Changes from plenary report to adopted text

Change 23

Removed23. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

Added23. European Parliament resolution of 7 May 2025 with observations forming an integral part of the decisions on discharge in respect of the implementation of the budget of the EU joint undertakings for the financial year 2023 (2024/2031(DEC))

Removedwith observations forming an integral part of the decisions on discharge in respect of the implementation of the budget of the EU joint undertakings for the financial year 2023

Removed(2024/2031(DEC))

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The European Parliament,

– having regard to its decision on discharge in respect of the implementation of the budget of the Clean Aviation Joint Undertaking for the financial year 2023,

– having regard to its decision on discharge in respect of the implementation of the budget of the Circular Bio-based Europe Joint Undertaking for the financial year 2023,

– having regard to its decision on discharge in respect of the implementation of the budget of the Clean Hydrogen Joint Undertaking for the financial year 2023,

– having regard to its decision on discharge in respect of the implementation of the budget of the Europe’s Rail Joint Undertaking for the financial year 2023,

– having regard to its decision on discharge in respect of the implementation of the budget of the European High Performance Computing Joint Undertaking for the financial year 2023,

– having regard to its decision on discharge in respect of the implementation of the budget of the European Joint Undertaking for ITER and the Development of Fusion Energy for the financial year 2023,

– having regard to its decision on discharge in respect of the implementation of the budget of the Global Health EDCTP3 Joint Undertaking for the financial year 2023,

– having regard to its decision on discharge in respect of the implementation of the budget of the Innovative Health Initiative Joint Undertaking for the financial year 2023,

– having regard to its decision on discharge in respect of the implementation of the budget of the Chips Joint Undertaking for the financial year 2023,

– having regard to its decision on discharge in respect of the implementation of the budget of the Single European Sky ATM Research 3 Joint Undertaking for the financial year 2023,

– having regard to its decision on discharge in respect of the implementation of the budget of the Smart Networks and Services Joint Undertaking for the financial year 2023,

– having regard to Rule 102 of and Annex V to its Rules of Procedure,

– having regard to the opinion of the Committee on Transport and Tourism,

– having regard to the report of the Committee on Budgetary Control (A10-0056/2025),

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ChangedA. whereas the Single European Sky ATM Research 3 Joint Undertaking, the Clean Aviation Joint Undertaking, the Innovative Health Initiative Joint Undertaking, the Clean Hydrogen Joint Undertaking, the Circular Bio-based Europe Joint Undertaking, the Europe'sEurope’s Rail Joint Undertaking, the Smart Networks and Services Joint Undertaking and the Global Health EDCTP3 Joint Undertaking were set up by Council Regulation (EU) 2021/2085 of 19 November 2021 establishing the Joint Undertakings under Horizon Europe and repealing Regulations (EC) No 219/2007, (EU) No 557/2014, (EU) No 558/2014, (EU) No 559/2014, (EU) No 560/2014, (EU) No 561/2014 and (EU) No 642/2014, the latter being referred to as the Single Basic Act (SBA);

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ChangedB. whereas the Key Digital Technologies Joint Undertaking was set up by Council Regulation (EU) 2021/2085 of 19 November 2021 establishing the Joint Undertakings under Horizon Europe and repealing Regulations (EC) No 219/2007, (EU) No 557/2014, (EU) No 558/2014, (EU) No 559/2014, (EU) No 560/2014, (EU) No 561/2014 and (EU) No 642/2014;2021/2085; whereas the Key Digital Technologies Joint Undertaking was transformed into the Chips Joint Undertaking in July 2023 pursuant to Council Regulation (EU) 2023/1782 of 25 July 2023 amending Regulation (EU) 2021/2085 establishing the Joint Undertakings under Horizon Europe, as regards the Chips Joint Undertaking;;

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ChangedC. whereas the European Joint Undertaking for ITER and the Development of Fusion Energy was established in April 2007 by the Council Decision of 27 March 2007 establishing the European Joint Undertaking for ITER and the Development of Fusion Energy and conferring advantages upon it2007/198/Euratom (2007/198/Euratom);;

