Changes from plenary report to adopted text

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(xix) further enhance simplification in the implementation of programmes and work closely with Member States to identify best practices regarding the digitalisation of practices and procedures;

(xx) improve the quality of dialogue with farmers from all Member States;

(xxi) react more quickly when serious concerns of the discharge authority are flagged to the Commission;

(xxii) perform adequate checks of entities listed in the Transparency Register, in order to ensure that they comprehensively list their activities in the Register;

(xxiii) draw clearer lines of responsibility when implementing collaborative platforms;

(xxiv) instruct the Corporate Management Board to submit consolidated information on the list of critical risks to the internal audit service and ensure executive agencies address potential risks and ensure a transparent selection of independent evaluators to prevent conflict of interest and guarantee their independence;

(xxv) instruct all DGs and executive agencies to review the distribution of funds dedicated to auditing in order to ensure sufficient resources;

(xxvi) ensure that proposals for Multiannual Work Programmes of any Union funding instrument have clear guidelines on the activities eligible for funding, clearer rules on screening of applications and on admissible content as well as clearer requirements for transparency and traceability of the use of Union funds, including in relation to the disclosure requirements under the EU Transparency Register;

(xxvii) ensure that all grant agreements respect the necessary requirements related to transparency, traceability and visibility of funds;

Migration and Border management

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Changed124.128. Notes that in 2023 the budget for the programmes under MFF headingHeading 4 ‘Migration and Border Management’ was EUR 2,7 billion (1,4 % of the Union budget spending) distributed as follows: 1,2 billion (46,5 %) for three decentralised agencies, the European Boarder Coast Agency (FRONTEX),(Frontex), the European Union Agency for Asylum (EUAA) and the European Union Agency for the Operational Management of Large-Scale IT Systems in the Area of Freedom, Security and Justice (EU- LISA);(eu-Lisa); 1 billion (38,6 %) for the Asylum, Migration and Integration Fund (AMIF), and 0,4 billion (14,9 %) for the Integrated Border Management Fund (IBMF);

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Changed125.129. Notes that in 2023 a significant portion of the spending under MFF headingHeading 4 still concerned the completion of projects remaining from the 2014-2020 MFF; notes that 18 % of AMIF national programmes for 2014-2020 remained undeclared at the end of 2023 and that the last annual accounts and the request for payment of the final balance for these funds will be provided by the Member States as part of the closure package by 31 December 2024 at the latest;

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Changed126.130. Notes that the Court examined a sample of 23 transactions, which is not large enough to be representative of the spending under MFF headingsHeadings 4 and 5 and, thus, it cannot provide a separate estimate of the error rate for these headings; further notes that the Court’s audit results show that the expenditure under MFF headingsHeadings 4 and 5 is affected by eligibility and procurement issues and that it is a high-risk area (7 out of 23 transactions audited, i.e. 30,4 %, were affected by errors); is concerned that the Court detected four quantifiable errors which had a financial impact on the amounts charged to the Union budget and that it also found further ten cases of non-compliance with legal and financial provisions (which had no direct financial impact on the Union budget); therefore, invites the Court to provide a clear estimate of the error rate for headingHeading 4; notes that the Commission concludes that the risk at payment in 2023 is 1,1 % for the expenditure on migration and border management;

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Changed127.131. Notes that the Commission has accepted the Court’s recommendation made in its annual report for 2023 to provide further guidance on applicable rules to the Member State authorities responsible for implementing DGDirectorate-General HOMEfor Migration and Home Affairs funding via shared management; regrets that the Commission has not yet fully implemented the Court’s previous recommendations that were due to be addressed by the end of 2023; notes that DG HOMEMigration and Home Affairs is undertaking a reassessment of its ex-anteex ante methodology to ensure the respect of the rules applicable to post-2021 generation of grants, and that this reassessment will also address the Court’s relevant recommendations and those of the IAS audit on the preparedness for closing actions and programmes funded under the Internal Security Fund (ISF) and the AMIF 2014-2020 through direct and shared management;

