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Changes from report parliamentary committee draft to plenary report

CONT-PR-753500 → A-9-2024-0101

From
CONT-PR-753500 report parliamentary committee draft of 15 Dec 2023
To
A-9-2024-0101 Plenary report of 12 Mar 2024
Changes
34 changes to the text
Paragraphs
+11 added · −13 removed · 37 changed
More facts (2)
Title (from)
on discharge in respect of the implementation of the budget of the Key Digital Technologies Joint Undertaking for the financial year 2022
Title (to)
on discharge in respect of the implementation of the budget of the Key Digital Technologies Joint Undertaking (now the Chips Joint Undertaking) for the financial year 2022
Cite Link to this page

Changes that matter, 34

Changes to the text in document order — the ones the change notes describe. Cover page, renumbering and punctuation-only edits are left out (see “Every difference”); changes to citations and references stay in and are marked as formal in the notes.

Change 1

Added1. Grants the Executive Director of the Key Digital Technologies Joint Undertaking (now Chips Joint Undertaking) discharge in respect of the implementation of the Joint Undertaking’s budget for the financial year 2022;

Removed1. Grants the Acting Executive Director of the Key Digital Technologies Joint Undertaking discharge in respect of the implementation of the Joint Undertaking’s budget for the financial year 2022 / Postpones its decision on granting the Acting Executive Director of the Key Digital Technologies Joint Undertaking discharge in respect of the implementation of the Joint Undertaking’s budget for the financial year 2022;

Change 2 under “2. PROPOSAL FOR A EUROPEAN PARLIAMENT DECISION”

Changedon the closure of the accounts of the Key Digital Technologies Joint Undertaking (now the Chips Joint Undertaking) for the financial year 2022

Change 3 under “2. PROPOSAL FOR A EUROPEAN PARLIAMENT DECISION”

Added1. Approves the closure of the accounts of the Key Digital Technologies Joint Undertaking (now the Chips Joint Undertaking) for the financial year 2022;

Removed1. Approves the closure of the accounts of the Key Digital Technologies Joint Undertaking for the financial year 2022 / Postpones the closure of the accounts of the Key Digital Technologies Joint Undertaking for the financial year 2022;

Change 4 under “3. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION”

Changedwith observations forming an integral part of the decision on discharge in respect of the implementation of the budget of the Key Digital Technologies Joint Undertaking (now the Chips Joint Undertaking) for the financial year 2022

Change 5 under “3. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION”

AddedA. whereas the Key Digital Technologies Joint Undertaking (the ‘KDT Joint Undertaking’), located in Brussels, was set up for the period ending on 31 December 2031 in November 2021 under the Horizon Europe programme by Council Regulation (EU) 2021/2085;

RemovedA. whereas the Key Digital Technologies (KDT) JU, located in Brussels, was set up in November 2021 under the Horizon Europe programme for the period ending on 31 December 2031;

AddedB. whereas the KDT Joint Undertaking replaced and succeeded the Electronic Components and Systems for European Leadership Joint Undertaking (ECSEL JU) that was established under the Horizon 2020 programme in May 2014 by Council Regulation (EU) No 561/2014for a period until 31 December 2024; whereas, on 26 June 2014, the ECSEL JU replaced and succeeded the European Nano-electronic Initiative Advisory Council and the Joint Undertaking for Advanced Research and Technology for Embedded Intelligence and Systems;

RemovedB. whereas the KDT JU replaced and succeeded the Electronic Components and Systems for European Leadership (ECSEL) JU that was set up in May 2014 under the Horizon 2020 programme, for a period until 31 December 2024; whereas, on 26 June 2014, the ECSEL JU replaced and succeeded the European Nano-electronic Initiative Advisory Council and the JU for Advanced Research and Technology for Embedded Intelligence and Systems;

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

RemovedC. whereas KDT JU is a public-private partnership focusing on research and innovation in key digital technologies essential for Europe's competitive leadership in digital economy, in particular, in the electronic components and systems sector;

