NGL)
|
Lead committee dossier:
Legal Basis:
RoP 54
Legal Basis:
RoP 54Events
2021/07/05
Indicative plenary sitting date
2021/06/21
EP - Committee report tabled for plenary, single reading
Documents
2021/06/21
EP - Committee report tabled for plenary
Documents
2021/06/14
EP - Vote in committee
2021/05/28
EP - Amendments tabled in committee
Documents
2021/05/05
EP - Committee draft report
Documents
2021/01/13
EP - CHINNICI Caterina (S&D) appointed as rapporteur in CONT
2020/11/26
EP - Committee referral announced in Parliament
Documents
- Committee report tabled for plenary, single reading: A9-0209/2021
- Committee report tabled for plenary: A9-0209/2021
- Amendments tabled in committee: PE692.936
- Committee draft report: PE692.684
- Committee draft report: PE692.684
- Amendments tabled in committee: PE692.936
- Committee report tabled for plenary, single reading: A9-0209/2021
| Amendments | Dossier |
| 132 |
2020/2246(INI)
2021/05/28
CONT
132 amendments...
Amendment 1 #
Motion for a resolution Recital A A. whereas de jure the Member States and the Commission have shared responsibility, and must work closely together, to protect the Union’s financial interests and fight fraud and corruption; whereas de facto Member State authorities managed approximately 74 % of EU expenditure and collected the Union’s traditional own resources with regard to the Union’s budget for 2019;
Amendment 10 #
Motion for a resolution Paragraph 1 1. Welcomes the 31st Annual report on the protection of the EU’s financial interests and the fight against fraud, which underlines the achievements of 2019 with regards to the consolidation of the institutional framework on the fight against fraud and irregularities at Union level achieved by the transposition into national law by 1
Amendment 100 #
Motion for a resolution Paragraph 30 a (new) 30 a. Reiterates that the ‘revolving door’ effect can be detrimental to relations between the institutions and interest representatives; calls for the EU institutions to develop a systematic approach to this challenge;
Amendment 101 #
Motion for a resolution Paragraph 30 b (new) 30 b. Notes that following a full EU membership in GRECO, the EU institutions may be monitored and evaluated by GRECO; underlines that the GRECO evaluation system should take into account the specific nature of the EU, as a Union based on the principle of conferred competences, and its institutions, as well as the special features of EU law; emphasises that the EU’s rights and obligations in GRECO and the practical arrangements for its membership as a distinct legal entity, alongside all its Member States, should be clarified in advance in the Agreement on the modalities of membership;
Amendment 102 #
30 b. Reiterates its call to the Commission to set up an internal evaluation mechanism of corruption for the EU institution;
Amendment 103 #
Motion for a resolution Paragraph 30 c (new) 30 c. Is concerned about the Czech Chief Prosecutor General citing permanent pressure by the Justice Minister as reasons for his recent resignation; asks the commission to look into vulnerabilities of the Czech judicial system and carefully examine whether any other cases involving members of the Czech government have been withdrawn or prematurely closed potentially following pressure or unjustified interference; calls on the Commission to conduct such an analysis for all other Member States as well and keep Parliament informed about its findings and conclusions;
Amendment 104 #
Motion for a resolution Paragraph 31 31. Reiterates its call on the Commission to establish a digital and interoperable uniform system for the collection of comparable data on irregularities and cases of fraud from the Member States in order to standardise the reporting process and ensure the quality and comparability of the data provided and underlines the importance of harmonising definitions to obtain comparative data across the EU;
Amendment 105 #
Motion for a resolution Paragraph 32 32. Calls on the Commission to ensure the full transparency and quality of data reported by Member States in the Irregularity Management System (IMS); urges Member States to report complete data in a timely manner; calls on the Commission and the Member States to link IMS with EDES and ARACHNE and provide access to all Member States and the Commission;
Amendment 106 #
Motion for a resolution Paragraph 32 a (new) 32a. Considers it advisable for Member States to cooperate more closely with regard to exchanges of information, in order both to improve data collection and enhance the effectiveness of controls;
Amendment 107 #
Motion for a resolution Paragraph 33 33.
Amendment 108 #
Motion for a resolution Paragraph 33 33. Stresses the importance of the Early Detection and Exclusion System (EDES); invites the Commission to
Amendment 109 #
Motion for a resolution Paragraph 33 33. Stresses the importance of the Early Detection and Exclusion System (EDES); invites the Commission to
Amendment 11 #
Motion for a resolution Paragraph 1 1. Welcomes the 31st Annual report on the protection of the EU’s financial interests and the fight against fraud, which underlines the achievements of 2019 with regards to the consolidation of the institutional framework on the fight against fraud and irregularities at Union level achieved by the transposition into national law by 12 Member States of the measures provided for in the Directive on the fight against fraud to the Union’s financial interests by means of criminal law (‘the PIF Directive’) with
Amendment 110 #
Motion for a resolution Paragraph 33 33. Stresses the importance of the Early Detection and Exclusion System (EDES); notes the Judgment of the General Court of 13 May 2020 in Case T-290/18, "AGMIN" v Commission, in which the Court of Justice has confirmed the validity of the respective roles of the panel and the authorising officers, and that the adversarial procedure led by the panel had fully respected the right to be heard of the entity concerned; invites the Commission to analyse the impact of a possible extension of EDES to shared management;
Amendment 111 #
Motion for a resolution Paragraph 33 a (new) 33 a. Deplores the fact that there are more than 290 monitoring and reporting systems for the CAP and the Cohesion Fund which makes it impossible to verify the final beneficiaries of those funds, to prevent and effectively investigate fraud and corruption; calls on the Commission and the Member States to establish a harmonised or unified reporting system with timely and accurate data in order to remedy the situation;
Amendment 112 #
Motion for a resolution Paragraph 34 34. Recalls the need for a more incisive and effective response and coordination at both Union and national level in the fight against corruption and organised crime with particular focus on transnational and cross-border aspects, in order to tackle, also through the use of Artificial Intelligence tools, while respecting the protection of personal data, fraudsters’ constant ability to adapt to new technologies and scenarios;
Amendment 113 #
34. Recalls the need for a more incisive and effective response and coordination at both Union and national level in the fight against corruption and organised crime with particular focus on transnational and cross-border aspects, in order to tackle, also through the use of Artificial Intelligence tools, data-mining and other relevant digitalised tools, fraudsters’ constant ability to adapt to new technologies and scenarios;
Amendment 114 #
Motion for a resolution Paragraph 34 34. Recalls the need for a more incisive and effective response and coordination at both Union and national level in the fight against corruption and organised crime, including mafia-style crime, with particular focus on transnational and cross- border aspects, in order to tackle, also through the use of Artificial Intelligence tools, fraudsters’ constant ability to adapt to new technologies and scenarios;
Amendment 115 #
Motion for a resolution Paragraph 34 a (new) 34a. Points out that many Member States do not have specific laws against organised, mafia-style crime, while its involvement in cross-border activities and sectors affecting the EU’s financial interests is constantly growing;
Amendment 116 #
Motion for a resolution Paragraph 35 35.