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ChangedD. whereas the European High-Performance Computing Joint Undertaking was set up by Council Regulation (EU) 2021/1173 of 13 July 2021 on establishing the European High Performance Computing Joint Undertaking and repealing Regulation (EU) 2018/1488;2021/1173;

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E. whereas the Single European Sky ATM Research 3 Joint Undertaking is a public-private partnership for the development of modernised air traffic management (ATM) in Europe and for the acceleration through research and innovation of the delivery of the Digital European Sky;

F. whereas the Clean Aviation Joint Undertaking is a public-private partnership focusing on research and innovation in order to transform aviation towards a sustainable and climate neutral future;

G. whereas the Innovative Health Initiative Joint Undertaking is a public-private partnership focusing on interdisciplinary, sustainable, and patient-centric health research and innovation;

H. whereas the Clean Hydrogen Joint Undertaking is a public-private partnership in the field of hydrogen and fuel cells technology research and innovation;

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ChangedI. whereas the Chips Joint Undertaking is a public-private partnership focusing on research and innovation in key digital technologies essential for Europe'sEurope’s competitive leadership in digital economy, in particular in the electronic components and systems sector;

J. whereas the Circular Bio-based Europe Joint Undertaking is a public-private partnership focusing on research and innovation for a sustainable and competitive circular bio-based industries sector;

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ChangedK. whereas the Europe'sEurope’s Rail Joint Undertaking is a public-private partnership for research and innovation in the railway sector;

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L. whereas the European High-Performance Computing Joint Undertaking is a public-private partnership enabling the pooling of resources for the development and deployment of high-performance computing in Europe;

M. whereas the Smart Networks and Services Joint Undertaking is a public-private partnership focusing on strengthening Europe’s technological leadership and its strategic alignment with the telecommunications industry and fostering the uptake of digital solutions;

N. whereas the Global Health EDCTP3 Joint Undertaking is a public-private partnership focusing on reducing the socioeconomic burden of infectious diseases in sub-Saharan Africa thanks to new and improved health technological applications as well as improving the preparedness and response to infectious diseases for global purposes;

O. whereas the aim of the European Joint Undertaking for ITER and the Development of Fusion Energy is to provide the Union’s contribution to the ITER international fusion energy project, to implement the broader approach agreement between Euratom and Japan, and to prepare for the construction of a demonstration fusion reactor and related facilities;

General

1. Notes that the role of the joint undertakings should be to support research and innovation activities in the areas of transport, energy, health, circular bio-based industries, key electronic components, supercomputing, and network systems; calls on the joint undertakings to promote the transformation of scientific knowledge into marketable innovations, and to establish mechanisms to ensure that their activity leads to an increase in European competitiveness in the world;

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Changed2. Underlines that under the current multiannual financial framework, according to the Court of Auditors,Auditors (the ‘Court’), joint undertakings are expected to receive a combined budget of EUR 17 billion from the Union cash contribution and to leverage EUR 21,1 billion of contributions from other members;

3. Notes that the nature of joint undertakings is based on public-private partnerships that steer investment and leverage public and private funds to fund common goals; reminds, in that regard, that the contributions of private members must meet established targets in order for such partnerships to remain mutually beneficial; calls on joint undertakings which allow in-kind contributions to additional activities (IKAA) to avoid, where possible, an excessive reliance on such contributions in order to meet established targets;

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Changed4. Acknowledges the significant contributions of the joint undertakings in advancing research, innovation, and technology development across various sectors, including aviation, rail, and air traffic management, as integral to achieving the Union'sUnion’s strategic objectives of sustainability, digital transformation, and competitiveness.