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Changed128.132. Notes with concern that two reservations on the declaration of assurance were issued in DG HOME’sMigration and Home Affairs’ Annual Activity Report (AAR) for 2023 and that one reservation concerns the implementation of AMIF and ISF 2014-2020 in several Member States and the other reservation concerns the implementation of Border Management and Visa Instrument (BMVI) 2021-2027 in one Member State; welcomes the Commission’s commitment to take remedial measures for the underlying issues that necessitated the reservations;

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Changed129.133. Welcomes the progress identified by the Court in its review of the preparatory work done by five memberMember stateState audit authorities in managing the transition of the AMIF, BMVI and ISF funds to the CPR of the 2021-2027 MFF; observes that these audit authorities reported to the Court that the support and guidance DG HOMEMigration and Home Affairs provided to them was satisfactory; notes with concern that at the time of the Court’s audit four out of five Member State audit authorities had not finalised their audit strategies;

134. Takes note of the adoption of the New Pact on Migration and Asylum; welcomes that the mid-term revision of the MFF 2021-2027 allocated an additional EUR 2 billion to migration and border management for 2024-2027 to address the growing challenges in migration and border management resulting from the current geopolitical context; notes, however, that additional funds might be needed with a view to ensuring the full implementation of the Pact; calls for the quick implementation of the Pact in the Member States;

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Changed131.135. Stresses that securing the Union’s external borders is a pillar of the New Pact on Migration and Asylum; notes with concern that the Commission reported that the number of irregular border crossings in the Union increased in 2023 to 380 000, compared to 330 000 in 2022; observes that the BMVI can support frontline Member States to ensure they have the resources for infrastructure, facilities and installations necessary to secure the external borders of the Union, including electronic border security enhancements and other tools for border surveillance as provided for in annexAnnex III ofto the BMVI regulation; notes the European Council conclusions of 9 February 2023 that the Union will step up its action to prevent irregular departures and loss of life, to reduce pressure on the borders of the Union and on reception capacities, to fight against smugglers and to increase returns; underlines the need to better protect vulnerable people from smuggling and trafficking networks and address the negative effects of the instrumentalisation of migrants as part of hybrid attacks, notably by pro-Russian forces, as well as by the Belarusian regime;

136. Recalls that, according to Regulation (EU) 2021/1060, Member States and the Commission must ensure respect for fundamental rights and compliance with the Charter of Fundamental Rights of the European Union in the implementation of Union funds;

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Changed133.137. Notes the Court’s conclusion that the AMIF 2014-2020 was performing below expectations in terms of facilitating returns of migrants: also takes note of the fact that the Court and the Commission agree that progress in this area was particularly affected by COVID-19-related travel restrictions; further notes that in 2023 return measures were supported with EUR 29,8 million from the AMIF; considers that the Commission must provide stronger efforts to assist Member States in addressing irregular border crossing and in successfully implementing returns of third-country nationals, as well as the integration of legal migrants; looks forward to receiving consolidated information in 2025 on progress in this regard through the ex-postex post evaluation AMIF 2014-2020; highlights that the Commission should continue to take action on migration and asylum within the framework of external action, including the ‘Team Europe’ approach while also increasing the transparency of the programming and implementation of the Union home affairs funds in third countries and safeguarding the role of the Parliament;

Recommendations

138. Calls on the Commission to:

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Changed(i) address the Court’s recommendations in a thorough and timely manner and share DG HOME’sMigration and Home Affairs’ revised ex-anteex ante methodology, once completed, with the discharge authority;

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(ii) continue to support the Member State managing and audit authorities in the timely finalisation of their audit strategies for MFF 2021-2027 funds, paying particular attention to eligibility and procurement issues, as well as all other recurrent findings of the Court;

(iii) take action to improve the performance of actions funded by the Union in terms of effective returns and combatting irregular migration, while ensuring the full respect of Union legislation and the fundamental values of the Union;