Amendment 117 #
Motion for a resolution Paragraph 35 35. Recalls the importance of supporting and strengthening cooperation among the EU institutions, the EPPO, OLAF, the EU agencies, in particular Europol and Eurojust, and national authorities, in order to detect and tackle fraud and corruption more effectively; reiterates its call to ensure adequate resources for the EPPO, OLAF and relevant EU agencies
Amendment 118 #
Motion for a resolution Paragraph 35 35. Recalls the importance of supporting and strengthening cooperation among the EU institutions, the EPPO, OLAF, the EU agencies, in particular Europol and Eurojust, and national authorities, in order to detect and tackle fraud and corruption more effectively; reiterates its call to ensure
Amendment 119 #
Motion for a resolution Paragraph 35 35. Recalls the importance of supporting and strengthening cooperation among the EU institutions, the EPPO, OLAF, the EU agencies, in particular Europol and Eurojust, and national authorities, in order to detect and tackle fraud and corruption more effectively, avoiding overlapping of roles and promoting the exchange of information; reiterates its call to ensure adequate resources for the EPPO, OLAF and relevant EU agencies in this regard;
Amendment 12 #
Motion for a resolution Paragraph 1 a (new) 1 a. Emphasises that respect for the rule of law is a precondition for sound financial management including the efficient and effective allocation and management of European funds as well as the fight against corruption and mismanagement; strongly welcomes in that regard the adoption of Regulation 2020/2092 of the European Parliament and of the Council of 16 December 2020 on a general regime of conditionality for the protection of the Union budget;
Amendment 120 #
Motion for a resolution Paragraph 35 a (new) 35 a. Calls on the Commission to consider updating its anti-fraud strategy in order to fully reflect the operationalisation of the EPPO and its role in fighting fraud;
Amendment 121 #
Motion for a resolution Paragraph 35 b (new) Amendment 122 #
Motion for a resolution Paragraph 36 36. Highlights the importance of structured information exchange among competent authorities for the cross- checking of accounting records for transactions between two or more Member States, in order to prevent cross-border fraud in respect of the structural and investment funds; reiterates its request to the Commission for including in its working programme a legislative proposal for an horizontal Regulation on mutual administrative assistance in the area of EU expenditures; emphasises that the exchange of information should occur in a digital format and through interoperable or shared IT systems and tools to facilitate a more timely and efficient cooperation;
Amendment 123 #
Motion for a resolution Paragraph 37 37.
Amendment 124 #
Motion for a resolution Paragraph 37 37. Notes that only 13 Member States made use of ARACHNE during their risk analysis; reiterates the importance of this tool, as well as of interoperability of IT systems and databases for fraud risk analysis and fraud detection purposes; reiterates its call on the Commission to
Amendment 125 #
Motion for a resolution Paragraph 37 37. Notes that only 13 Member States made use of ARACHNE during their risk analysis; reiterates the importance of this tool, as well as of interoperability of IT systems and databases for fraud risk analysis and fraud detection purposes; reiterates its call on the Commission
Amendment 126 #
Motion for a resolution Paragraph 37 a (new) 37 a. Notes that 16 Member States have strengthened risk analysis to detect fraud and irregularities via the use of IT tools; calls on the Commission to facilitate exchanges of good practices between these countries and Member States without experience;
Amendment 127 #
Motion for a resolution Paragraph 38 38. Notes with concern that no information is provided on the analysis of cases of conflicts of interest, despite the relevance of the new provision adopted in 2018 in the Financial Regulation and the well-known importance and impact of this
Amendment 128 #
Motion for a resolution Paragraph 38 a (new) 38a. Expresses concern regarding checks relating to financial instruments managed by intermediaries and weaknesses revealed in verification of beneficiaries’ registered offices; reiterates the need to make the disbursement of direct and indirect funds conditional on the disclosure of information on beneficial ownership by the beneficiaries and financial intermediaries involved in financing operations;
Amendment 129 #
Motion for a resolution Paragraph 38 a (new) 38 a. Highlights that, with a view to effectively counter corruption, in order to protect the EU’s financial interests, the Commission should adopt a holistic and coherent approach, fostering enhanced rules on transparency, incompatibilities and conflicts of interest, internal control mechanisms, lobbying and revolving doors;
Amendment 13 #
Motion for a resolution Paragraph 1 b (new) 1 b. Welcomes that the Commission has immediately started its work on a clear methodology and the analysis of potential cases; acknowledges that the Commission has clearly stated on several occasions that it will fulfil its role as “Guardian of the Treaties" and apply the regulation from the date it entered into force without undue delay, so that no case is lost during the necessary preparation work in the first half of 2021; recalls that Regulation 2020/2092 is applicable to all commitments and payments from 1 January 2021, while providing safeguards for final beneficiaries and recipients;
Amendment 130 #
Motion for a resolution Paragraph 39 39. Invites the Commission to explore new avenues for the PIF report to be shared and analysed alongside other annual reports, including the Rule of law report, and sources of information, including through an enhanced dialogue between Europol, Eurojust and EPPO, to help identify trends in fraudulent and non- fraudulent irregularities, to detect weaknesses and to provide useful lessons learnt to enhance the adoption of fraud- proofing measures by all stakeholders;
Amendment 131 #
Motion for a resolution Paragraph 39 a (new) Amendment 132 #
Motion for a resolution Paragraph 39 a (new) 39 a. Regrets that Parliament repeatedly has to address several of its recommendations without receiving any clear response by the Commission; notes that on some observations and recommendations, Commission regrettably has not taken any tangible action or measures; asks the Commission to provide a clear explanation to Parliament whenever it decides to not follow one of its recommendations;
Amendment 14 #
Motion for a resolution Paragraph 2 2. Notes that the total number of fraudulent and non-fraudulent irregularities reported in 2019 amounted to 11 726 cases overall 2% fewer than in 2018), and involved a value of approximately EUR 1.6 billion,
Amendment 15 #
