2023/2045(INI) | [ParlTrack]

Motion for a resolution
Citation 5 a (new)

– having regard to the judgments of the Court of Justice of the European Union (CJEU) of 16 February 2022 in Cases C-156/21 and C-157/216 and the CJEU’s conclusions that the rule-of-law conditionality mechanism is in line with EU law,

Amendment 10 #

Motion for a resolution
Recital G

G. whereas the rule of law conditionality mechanism allows measures to be taken in cases of breaches of the rule of law principles that affect or seriously risk affecting the sound financial management of the EU budget or the EU’s financial interests;deleted

Amendment 100 #

Motion for a resolution
Paragraph 48 a (new)

48a. Calls on the importance to incorporate visual aids such as charts and graphs to make statistical information more accessible and easier to comprehend;

Amendment 101 #

Motion for a resolution
Paragraph 48 b (new)

48b. Calls on the implementation of advanced data analytics, artificial intelligence, and machine learning in identifying irregularities;

Amendment 102 #

Motion for a resolution
Paragraph 49

49. Welcomes the actions launched by the Commission in 2022 to enhance the level of protection of the EU’s financial interests; but calls for further vigilance and complementary actions in this field;

Amendment 103 #

Motion for a resolution
Paragraph 49 a (new)

49a. Recalls its previous resolutions underlining that fraud against the EU budget can only be effective if approached holistically, covering all the stages of the anti-fraud cycle and drawing on a multitude of stakeholders, processes and actions; points out that the four stages of this cycle (prevention; detection; investigation and prosecution; recovery and sanction) require risk analyses, reporting processes and cooperation to be pursued by harmonised interventions at legislative, administrative, organisational and operational levels; recalls the observation by the European Court of Auditors in its Special Report on the EU’s financial landscape1a, to point out that the complexity of the galaxy of funds and instruments complementing the EU budget brings an increasing risk of serious gap in the system of audit and control and a lack of accountability; believes that such complexity requires an equally comprehensive and focused approach for the protection of the involved financial interests, to tackle irregularities and frauds which could occur by taking advantage of the overall opacity of the financial landscape; reminds that the current fragmentation of accessible data calls for standardised measures to collect, compare and aggregate information and figures, in particular on final recipients and beneficiaries of Union funding, for purposes of audit and control, including investigations; _________________ 1a Special report 5/2023 “The EU’s financial landscape - A patchwork construction requiring further simplification and accountability”.

Amendment 104 #

Motion for a resolution
Paragraph 54

54. Regrets the fact that the participation of Member States in the EPPO is not obligatory; Remarks that, in 2022, 22 Member States already participated in the EPPO, with the same five countries as in 2021 abstaining; insists that Member States which have not yet participated, must do so without delay; calls on the Commission to incentivise participation in the EPPO through positive measures;

Amendment 105 #

Motion for a resolution
Paragraph 54

54. Remarks that, in 2022, 22 Member States already participated in the EPPO, with the same five countries as in 2021 abstaining; ~~insists that Member States which have not yet participated, must do so without delay;~~

Amendment 106 #

Motion for a resolution
Paragraph 54

54. Remarks that, in 2022, only 22 Member States ~~already~~ participated in the EPPO, with ~~the same~~ five countries ~~as in 2021 abstaining~~, namely Hungary, Poland, Ireland, Denmark and Sweden refusing to take part; insists that Member States which have not yet participated, must do so without delay;

Amendment 107 #

Motion for a resolution
Paragraph 54

54. Remarks that, in 2022, only 22 Member States ~~already~~ participated in the EPPO~~, with the same five countries as in 2021 abstaining~~; insists that Member States which ~~have~~do not yet participated, must do so without delay;

Amendment 108 #

Motion for a resolution
Paragraph 56

56. Calls on the Commission to engage in a constructive dialogue with the EPPO, with a view to strengthening the Office’s capacity to tackle the constantly increasing challenges in the anti-fraud landscape; and at the same time ensuring the fundamental principle and rules laid out in the EPPO Regulation, that the office shall be independent including decision making on budgetary matters, in order to act in the interest of the Union as a whole and in line with the Conditionality Regulation;

Amendment 109 #

Motion for a resolution
Paragraph 56

Amendment 11 #

Motion for a resolution
Recital G

G. whereas the rule of law conditionality mechanism applies to the entire EU Budget and allows measures to be taken in cases of breaches of the rule of law principles that affect or seriously risk affecting the sound financial management of the EU budget or the EU’s financial interests;

Amendment 110 #

Motion for a resolution
Paragraph 56

56. Calls on the Commission to engage in a constructive dialogue with the EPPO, with a view to ~~strengthening the Office’s capacity to~~ tackle the constantly increasing challenges in the anti-fraud landscape;

Amendment 111 #

Motion for a resolution
Paragraph 56 a (new)

56a. Calls on the Commission to ensure that the efficiency and efficacy of OLAF’s work in corruption and fraud detection is maintained, thus the reduction of OLAF’s annual budget foreseen for full time employees shall be considered in line with the true business needs of OLAF, as reflected in their annual report;

Amendment 112 #

Motion for a resolution
Paragraph 62 a (new)

62a. Stresses the added value that EU bodies bring to the protection of the financial interests of the Union and the fight against fraud, especially when it comes to cross-border crime, as shown by the operational results from EPPO and OLAF also in 2022; reiterates its call to ensure all relevant EU actors involved in the fight against fraud adequate resources and, in this regards, reminds the Commission and the Council that every euro spent on investigation and anti-fraud actions returns to the EU budget;

Amendment 113 #

Motion for a resolution
Paragraph 64

64. Reiterates that Member States’ ineffective or untimely cooperation or non-cooperation with the EPPO and OLAF constitute grounds for action under the Conditionality Regulation; calls on the EPPO and OLAF to therefore report each case where Member States have failed to comply with their obligations to inform, to assist, to take appropriate action and precautionary measures and to ensure an appropriate and timely follow-up of reports and recommendations;deleted

Amendment 114 #

Motion for a resolution
Paragraph 67

67. Remarks that the NAFS need to be adopted or updated by many Member States, and reiterates that the need for such revisions stems from the new anti- fraud landscape, with the EPPO now fully operational, and from the opportunity to reflect new significant risks in the increasingly complex fraud landscape;deleted

Amendment 115 #

Motion for a resolution
Paragraph 63 a (new)

63a. Highlights the significant differences between Member States that can still be seen in detection, reporting and follow-up of suspected fraud; encourages therefore the Member States to take a proactive approach to protecting the Union's financial interests, to enhance exchange of information between their national authorities and with EU bodies and agencies, also in order to identify and address emerging risks and fraud trends in a timely manner;

Amendment 116 #

Motion for a resolution
Paragraph 67

67. Remarks that the NAFS need to be adopted or updated by as many Member States as possible, and reiterates that the need for such revisions stems from the new anti-fraud landscape, with the EPPO now fully operational, and from the opportunity to ~~reflect~~disclose new significant risks in the increasingly complex fraud landscape;

Amendment 117 #

Motion for a resolution
Paragraph 68

68. Reiterates its appreciation for the Commission’s encouragement to Member States to adopt NAFS, which has so far resulted in an increase in the number of NAFS adopted, namely, 15 Member States had adopted NAFS by the end of 2022, nine of which being cross-cutting covering the EU’s financial interests fully;

