BETA


2021/2158(DEC) 2020 discharge: General budget of the EU - 8th, 9th, 10th and 11th EDFs

Progress: Procedure completed, awaiting publication in Official Journal

RoleCommitteeRapporteurShadows
Lead CONT OMARJEE Younous (icon: GUE/NGL GUE/NGL) NOVAKOV Andrey (icon: EPP EPP), PENKOVA Tsvetelina (icon: S&D S&D), CHASTEL Olivier (icon: Renew Renew), RIVASI Michèle (icon: Verts/ALE Verts/ALE), KUHS Joachim (icon: ID ID), CZARNECKI Ryszard (icon: ECR ECR)
Committee Opinion DEVE GOERENS Charles (icon: Renew Renew) Beata KEMPA (icon: ECR ECR), Hildegard BENTELE (icon: PPE PPE), Mónica Silvana GONZÁLEZ (icon: S&D S&D)
Committee Opinion BUDG
Lead committee dossier:

Events

2022/05/04
   EP - Debate in Parliament
2022/05/04
   EP - Decision by Parliament
Details

The European Parliament decided to grant discharge to the Commission in respect of the implementation of the budget of the 8th, 9th, 10th and 11th European Development Funds (EDF) for the financial year 2020.

In its resolution, adopted by 546 votes to 79, with 11 abstentions, Parliament made a number of observations:

Statement of assurance

Parliament noted that the due to the Union’s response to the COVID-19 pandemic, EDF commitments and payments reached, respectively, EUR 3 894 million and EUR 4 677 million , largely above the targets of EUR 3 267 million and EUR 4 400 million initially set for 2020. European Investment Bank (EIB) commitments amounted to EUR 2 053 million, while EIB payments amounted to EUR 667 million in 2020, all of them also concerning the Investment Facility.

Members welcomed the regular efforts of DG INTPA to reduce old pre-financing and old unspent commitments and the upward revision of the targets from 25 % to 35 %, as decided in 2020. DG INTPA also achieved its target of having not more than 15 % of old expired contracts for the EDFs.

Parliament noted that the closure of the eighth EDF and the Commission's intention to close the ninth EDF as soon as possible.

Members welcomed the reliability of the accounts and the legality and regularity of the transactions underlying the accounts. They are concerned that the estimated level of error has exceeded materiality at 3.8% of expenditure recorded under the eighth, ninth, tenth and eleventh EDFs (the increase in the estimated error rate is 0.3%). They stressed the need to address the causes of this increase.

If the Commission had made good use of all the information at its disposal, the estimated error level would have been 1.19 percentage points lower. The Commission is invited to intensify its efforts to improve its processes for verifying the legality and regularity of transactions and to ensure that audits are properly followed up.

Members pointed out that the considerable resources allocated to address the urgent needs related to the COVID-19 crisis, combined with more flexible control and accountability measures, also provide the conditions for fraud and corruption to flourish. The risk of corruption and fraud remained the highest perceived risk in all regions. DG INTPA is invited to continue to monitor the situation and to pay particular attention to the most fragile countries.

Cooperation with international organisations, EU development agencies and non-governmental organisations

Recalling that the budgetisation of the EDFs has been a long-standing demand of Parliament, Members welcomed the fact that from the period covered by the 2021-2027 MFF, the EDFs, the Development Cooperation Instrument and other instruments have been integrated, together with new financial instrument NDICI - Global Europe, into the general budget of the Union under Heading 4 ‘Global Europe’, which represents 6.6%, or EUR 11.4 billion, of the Union's general budget.

Members welcomed the fact that the financing of this cooperation will therefore no longer be subject to an intergovernmental agreement between the Member States, but will instead be financed through the system of own resources in the Union's budget. This new organisation implies new institutional responsibilities and tasks, in particular for Parliament as the budgetary authority for the annual budget.