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AddedD. whereas its founding members are the Union, represented by the Commission, the Participating States, and three industry associations, namely the European Association on Smart System Integration, the Association for European Nano Electronics Activities, and the Inside Industry Association, representing stakeholders in micro-electronics and nano-electronics, smart integrated systems and embedded or cyber-physical systems;

RemovedD. whereas its founding members are the EU, represented by the Commission, the Participating States, and three industry associations (the European Association on Smart System Integration, the Association for European Nano Electronics Activities, and the Inside Industry Association), representing stakeholders in micro- and nano-electronics, smart integrated systems and embedded/cyber-physical systems respectively;

AddedE. whereas in July 2023 pursuant to Council Regulation (EU) 2023/1782 the KDT Joint Undertaking was transformed into the Chips Joint Undertaking; whereas according to the amendment, the Chips Joint Undertaking’s enhanced remit is to foster the development of innovative next-generation semiconductor technologies and reinforce the European chip-production capability under the “Chips for Europe Initiative”; whereas Union contributions to the KDT Joint Undertaking will increase from EUR 1,8 billion to EUR 4,2 billion, with EUR 2,7 billion to be funded from the Horizon Europe programme, and EUR 1,5 billion from the Digital Europe programme;

RemovedE. whereas in July 2023, the Council adopted an amending regulation to transform KDT JU into the Chips JU; whereas according to the amendment, the Chips JU’s enhanced remit is to foster the development of innovative next-generation semiconductor technologies and reinforce the European chip-production capability under the “Chips for Europe Initiative”; whereas for this, EU contributions to the JU will increase from EUR 1.8 billion to EUR 4.2 billion, EUR 2.7 billion to be funded from the Horizon Europe programme, and EUR 1.5 billion from the Digital Europe programme;

AddedF. whereas, to increase transparency, the KDT Joint Undertaking should disclose in its annual accounts, relevant information regarding members’ contributions at programme level; whereas, for each programme under which they operate, the KDT Joint Undertaking should present per member category up to the year-end, all relevant information including the legal contribution targets set for the respective programme, the volume of contributions received, and the volume of legal commitments; whereas the KDT Joint Undertaking should continue to improve transparency;

RemovedF. whereas, to increase transparency, the Joint Undertaking should disclose in its annual accounts, relevant information regarding members’ contributions at programme level; whereas, for each programme under which they operate, the Joint Undertaking should present per member category up to the year-end, all relevant information including the legal contribution targets set for the respective programme, the volume of contributions received, and the volume of legal commitments;

Change 6 under “3. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION”

Changed1. Notes that the changes in the size of the JU’sKDT Joint Undertaking’s budget largely depend on the implementation phase of the multiannual research and innovation programmes, which the JUKDT Joint Undertaking is implementing;

Change 7 under “3. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION”

Removed2. Notes that the JU started to launch the first Horizon Europe calls already end 2021; notes in addition that the 2022 budget includes the commitment budget for the Horizon Europe calls planned for 2022, and the payment budget for the related pre-financing payments;

Added2. Welcomes the KDT Joint Undertaking's contribution to reinforcing EU's strategic autonomy in the electronic components and systems sector;

Added3. Notes that the KDT Joint Undertaking started to launch the first Horizon Europe calls already end 2021; notes in addition that the 2022 budget includes the commitment budget for the Horizon Europe calls planned for 2022, and the payment budget for the related pre-financing payments;

Change 8 under “3. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION”

Changed3.4. Notes from the report of the Court of Auditors report (’the(the Court’s‘Court’s report‘)report’) that the annual accounts of the KDT Joint Undertaking present fairly, in all material respects, the financial position of the Joint Undertaking at 31 December 2022, the results of its operations, its cash flows and the changes in net assets for the year thethat ended, in accordance with its Financialfinancial Regulationregulation and with account rules adopted by the Commission’s accounting officer; notes, furthermore, that the underlying transactions to the accounts are legal and regular in all material respects;

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Change 9 under “3. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION”