Motion for a resolution Paragraph 3 3. Notes that the number of detected irregularities reported as fraudulent is an indication of the level of detection and of the capacity to intercept potential fraud by Member States and Union bodies, and recalls that it is not a direct indicator of the level of fraud affecting the Union budget or a specific Member State; recalls that in 2019, two special reports of the European Court of Auditors highlighted the shortcomings of the Commission with regards to its insight into the scale, nature and causes of fraud, identifying weaknesses in the Commission’s strategic approach towards managing risks of fraud, calling on the Commission to take more proactive measures in order to address these issues; notes that the detection and reporting of an irregularity implies that corrective measures have been taken in order to protect the Union’s financial interests and that, whenever relevant, criminal proceedings have been launched;
Amendment 16 #
Motion for a resolution Paragraph 3 a (new) 3 a. Nevertheless notes that it is unclear how many fraudulent irregularities remain unreported every year, making it very difficult to evaluate the effectiveness of the anti-fraud activities put in place; calls on the Commission therefore to develop a methodology to improve the reliability and provide for more accurate estimations of the scale of fraud in the EU;
Amendment 17 #
Motion for a resolution Paragraph 4 4. Notes that the number of fraudulent irregularities reported in 2019 (939 cases) and their related financial amounts (approximately EUR 461.4 million) decreased significantly compared to 2018; notes that, looking at a5-year period (2015-2019), the number of reported fraudulent irregularities was 40% less than in 2015, and 25% below the 5-year average; notes that in 2019, 514 irregularities reported as fraudulent relating to expenditure represented 0.3% of 2019 payments, and 425 reported as fraudulent on revenue corresponded to 0.3% of gross amount of Traditional Own Resources collected for 2019;
Amendment 18 #
Motion for a resolution Paragraph 4 4. Notes that the number of fraudulent irregularities reported in 2019 (939 cases - 8% of all irregularities) ) and their related financial amounts (approximately EUR 461.4 million - 28% of all financial amounts affected by irregularities) decreased significantly compared to 2018; notes that in 2019, 514 irregularities reported as fraudulent relating to expenditure represented 0.3% of 2019 payments, and 425 reported as fraudulent on revenue corresponded to 0.3% of gross amount of Traditional Own Resources collected for 2019;
Amendment 19 #
Motion for a resolution Paragraph 5 a (new) 5 a. Emphasises that the change of detected fraudulent or non-fraudulent irregularities represents a momentary snapshot that has to be seen in the context of other relevant factors; reported decreases in the total number of cases of both fraudulent and non-fraudulent irregularities can either be indicative of a positive development of an overall decrease in fraudulent activity or a negative development of a reduction in the level of detection of fraudulent activity;
Amendment 2 #
Motion for a resolution Recital B B. whereas the Commission should fulfil its respective responsibilities under shared management for supervision, control and audit, however the Commission is capable of monitoring approximately 10% of all expenditures;
Amendment 20 #
Motion for a resolution Paragraph 5 a (new) 5a. Stresses the seriousness of the current situation concerning fraud involving the failure to pay VAT, in particular so-called carousel fraud; calls on all Member States to participate in all EUROFISC’s fields of activity so as to facilitate the exchange of information to help combat fraud;
Amendment 21 #
Motion for a resolution Paragraph 5 a (new) 5 a. Highlights that, in particular for fraudulent irregularities, detections were concentrated in a few Member States, suggesting different approaches to the use of criminal law in protecting the EU budget; calls on the Commission to address these differences and consider new harmonizing measures;
Amendment 22 #
Motion for a resolution Paragraph 5 a (new) 5 a. Deeply regrets and points to the fact that many Member States do not have specific laws against organised crime, while its involvement in cross-border activities and sectors affecting the EU’s financial interests is constantly growing;
Amendment 23 #
Motion for a resolution Paragraph 5 b (new) Amendment 24 #
Motion for a resolution Paragraph 5 b (new) 5 b. Underlines the increased risks associated to the implementation of the Union budget, incurred by the COVID -19 crisis; highlights that in 2019, fifteen Member States reported irregularities in actions related to health infrastructures, with seven reporting fraudulent irregularities; notes with concern that more than half of the fraudulent irregularities were reported by two Member States; calls on the Commission to pay particular attention to these cases, monitoring and taking action for ensuring the full protection of the EU budget, especially under exceptional crisis circumstances;
Amendment 25 #
Motion for a resolution Paragraph 6 6. Urges Member States together with the Commission to cooperate more closely with regard to exchanges of information, improving data collection, and enhancing the effectiveness of controls; strongly calls on the Commission to conduct a thorough analysis of the underlying reasons and potential structural problems causing the persisting systemic weaknesses in the reliability of the work of some national authorities and pay special attention to any potential country-specific differences; calls on the Commission to address clear country-specific recommendations to the national authorities; asks the Commission to establish a structured dialogue with the national authorities and the ECA to continuously work on capacity building and exchange of best practice to improve the reliability of national authorities’ work and keep Parliament informed about the progress made; calls on the Commission to offer further support to improve the cooperation under EUROFISC;
Amendment 26 #
Motion for a resolution Paragraph 6 6. Urges Member States together with the Commission to cooperate more closely with regard to exchanges of information, improving data collection, and enhancing the effectiveness of controls; in this regard calls on Member States to publish data on final beneficiaries in an uniform machine-readable format and ensure the interoperability with the Commission monitoring tools;
Amendment 27 #
Motion for a resolution Paragraph 6 a (new) 6 a. In this regard reiterates its call on the Commission to establish a uniform system for the collection of comparable data on irregularities and cases of fraud from the Member States in order to standardise the reporting process and ensure the quality and comparability of the data provided;
Amendment 28 #
Motion for a resolution Paragraph 6 b (new) 6 b. Finds it worrisome that some Member States regularly do not report a single case of fraud; invites the Commission to investigate the situation, as it considers the likelihood that no fraudulent activities exist in those Member States to be rather low; calls on the Commission to run random spot checks in these countries;
Amendment 29 #
Motion for a resolution Paragraph 9 9. Notes from the 2020 VAT Gap Report that in 2018 the EU VAT Gap dropped to EUR 140 billion and could fall below EUR 130 billion in 2019; however, is concerned that the VAT Gap may reach EUR 164 billion in 2020
Amendment 3 #