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Changed5. Welcomes the annual report of the Court of Auditors on the European Union’s joint undertakings for the financial year 2023 (the ‘Court’s report’); underlines that the mission of the Court of Auditors is crucial for the sound implementation of the Union budget and for oversight of the budget;

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Changed6. Welcomes the fact that the Court of Auditors provided the discharge authority with an annual report on EU Joint Undertakings which contains a specific statement of assurance for each of the joint undertakings as regards their annual accounts and underlying transactions; shares the view that in addition to the legal provisions binding the Court, the institutional framework of joint undertakings renders these worthy of specific attention from the Court of Auditors;Court; calls for the continuation of this good practice; welcomes the good cooperation of joint undertakings with the Court during the drafting of the Court’s report and welcomes the explanations provided on some of the observations and emphases of matter made in the replies provided by the joint undertakings;

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Changed7. Welcomes the fact that two joint undertakings attained financial autonomy during the financial year 2023, namely the Smart Networks and Services Joint Undertaking on 24 October 2023 and the Global Health EDCTP3 Joint Undertaking on 23 November 2023; notes furthermore that as a result, the Court of Auditors audited these two joint undertakings for the first time, in addition to the nine joint undertakings the Court of Auditors had already audited for the financial year 2022;

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8. Stresses its awareness that some joint undertakings were affected significantly during the financial year 2023 by important events with an impact likely to alter their performance; emphasises, more precisely, that:

(a) Russia’s war of aggression against Ukraine has had a significant impact on the Union economy and on supply chains, affecting greatly the activities of some joint undertakings;

(b) the aftermath of the COVID-19 pandemic is still felt throughout Europe today and during the financial year 2023, still constituted a massive shock to economic and administrative activities;

(c) the high levels of inflation caused by the two aforementioned events had an impact on the supplies and delivery time for the joint undertakings;

9. Acknowledges the benefits of joint undertakings, the importance of public-private cooperation in fostering innovation, promoting research and development and the economic benefits of the partnerships; notes that by pooling resources and expertise from both sectors, public and private, joint undertakings can face the challenges more effectively; underlines the importance of transparency, accountability and efficient use of public funds by joint undertakings;

10. Recognises the value of initiatives fostering stakeholder engagement and participation, such as open calls for expressions of interest and joint calls across the joint undertakings, as instrumental in leveraging the collective expertise and resources; draws particular attention to the joint call for proposals launched by Europe’s Rail Joint Undertaking and the Single European Sky ATM Research 3 Joint Undertaking – the first joint call of its kind from joint undertakings aimed at developing an integrated air and rail network for a sustainable multimodal transport system;

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Changed11. Recalls that joint undertakings must conduct their operations according to sound financial management, thereby contributing effectively to Union policy objectives as well as to the sound implementation of the Union budget; nevertheless is concerned with a series of elements, in light of the findings of the Court of Auditors,Court, as presented in this resolution;

Annual accounts

12. Notes that the Court’s report finds that the 2023 annual accounts of the eleven joint undertakings audited present fairly, in all material respects, their financial position as of 31 December 2023, the results of their operations and cash flows, and changes in net assets for the year ended, in accordance with their financial regulations and the accounting rules adopted by the Commission’s accounting officer; notes furthermore that as a result, the Court issued unqualified audit opinions on the reliability of the annual accounts of the joint undertakings;

13. Notes that the Court’s report finds that the underlying transactions to the annual accounts are legal and regular in all material respects; notes furthermore that as a result, the Court issued unqualified audit opinions on the legality and regularity of both the revenue and the payments underlying the accounts of the joint undertakings;

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Changed14. Takes note of the fact that, in the view of the Court of Auditors,Court, insufficient guidance was provided to the Smart Networks and Services Joint Undertaking and the Global Health EDCTP3 Joint Undertaking on their first-time annual accounts, especially as regards the need for clarity in distinguishing the financial resources managed by the Commission before they attained their financial autonomy and by the joint undertakings after they attained it; echoes the Court’s recommendation for action in this regard which recommends that accounting guidelines should be developed in a clear and comprehensible way which should specify the rules for the presentation of the first annual accounts of new joint undertakings and that these guidelines should include instructions on how to separate the financial resources implemented by the Commission from those implemented by a joint undertaking after it attained its financial autonomy; notes that the risk to the reliability of annual accounts was deemed to be low for all joint undertakings except for the Smart Networks and Services Joint Undertaking and the Global Health EDCTP3 Joint Undertaking, for which the risk to reliability was deemed to be medium, due to the complexities brought about by the transfer of budget appropriations and assets from the responsibility of the Commission to the responsibility of the joint undertaking;