Amendment 118 #

Motion for a resolution
Paragraph 69

69. Notes with concern that, by the end of 2022, ~~only~~still three Member States (Finland, Ireland and Poland) indicated that they had not adopted any strategy for protecting the EU’s financial interests and five (Belgium, Spain, Luxembourg, the Netherlands and Romania) indicated that they were only in the process of establishing one, while the other Member States have alternative strategies at national, regional or sectoral level or, in some cases, combine them; urges Member States to adopt a NAFS to show that they take the protection of EU funds seriously;

Amendment 119 #

Motion for a resolution
Paragraph 69

69. Notes that, by the end of 2022, only three Member States ~~(Finland, Ireland and Poland)~~ indicated that they had not adopted any strategy for protecting the EU’s financial interests and five ~~(Belgium, Spain, Luxembourg, the Netherlands and Romania)~~ indicated that they were in the process of establishing one, while the other Member States have alternative strategies at national, regional or sectoral level or, in some cases, combine them;

Amendment 12 #

Motion for a resolution
Recital G a (new)

Ga. whereas the respect for the values on which the Union is founded and for the fundamental rights, as well as compliance with the Charter of Fundamental Rights of the European Union are pre-requisites for accessing EU funding;

Amendment 120 #

Motion for a resolution
Paragraph 69

69. ~~Notes~~Is worried that, by the end of 2022, ~~only~~ three Member States (Finland, Ireland and Poland) indicated that they had not adopted any strategy for protecting the EU’s financial interests and five (Belgium, Spain, Luxembourg, the Netherlands and Romania) indicated that they were in the process of establishing one, while the other Member States have alternative strategies at national, regional or sectoral level or, in some cases, combine them;

Amendment 121 #

Motion for a resolution
Paragraph 70

70. Believes that Member States would benefit from a ~~periodic~~n evaluation of their anti- fraud frameworks, with EU guidance as appropriate, oriented towards establishing their effectiveness, identifying best practices and reviewing their anti- fraud strategies to address any emerging risks; calls on the Commission to encourage Member States to run independent or peer reviews of the anti- fraud frameworks to enhance consistency and high standards;

Amendment 122 #

Motion for a resolution
Paragraph 71

71. Maintains that the Conditionality Regulation is a permanent instrument which goes beyond the limits of a given multiannual financial framework and is to be applied horizontally, as a requirement for enforcing sound financial management principles, in general, and for the efficient and effective management of EU resources, in particular, and that it is a prerequisite for accessing all EU funds;deleted

Amendment 123 #

Motion for a resolution
Paragraph 72

72. Takes note of the Council decision of 16 December 2022 to suspend the disbursement of EUR 6.3 billion of EU funds to Hungary; expects the Commission and the Council to lift the adopted measures only where evidence is collected that the remedial measures adopted by the Hungarian Government have proven effective in practice and, in particular, that no regression has been detected on already adopted measures; reiterates, however, its opinion that the 17 measures alone, as negotiated by the Commission and the Hungarian Government, are not sufficient to address the existing systemic risk to the EU’s financial interests and regrets that the Commission did not request sufficient substantial changes and safeguards to restore the independence of the judiciary and reduce the level of corruption;

Amendment 124 #

Motion for a resolution
Paragraph 72

Amendment 125 #

Motion for a resolution
Paragraph 72

72. Takes note of the Council decision of 16 December 2022 to suspend the disbursement of EUR 6.3 billion of EU funds to Hungary; expects the Commission and the Council to lift the adopted measures only where evidence is collected that the remedial measures adopted by the Hungarian Government have proven effective in practice and, in particular, that no regression has been detected on already adopted measures; regrets, that so far the Hungarian government showed little willingness to fulfil the requirements of the Conditionality mechanism; reiterates, however, its opinion that the 17 measures alone, as negotiated by the Commission and the Hungarian Government, are not sufficient to address the existing systemic risk to the EU’s financial interests and regrets that the Commission did not request sufficient substantial changes and safeguards to restore the independence of the judiciary and reduce the level of corruption;

Amendment 126 #

Motion for a resolution
Paragraph 73

73. CRegrets that the Commission is not transparent enough about the relevant developments, therefore calls on the Commission to inform Parliament and the Council swiftly and regularly ~~about any relevant development~~of the ongoing negotiations and reminds the Commission, in particular, of its legal obligations set out in Article 25(2) of the RRF Regulation and Article 8 of the Conditionality Regulation;

Amendment 127 #

Motion for a resolution
Paragraph 74

74. Is concerned by the findings of the Third Rule of Law Report15 on the critical situation in Poland, in particular as regards the serious shortcomings in the judiciary16 and the media sector; recalls that Poland’s non-compliance with the rulings of the Court of Justice of the European Union has resulted in the payment of EUR 360 million in fines since 2021 and strongly encourages the Commission to keep withholding payments from the RRF until all the conditions for a full integration of the rule of law have been fully satisfied; _________________ 15 Commission communication of 13 July 2022 entitled ‘2022 Rule of Law Report’ (COM(2022)0500). 16 On the independence of the National Council for the Judiciary, concerns regarding the functioning of the prosecution service persist, with the offices of Minister of Justice and Prosecutor-General occupied by the same person; Polish courts have also pointed to concerns that the practice of seconding prosecutors can be considered as a form of demotion and discrimination, and that disciplinary proceedings could be used to curtail judicial independence, as Disciplinary Chamber of the Supreme Court was still issuing rulings.deleted

Amendment 128 #

Motion for a resolution
Paragraph 74

74. Is concerned by the findings of the Third Rule of Law Report15 on the critical situation in Poland, in particular as regards the serious shortcomings in the judiciary16 and the media sector; recalls that Poland’s non-compliance with the rulings of the Court of Justice of the European Union has resulted in the payment of EUR 360 million in fines since 2021 and ~~strongly~~ encourages the Commission to ~~keep withholding payment~~release funds from the RRF ~~until~~only once all the ~~conditi~~milestones ~~for a full integration of~~related to the rule of law have been fully ~~satisfi~~fulfilled; _________________ 15 Commission communication of 13 July 2022 entitled ‘2022 Rule of Law Report’ (COM(2022)0500). 16 On the independence of the National Council for the Judiciary, concerns regarding the functioning of the prosecution service persist, with the offices of Minister of Justice and Prosecutor- General occupied by the same person; Polish courts have also pointed to concerns that the practice of seconding prosecutors can be considered as a form of demotion and discrimination, and that disciplinary proceedings could be used to curtail judicial independence, as Disciplinary Chamber of the Supreme Court was still issuing rulings.