EU budget support

The EDFs’ budget support contribution accounted for 39 % of the total amount of Union budget support paid in 2020 (EUR 1 164 million out of EUR 2 986 million). 40 ACP countries and 8 OCTs benefitted from budget support in 2020. Members were pleased to note that in 2020, sub-Saharan Africa remains the main beneficiary of budget support, with a share of 38% (36% in 2019).

Parliament recalled that budget support should aim to strengthen the partnership with the EU's partner countries, promote sustainable development, eradicate poverty, reduce inequalities and consolidate peace and democracy, with a view to contributing to the achievement of the Sustainable Development Goals (SDGs).

Budget support should be guided by internationally agreed principles of effectiveness, such as partner country ownership, focus on results, inclusiveness and accountability. As it promotes transparency and good governance, budget support should also contribute to the fight against corruption and fraud.

Parliament reiterated its call on the Commission services to continue to rigorously assess in its policy dialogue the risks of corporate tax evasion, tax fraud and illicit financial flows that particularly affect developing countries. It urged the EU and the Member States to set up a new debt reduction initiative for heavily indebted poor countries.

Performance

Parliament noted the Commission's opinion on the effectiveness of the implementation of the COVID-19 pandemic action by Team Europe, which has resulted in the full implementation of the EDF resources available for 2020. It welcomed the overall positive global impact of the COVID-19 vaccine global access mechanism (COVAX). By mid-March 2022, Member States had shared over 400 million doses. Members stressed that in the coming years, Member States should continue to invest in COVID-19 and other vaccines for developing countries and help improve distribution channels.

The Commission is asked to carry out a country-by-country performance assessment of ongoing long-term projects funded by the EDFs to show what real impact the EU's decades of investment on the ground is having in each country.

EU Trust Fund for Africa

Parliament recalled its regular stance that the Commission should ensure that any trust fund established as a new development tool is in line with the overall strategy and strategic development objectives of the Union, namely poverty reduction and eradication, in particular, ensures that beneficiary countries receive support not only to address the root causes of migration, but also to foster resilience, economic opportunities, equal opportunities, human security and social development.

Parliament noted that EDF contributions to the EU Trust Funds have increased from EUR 600 million in 2019 to EUR 800 million in 2020, and that additional EDF resources for the EU Trust Fund for Africa have been used to address specific areas of concern in the Sahel and Lake Chad regions and in the Horn of Africa, including security challenges, essential stabilisation efforts and the response to the COVID-19 pandemic.

Concerned about the influence of the Wagner Group on the Central African armed forces, Members called on the Commission to ensure that countries receiving EU funds cannot use them to finance private military companies with such a record of human rights violations.

Risks and challenges in implementing EDF aid

Members called on the Commission (i) to make the rule of law and respect for human rights an absolute precondition for the approval of financial assistance and (ii) to make more stringent use of the clause in financial agreements with partner countries that allows it to suspend or terminate the agreement in the event of a breach of an obligation to respect human rights, democratic principles and the rule of law.

The Commission is invited to: (i) develop more synergies and coherence with the EU's internal and horizontal policies on small island developing states, the EU's outermost countries and territories and the EU's outermost regions; (ii) ensure that funding benefits all OCTs in a fair and equitable way.

Documents
2022/04/08
   EP - Committee report tabled for plenary, single reading
Documents
2022/04/08
   EP - Committee report tabled for plenary
Documents
2022/03/31
   EP - Vote in committee
2022/03/24
   EP - Amendments tabled in committee
Documents
2022/03/03
   EP - Committee opinion
Documents
2022/03/03
   EP - Amendments tabled in committee
Documents
2022/02/08
   CSL - Supplementary non-legislative basic document
Documents
2022/02/08
   CSL - Supplementary non-legislative basic document
Documents
2022/02/08
   CSL - Supplementary non-legislative basic document
Documents
2022/02/08
   CSL - Supplementary non-legislative basic document
Documents
2022/01/18
   EP - Committee draft report
Documents
2021/10/25
   CofA - Court of Auditors: opinion, report
2021/09/27
   EP - GOERENS Charles (Renew) appointed as rapporteur in DEVE
2021/09/14
   EP - Committee referral announced in Parliament
2021/07/29
   EP - OMARJEE Younous (GUE/NGL) appointed as rapporteur in CONT
2021/06/30
   EC - Non-legislative basic document
2021/06/30
   EC - Non-legislative basic document published