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15. Takes note of the fact that the annual accounts of the European Joint Undertaking for ITER and the Development of Fusion Energy are produced on the basis of the baseline of the ITER project in place in 2023 but that the latter is the subject of an ongoing revision, the result of which is likely to result in significant changes for the European Joint Undertaking for ITER and the Development of Fusion Energy and its estimated total cost at completion; underlines that the joint undertaking concerned should take all actions necessary to ensure that the future baseline and its consequences for the need for Union cash contributions to the joint undertaking do not constitute a liability for the Union budget; notes from the hearing of the joint undertaking concerned in the Committee on Budgetary Control that at the time of the hearing and according to the joint undertaking concerned, it was too early to provide an estimate of the financial impact of this revision; is furthermore concerned by the delays impacting the ITER project, due to factors beyond the joint undertaking’s control;

16. Is concerned by the potential impact that the reorganisation of the European Joint Undertaking for ITER and the Development of Fusion Energy will have on its activities, notably the short to medium-term instabilities and operational risks for the joint undertaking; welcomes the awareness of the joint undertaking concerned of these issues and the explanation provided on its views on the situation; welcomes the additional information provided during the hearing of the joint undertaking concerned in the Committee on Budgetary Control, notably as regards the fact that the risk for business continuity has so far been mitigated thanks to a strong reliance on existing programmes and projects; welcomes the flexibility brought along by the new matrix structure;

17. Takes note of the fact that the risk to the legality and regularity of revenue was deemed to be low for all joint undertakings;

Budgetary and financial management

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Changed18. Notes that the total available budget in 2023 for the eleven joint undertakings audited by the Court amounted to EUR 4,25 billion in commitment appropriations and EUR 3,87 billion in payment appropriations, according to the Court of Auditors,Court, which considers that the total available budget includes unused appropriations from previous years, which the joint undertakings entered again in the budget of the current year and assigned revenues and reallocations to the next year; notes more precisely that:

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Changed(a) theThe total available budget in 2023 for the Single European Sky ATM Research 3 Joint Undertaking amounted to EUR 111,2 million in commitment appropriations (compared to EUR 158,8 million in 2022) and EUR 241,5 million in payment appropriations (compared to EUR 146,9 million in 2022); understands furthermore that according to the report on budgetary and financial management of the Single European Sky ATM Research 3 Joint Undertaking, its total budget execution rate for the financial year 2023 reached 92 % for commitment appropriations and 81 % for payment appropriations, indicating that there were no severe issues related to the pace of implementation of the budget; nevertheless stresses the low execution rate of its payment appropriations dedicated to infrastructure and operating expenditure, which reached 55 %; notes the explanation of the joint undertaking and generally calls on the joint undertaking to ensure a healthy pace of implementation for each section of its budget;

(b) The total available budget in 2023 for the Clean Aviation Joint Undertaking amounted to EUR 269 million in commitment appropriations (compared to EUR 411,2 million in 2022) and EUR 486,4 million in payment appropriations (compared to EUR 415,3 million in 2022); understands furthermore that according to the report on budgetary and financial management of the Clean Aviation Joint Undertaking, its total budget execution rate for the financial year 2023 reached 98,58 % for commitment appropriations and 51,18 % for payment appropriations, indicating that there were serious issues related to the pace of implementation of the budget; notes in particular that the execution rates of its two operational expenditure titles stand at 80,50 % and 81,11 % respectively for payment appropriations; furthermore stresses the low execution rate of its payment appropriations dedicated to infrastructure expenditure, which reached 60,52 %; deeply regrets the important amount allocated to title 5 of its budget for unused payment appropriations of EUR 177 million, which has a technical execution rate of 0 %; notes the explanation of the joint undertaking and generally calls on the joint undertaking to ensure a healthy pace of implementation for each section of its budget;