Amendment 129 #

Motion for a resolution
Paragraph 74 a (new)

74a. Calls on the Commission to update the fraud report system for funds spent in non-EU countries; notes that the new system should take into account specific issues that the EU faces when spending money outside EU territory;

Amendment 13 #

Motion for a resolution
Recital G a (new)

Ga. whereas fraud and corruption represent a constant danger to the integrity of decision making;

Amendment 130 #

Motion for a resolution
Paragraph 77

77. Believes that funds under the Neighbourhood, Development and International Cooperation Instrument – Global Europe (NDICI-Global Europe) for assistance in non-EU countries and the resources allocated for Europe’s response to the war in Ukraine are not adequately monitored and controlled; calls on the Commission to put appropriate measures in place to ensure that EU funds sent to neighbouring countries ends up benefiting those that are most in need;

Amendment 131 #

Motion for a resolution
Paragraph 77

Amendment 132 #

Motion for a resolution
Paragraph 75 a (new)

75a. Reiterates that though the EU currently stands as an observer within GRECO, it is strongly advised that it became a full-operating member, thus i) participating in the monitoring of the implementation of widely-recognised international law and standards ii) horizontally communicating with other GRECO members anti-fraud policies and tools iii) sharing experience on an international level for the recognition of potential deficiencies of EU internal mechanisms to identify corruption, iv) optimally combatting fraud issues by timely activating prevention and detection measures; request the Council to provide a clear position on the EU joining GRECO, clarifying if there is any specific opposition and by which Member State;

Amendment 133 #

Motion for a resolution
Paragraph 77 a (new)

77a. Underlines that in the context of Russia’s war of aggression against Ukraine, the EU Budget is foreseen to contribute significantly to the proposals for longer-term structural solutions to Ukraine’s funding needs; stresses in this context the need to protect the rule of law and the financial interests of the Union and to prevent, detect and correct fraud, corruption, conflicts of interest and irregularities in the use of Union funds in Ukraine, which should be based on the principles of transparency and accountability; considers that any related financing instruments should contain stringent provisions and safeguards in order to attain those objectives;

Amendment 134 #

Motion for a resolution
Paragraph 78 a (new)

78a. Recommends the suspension of budgetary support in non-EU countries, including candidate countries, where authorities manifestly fail to take genuine action against widespread corruption, while ensuring that the assistance reaches the civil population through alternative channels; calls for greater priority to be given to the fight against corruption in pre-accession negotiations with a focus on capacity building, such as via specialised anti-corruption bodies; calls on the Commission to send clear signals to candidate countries that a backlash against rule-of-law standards is jeopardising or delaying the accession to the EU; regrets the fact that, according to ECA Special Report No 01/2022, EUR 700 million in financial support for the improvement of the rule of law in the Western Balkans provided by the EU between 2014 and 2020 had little impact on fundamental reforms;

Amendment 135 #

Motion for a resolution
Paragraph 78 a (new)

78a. Calls on international collaboration with international organizations and neighbouring countries in preventing cross-border fraud; reiterates the importance on the exchange of best practices in this context;

Amendment 136 #

Motion for a resolution
Paragraph 79

79. Reaffirms its strong belief that only by strengthening the EU anti-fraud architecture can the protection of the EU’s financial interests be effectively and efficiently pursued and enhanced, ~~overcoming~~by encouraging interoperability and adjustment to a unified anti-fraud strategy framework for the Member States within the EU opting for more inflows in terms of quantitative and qualitative data analysis, so as to overcome the inherent limits of the national systems which are not sufficient to counter the increasingly transnational attacks against the Union’s financial interests;

Amendment 14 #

Motion for a resolution
Recital I

I. whereas the varying levels of digitalisation in the Member States needs to be addressed by the creation of more unified, interoperable and comparable administrative and reporting systems in the EU, which are functional and necessary for a solid comprehensive analysis and for the effective prevention of irregularities and countering of fraud and corruption; whereas Member States shall be encouraged to, in parallel, make use of EU-wide datamining tools such as Arachne or EDES;

Amendment 15 #

Motion for a resolution
Recital I b (new)

Ib. whereas the ARACHNE is voluntary tool and, although already largely used in cohesion policy and being introduced for agricultural spending, making it mandatory - as repeatedly requested by the Parliament - would be a major step forward;

Amendment 16 #

Motion for a resolution
Recital I a (new)

Ia. whereas the diversity of legal and administrative systems in the Member States is a disadvantage and whereas it needs to be adequately addressed to be able to create more unified, interoperable and comparable administrative and reporting systems in the EU to effectively prevent and fight in order to overcome irregularities and combat fraud and corruption;

Amendment 17 #

Motion for a resolution
Recital J

J. whereas cooperation with international partners and global financial institutions is crucial to protect EU funds spent outside Europe and the revenue side of the EU budget;

Amendment 18 #

Motion for a resolution
Paragraph 2

2. Shares the view that fraud prevention and detection ~~must rely on further digitalisation in order to increase the accessibility and use of data~~and the monitoring of return mechanisms for misappropriated funds must rely on further digitalisation and the use of cutting-edge technology based on machine learning in order to increase the accessibility, interoperability, use and management of data relating to potential fraud; points out that efficient anti-fraud governance and effective result-oriented processes and adequately equipped structures must be in place to ensure cooperation and coordination between all the components of the anti-fraud architecture and the relevant actors; believes that, to this end, the necessary digital and procedural knowledge must be given to the officials responsible for the various components of the anti-fraud architecture;

Amendment 19 #

Motion for a resolution
Paragraph 2

2. Shares the view of the Commission that fraud prevention and detection must rely on further digitalisation in order to increase the accessibility and use of data; points out that efficient anti-fraud governance and effective result-oriented processes and adequately equipped structures must be in place to ensure cooperation and coordination between all the components of the anti-fraud architecture and the relevant actors;

Amendment 2 #

Motion for a resolution
Citation 5 b (new)

– having regard to the Commission proposal of 18 September 2022 for a Council implementing decision on measures for the protection of the Union budget against breaches of the principles of the rule of law in Hungary (COM(2022)0485),

Amendment 20 #

Motion for a resolution
Paragraph 2 a (new)

2a. Recalls that in order to ensure a high level of protection in view of the EU's financial interests, a solid cooperation between authorities conducting administrative investigations and those conducting criminal investigations at both EU and Member State levels is essential;

Amendment 21 #

Motion for a resolution
Paragraph 4 a (new)

4a. Stresses that prevention and communication are key to combat fraud and corruption, and that the European Commission should support Member States in implementing effective measures in this sense;

Amendment 22 #

Motion for a resolution
Paragraph 7 a (new)

7a. Suggests that both the EU and national authorities should enhance cooperation and greater utilization of digital tools to combatting fraud;

Amendment 23 #

Motion for a resolution
Paragraph 4

4. Appreciates the improved overall coherence of the anti-fraud legislation across the EU, following the actions undertaken by Member States to transpose the EU rules into national systems correctly; observes that, in some respects, the situation is still sub- optimal, in particular as regards the detection and reporting of suspected fraud and irregularities and their follow-up, for which the differences between Member States are still very notable;

Amendment 24 #

Motion for a resolution
Paragraph 4

4. Appreciates the improved overall coherence of the anti-fraud legislation across the EU, following the actions undertaken to transpose the EU rules into national systems correctly; ~~observe~~expresses concerns that, in some respects, the situation is still sub- optimal, in particular as regards the detection and reporting of suspected fraud and irregularities and their follow-up, for which the differences between Member States are still very notable;