Documents

  • Decision by Parliament: T9-0195/2022
  • Committee report tabled for plenary, single reading: A9-0124/2022
  • Committee report tabled for plenary: A9-0124/2022
  • Amendments tabled in committee: PE730.038
  • Committee opinion: PE703.048
  • Amendments tabled in committee: PE719.847
  • Supplementary non-legislative basic document: 05553/2022
  • Supplementary non-legislative basic document: 05554/2022
  • Supplementary non-legislative basic document: 05555/2022
  • Supplementary non-legislative basic document: 05557/2022
  • Committee draft report: PE699.007
  • Court of Auditors: opinion, report: OJ C 430 25.10.2021, p. 0007
  • Court of Auditors: opinion, report: N9-0043/2022
  • Non-legislative basic document: COM(2021)0379
  • Non-legislative basic document: EUR-Lex
  • Non-legislative basic document published: COM(2021)0379
  • Non-legislative basic document published: EUR-Lex
  • Non-legislative basic document: COM(2021)0379 EUR-Lex
  • Court of Auditors: opinion, report: OJ C 430 25.10.2021, p. 0007 N9-0043/2022
  • Committee draft report: PE699.007
  • Supplementary non-legislative basic document: 05553/2022
  • Supplementary non-legislative basic document: 05554/2022
  • Supplementary non-legislative basic document: 05555/2022
  • Supplementary non-legislative basic document: 05557/2022
  • Committee opinion: PE703.048
  • Amendments tabled in committee: PE719.847
  • Amendments tabled in committee: PE730.038
  • Committee report tabled for plenary, single reading: A9-0124/2022

Votes

Décharge 2020: budget général de l’UE - FED (8e, 9e, 10e et 11e) - Discharge 2020: EU general budget - EDF (8th, 9th, 10th and 11th) - Entlastung 2020: Gesamthaushaltsplan der EU – Achter, neunter, zehnter und elfter EEF - A9-0124/2022 - Younous Omarjee - Proposition de résolution (ensemble du texte) #

2022/05/04 Outcome: +: 546, -: 79, 0: 11
DE ES PL FR RO IT PT NL HU SE BE IE BG AT DK LT EL CZ FI LV HR SI SK CY LU MT EE
Total
86
57
46
66
27
70
21
27
19
20
20
13
12
18
14
10
17
19
13
8
12
7
11
6
6
5
6
icon: PPE PPE
158

Hungary PPE

1

Denmark PPE

For (1)

1

Latvia PPE

2

Slovenia PPE

3
2

Luxembourg PPE

2

Malta PPE

For (1)

1

Estonia PPE

For (1)

1
icon: S&D S&D
128

Bulgaria S&D

2

Lithuania S&D

2

Czechia S&D

For (1)

1

Finland S&D

1

Latvia S&D

2

Slovenia S&D

2

Slovakia S&D

For (1)

1

Cyprus S&D

2

Luxembourg S&D

For (1)

1

Estonia S&D

2
icon: Renew Renew
95

Poland Renew

1

Italy Renew

3

Hungary Renew

2
3

Ireland Renew

2

Austria Renew

For (1)

1

Lithuania Renew

1

Finland Renew

3

Latvia Renew

For (1)

1

Croatia Renew

For (1)

1

Slovenia Renew

2

Luxembourg Renew

2

Estonia Renew

2
icon: Verts/ALE Verts/ALE
64

Spain Verts/ALE

3

Poland Verts/ALE

For (1)