Motion for a resolution Recital B a (new) B a. whereas Article 310(6) of the TFEU states that ‘the Union and the Member States, in accordance with Article 325, shall counter fraud and any other illegal activities affecting the financial interests of the Union’; whereas Article 325(2) of the TFEU states that ‘Member States shall take the same measures to counter fraud affecting the financial interests of the Union as they take to counter fraud affecting their own financial interests’; whereas Article 325(3) of the TFEU states that ‘the Member States shall coordinate their action aimed at protecting the financial interests of the Union against fraud’ and that ‘they shall organise, together with the Commission, close and regular cooperation between competent authorities’; whereas under Article 325(4) of the TFEU the European Court of Auditors must be consulted on any measures to be adopted by the legislator in the fields of the prevention of and fight against fraud affecting the EU’s financial interests;
Amendment 30 #
Motion for a resolution Paragraph 9 a (new) 9 a. Is deeply concerned by the extensive impact of VAT fraud on the EU budget as well as national budgets; finds it very important to step up the fight against the biggest kind of VAT fraud, the missing trader intra-community fraud (MTIC fraud), with an estimated annual cost of 40-60billion EUR; calls on the Commission to assess the strengths and weaknesses of different potential solutions to tackle MTIC fraud, notably the introduction of a real-time digital transaction-based reporting system as developed by researchers (TX++), or a combination of the definitive VAT system with a digital, real-time transaction-based reporting;
Amendment 31 #
Motion for a resolution Paragraph 10 10. Notes that sixteen revenue anti- fraud measures were reported by the Member States in 2019, in particular eight in the area of customs fraud, five in tax fraud, and three measures concerning both customs and tax fraud; notes that an evaluation process on Regulation 515/97 started in 2019 within the Commission, to determine how useful Regulation 515/97 has been on preventing customs fraud;
Amendment 32 #
Motion for a resolution Paragraph 11 11. Notes that between 2017 and 2019 the Commission carried out on-the-spot inspections on the control strategy in the field of customs value in all Member States and found that the Union’s financial interests were not effectively protected, leading to significant losses of Traditional Own Resources to the EU budget; Notes that OLAF has issued investigation reports with recommendations to six Member States which have not fully implemented the necessary measures to tackle undervaluation fraud consistently; calls on the Commission to report back to the Parliament specifically naming the Member States which could share their best practice and also those where significant challenges remain;
Amendment 33 #
Motion for a resolution Paragraph 12 12. Notes that solar panels were the goods most affected by fraud and irregularities in monetary terms in 2019, as was also the case in 2018, and 2017; calls on the Commission
Amendment 34 #
Motion for a resolution Paragraph 12 a (new) 12 a. Notes that revenue fraud through undervaluation of goods imported in the EU is and will remain a threat to revenue, posing a significant challenge to be dealt with in the coming years;
Amendment 35 #
Motion for a resolution Paragraph 13 13. Notes that serious doubts exist about the accuracy of the traditional own
Amendment 36 #
Motion for a resolution Paragraph 13 a (new) 13 a. Is deeply concerned by the non- quantifiable reservation maintained for2019 by DG BUDG, stating that the undervaluation fraud partly moved to other Member States, affecting the collection of TOR to an extent pending final quantification; notes that the Commission has carried out inspections on undervaluation in all Member States and checked how Member States are organised to address issues of undervaluation, particularly concerning textiles and shoes from China; notes that the Commission will follow up and hold Member States financially responsible for any potential losses incurred; is concerned that provisional calculations indicate that the TOR losses in 2019 would reach 1% of the 2019 total TOR; asks the Commission to promptly inform Parliament about the findings and consequences of its inspections and quantification calculations once finalised;
Amendment 37 #
Motion for a resolution Paragraph 14 14. Reiterates that a combination of different detection methods (release controls, post-release controls, inspections by anti-fraud services and others) is most efficient for detecting fraud, and that the efficiency of each method depends on the Member State concerned, the efficient coordination of its administration, and the ability of the relevant Member State services to communicate with each other; calls on the Commission to inform the Council which member States could share their 'best practice' experience and where significant challenges for improvements remain;
Amendment 38 #
Motion for a resolution Paragraph 15 a (new) 15 a. Reiterates its assessment on the importance of OLAF’s investigations and its coordination role for the protection of the EU’s financial interests and combatting fraud;
Amendment 39 #
Motion for a resolution Paragraph 18 18. Notes that regarding the Common Agricultural Policy (CAP), detections of irregularities were concentrated in a few Member States in particular for fraudulent irregularities, suggesting that different approaches to the use of criminal law to protect the EU budget or reporting practices concerning suspected fraud could be significant factors leading to differences among Member States; notes, that in 2019, the overall financial amounts were relatively stable, but amounts with respect to direct support increased whereas rural development decreased; notes in particular that in the area of direct support, most detections indicated the use of falsified documents or requests for aid, and that in rural development, many detections were related to implementation;
Amendment 4 #
Motion for a resolution Recital D D. whereas the diversity of legal and administrative systems in the Member States
Amendment 40 #
Motion for a resolution Paragraph 18 a (new) 18 a. Reiterates its call for the introduction of maximum amounts of payments that one natural person can receive from the first and second pillar of the CAP as well as for cohesion funds; is of the opinion that maximum amounts defined per natural person are much harder to circumvent; reminds that beneficiaries can artificially split up their companies or create additional companies that all can receive the maximum amount of funding to circumvent a cap defined per legal person; welcomes the intentions of the proposal for the CAP to count all companies belonging to the same group as one beneficiary, but is of the opinion that this is insufficient: opaque and highly complex company structures often involving entities in several Member States and/or third countries make it very difficult to ensure that all companies belonging to the same group are identified as such and in fact treated as one beneficiary and open other opportunities to circumvent these restrictions; calls on the Commission to include proposals for caps per natural person for CAP and cohesions funds in its proposal for the revision of the Financial Regulation;