Amendment 25 #

Motion for a resolution
Paragraph 6

6. Regrets the fact that in many Member States national authorities do not always follow up on the Commission’s and OLAF’s recommendations, report exhaustively or adopt acknowledged good practices in a timely manner; points out that in many Member States, the percentage of irregularities that are still classified as suspected fraud many years after they were initially reported is extremely high, even in relation to cases indicated as closed; believes that such situations ~~might~~ suggests a lack of adequate follow-up, insufficient or inadequately trained resources, communication gaps or inefficient reporting channels, weak cooperation and coordination, or even the unjustified postponement of reclassifying irregularities as fraudulent in order to adjust the statistical reporting;

Amendment 26 #

Motion for a resolution
Paragraph 6

6. Regrets the fact that in ~~many~~some Member States national authorities do not always follow up on the Commission’s recommendations, report exhaustively or adopt acknowledged good practices in a timely manner; points out that in many Member States, the percentage of irregularities that are still classified as suspected fraud many years after they were initially reported is extremely high, even in relation to cases indicated as closed; believes that such situations might suggest a lack of adequate follow-up, insufficient or inadequately trained resources, communication gaps or inefficient reporting channels, weak cooperation and coordination, or even the unjustified postponement of reclassifying irregularities as fraudulent in order to adjust the statistical reporting;

Amendment 27 #

Motion for a resolution
Paragraph 6 a (new)

6a. Highlights that in such cases, the Commission should support the Member States in the debureaucratisation of the fraud detection, follow-up and reporting process;

Amendment 28 #

Motion for a resolution
Paragraph 7

7. Notes that the number of cases of fraud and irregularities reported by the competent EU and national authorities – 12 455 in total – slightly increased in 2022 compared to 2021; observes that the affected financing related to these cases in 2022 decreased to EUR 1.77 billion (from EUR 3.24 in 2021); believes that these numbers are still extremely high and represent an important loss for the EU budget;

Amendment 29 #

Motion for a resolution
Paragraph 9

9. Believes that involvement of civil society ~~and the private sector in the efforts to combat~~in tackling fraud would enhance prevention and detection, and that this implies support to ~~confidential channels and/or~~investigative journalism which can be effective insofar as it is given access to information on projects, beneficiaries and payments; stresses in particular the importance played by the media and investigative journalists in the fight against corruption; reiterates that enhanced and consistent level of protection for journalists and whistle- blowers a~~nd investigative jo~~cross the Union helps to counter the spread of a subculture of impunity, silence and conspiracy; Notes that, having regard to media plurnalis~~ts,~~m and ~~that the latter can be effective insofar as access is given to information on~~media freedom, that the latest results of the Media Pluralism Monitor (MPM 2022) reveal that the indicator relating to the journalist protection has registered a slight deterioration and that news media concentration retains a very high risk level across the continent; takes the view that safeguarding media from political pressure and influence as well as guaranteeing right of access to information held by public authorities are essential to projtect~~s, beneficiaries and payment~~ independence and the role of watchdog of democracy and sound management of resources;

Amendment 3 #

Motion for a resolution
Citation 9 a (new)

– having regard to Directive (EU) 2019/1937 of the European Parliament and of the Council of 23 October 2019 on the protection of persons who report breaches of Union law,

Amendment 30 #

Motion for a resolution
Paragraph 9

9. Believes that involvement of civil society and the private sector in the efforts to combat fraud ~~would~~is crucial to enhance prevention and detection, and that this implies support to confidential channels and/or whistleblowers and investigative journalists, and that the latter can be effective insofar as easy access is given to information on projects, beneficiaries and payments;

Amendment 31 #

Motion for a resolution
Paragraph 10

10. Welcomes the joint communication from the Commission and the High Representative of the Union for Foreign Affairs and Security Policy of 3 May 2023 on the fight against corruption (JOIN(2023)0012), acknowledging the seriousness of corruption, as it undermines the efficiency of public spending, the effectiveness of the single market and the sustainability of economic growth; points out that the fight against corruption is one of the most important commitments of the Union, on a par with transparency and integrity; stresses that also phenomena of nepotism with regard to state-owned entities and procurement for EU funds poses great risk to sound management and EU’s financial interests;

Amendment 32 #

Motion for a resolution
Paragraph 10

10. Welcomes the joint communication from the Commission and the High Representative of the Union for Foreign Affairs and Security Policy of 3 May 2023 on the fight against corruption (JOIN(2023)0012), acknowledging the seriousness of corruption, as it undermines the efficiency of public spending, the effectiveness of the single market and the sustainability of economic growth; points out that the fight against corruption is one of the commitments of the Union, on a par with transparency and integrity; welcomes therefore the new proposal for a Directive on combating corruption1a; _________________ 1a Proposal for a Directive of the European Parliament and of the Council on combating corruption (COM(2023)234).

Amendment 33 #

Motion for a resolution
Paragraph 10

10. Welcomes the joint communication from the Commission and the High Representative of the Union for Foreign Affairs and Security Policy of 3 May 2023 on the fight against corruption (JOIN(2023)0012), acknowledging the seriousness of corruption, as it undermines the efficiency of public spending, the effectiveness of the single market and the sustainability of economic growth; points out that the fight against corruption ~~is one of the commitments of the Union, on a par with transparency and integrity~~, which leads to transparency and integrity, is one of the commitments of the Union;

Amendment 34 #

Motion for a resolution
Paragraph 11

11. Is concerned about the fact that it is difficult to estimate the extent to which organised crime is benefiting illegally from the EU’s finances with any great precision; maintains that a common approach to assess the impact of organised crime on EU funds and to evaluate the effectiveness of the measures taken to tackle the problem is needed across the Member States; calls on the Commission to ~~swiftly~~ launch all necessary actions to pursue this harmonisation;

Amendment 35 #

Motion for a resolution
Paragraph 11 a (new)

11a. Highlights the importance of an impact assessment which evaluate the economic and social impact of fraud on the EU's financial interests and its citizens; calls on an analysis on how the resources allocated for fraud prevention compare to the potential losses prevented;

Amendment 36 #

Motion for a resolution
Paragraph 12

12. Maintains that the lack of efficient transposition of national legislation in many Member States and the lack of harmonisation of national legislations offers opportunities to organised crime for a number of illegal cross-border activities in areas affecting the Union’s financial interests; reiterates, therefore, its previous calls for the revision of Council Framework Decision 2008/841/JHA on the fight against organised crime11 and for the introduction of a new common definition of organised crime, taking into account, in particular, the use of corruption, violence, threat or intimidation to obtain the control of economic activities or procurement; _________________ 11 OJ L 300, 11.11.2008, p. 42.

Amendment 37 #

Motion for a resolution
Paragraph 13

13. Observes that the EU Strategy to tackle Organised Crime 2021-202512 aims to set out the tools and measures to disrupt the business models and structures of criminal organisations across borders, both online and offline; calls on the Member States to contribute on the Commission’s efforts and to establish regional cooperation networks for sharing information on cases and strategies to combat fraud perpetrated by organised criminals; recalls, in this regard, the importance of the proposed new Directive on Asset Recovery and Confiscation13 whose effective implementation would provide authorities with better tools to deprive organised crime groups of the financial means to carry out further criminal activities; recalls furthermore that in the fight against cross-border organised crime exchange of best practices and development of common and coordinated strategies are pivotal; _________________ 12 Commission communication of 14 April 2021 on the EU Strategy to tackle Organised Crime 2021-2025 (COM(2021)0170). 13 Proposal of 25 May 2022 for a directive of the European Parliament and of the Council on asset recovery and confiscation (COM(2022)0245).