(iv) take action to increase the efficiency of Union spending on the protection and management of the European Union’s external borders;

(v) monitor, assist in and scrutinise the timely progress of the administrative, operational and legal steps required by Member States and Union agencies for the full implementation of the New Pact on Migration and Asylum by 2026;

(vi) increase the transparency of the programming and implementation of the Union home affairs funds in third countries, while safeguarding the role of Parliament in ensuring the democratic scrutiny of Union spending;

(vii) continuously assess, in the implementation of the Union Budget, compliance with the Charter of Fundamental Rights and the Union values enshrined in Article 2 TEU, in accordance with Article 6 of the Financial Regulation;

Security and Defence

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Changed135.139. Notes that in 2023 the budget for the programmes under MFF headingHeading 5 ‘Security and Defence’ was EUR 1,4 billion (0,7 % of the Union budget spending) distributed as follows: 500 million (38,4 %) for the European Defence Fund (EDF), 300 million (19 %) for military mobility, 200 million (17,1 %) for decentralised agencies, namely the European Monitoring Centre for Drugs and Drug Addiction (EMCDDA), Europol and European Union Agency for Law Enforcement Training (CEPOL), 200 million (13,1 %) for the ISF, and 200 million (12,4 %) for nuclear safety, decommissioning and other areas;

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Changed136.140. Notes that in 2023 a significant portion of the spending under MFF headingHeading 5 still concerned the completion of projects remaining from the 2014-2020 MFF; notes that 25 % of ISF national programmes for 2014-2020 remained undeclared at the end of 2023 and that the last annual accounts and the request for payment of the final balance for these funds will be provided by the Member States as part of the closure package by 31 December 2024 at the latest;

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Changed137.141. Notes with concern that, for the reasons explained in the section on migration and border management, the Court cannot provide a separate estimate of the error rate for MFF headingHeading 5 ‘Security and Defence’ and that, based on its audit results, the Court considers expenditure from this heading to be high-risk; therefore, invites the Court to provide an estimate of the error rate for this heading as well; notes that the Commission concludes that in 2023 the risk at payment was 0,5 % for the expenditure on security and defence;

142. Observes that the Commission has not accepted the Court’s recommendation to carefully check and document the technical aspects of military mobility grant applications to the Connecting Europe Facility (CEF) during the grant award procedure and that the Commission considers that its current processes already ensure a check on whether dual-use infrastructure projects meet the eligibility conditions;

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Changed139.143. Recalls the highly unstable geopolitical situation in the Union’s neighbourhood giving rise to greater security and defence challenges, including hybrid threats, and thereby to greater investment needs in security, defence and preparedness, since the beginning of Russia’s war of aggression against Ukraine; draws attention to the fact that MFF headingHeading 5, dedicated to security and defence, is the smallest of all MFF headings and regrets that the Union'sUnion’s current budget for ensuring the security and defence of its citizens is not equal to the challenges to be met either in the short or the long term; notes that in 2023 Union funding in support of the defence industry came exclusively from the EDF; recalls the role played by the EDF in supporting European technological expertise in emerging and disruptive technologies; welcomes that submissions to the 2023 EDF calls increased by 72 % compared to the previous year, demonstrating the strong and constantly growing interest of European defence industry actors and research organisations in the EDF and the high demand for funding in this sector; notes that under the 2023 calls, the Union committed EUR 1,15 billion for 61 defence R&DR & D projects, benefiting 581 legal entities from 26 Member States and Norway; notes that on average 17 entities from eight different Member States and Norway participate in each project; underlines the importance of a level playing field in supporting cross-border defence R&DR & D cooperation;