Amendment 41 #
Motion for a resolution Paragraph 18 b (new) 18 b. Repeats its concern that CAP subsidies continue to incentivise land- grabbing by criminal and oligarchic structures; reiterates its urgent call on the Commission to establish a complaint mechanism for farmers and SMEs faced with land-grabbing, severe misconduct by national authorities, irregular or biased treatment intenders or the distribution of subsidies, pressure or intimidation from criminal structures, organised crime or oligarchic structures, or another severe infringement of their fundamental rights to lodge a complaint directly with the Commission; welcomes that such a complaint mechanism has been proposed for the new CAP regulation;
Amendment 42 #
Motion for a resolution Paragraph 19 19. Notes the complexity of the analysis on cohesion policy’s data and the different phases of PPs 2007-2013, notes that the financial amounts reported are significantly lower than the exceptional year of 2018 but on average are trending upwards for the Cohesion Fund; underlines the importance of cooperation with the judicial authorities and considers the need for closer attention to the unexpected downturn of fraudulent irregularities as well as non-fraudulent, excluding ‘exceptional’ cases, for PP 2014-2020 in 2019 of the financial amounts involved in fraudulent irregularities for all funds and in particular regarding the ERDF;
Amendment 43 #
Motion for a resolution Paragraph 19 19. Notes the complexity of the analysis on cohesion policy’s data and the different phases of PPs 2007-2013, notes that the financial amounts reported are significantly lower than the exceptional year of 2018 but on average are trending upwards for the Cohesion Fund; underlines the importance of cooperation with the judicial authorities and considers the need for closer attention to the unexpected
Amendment 44 #
Motion for a resolution Paragraph 19 a (new) 19 a. Is very concerned by media reports about European co-financed infrastructure investments which were repurposed after the minimum required period of three or five years; regrets allegations of fraud and personal enrichment from this repurposing; regrets that the Commission has not been able to provide additional information to dispel remaining doubts; welcomes the intention of the Commission to properly follow-up on these allegations and calls on the Commission to report its findings to Parliament; further calls on the Commission to analyse in which Member States severe problems exist regarding the repurposing of EU-co-financed infrastructure projects;
Amendment 45 #
19 b. Considers the legal minimum durability requirement of three to five years too short given the significant amounts of co-financing and the longevity of such projects; regrets that the co- legislators did not decide to introduce longer durability requirements during the revision of the Common Provisions Regulation; notes that significant differences exist across Member States in the national rules on durability of infrastructure investments and premature repurposing;
Amendment 46 #
Motion for a resolution Paragraph 19 c (new) 19 c. Calls on the Commission to conduct a thorough analysis on the different national rules on the durability of appropriation requirements of co- financed investments and premature repurposing both for infrastructure and equipment with a particular focus on whether national rules go beyond the European minimum requirements; calls on the Commission to report its findings to Parliament;
Amendment 47 #
Motion for a resolution Paragraph 20 20. Reiterates the transparency requirements for CAP and cohesion policies, which oblige the responsible authorities of the Member States to maintain a publicly available list of final beneficiaries; strongly calls on Member States to publish such data in an uniform machine-
Amendment 48 #
Motion for a resolution Paragraph 21 21. Notes that in 2019 actions related to health infrastructure were affected by breaches of public procurement rules; among the fraudulent irregularities the most common issues detected concerned supporting documents; fifteen Member States reported irregularities in actions related to health infrastructures; seven of these also detected fraud; notes that non- reporting of irregularities in this area by other Member States is not an indication that they
Amendment 49 #
Motion for a resolution Paragraph 21 a (new) 21 a. Is concerned about continued reports by ECA and the Commission about persisting weaknesses in public procurement in several Member States; calls on the Commission to conduct a thorough analysis of the Member States with noticeable weaknesses about the underlying reasons and specify precisely to what extend these weaknesses are due to formal errors or systemic fraud and corruption; is of the opinion that minor formal errors need to be treated differently and that the Commission should focus more on the more severe issues, such as intentional manipulations in the tender criteria to favour the application of certain or single bidders, corruption in relation to bidder selection, conflicts of interest and other fraudulent misuse;
Amendment 5 #
Motion for a resolution Recital D D. whereas the diversity of legal and administrative systems in the Member States needs to be adequately addressed in order to overcome irregularities and combat fraud and corruption; whereas the Commission should further strengthen its efforts to ensure that the fight against fraud and corruption is implemented effectively and produces more tangible and more satisfactory results;
Amendment 50 #
Motion for a resolution Paragraph 21 a (new) Amendment 51 #
Motion for a resolution Paragraph 21 a (new) 21 a. Shares the view of the Commission, that countering fraud and irregularities is of the utmost importance in particular in period of crisis;17a _________________ 17aChapter 10.2 of the 31st Annual Report on the protection of the European Union’s financial interests - Fight against fraud - 2019
Amendment 52 #
Motion for a resolution Paragraph 21 b (new) 21b. Stresses the need for complete transparency in accounting for the transfers and loans provided for under the Recovery and Resilience Facility (RRF) and calls on the Commission to provide for the European Parliament to have full access to information;
Amendment 53 #
Motion for a resolution Paragraph 21 b (new) 21 b. Invites the Commission to step up its fraud prevention and detection work to ensure that EU money continues to reach the intended beneficiaries and produce effective and measurable effects on citizen’s lives;
Amendment 54 #
Motion for a resolution Subheading 4 a (new) Digitalisation as a means to protect the EU financial interests
Amendment 55 #
Motion for a resolution Paragraph 21 b (new) Amendment 56 #