Changed4.5. Notes,Notes that in 2022,2022 the total available appropriations reached EUR 261.4261,4 million for commitment (EUR(compared 214.0to EUR 214,0 in 2021) and EUR 222.2222,2 million for payment appropriations (EUR(compared 199.3to EUR 199,3 in 2021); notes in addition that the budget implementation reached 100%100 % in terms of commitment appropriations and 55%55 % in terms of payment appropriations;

Change 10 under “3. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION”

Changed5.6. Notes with concern that,that in its 2022 annual accounts,accounts the JUKDT Joint Undertaking did not disclose important information regarding members’ contributions at programme level, relevant for the complete communication of the JU’sKDT Joint Undertaking’s achievements at the year-end; notes, in particular, that the JUKDT Joint Undertaking did not compare the contributions received from each member category up to the year-end under each programme with the legal contribution targets set for the respective programme; notes, moreover, that in these accounts, the JUKDT Joint Undertaking did not disclose the Participating States’ contributions to the JU;KDT Joint Undertaking; calls on the KDT Joint Undertaking to address these issues and welcomes its commitment to provide information, in particular regarding the comparison of the legal targets of the respective programmes;

Change 11 under “3. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION”

Changed6.7. Notes that most of the JU’sKDT Joint Undertaking’s private members’ in-kind contributions remain to be validated (EUR 1 172.5172,5 million);

Change 12 under “3. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION”

Changed7.8. Notes that,that at the end of 2022,2022 the JUKDT Joint Undertaking had fully committed the maximum EUUnion operational contribution of EUR 1 169.7169,7 million for signed grant agreements under the Horizon 2020 programme and that, of this committed amount, around EUR 139.2139,2 million (or 11.911,9 %) remains to be paid in the coming years for projects yet to be completed;

Change 13 under “3. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION”

Changed8.9. Notes that,that at the end of 2022,2022 the JUKDT Joint Undertaking estimated the private members’ potential final in-kind contributions for operational Horizon 2020 activities at EUR 1 579 million or 97.697,6 % of the minimum target of EUR 1 617.5 million; notes that the JUKDT Joint Undertaking can only calculate and validate private members’ in-kind contributions once all payments have been made by both the JUKDT Joint Undertaking and the Participating States and all end-of-project certificates and related certificates of financial statements have been received; notes,notes that, in this context, and given that at the end of 2022 only a limited number of Horizon 2020 projects had been finalised, the validated industry in-kind contributions amounted to EUR 406.5406,5 million (or 25 %%) of the target);target;

Change 14 under “3. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION”

Changed9.10. Notes that, based on the JU’sKDT Joint Undertaking’s Public Authorities Board funding decisions for the calls for proposals from 2014 to 2020, the Court of Auditors (the ‘Court’) estimated that, at the end of 2022, the Participating States signed contractual commitments amounting to EUR 1 106.2106,2 million (or 95 %%) of the target)target and that.that of this amount, they declared total financial contributions of EUR 495.3495,3 million, which they paid directly to the national beneficiaries of the Horizon 2020 projects they supported; notes that the difference arises because Participating States only recognise and report their costs to the JUKDT Joint Undertaking on the completion of the Horizon 2020 projects they support;

Change 15 under “3. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION”

Changed11.12. Notes that for Horizon 2020 activities, the JUKDT Joint Undertaking received no new operational commitment appropriations, as the JUKDT Joint Undertaking had finished its last call for proposals by the end of 2020; notes that the implementation rate for the operational payment appropriations fell to 74 % (2021:(compared to 85 %),% in 2021), which, according to the JU,KDT Joint Undertaking, was due to the problems beneficiaries faced arising from COVID-19; notes, moreover, that for a considerable number of ongoing Horizon 2020 projects, the technical activities were delayed either because of shortage of chips materials or because staff was not able to access the development and testing facilities and therefore, these projects had to be amended or prolonged and final payments postponed to 2023;

Change 16 under “3. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION”