Amendment 38 #

Motion for a resolution
Paragraph 15 a (new)

15a. Highlights that the zero-tolerance policy towards corruption must be mainstreamed and properly communicated in the context of the European elections, to increase the voter turnout and citizens’ trust in public institutions;

Amendment 39 #

Motion for a resolution
Paragraph 59 a (new)

59a. Is concerned about the reports that OLAF’s investigation into corruption and conflict of interest concerning Member of the European Parliament has been obstructed by lack of access to their offices and work devices; calls on the EP President to grant OLAF access to the premises and all necessary information required for the sake of investigations;

Amendment 4 #

Motion for a resolution
Citation 13 a (new)

– having regard to the annual activity report of the European Court of Auditors for 2022 of 05/2023,

Amendment 40 #

Motion for a resolution
Paragraph 16

16. Welcomes the fact that the Commission has included a specific section on anti-corruption in its annual report on the rule of law in order to provide an in- depth comparative analysis of the approaches, procedures and tools used by the Member States in their fight against corruption and to help to assess which areas are most at risk; asks the Commission to always include recommendations and follow-up observations for Member States to all sections of the rule of law report;

Amendment 41 #

Motion for a resolution
Paragraph 16

16. Welcomes the fact that the Commission has included a specific section on anti-corruption in its report on the rule of law in order to provide an in-depth comparative analysis of the approaches, procedures and tools used by the Member States in their fight against corruption and to help to assess which areas are most at risk; calls on the Member States to take into account the findings of the report on the rule of law when developing their anti-corruption policies;

Amendment 42 #

Motion for a resolution
Paragraph 10 a (new)

10a. Reiterates the importance of fully addressing Country Specific Recommendations (CSRs) relating to corruption;

Amendment 43 #

Motion for a resolution
Paragraph 16 a (new)

16a. Calls on the importance of focusing and helping EU countries where structural challenges exist regarding their anti-corruption capacity;

Amendment 44 #

Motion for a resolution
Paragraph 16 a (new)

16a. Points out that the 2022 Eurobarometers on corruption show that corruption remains a serious concern for EU citizens and businesses in the EU, with large part of European citizens believing that in their country corruption is widespread (68%) and that the level of corruption has increased (41%); appreciates that almost all Member States currently have in place anti-corruption strategies, regularly evaluated and revised, and reminds that not only robust legal framework but also effective implementation are needed to eradicate corruptive practices and that preventing such practices requires also transparent and accountable governance and integrity frameworks; welcomes, in this line, the anti-corruption proposals presented by the Commission, which follows the calls from the European Parliament to step up the fight against corruption; notes that the Commission intends integrating the prevention of corruption into the design of EU policies and programmes, and actively supporting Member States’ efforts to put in place strong anti-corruption policies and legislation; praises the will to tackle the cross-border dimension of corruption, by criminalising corruption offences and harmonising penalties across the EU in coordination with the High Representative’s proposal to establish a dedicated Common Foreign and Security Policy (CFSP) sanctions regime to target serious acts of corruption worldwide;

Amendment 45 #

Motion for a resolution
Paragraph 16 b (new)

16b. Emphasises that corruption and money laundering are intrinsically linked, and that money laundering is one of the most important enablers of the organised crime’s illegal activities by which criminals transfer in the legal economy their proceeds of crime, and is aware that fraud against the EU budget may also be a predicate offense precursor to money laundering; stresses that the transnational dimension of these crimes makes it difficult to prevent, detect and counter it because of the heterogeneous legal systems; welcomes the progress on the establishment of the new Anti-Money Laundering Authority (AMLA), following the proposal from the Commission in July 2021, the political agreement achieved in Council on 29 June 2022 and the mandate to enter trilogues granted by Parliament Plenary on 17 April 2023; regrets that such Authority won’t be fully operational until 2026;

Amendment 46 #

Motion for a resolution
Paragraph 17

17. Observes that, via IMS, in the period 2018-2022, 375 cases related to conflicts of interest were reported, which ~~is often~~can also be detected in environments similar to those where corrupt practices occur; underlines that the large majority of reported cases of conflicts of interest are linked to the implementation of cohesion policies (86 % compared to 9 % for agriculture and 5 % for pre-accession), involving almost EUR 117 million overall for this period; underlines that the reported conflicts of interest mainly point to relations between recipients of the funds and their contractors and sub-contractors, while only 7 % of cases refer to conflicts of interest during the stage of awarding and/or evaluating projects, thereby involving members of evaluation committees;

Amendment 47 #

Motion for a resolution
Paragraph 18

18. Believes that this could be an indicator of the positive impact and deterrent effect of the amendments to the financial rules, which have been made applicable to all national authorities handling EU funds, together with the fact that one third of the cases were detected through sources external to the management and control system, including whistleblowers and investigative journalists, which suggests a~~n adequate~~ basic level of transparency and accessibility and contributions from civil society;

Amendment 48 #

Motion for a resolution
Paragraph 19

19. INotes also ~~aware~~with concern that the overall occurrence of cases of conflicts of interest is higher than reported in the IMS, as indicated by the additional information received by the Commission’s Directorates-General for Regional and Urban Policy and for Employment, Social Affairs and Inclusion about conflict of interest cases and related recoveries in public procurement in the European Social Fund, Cohesion Fund and European Regional Development Fund, reported directly from the Member States via the EU’s fund management system (known as the SFC, which in 2014-2020 presented 31 additional cases related to 16 programmes in 11 Member States with an impact of EUR 3.4 million);

Amendment 49 #

Motion for a resolution
Paragraph 19

19. Is also aware that the overall occurrence of cases of conflicts of interest is higher than reported in the IMS, as indicated by the additional information received by the Commission’s Directorates-General for Regional and Urban Policy and for Employment, Social Affairs and Inclusion about conflict of interest cases and related recoveries in public procurement in the European Social Fund, Cohesion Fund and European Regional Development Fund, reported directly from the Member States via the EU’s fund management system (known as the SFC, which in 2014-2020 presenteds 31 ~~additional~~ cases related to 16 programmes in 11 Member States with an impact of EUR 3.4 million);

Amendment 5 #

Motion for a resolution
Citation 17 a (new)

– having regard to Commission communication of 14 December 2020 on the review of the European Union under the Implementation Review Mechanism of the United Nation Conventions against Corruption (UNCAC) (COM(2020)0793),

Amendment 50 #

Motion for a resolution
Paragraph 19 a (new)

19a. Reiterates its call to make the annual PIF report more holistic, in order to provide a comprehensive overview of the synergies between all relevant actors, identify best practices and address shortcomings; welcomes, in this regards, the inclusion in PIF Report 2022 of findings from EPPO and OLAF annual reports; calls to further improve this holistic approach, aiming at providing a clearer, more complete and more concrete picture of the overall state of play of the protection of the Union's financial interests, encompassing the entirety of the anti-fraud action, both at national and EU level;

Amendment 51 #

Motion for a resolution
Paragraph 19 a (new)