144. Welcomes the Commission’s actions to enhance support for SMEs in the defence sector, in particular appreciates that the EU Defence Innovation Scheme (EUDIS), which provides a diverse range of instruments tailored to support SMEs within the defence ecosystem, became fully operational in 2023, with EUR 224 million allocated to it from the EDF budget; appreciates, further, the role of the SME bonus under the EDF in facilitating the access of smaller actors and innovators in defence supply chains; notes that in the 2023 EDF calls, 42 % of the entities selected for funding were SMEs, an increased share compared to 2022 (38,2 %), and that 18 % of the total funding available through the EDF calls is allocated to SMEs;

145. Recalls that the Preparatory Action on Defence Research (PADR) was a precursor programme of the EDF with a budget of EUR 90 million that funded 18 research projects selected following calls for proposals in the years 2017 to 2019; further recalls that the Court, in its Special Report 10/2023 ‘The Preparatory action on defence research’, has observed that the Union still lacked a long-term strategy for the projects under the EDF, particularly in terms of impact, additional research, development, manufacturing and procurement; welcomes that the Commission has accepted all of the Court’s recommendations and has confirmed that their implementation is ongoing; welcomes, in this regard, the Commission’s adoption of a European Defence Industrial Strategy (EDIS) and legislative proposal establishing the European Defence Industry Programme (EDIP) as well as its commitment to build up the EDF; nevertheless, in view of the geopolitical realities the Union faces, is concerned that the full implementation of the Court’s recommendations is expected only in 2026;

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Changed142.146. Recalls the Court’s observations in its Special Report 10/2023 regarding the limited availability of human resources at the Commission and the subsequent risk for the EDF; notes that the growing number of proposals to evaluate and projects to manage puts considerable pressure on human resources; further notes the large share of seconded national experts (17 %) among DGDirectorate-General DEFISfor Defence Industry and Space staff in 2023 and DG DEFIS’sDefence Industry and Space’s intention to reinforce staff by the selection of officials through specialised EPSO competitions in the field of space and defence, for which the reserve lists were finalised in November 2023;

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Changed143.147. Notes that the implementation of ‘Action Plan on Military Mobility 2.0’ is ongoing, with EUR 1,74 billion allocated for dual-use transport infrastructure projects under the Connecting Europe Facility (CEF) between 2021-2027; notes that so far the Union has co-funded 95 military mobility projects in 21 Member States and that 94 of these projects are still ongoing and most of them are expected to be finalised between 2026 and 2027; notes with concern that following three calls for proposals organised in 2021, 2022 and 2023, the entirety of the military mobility envelope under the CEF for the current programming period has thereby already been exhausted; considers that although making the budget quickly available by frontloading amounts into the 2022 and 2023 calls responded to the need to take into account the evolution of the security situation in Europe following Russia’s war of aggression against Ukraine, it simultaneously led to Union funding being unstable and unpredictable by leaving a gap of more than four years with no more Union funds available for military mobility calls to finance dual-use infrastructure projects until the post-2027 MFF; recalls the Court’s conclusions in its Special Report 04/2025 that the Actionaction Planplan was not built on sufficiently solid foundations and that progress towards its objective, namely ensuring swift and seamless movement of personnel, materiel and assets at short notice and on a large scale, has been variable due to design weaknesses and remaining obstacles to implementation; notes that the Commission considers that more action is needed to strengthen dual-use transport infrastructure corridors, including on regulatory issues such as cross-border movement permission procedures; notes the Court’s observation that the Commission had not carried out a robust assessment of the overall funding required to make its objectives and targets achievable; regrets that only EUR 300 million was spent on military mobility in 2023 and is concerned that calls for proposals under the military mobility envelope faced a four-time oversubscription rate, demonstrating the increased interest among Member States and project beneficiaries;

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Added148. Expresses deep concern over the Commission’s decision to proceed with the adoption of the ‘Rearm EU’ initiative without prior consultation of the European Parliament; regrets that such a decision bypasses the principle of institutional balance and undermines Parliament’s role as co-legislator in shaping strategic and budgetary priorities; urges the Commission to refrain from initiating substantial policy instruments that impact the Union’s financial and strategic architecture without ensuring full respect for the prerogatives of the Parliament;