Motion for a resolution Paragraph 21 c (new) 21 c. Reiterates Parliament’s urgent call on the Commission to propose a legal base in the Financial Regulation for the creation of an interoperable digital reporting and monitoring system to allow timely, uniform and standardised reporting by Member State’s authorities in the area of shared management; encourages a mandatory use of existing data-mining and risk-scoring tools, such as ARACHNE, as one element of the envisaged reporting and monitoring system; underlines that the envisaged interoperable reporting and monitoring system should not only allow for an earlier and more efficient detection of misuse, fraud, misappropriations, conflicts of interest, double-funding and other systemic problems but would also allow for a comprehensive overview of the true distribution of EU funds and potentially unintended concentrations in the hands of few oligarchic or even criminal ultimate beneficiaries;
Amendment 57 #
Motion for a resolution Paragraph 21 d (new) 21 d. Recalls that this system should not result in a bureaucratic overburdening of the national authorities and avoid creating a data congestion; calls on the Commission to determine which indicators and data are truly relevant, necessary and proportionate for audit and control purposes as well as for reaching the intended programming goals and to decrease the number of indicators and milestones that need to be entered into the system;
Amendment 58 #
Motion for a resolution Paragraph 21 e (new) 21 e. Notes that the Early Detection and Exclusion System (EDES),established by Art 135 Financial Regulation should ensure effective sanctions on unreliable persons or entities, through an exclusion from award and procurement procedures funded under the EU budget and the imposition of financial penalties; regrets that the database only lists very few economic operators (six as per May 2021); calls on the Commission to review the criteria with a view to decreasing complexity and increase applicability of EDES in practice;
Amendment 59 #
Motion for a resolution Paragraph 21 f (new) 21 f. Asks the Commission to consider the extension of EDES to application on funds under shared management with respect for the principles of proportionality and appropriateness when proposing the revision of the Financial Regulation; urges Member States and the Commission to guarantee an increased interoperability of the existing European and national databases and data-mining tools; acknowledges that the EDPS sees no general data protection issues on establishing such interoperability as long as they are established on a clear legal basis;
Amendment 6 #
Motion for a resolution Recital F F. whereas systematic and institutionalised and high level cases of corruption and deliberate weakening of the checks and balances and of the independence of the institutions responsible for monitoring and controlling finances in certain Member States seriously harm the Union’s financial interests while also representing a threat to the rule of law;
Amendment 60 #
Motion for a resolution Paragraph 21 g (new) 21 g. Welcomes existing rules on e- procurement, which stipulate that tender opportunities must be published on Tenders Electronic Daily (TED), procurement documents must be accessible electronically and a link must be included in the TED notices, economic operators must submit tenders electronically and contracting authorities must accept electronic invoices;
Amendment 61 #
Motion for a resolution Paragraph 21 h (new) 21 h. Observes that public procurement is undergoing a digital transformation; welcomes the process of rethinking public procurement with digital technologies in mind; is of the opinion that this reform should go beyond simply moving to electronic tools and should include various pre-award and post-award phases; insists, that the reform should also allow for the integration of data- based approaches at various stages of the procurement process; calls on the Commission to pay particular attention to framework agreements awarded through public procurement procedures, as fraud and corruption related to them represent an increased risk for the financial interests of the Union;
Amendment 62 #
Motion for a resolution Paragraph 21 i (new) 21 i. Observes that the increasing digitalisation of public services and enhanced transparency rules result in additional information related to EU public finances being available in electronic formats; notes furthermore, that the computing capacity and the software availability allows for complex processing of large amount of data in relatively short time, which creates new potential for the detection of fraud using specialized data analytics techniques such as big data, data mining, and AI technologies on open data; believes that the abundance of open data represents an opportunity to support the creation of reliable "reputation systems", which can help to prevent criminal activities; asks the Commission to carry out a systemic analysis to investigate how the new technologies are being used in the field of fraud detection and prevention, assess their limitations, and make proposals on how to improve their use;
Amendment 63 #
Motion for a resolution Paragraph 22 22. Welcomes the adoption of the New Commission Anti-Fraud Strategy on 29 April 2019; welcomes the zero tolerance policy towards fraud; welcomes the reintroduction of the Commission’s corporate oversight of fraud issues by giving OLAF a stronger advisory and supervisory role reminds that the CAFS foresees actions only to the Commission, while the majority of responsibilities lie with the Member States; calls for a unified approach for the European Fraud Strategy, which includes the Member States as well;
Amendment 64 #
Motion for a resolution Paragraph 23 23. Stresses the importance of prioritising the development and establishment of National Anti-Fraud Strategies (NAFSs) by all Member States, also in the light of the new challenges of the COVID-19 crisis and the Recovery and Resilience Plans; regrets that the follow- up for 2018 showed that only 10 Member States reported that they have adopted or updated a NAFS and communicated it to OLAF, whereas 17 Member States have still not adopted a NAFS1a; calls on those Member States who have not yet adopted a NAFS to do so without
Amendment 65 #
Motion for a resolution Paragraph 23 23. Stresses the importance of prioritising the development and establishment of National Anti-Fraud Strategies (NAFSs) by all Member States,
Amendment 66 #
Motion for a resolution Paragraph 23 23. Stresses the importance of prioritising the development and establishment of National Anti-Fraud Strategies (NAFSs) by all Member States, also in the light of the new challenges of the COVID-19 crisis and the Recovery and Resilience Plans; is extremely worried that a total of 16 Member States do not have any NAFS in place with only four considering adopting or preparing a new NAFS; calls on Member States who have not yet adopted a NAFS to do so without delay;
Amendment 67 #
Motion for a resolution Paragraph 23 23. Stresses the importance of
Amendment 68 #
Motion for a resolution Paragraph 23 23. Stresses the importance of prioritising the development and establishment of National Anti-Fraud Strategies (NAFSs) by all Member States, also in the light of the new challenges of the COVID-19 crisis and the Recovery and Resilience Plans; is concerned that Sixteen Member States have not yet adopted a NAFS; calls on Member States who have not yet adopted a NAFS to do so without delay;