1

Portugal Verts/ALE

1

Netherlands Verts/ALE

3

Sweden Verts/ALE

2

Belgium Verts/ALE

3

Ireland Verts/ALE

2

Austria Verts/ALE

3

Denmark Verts/ALE

2

Lithuania Verts/ALE

For (1)

1

Czechia Verts/ALE

3

Finland Verts/ALE

3

Luxembourg Verts/ALE

For (1)

1
icon: The Left The Left
37

Netherlands The Left

For (1)

1

Sweden The Left

For (1)

1

Belgium The Left

Abstain (1)

1

Denmark The Left

1

Czechia The Left

Abstain (1)

1

Finland The Left

For (1)

1

Cyprus The Left

2
icon: ECR ECR
56

Germany ECR

1

Netherlands ECR

Abstain (1)

4
3

Belgium ECR

2

Bulgaria ECR

1

Lithuania ECR

1

Greece ECR

Abstain (1)

1

Latvia ECR

2

Croatia ECR

Abstain (1)

1

Slovakia ECR

Abstain (1)

1
icon: NI NI
38

France NI

2

Lithuania NI

1

Latvia NI

1

Croatia NI

2

Slovakia NI

2
icon: ID ID
60

Netherlands ID

Against (1)

1

Austria ID

3

Denmark ID

Against (1)

1

Czechia ID

Against (2)

2

Finland ID

2

Estonia ID

Against (1)

1
AmendmentsDossier
140 2021/2158(DEC)
2022/02/09 DEVE 37 amendments...
source: 704.890
2022/03/03 CONT 103 amendments...
source: 719.847