Changed12.13. Echoes the Court’s observation that the JUKDT Joint Undertaking should establish a time-scheduled action plan for finalising the implementation of projects approved under previous MFFs;Multiannual Financial Frameworks (MFFs);

Change 17 under “3. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION”

Changed13.14. Notes that, regarding the implementation of the Horizon Europe programmes, at the end of 2022, the Commission made cash contributions of EUR 171,1 million, of which the JUKDT Joint Undertaking used EUR 42.342,3 million for pre-financing payments related to the first grant agreements concluded under Horizon Europe;

Change 18 under “3. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION”

Changed14.15. Notes that, at the end of 2022, the implementation rate regarding the JU’sKDT Joint Undertaking’s administrative payment budget (Title 2) was low at 63%;63 %; notes that, according to the JU’sKDT Joint Undertaking’s 2022 budgetary and financial management report, this was mainly due to the postponement of the IT tools in support of the Centralcentral Managementmanagement of Financialfinancial Contributions,contributions, and the reduced communication activities;

Change 19 under “3. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION”

Changed15.16. Notes, in addition, the JUKDT Joint Undertaking saw a decrease in its operational budget implementation rate owing to the rising costs and delivery problems faced by beneficiaries in the wake of the COVID-19 crisis and the war of aggression against Ukraine;

Change 20 under “3. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION”

Changed16.17. Notes, from the Consolidatedconsolidated Annualannual Activityactivity Reportreport 2022, that procurement and contracts are managed in accordance with the provisions of the KDT FinancialJoint RulesUndertaking’s financial rules and coordinated within the KDTits Administrationadministration and Financefinance team;

Change 21 under “3. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION”

Changed1718 Notes, moreover, that,that in the context of sound financial management and efficiency, the KDT Joint Undertaking made to the most possible extent use of the various Service Levelservice Agreementslevel (SLAs)agreements already concluded with relevant Commission Services, as well as its private members and also made use of inter-institutional framework contracts (e.g.,(such as IT services and equipment, interim staff services,services and external audit services);

Change 22 under “3. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION”

Changed18.19. Notes that, in 2022, the KDT Joint Undertaking ran very few procurement procedures, essentially for low value contracts and that no procurement procedures related to operational activities were launched during 2022;that year;

Change 23 under “3. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION”

Changed19.20. Notes that the KDT Joint Undertaking’s staff establishment plan of KDT for 2022 foreseesprovides for 30 temporary (TA)agents or contract agents (CA) and that, at the end of 2022, the JUKDT Joint Undertaking employed 25 statutory staffmembers members,of staff, with 8 nationalities (8 BE, 5 FR, 4 ES, 2 BG, 2 EL, 2 RO, 1 IT, 1 PL)PL), andincluding 11 male,male and 14 female;female members of staff;

Change 24 under “3. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION”

Changed20.21. Notes that six external recruitment procedures were launched in 2022; Executiveexecutive Director,director, Accountingaccounting and Financefinance correspondent, Programmeprogramme office, Budgetbudget officer, Financialfinancial assistant, Headhead of Sector,sector, positions to be filled in 2023;

Change 25 under “3. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION”

Changed21.22. As for the staff turnover, the Head of Communications retired on 1/4/2022,1 April 2022, the accounting correspondent left the JUKDT Joint Undertaking on 1/10/20221 October 2022 and the budget officer left on 1/11/2022,1 November 2022, the Executiveexecutive Director’sdirector’s contract ended on 31/10/2022;31 October 2022;

Change 26 under “3. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION”

Changed22.23. Notes that, for Horizon 2020 and Horizon Europe expenditure, the Common Audit Service of the Commission’s DGDirectorate-General RTDfor Research and Innovation is responsible for the ex-post audits, for Horizon 2020 expenditure (clearings and final payments), the JUKDT Joint Undertaking reported a representative error rate of 2.62,6 % and a residual error rate of 0.80,8 %; notes that, for the Horizon Europe programme, ex-postex post audits have yet to be carried out, as the first interim payments are only expected in 2024;

Change 27 under “3. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION”