Added149. Notes that the European Parliament has called on the Union and its Member States to put in place a legal framework enabling Russia to be classified as a State sponsor of terrorism;

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Recommendations

150. Calls on the Commission to:

(i) develop a longer-term strategy for the EDF, building on the experience with Preparatory Action on Defence Research (PADR) and the Court’s recommendations, as soon as possible;

(ii) secure the provision of adequate resources to enhance Union defence cooperation, in the short-term through the 2026 draft budget and the timely recruitment of expert staff, and in the medium-term through the Commission’s proposal for the next MFF;

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Changed(iii) further strengthen military mobility in the Union by substantially increasing the funding available to improve dual-use transport infrastructure corridors and by taking action to eliminate administrative, procedural and regulatory barriers to cross-border military movements, while prioritising Union funding to projects that best respond to the current European threat landscape; taking into account the Court’s findings and recommendations in specialSpecial reportReport 04/2025;

(iv) take action to ensure due diligence in relation to project criteria for dual-use military mobility infrastructure projects, in line with the Court’s recommendation;

Neighbourhood and the world

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Changed145.151. Notes that the budget for the programmes under MFF headingHeading 6 ‘Neighbourhood and the world’ was EUR 15,2 billion (7,4 % of the Union budget) distributed as follows: 63,4 % for the Neighbourhood, Development and International Cooperation Instrument -– Global Europe (NDICI-Global Europe), 16,4 % for Humanitarian Aid (HUMA), 16 % for Pre-Accession Assistance (IPA III) and 4.24,2 % for other actions and programmes; notes that in total, payments for ‘Neighbourhood and the world’ reached 15.215,2 billion in 2023, representing approximatively 8 % of the overall Union expenditure excluding RRF;

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Changed146.152. Notes that the Court examined a sample of 72 transactions, which is not adequately representative of the spending under this MFF heading and, therefore, cannot provide an estimate of the error rate; considering that the Court’s audit results show that this is a high-risk area (of 37 out of 72 transactions audited, i.e. 51.451,4 %, were affected by errors), invites the Court to provide a clear estimate of the error rate for this chapter; notes that the Court found 31 errors that had a financial impact on the Union budget, relating to ineligible beneficiaries, ineligible costs, expenditure not incurred, and breaches of public procurement rules, areas that could point to risks of unreliable functioning of control mechanisms;

153. Notes, additionally, that the Court detected 19 cases of non-compliance with legal and financial provisions, none of which had direct financial impact on the Union budget, and which included issues such as ambiguous cost allocations, non-compliance with visibility rules, and inadequate documentation;

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Changed148.154. Is concerned that the Court found a significant non-compliance with visibility rules in an EU-funded project under indirect management by DG NEAR,Neighbourhood and Enlargement Negotiations, which concerned a contribution agreement worth EUR 21.221,2 million signed with an international organisation in a project where the aim was to support Eastern partnership countries in tackling COVID-19; notes that the Court found that most donation certificates it checked did not contain any acknowledgment that the medical equipment donated was funded by the Union; recalls that beneficiaries of Union funds are required to clearly publicise the fact that the Union has financed or co-financed the action they are implementing; notes the Commission’s replies that it is discussing new communication and visibility guidelines with the United Nations to reduce the risks of errors on compliance with visibility rules;

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Changed149.155. Expresses concern that the Court, in its IT audit on the information system OPSYS’ component for managing user access and rights, found three shortcomings including (i) that the Directorate-General forDG International Partnerships (DG INTPA) had not formalised a procedure for granting and removing access rights for system administrators and to standard users; (ii) four cases in which standard users had more access rights than they needed for their jobs, which is not in line with the Commission’s IT standards; and that (iii) DG INTPAInternational Partnerships did not manage all administrator accounts belonging to staff of other directorates-general; is concerned that these weaknesses increase the risks of both inappropriate access to the system and non-compliance with the rules and procedures for implementing external action projects, and also undermine the integrity of system processes and data;