19a. Calls for the provisions on conflicts of interests to be applied in a way that ensures legal certainty, to be based on a clear and proportionate assessment of the risks and allow a practical application by the competent authorities; calls for the Commission guidelines to provide clarity to applicants and decision- making bodies, to avoid unnecessary administrative burden and to respect the principle of proportionality;

Amendment 52 #

Motion for a resolution
Paragraph 20

20. Observes that, in 2022, the overall number of fraudulent and not fraudulent irregularities related to Traditional Own Resources (TOR) (4 661) was 7.6 % higher compared to the five-year average (2018- 2022); notes with concern that the overall amounts affected by such irregularities, as estimated and established by Member States, also noticeably increased (by 47 %, reaching EUR 783 million); highlights, on the same issue, that the overall recovery rate in 2022 for both fraudulent and non- fraudulent cases was only 48 % (compared with 54 % in 2021) and that the figure for fraudulent cases was only 25 %, which was distributed across Member States very heterogeneously; asks the Commission to put more efforts into a speedy recovery of abused funds;

Amendment 53 #

22a. Welcomes OLAF’s role in detecting and investigating fraud against the traditional own resources of the EU; takes note of a slight decrease in the number of open investigations in the field of own resources in 2022 and calls on the Commission to ensure that OLAF is provided with adequate resources to fully and effectively exercise its mandate;

Amendment 54 #

Motion for a resolution
Paragraph 26

26. Welcomes the Commission’s second report, published on 16 September 2022, on the implementation of the PIF Directive (COM(2022)0466)~~, but regret~~ and notes the fact that the Commission refrained from intervening on the revision of the threshold of EUR 10 million, which has a major impact on the EPPO’s activities in VAT fraud cases; stresses that the recurrent and still pending questions on the different interpretations of the methods applied to calculate the threshold (whether the damage occurring in several Member States should be aggregated, whether the countries included in the calculation should be confined to those participating in the EPPO) make the situation unclear; ~~strongly~~ believes that the current threshold limits dissuasiveness, allows perpetrators to seek out the weakest jurisdiction to evade the EPPO and has a detrimental effect on investigations, as the national authorities often do not have a full picture of the magnitude of the criminal activities at the initial stage of the investigation; calls on the Commission to reconsider its position in the next PIF Directive transposition report and remove the threshold, or substantially lower it, while in the meantime providing adequate guidance on the calculation method;

Amendment 55 #

Motion for a resolution
Paragraph 26 a (new)

26a. Underlines that effective cooperation between OLAF and EPPO is a prerequisite for the sound management and the protection of the financial interests of the EU Budget, both on the expenditure and revenue side; considers in this respect that such strengthened cooperation can lead, on the revenue side, to an increase in the collection of revenue to the EU Budget, thus decreasing the GNI-based contribution of Member States; and on the expenditure side, to ensure that taxpayers’ money is adequately spent;

Amendment 56 #

Motion for a resolution
Paragraph 26 b (new)

26b. Stresses the importance that OLAF and EPPO should maintain operational independence;

Amendment 57 #

Motion for a resolution
Paragraph 26 c (new)

26c. Welcomes the statement of the President of the Commission Ursula Von der Leyen that the EU needs to safeguard that money are spent according to their purpose and in line with the rule of law principles; and ensure that funds are protected;

Amendment 58 #

Cristian TERHEŞ

Motion for a resolution
Paragraph 27 a (new)

27a. Regrets the untransparent spending of public money by the European Commission during the COVID-19 pandemic; notes that according to non-published information provided to the Court, the Commission provided EUR 12.9 billion in commitments under direct and indirect management and EUR 34.2 billion in commitments under shared management for purposes related to the COVID-19 pandemic during 2020; regrets that the Commission has not yet published a report on COVID-19 related expenditure1a; _________________ 1a https://www.europarl.europa.eu/doceo/doc ument/TA-9-2022-0144_EN.html.

Amendment 59 #

Cristian TERHEŞ

Motion for a resolution
Paragraph 27 b (new)

27b. Stresses the obligation of every Union Institution, Member State and public or private recipient of Union funds to disclose all relevant documents, including information on the preliminary negotiations conducted by the Commission, upon an official request of the Court as part of an ongoing audit; recalls the European Parliament’s recommendation, in its 2020 discharge resolution, related to the access to text messages exchanged with a pharmaceutical company regarding the purchase of a COVID-19 vaccine;

Amendment 6 #

Motion for a resolution
Citation 17 b (new)

– having regard to its recommendation of 17 February 2022 to the Council and the Vice-President of the Commission/High Representative of the Union for Foreign Affairs and Security Policy concerning corruption and human rights,

Amendment 60 #

Cristian TERHEŞ

Motion for a resolution
Paragraph 15 a (new)

15a. Points out that the EPPO has an ongoing investigation into the acquisition of COVID-19 vaccines by the European Commission;

Amendment 61 #

Motion for a resolution
Paragraph 28

28. Remarks that even if in 2022 the fraudulent irregularities reported under support to agriculture increased in comparison with 2021, the detection rates for rural development were noticeably higher than for support to agriculture; notes that within support to agriculture, the highest level of fraud was reported by the Member States for market measures ~~and that~~; several complex cases related to the promotion of agricultural products were also investigated by OLAF;

Amendment 62 #

Motion for a resolution
Paragraph 29

29. Regrets that during the period 2018-2022, in both rural development and direct payments, the contributions to the detection of fraudulent cases provided by risk analysis, whistleblowers, informants and investigative journalists has been very limited; is also concerned about the length of the administrative procedures opened to deal with the fraudulent cases reported, which, on average and during 2014-2022, required nearly four years from the start of the irregularity to arrive at a suspicion of fraudulent activity, and nearly three more years to close the case after reporting it to the Commission; points out that, for cohesion, it took about a year and a half to arrive at a suspicion that a fraudulent irregularity had been committed and more than two years to close the fraudulent case after reporting it to the Commission; asks the Commission to provide recommendations and follow-up more often with the Member States authorities to reduce the length of administrative procedures;

Amendment 63 #

Motion for a resolution
Paragraph 33 a (new)

33a. Notes, with concern of the findings of the ECA 2022 Annual Report that despite improvements, audit authorities continue to address the risk of fraud insufficiently, and that Member State Authorities do not report suspected fraud cases in the IMS as required; calls on these issues to be urgently addressed by the Commission;

Amendment 64 #

36. ~~Notes~~Is concerned that, between 2018 and 2022, average recovery ~~remains at positive levels~~levels were still low, with an average recovery rate of 56 % (resulting from 34 % for ‘irregularities reported as fraudulent’ and 59 % for ‘irregularities not reported as fraudulent’); asks the Commission to put more efforts into a speedy recovery of abused funds;

Amendment 65 #

Motion for a resolution
Paragraph 36 a (new)

36a. Reiterates once more its call on the Commission to submit a legislative proposal on mutual administrative assistance in those areas of EU funds spending that do not provide for this practice so far, in order to ensure a cross- cutting approach to the protection of the Union's financial interests;

Amendment 66 #

Motion for a resolution
Paragraph 37

37. Is aware that the implementation of the RRF is reaching its peak and that the regulation governing its deployment requires Member States to put in place effective and efficient control systems, with a view to protecting the Union’s financial interests and ensuring compliance with EU and national rules; realises the inherent characteristics of the RRF spending model, the difficulty of the assessment of an error rate comparable (to other EU spending areas) and the limitations posed by the Commission’s payment suspension methodology1a; points out that, in particular, the countering of fraud, corruption, conflicts of interest (defined as ‘serious irregularities’) and double funding should receive appropriate resources and attention; _________________ 1a ECA, 2022 EU audit in brief, p. 57.