History

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

docs/1
date
2021-10-25T00:00:00
docs
type
Court of Auditors: opinion, report
body
CofA
docs/10
date
2022-05-04T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/TA-9-2022-0195_EN.html title: T9-0195/2022
type
Text adopted by Parliament, single reading
body
EP
events/5/summary
  • The European Parliament decided to grant discharge to the Commission in respect of the implementation of the budget of the 8th, 9th, 10th and 11th European Development Funds (EDF) for the financial year 2020.
  • In its resolution, adopted by 546 votes to 79, with 11 abstentions, Parliament made a number of observations:
  • Statement of assurance
  • Parliament noted that the due to the Union’s response to the COVID-19 pandemic, EDF commitments and payments reached, respectively, EUR 3 894 million and EUR 4 677 million , largely above the targets of EUR 3 267 million and EUR 4 400 million initially set for 2020. European Investment Bank (EIB) commitments amounted to EUR 2 053 million, while EIB payments amounted to EUR 667 million in 2020, all of them also concerning the Investment Facility.
  • Members welcomed the regular efforts of DG INTPA to reduce old pre-financing and old unspent commitments and the upward revision of the targets from 25 % to 35 %, as decided in 2020. DG INTPA also achieved its target of having not more than 15 % of old expired contracts for the EDFs.
  • Parliament noted that the closure of the eighth EDF and the Commission's intention to close the ninth EDF as soon as possible.
  • Members welcomed the reliability of the accounts and the legality and regularity of the transactions underlying the accounts. They are concerned that the estimated level of error has exceeded materiality at 3.8% of expenditure recorded under the eighth, ninth, tenth and eleventh EDFs (the increase in the estimated error rate is 0.3%). They stressed the need to address the causes of this increase.
  • If the Commission had made good use of all the information at its disposal, the estimated error level would have been 1.19 percentage points lower. The Commission is invited to intensify its efforts to improve its processes for verifying the legality and regularity of transactions and to ensure that audits are properly followed up.
  • Members pointed out that the considerable resources allocated to address the urgent needs related to the COVID-19 crisis, combined with more flexible control and accountability measures, also provide the conditions for fraud and corruption to flourish. The risk of corruption and fraud remained the highest perceived risk in all regions. DG INTPA is invited to continue to monitor the situation and to pay particular attention to the most fragile countries.
  • Cooperation with international organisations, EU development agencies and non-governmental organisations
  • Recalling that the budgetisation of the EDFs has been a long-standing demand of Parliament, Members welcomed the fact that from the period covered by the 2021-2027 MFF, the EDFs, the Development Cooperation Instrument and other instruments have been integrated, together with new financial instrument NDICI - Global Europe, into the general budget of the Union under Heading 4 ‘Global Europe’, which represents 6.6%, or EUR 11.4 billion, of the Union's general budget.
  • Members welcomed the fact that the financing of this cooperation will therefore no longer be subject to an intergovernmental agreement between the Member States, but will instead be financed through the system of own resources in the Union's budget. This new organisation implies new institutional responsibilities and tasks, in particular for Parliament as the budgetary authority for the annual budget.
  • EU budget support
  • The EDFs’ budget support contribution accounted for 39 % of the total amount of Union budget support paid in 2020 (EUR 1 164 million out of EUR 2 986 million). 40 ACP countries and 8 OCTs benefitted from budget support in 2020. Members were pleased to note that in 2020, sub-Saharan Africa remains the main beneficiary of budget support, with a share of 38% (36% in 2019).
  • Parliament recalled that budget support should aim to strengthen the partnership with the EU's partner countries, promote sustainable development, eradicate poverty, reduce inequalities and consolidate peace and democracy, with a view to contributing to the achievement of the Sustainable Development Goals (SDGs).
  • Budget support should be guided by internationally agreed principles of effectiveness, such as partner country ownership, focus on results, inclusiveness and accountability. As it promotes transparency and good governance, budget support should also contribute to the fight against corruption and fraud.
  • Parliament reiterated its call on the Commission services to continue to rigorously assess in its policy dialogue the risks of corporate tax evasion, tax fraud and illicit financial flows that particularly affect developing countries. It urged the EU and the Member States to set up a new debt reduction initiative for heavily indebted poor countries.
  • Performance
  • Parliament noted the Commission's opinion on the effectiveness of the implementation of the COVID-19 pandemic action by Team Europe, which has resulted in the full implementation of the EDF resources available for 2020. It welcomed the overall positive global impact of the COVID-19 vaccine global access mechanism (COVAX). By mid-March 2022, Member States had shared over 400 million doses. Members stressed that in the coming years, Member States should continue to invest in COVID-19 and other vaccines for developing countries and help improve distribution channels.
  • The Commission is asked to carry out a country-by-country performance assessment of ongoing long-term projects funded by the EDFs to show what real impact the EU's decades of investment on the ground is having in each country.
  • EU Trust Fund for Africa
  • Parliament recalled its regular stance that the Commission should ensure that any trust fund established as a new development tool is in line with the overall strategy and strategic development objectives of the Union, namely poverty reduction and eradication, in particular, ensures that beneficiary countries receive support not only to address the root causes of migration, but also to foster resilience, economic opportunities, equal opportunities, human security and social development.
  • Parliament noted that EDF contributions to the EU Trust Funds have increased from EUR 600 million in 2019 to EUR 800 million in 2020, and that additional EDF resources for the EU Trust Fund for Africa have been used to address specific areas of concern in the Sahel and Lake Chad regions and in the Horn of Africa, including security challenges, essential stabilisation efforts and the response to the COVID-19 pandemic.
  • Concerned about the influence of the Wagner Group on the Central African armed forces, Members called on the Commission to ensure that countries receiving EU funds cannot use them to finance private military companies with such a record of human rights violations.
  • Risks and challenges in implementing EDF aid
  • Members called on the Commission (i) to make the rule of law and respect for human rights an absolute precondition for the approval of financial assistance and (ii) to make more stringent use of the clause in financial agreements with partner countries that allows it to suspend or terminate the agreement in the event of a breach of an obligation to respect human rights, democratic principles and the rule of law.
  • The Commission is invited to: (i) develop more synergies and coherence with the EU's internal and horizontal policies on small island developing states, the EU's outermost countries and territories and the EU's outermost regions; (ii) ensure that funding benefits all OCTs in a fair and equitable way.
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