Changed23.24. Notes that to assess the operational payment controls of the JU,KDT Joint Undertaking, the Court audited randomly sampled Horizon 2020 payments made in 2022, at the level of the final beneficiaries; notes that the Court found no errors or control weaknesses at the JUKDT Joint Undertaking beneficiaries sampled;

Change 28 under “3. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION”

Changed24.25. NotesWelcomes that,that whilethe KDT Joint Undertaking implemented a risk-based monitoring of projects in line with the Commission’s baseline, as well as a risk assessment of SMEssmall and newcomers,medium itsized enterprises and newcomers; notes, however, that the KDT Joint Undertaking has not yet developed internal guidelines to consolidate the processes; notes that for KDT,the KDT Joint Undertaking, the risk of errors in grant payments was mitigated by the fact that the Participating States performed detailed ex-anteex ante controls on the eligibility of project costs reported for national co-financing, for the beneficiaries operating in their national territory;

Change 29 under “3. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION”

Changed25.26. Notes with satisfaction that Participating States closely cooperated with the KDT Joint Undertaking and notified it of detected major errors, irregularities, and registered bankruptcies on a timely basis; notes, furthermore, that,that contrary to other JUs,joint undertakings, the 90 % threshold for pre-financing was applied at the beneficiary level, and any changes to the cost budget among consortia members required an amendment to the grant agreement; notes that the KDT Joint Undertaking controlled the fulfilment of these specific criteria outside of COMPASS, and project officers made standardised manual checks in Excel spreadsheets;

Change 30 under “3. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION”

Changed26.27. Agrees with the Court that the KDT Joint Undertaking should develop internal, practical guidance on how to implement a risk-based monitoring at the level of projects and beneficiaries, and how staff should use the risk management module available in COMPASS;

Change 31 under “3. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION”

Changed27.28. NotesCalls thaton the Court consideredKDT thatJoint theUndertaking JUto showedaddress weaknesses in the use of the reinforced monitoring tool;

Change 32 under “3. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION”

Changed29.30. Agrees with the Court that the KDT Joint Undertaking should ensure that all reinforced monitoring actions are accompanied by specific control actions targeting the identified risks, and that they are followed-up at a pre-defined deadline;

Change 33 under “3. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION”

Changed30.31. Notes that “observations” in the KDT Joint UndertakingsUndertaking’s specific annual reports are in fact “not timed recommendations” by the Court; notes that ECA annually follows-up on those observations by assessing their status as “open” or “closed”;

Change 34 under “3. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION”

Changed31.32. Notes that, in 2021, the Court issued three (3) observations, of which two (2) are closed; the open observation relates to the need to recruit more members of staff to reach the planned 50 (fifty) statutory staff by 2025, as the KDT Joint Undertaking will implement projects of about EUR 10.910,9 billion under the 2021-2027 MFF.

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Cite as

European Parliament (2024). “Changes between CONT-PR-753500 and A-9-2024-0101”. Text, 12 March 2024. from CONT-PR-753500, to A-9-2024-0101. EU Parl Watch Research. https://news.eu-parl.st-solutions.dev/texts/CONT-PR-753500/compare/A-9-2024-0101 (retrieved 25 September 2026). Data: European Parliament Open Data, https://data.europarl.europa.eu/ (CC BY 4.0).
BibTeX 
@misc{epw-text-2024-03-12,
  author = {{European Parliament}},
  title = {{Changes between CONT-PR-753500 and A-9-2024-0101}},
  year = {2024},
  date = {2024-03-12},
  howpublished = {\url{https://news.eu-parl.st-solutions.dev/texts/CONT-PR-753500/compare/A-9-2024-0101}},
  url = {https://news.eu-parl.st-solutions.dev/texts/CONT-PR-753500/compare/A-9-2024-0101},
  urldate = {2026-09-25},
  publisher = {EU Parl Watch Research},
  note = {Text. from CONT-PR-753500, to A-9-2024-0101. Data: European Parliament Open Data (CC BY 4.0)}
}