Amendment 67 #

Motion for a resolution
Paragraph 37

37. Is aware that the implementation of the RRF is reaching its peak and that the regulation governing its deployment requires Member States to put in place effective and efficient control systems, with a view to protecting the Union’s financial interests and ensuring compliance with EU and national rules; points out that, in particular, the countering of fraud, corruption, conflicts of interest (defined as ‘serious irregularities’) and double funding should receive appropriate resources and attention; adds that the fact that the objectives and metrics to be achieved by Member States are not always clear makes it difficult to evaluate the effectiveness and efficiency of RRF funds;

Amendment 68 #

Motion for a resolution
Paragraph 37 a (new)

37a. Recalls nevertheless, that delays can be observed in the implementation of the RRF and calls on the Commission to remain vigilant, in particular towards the end of the RRF lifecycle, in order to ensure that Member States protect the financial interests of the EU and that EU taxpayers’ money is adequately spent;

Amendment 69 #

Motion for a resolution
Paragraph 38

38. Observes that the Commission assessed these control systems prior to the approval of the plans, and subsequently, in 2022, carried out 16 system audits targeting the protection of the EU’s financial interests14 , covering the coordination and implementing bodies, such as ministries and agencies; ~~expresses appreciation~~regrets, that in several Member States the control systems were not fully functional when the national recovery and resilience plans started to be implemented; underlines, that such issues pose risks to the regularity of RRF payments and the protection of the EU’s financial interests; notes that the Commission is planning to audit all Member States at least once by the end of 2023, and welcomes the selection of the audit targets on the basis of a risk assessment; _________________ 14 In Spain, Slovakia, Estonia, Denmark, Greece, Czechia, Italy, Lithuania, Malta, Slovenia, Bulgaria, Cyprus, Finland, Ireland, Latvia and Poland.

Amendment 7 #

Motion for a resolution
Recital B

B. whereas sound public spending and the protection of the EU’s financial interests ~~should be key~~are important elements of EU policy in order to increase citizens’ confidence by ensuring that taxpayers’ money is used properly and effectively;

Amendment 70 #

Motion for a resolution
Paragraph 38 a (new)

38a. Expresses concerns that the European Court of Auditors identified weaknesses in the Member States’ reporting and control systems, leading to the definition of “control milestones” and imposing them to certain MS to address the weakness identified; is also worried that the simple fact that the Commission introduced control milestones, means that the relevant MS systems were not fully functional when the plans started to be implemented, posing a risk to the regularity of RRF expenditure and the protection of the EU’s financial interests2a; _________________ 2a ECA, 2022 Annual report, par. 11.47 - 11.55.

Amendment 71 #

Motion for a resolution
Paragraph 39

39. Remarks that the Commission’s audit work has confirmed variations in the internal control systems across the implementing and coordinating bodies, identifying good practices in some of the procedures in place to verify and prevent fraud, corruption, conflicts of interest and double funding; invites the Member States to share the best procedures in order to facilitate more coordinated and fraud- proof processing of the funds;

Amendment 72 #

Motion for a resolution
Paragraph 39 a (new)

39a. Recalls the findings of the Court of Auditors in the 2022 Annual Report, that control milestones in the national recovery and resilience plans vary in their requirements and granularity; questions why certain Member States were required to merely design their control system, while others were required to have an operational system;

Amendment 73 #

Motion for a resolution
Paragraph 39 b (new)

39b. Calls on the Commission to urgently revise its ex-post audit procedures, in order to ensure adequate verifications on whether the audited targets previously assessed as fulfilled, were not reversed after the respective payment;

Amendment 74 #

Motion for a resolution
Paragraph 39 c (new)

39c. Further calls on the Commission to continuously monitor the fulfilment of milestones and targets relating to the protection of the financial interests of the EU and to apply all necessary measures in case of lack of compliance or reversal of previously fulfilled milestones, including proportionate reduction to reduce proportionately of the support under the RRF and recovering of any amount due to the Union budget, or to ask for early repayment of the loan, in cases of fraud, corruption, and conflicts of interests affecting the financial interests of the Union, or a serious breach of an obligation resulting from the financing agreements, that have not been corrected by the Member State;

Amendment 75 #

Motion for a resolution
Paragraph 39 d (new)

39d. Further recalls that, due to the specific design of the RRF, Member States together with the Commission should ensure that the financial interests of the Union are effectively protected, in line with their respective responsibilities; is concerned about the findings of the Court of Auditors on the limited verified information at EU level, on whether and how Member States’ systems adequately cover the significant risks and the fact that RRF-funded investment projects, do not comply with EU and national rules; recalls that this leads to an accountability gap at EU level and urges the Commission and Member States to put in place additional safeguards to address this issue;

Amendment 76 #

Motion for a resolution
Paragraph 40

40. Reiterates that the effective prevention, detection and investigation of illegal activities threatening the implementation of the NGEU depend on the effective collection and sharing of data, including the rapid handling of access requests from investigative services within a Member State, as well as from other countries or at EU level, by OLAF and the EPPO to whom access is to be granted;

Amendment 77 #

Motion for a resolution
Paragraph 40

40. Reiterates that the effective prevention, detection and investigation of illegal activities threatening the implementation of the NGEU, in particular the risks of infiltration of organised criminal groups, depend on the effective collection and sharing of data, including the rapid handling of access requests from investigative services within a Member State, as well as from other countries or at EU level, by OLAF and the EPPO to whom access is to be granted;

Amendment 78 #

Motion for a resolution
Paragraph 40

Amendment 79 #

Motion for a resolution
Paragraph 40 a (new)

40a. Regrets the interpretation of the Commission of the concept of “final recipient” under the RRF; recalls that, according to the modified RRF Regulation, Member States should publish the list of the largest 100 final recipients receiving the highest amount of funding for the implementation of measures under the RRF; regrets that the Commission does not request Member States to provide the information on the final beneficiary or recipient of RRF funding and chose to require Member States to provide information only about “second level recipients”; is of the opinion that such interpretation is not in line with the agreement of the co- legislators;

Amendment 8 #

Motion for a resolution
Recital C

C. whereas the PIF Report is based on information provided by the Member States, including data on irregularities and fraud detected; whereas the PIF Report must take into consideration the financial specifics of each Member State and provide the necessary flexibility in this regard;

Amendment 80 #

Motion for a resolution
Paragraph 41

41. Welcomes the joint analysis by Europol and OLAF assessing the risks of fraud and irregularities in relation to the NGEU; welcomes the recommendations made by Europol and OLAF and calls on the Commission, the specialised EU agencies and bodies, as well as Member States, to actively cooperate and interact to ensure the protection of the EU’s financial interests ~~when implementing the NGEU~~;