Amendment 69 #
Motion for a resolution Paragraph 23 23. Stresses the importance of
Amendment 7 #
Motion for a resolution Recital F F. whereas systematic and institutionalised cases of corruption in certain Member States seriously harm the Union’s financial interests while also representing a threat to
Amendment 70 #
Motion for a resolution Paragraph 24 a (new) 24 a. Welcomes the entry into force of the revised regulation (2020/2223), which significantly strengthens the role of OLAF and paves the way for smooth collaboration with EPPO; notes that the new rules include a clear definition of the complementary roles of the two offices, clear rules on reporting of cases and improve the way OLAF can conduct its own investigations; acknowledges that the amended legal framework makes OLAF more effective by streamlining the rules for on-the-spot checks and inspections, allowing OLAF’s access to bank account information via the national competent authorities, reinforcing the rules governing the work of the anti-fraud coordination services in the Member States and by providing stronger guarantees for persons concerned by OLAF investigations through the creation of a controller;
Amendment 71 #
Motion for a resolution Paragraph 24 b (new) 24 b. Considers that the reinforced powers for the OLAF, the arrival of the EPPO and the coordination of work across the entire EU-anti fraud architecture to identify, investigate and prosecute fraudsters are a major step forward in protecting the EU's financial interests; welcomes in this regard the conclusion of working arrangements between EPPO and Eurojust and Europol, which establish the rules of cooperation and implement the modalities of their collaboration in the fight against crimes affecting the financial interests of the European Union;
Amendment 72 #
Motion for a resolution Paragraph 24 c (new) 24 c. Recalls that OLAF was created not only for internal investigations but also for supporting Member States in external investigations; recalls that the subsidiarity principle prevents OLAF from launching investigations where Member States are in a better position to act, but this does not exclude OLAF from conducting analyses of recurring cases, trends and patterns and on how its ability to detect these phenomena has resulted in enhanced cooperation and successful actions;
Amendment 73 #
Motion for a resolution Paragraph 24 d (new) 24 d. Reminds that OLAF’s remit is to contribute to the design and development of methods of preventing and combating fraud, corruption and any other illegal activity affecting the financial interests of the Union; recalls that one of the key element of OLAF’s mandate is to promote and coordinate, with and among the Member States, the sharing of operational experience and best procedural practices in the field of the protection of the financial interests of the Union; regrets therefore, that no assessment of OLAF’s investigative results on expenditure is explicitly incorporated in the PIF Report; invites OLAF to provide tangible guidance and advice to Member states and to the Commission, as input built on the analysis of its investigative experience;
Amendment 74 #
Motion for a resolution Paragraph 25 a (new) 25 a. Stresses that after the creation of the EPPO, OLAF will remain the sole office responsible for protecting EU financial interests in the Member States that decided not to join the EPPO; highlights that according to opinion 8/2018 of the European Court of Auditors, the Commission proposal amending the OLAF regulation does not resolve the issue of low effectiveness of OLAF’s administrative investigations; underlines the importance of ensuring that OLAF remains a strong and fully functioning partner to the EPPO;
Amendment 75 #
Motion for a resolution Paragraph 25 a (new) 25 a. Is strongly of the opinion that OLAF needs to be strengthened with budgetary means and positions in order to be fully capable to exercise its duties regarding prevention and investigation; especially regarding those Member States, which are not participating in the EPPO;
Amendment 76 #
Motion for a resolution Paragraph 25 b (new) 25 b. Welcomes the agreement between OLAF and the co-legislators, in close cooperation with the Commission services, towards including standard provisions on the protection of the financial interests of the Union in all post-2020 spending programmes legislation harmonised by area;
Amendment 77 #
Motion for a resolution Paragraph 26 26. Welcomes the appointment of Ms. Laura Codruța Kövesi as European Chief Prosecutor
Amendment 78 #
Motion for a resolution Paragraph 27 27. Notes that the procedure for the appointment of the European prosecutors was launched in 2019
Amendment 79 #
Motion for a resolution Paragraph 27 a (new) 27 a. Urges the five Member States that have not yet joined the EPPO to do so without undue delay; regrets that Finland and Slovenia have so far failed to put forward suitable European prosecutors to join the Office; recalls that the prosecutors must be independent from national influence; is concerned that the Council decided not to follow the recommendations by the European selection panel when appointing several prosecutors;
Amendment 8 #
Motion for a resolution Recital G a (new) G a. whereas corruption affects all Member States burdens not only the EU economy, but undermines democracy and rule of law all across Europe;
Amendment 80 #
Motion for a resolution Paragraph 27 a (new) 27 a. Notes that the European Chief Prosecutor and 22 European Prosecutors took their oath before Court of Justice of the European Union on 28 September 2020;welcomes that EPPO will become fully operational in June 2021 and start launching investigations;
Amendment 81 #
Motion for a resolution Paragraph 27 a (new) 27 a. Stresses that the future cooperation between OLAF and the EPPO should be based on close cooperation, efficient exchange of information and complementarity, while avoiding duplications or conflicted competences;
Amendment 82 #
Motion for a resolution Paragraph 27 a (new) 27 a. Calls on the Commission to do its utmost to incentivise all Member States to join the EPPO;
Amendment 83 #
Motion for a resolution Paragraph 27 b (new) 27 b. Regrets that the date for EPPO to become operational had to be postponed several times due to lack of financial and human resources and severe delays in the appointment of European and delegated prosecutors in a few Member States;
Amendment 84 #
Motion for a resolution Paragraph 27 b (new) 27 b. Asks the Commission to increase the EPPO’s financial and staff resources to enable it to tackle the challenges that will arise from the spending of the exceptionally large recovery fund;
Amendment 85 #
Motion for a resolution Paragraph 27 c (new) 27 c. Recalls that according to Council implementing decision 2018/1696, the European selection panel evaluates the candidates and provides Council with a ranking which Council shall take into consideration; recalls that regarding the candidates nominated by Belgium, Bulgaria and Portugal, the Council did not follow the order of preference of the selection panel; recalls that on 27 July2020, Austria, Estonia, Luxembourg and the Netherlands published a statement that “a competition between rankings of national selection panels and the ranking of the European selection panel must be avoided, at the risk of eroding the European component of the appointment procedure.”;