156. Notes that the Commission intensified communication with international organisations in order to raise awareness of the need to ensure that the Court’s auditors obtain full access to documents when auditing projects funded by the Union, and that the Commission has supported initiatives to find permanent solutions to the issues of access to and retention of documents; notes, however, the Commission’s acknowledgment that despite efforts, some constraints regarding access to documents persist due to the existing legal frameworks of the implementing partners, which are not expected to change in the near future;

157. Urges the Commission to enhance the rule of law conditionality-based approach of the Instrument for Pre-Accession Assistance (IPA) III funding in order for the instrument to serve its purpose of effectively preparing accession countries to fulfil the conditions of becoming Member States of the Union; reiterates its calls on the Commission to implement the recommendations of the Court’s Special Report 01/2022 in order to ensure an effective impact of Union financial assistance in support for the rule of law in the Western Balkans, in particular by developing guidelines on the application of the provisions on modulation and conditionality under IPA III;

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Changed152.158. Stresses that Union aid should under no circumstances -– directly or indirectly -– be financing terrorism, hence it should not support any entity connected to Hamas or any other terrorist or extremist organisation; notes to this end, it is legitimate and necessary to be able to clearly know and identify all the final beneficiaries of European aid in third countries; emphasises the need for strict control over the distribution and use of aid to ensure no misuse of funds;

159. Notes with regret that the European Commission financed the Gaziantep Islamic Science and Technology University, which has proven ties to terrorist organisation of Hamas; calls on the Commission to cancel all ties to this university and other universities with ties to terrorist organisations;

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Changed154.160. Urges the Commission, in the context of delivering enhanced support and humanitarian aid to the Palestinian population, to also make full use of trusted partners, such as the WHO, WFP UNICEFUnicef or different Red Crescent organisations; recalls the importance for the Commission to guarantee independent controls of UNRWA by external experts, the Court and experienced international partners;

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Changed155.161. Notes that the Commission has been working in the last months with UNRWA, to enhance the neutrality processes and control systems in the Agency, in line with findings of the investigations by the UN OIOS on the allegations of involvement of 19 of its staff in the 7th7 October 2023 attack, and to monitor the application of the action plan presented by UNRWA on the implementation of the recommendations of the Independent Review Group led by former French Minister of Foreign Affairs Colonna to strengthen control and oversight; notes that the Commission has reassessed the Union’s 2024 funding decision for UNRWA and that, through an exchangeExchange of lettersLetters between Commissioner Várhelyi and UNRWA Commissioner General Lazzarini in April 2024, the Union reached an agreement about the Union’s conditional assistance for UNRWA, linked to a number of milestones in relation to three work streams, including the screening of UNRWA staff, an audit by the Union, as well as the reinforcement of the Department of Internal Investigations and Ethics office; notes that Union assistance was resumed;

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Changed156.162. Recalls the necessity for the Palestinian Authority to remove all educational materials and content that fail to adhere to UNESCOUnesco standards by the next school year, in particular those that contain antisemitism as defined by the International Holocaust Remembrance Alliance classification endorsed by the Union, incitement to violence, hate speech, and glorification of terrorism; recalls the provisions of previous discharge resolutions; stresses that financial support from the Union for the Palestinian Authority in the area of education should be provided on the condition that textbook content is aligned with UNESCOUnesco standards, that all anti-Semitic references are deleted, and that examples which incite to hatred and violence are removed, as repeatedly requested in the resolutions accompanying the discharge decisions; recalls the findings of the Georg Eckert Institute'sInstitute’s report funded by the Union, which revealed a complex picture on the textbooks; notes that the Union does not fund the Palestinian textbooks, and that neither are they the responsibility of UNRWA, which nevertheless reviews all issued textbooks to address any problematic content;); notes that the Commission will carry out close scrutiny to ensure that no Union funds are allocated, directly or indirectly, to the drafting, teaching, or exposure of such educational materials to Palestinian children, including those provided by UN organisations;