Amendment 81 #

Motion for a resolution
Paragraph 42

42. Welcomes the Ombudsman’s strategic initiative, launched in February 2022, conducted to examine the transparency of the national recovery and resilience plans, public information and communication strategies on the RRF, and on how the funds are supervised; emphasises the importance of this initiative, given that the European Court of Auditors’ annual report for 2022 contained a higher estimated level of error for that year;

Amendment 82 #

Motion for a resolution
Paragraph 42

42. Welcomes the Ombudsman’s strategic initiative, launched in February 2022, conducted to examine the transparency of the national recovery and resilience plans, public information and communication strategies on the RRF, and on how the funds are supervised; welcomes Ombudsman’s efforts to improve transparency standards in terms of Recovery and Resilience Facility (RRF);

Amendment 83 #

Motion for a resolution
Paragraph 42 a (new)

42a. Recalls the 'NextGenerationEU - Law Enforcement Forum (NGEU-LEF)', a joint initiative co-led by Europol and Italy, bringing together Europol, the EPPO, OLAF, Eurojust, the EU Agency for Law Enforcement Training, and national authorities, by providing a forum for intelligence sharing and coordination of operations to tackle the infiltration of organised crime in the legal economy, and to protect the NextGenerationEU stimulus package, with a specific focus on corruption, tax evasion, embezzlement and money laundering; welcomes that the initiative 'NGEU-LEF' won the European Ombudsman Award for Good Administration 2023 in the category 'most popular with the public';

Amendment 84 #

Motion for a resolution
Paragraph 42 a (new)

42a. Is concerned that many issues still exist, mainly because of a lack of sufficient supervision by coordinating bodies, incomplete anti-fraud strategies, missing elements in fraud risk assessments, a need for improvement of ex-ante controls aimed at preventing conflicts of interest, low participation in training activities intended to raise awareness of fraud, and deficiencies in the reporting of irregularities to OLAF for possible investigation; asks the Commission to inform the Parliament about the issue identified, the recommendations addressed to the Member States and the follow up given to resolve such issues;

Amendment 85 #

Motion for a resolution
Paragraph 42 a (new)

42a. Highlights that enhanced transparency plays a vital role in exposing fraudulent schemes and discouraging fraudulent actions; calls on new transparency initiatives and policies introduced to promote accountability;

Amendment 86 #

Motion for a resolution
Paragraph 44

44. Is aware that the efforts made by the Commission and other implementing bodies to digitalise the EU budget have to overcome many obstacles in order to enhance compatibility between the IT systems used by the many entities involved; appreciates, in this regard, the consistency of the communication to the Commission of 30 June 2022 entitled ‘European Commission digital strategy – Next generation digital Commission’ (C(2022)4388); points out that digitalisation has been a strategic priority of the Commission for many years, believes that streamlining the management of EU funds requires further simplification of the IT landscape and reiterates that interoperability should be mainstreamed in EU policies to enhance compatibility between the IT systems used by the many involved entities;

Amendment 87 #

Motion for a resolution
Paragraph 48 a (new)

48a. Highlights the necessity to enhance the level of interoperability of data systems and the harmonisation of reporting, monitoring and auditing in the EU; reiterates, to this end, its call on the Commission to harmonise definitions in order to obtain comparable data across the EU;

Amendment 88 #

Motion for a resolution
Paragraph 45

45. Maintains that digitalisation has boosted the prevention and detection of fraud, simplified administrative procedures and that it needs to be at the heart of every anti-fraud strategy, including the National Anti-Fraud Strategies (NAFS); calls on the Commission to reiterate and follow up on its recommendations to the Member States which have not yet adopted NAFS to do so, and to keep the NAFS updated, taking advantage of the opportunities offered by new technologies;

Amendment 89 #

Motion for a resolution
Paragraph 46

46. Notes that among the available options, Arachne was by far the most widely-used IT system (by 21 Member States), in support of the European Structural and Investment Funds (ESIF) and the RRF; observes with concern that many Member States used their own dedicated anti-fraud IT tools, often in conjunction with EU tools, although those tools were rarely interoperable and therefore hamper the detection and reporting of fraud to the Commission;

Amendment 9 #

Motion for a resolution
Recital D a (new)

Da. whereas all Member States should be treated in a correct and objective manner;

Amendment 90 #

Motion for a resolution
Paragraph 46

46. Notes that among the available options, Arachne was by far the most widely-used IT system (by 21 Member States), in support of the European Structural and Investment Funds (ESIF) and the RRF; observes with concern that many Member States used their own dedicated anti-fraud IT tools, often in conjunction with EU tools, ~~although those tools~~which were rarely interoperable;

Amendment 91 #

Motion for a resolution
Paragraph 47

47. Reiterates its support for the single integrated IT system for data-mining and risk-scoring envisaged by the Financial Regulation recast, which should ensure better protection of the Union’s financial interests, along and in complementing the IT tools developed at national level by the Member States;

Amendment 92 #

Motion for a resolution
Paragraph 47

47. Reiterates its strong support for the obligatory use of the single integrated IT system for data-mining and risk-scoring called ARACHNE envisaged by the Financial Regulation recast, which should ensure better protection of the Union’s financial interests;

Amendment 93 #

Motion for a resolution
Paragraph 47 a (new)

47a. Points out that consolidating, centralising and publishing the information on recipients of EU funding provided by Member States and other implementing entities in a single database would step up the financial transparency, by encompassing different forms of management modes and allowing crosscheck and exhaustive analyses; calls on the Commission to encourage the relevant stakeholders, including the national authorities, to cooperate to this aim; draws the attention of the Commission on the need to protect personal data and sensitive information on beneficiaries;

Amendment 94 #

Motion for a resolution
Paragraph 47 a (new)

47a. Maintains that digitalisation and state-of-the-art IT tools at national and EU levels would improve the management, control and audit of EU funds, and could contribute to prevent irregularities and to substantially reducing bureaucracy, because digitalisation allows easier and quicker access and cross-check, from remote, to important set of data, preventing the need for on-the-spot checks and controls;

Amendment 95 #

Motion for a resolution
Paragraph 47 a (new)

47a. Emphasizes that the Early Detection and Exclusion System (EDES), as the EU’s blacklist, has a huge potential flagging people and companies that misuse EU funds; is strongly of the opinion that EDES should be operational not only in direct management but also in indirect and shared management as well;

Amendment 96 #

Motion for a resolution
Paragraph 63 a (new)

63a. Calls for EDES to be extended to all types of management modes and its use to be mandatory; believes that such a reinforcement would strengthen the capacity of the EU and Member States to protect the financial interests of the Union and ultimately taxpayers’ money; urges Member States, in the interest of safeguarding the financial interests of the EU Budget, to accept this extension without any delay;

Amendment 97 #

Motion for a resolution
Paragraph 63 a (new)

63a. Reiterates its call to the Commission to propose an extension of the EDES to all funds, including those under shared management;

Amendment 98 #

Motion for a resolution
Paragraph 47 a (new)

47a. Welcomes and supports the assessment of ECA in its 2022 Annual Report calling for advancing the deployment of IT system for data-mining and risk-scoring from 2028 to 2025; recalls the position of the Parliament calling for deploying the system as from 2026;

Amendment 99 #