Amendment 86 #
Motion for a resolution Paragraph 27 d (new) 27 d. Highlights with great concern Malta’s failure to nominate three suitable candidates for the College of European Prosecutors thereby causing a delay in the completion of the College of European prosecutors; is also very concerned about media reports that the Portuguese government provided Council with wrongful information about the title and experience of the candidate ranked second by the European selection panel leading to his appointment as Portuguese European prosecutor; is also concerned by the fact that one of the unsuccessful Belgian candidates filed a complaint about the selection procedure before the CJEU; regrets that these issues overshadowed the formation of the College of European prosecutors and calls on the Member States involved to provide Parliament with all necessary information and documentation to fully assess the rightfulness of the selection process;
Amendment 87 #
Motion for a resolution Paragraph 27 e (new) 27 e. Is also concerned by recent public expressions by Chief Prosecutor Kövesi about "manifest lack of sincere cooperation" of Slovenia following delays in the recruitment of delegated prosecutors;
Amendment 88 #
Motion for a resolution Paragraph 27 f (new) 27 f. Recalls that the European and delegated prosecutors must be independent and any suspicion of an intervention by a national government in favour of a candidate against the recommendation by the European selection panel would have a severe negative impact on the reputation, integrity and independence of the EPPO as an institution;
Amendment 89 #
Motion for a resolution Paragraph 28 28. Welcomes to the adoption of Directive (EU) 2019/1937 (‘the Whistleblowing Directive’) noting the deadline for transposition on 17 December 2021;
Amendment 9 #
Motion for a resolution Paragraph 1 1. Welcomes the 31st Annual report on the protection of the EU’s financial interests and the fight against fraud, which underlines the achievements of 2019 with
Amendment 90 #
Motion for a resolution Paragraph 28 28. Welcomes to the adoption of Directive (EU) 2019/1937 (‘the Whistleblowing Directive’) noting the deadline for transposition on 17 December 2021; highlights the importance of independent media and investigative journalists; calls on the Commission to provide for proper legal protection in keeping with that introduced for whistle- blowers and reiterates the need to protect them including through anti-
Amendment 91 #
Motion for a resolution Paragraph 28 28. Welcomes to the adoption of Directive (EU) 2019/1937 (‘the Whistleblowing Directive’) noting the deadline for transposition on 17 December 2021; highlights the importance of independent media and investigative journalists and reiterates the need to protect them including through anti-slapp legislation; calls on the Commission to start assessing the implementation by the Member States as soon as the deadline has passed;
Amendment 92 #
Motion for a resolution Paragraph 28 a (new) 28 a. Highlights the importance of independent media and investigative journalists and reiterates the need to protect them; calls therefore on the Commission to develop comprehensive measures for the protection and financing of independent investigative journalism, including a rapid response mechanism for journalists in distress and effective anti- SLAPP legislation;
Amendment 93 #
Motion for a resolution Paragraph 29 29. Stresses the importance of the progress made on the Commission’s legislative and policy initiatives to prevent and fight corruption, as well as the regular monitoring and evaluation of the Member States’ legal framework under the newly established Rule of Law Report; recalls however the highly descriptive nature of the newly established Rule of Law report;calls on the Commission to strengthen this instrument by issuing recommendations in situations where deficiencies are identified;
Amendment 94 #
29 a. Is very concerned by the findings of the 2020 Rule of Law annual report, which notes that there are concerns about the effectiveness of the investigation, prosecution and adjudication of corruption cases, including high-level corruption cases, in several Member States, such as for example in Bulgaria, Croatia, Czech Republic, Hungary, Malta and Slovakia; insists that high-level corruption must be pursued systematically with consistent and determined action to start criminal investigations and prosecute corruption cases involving high-level officials or their immediate circle when serious allegations arise;
Amendment 95 #
Motion for a resolution Paragraph 29 a (new) 29 a. Reiterating its regrets that the Commission no longer deems it necessary to publish a specific anti-corruption report, takes note that the prevention and fight against corruption will be subject to regular monitoring and assessment of members states legal framework under the newly established RoL mechanism, which entered into force on 1st January 2021; highlight s that via this new instrument the Commission will monitor the RoL situation in the Member States covering 4 pillars, including the anti-corruption framework;
Amendment 96 #
Motion for a resolution Paragraph 29 b (new) 29 b. Stresses that the institutions entrusted with enforcement of criminal law must work in an effective and impartial manner, and in order to be able to carry out their tasks, they should be equipped with adequate funding, human resources, technical capacity and specialised expertise;
Amendment 97 #
Motion for a resolution Paragraph 29 b (new) 29 b. Highlights that the connection between corruption and fraud in the EU may have a negative impact on the EU budget; calls on the Commission to consider establishing a network of corruption prevention authorities within the European Union;
Amendment 98 #
Motion for a resolution Paragraph 30 a (new) 30 a. Notes that the appropriate legal basis for the EU to become a full member of GRECO is Art. 83 TFEU, in conjunction with Art. 218 TFEU; notes that a full EU membership of GRECO would require an invitation from the Council of Europe’s Committee of Ministers and the conclusion of an Agreement between the Council of Europe and the EU on the modalities of membership; notes that the applicable decision-making procedure is laid down in Art. 218 TFEU for the conclusion of international agreements: Council, acting on recommendation of the Commission, would need to authorise the Commission to negotiation the modalities of a membership in GRECO with the Council of Europe and request the consent of the European Parliament; Council may adopt a final decision to conclude the agreement after it has obtained the consent of the European Parliament;
Amendment 99 #
Motion for a resolution Paragraph 30 a (new) 30 a. Notes that in the area of enhancing transparency, fighting corruption and preventing conflicts of interest in public procurement, eight measures of legislative, organisational and administrative nature were reported by the Member States in 2019;
source: 692.936
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