Changes from report parliamentary committee draft to plenary report

2. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

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with observations forming an integral part of the decision on discharge in respect of the implementation of the general budget of the European Union for the financial year 2023, Section VI – European Economic and Social Committee

(2024/2025(DEC))

The European Parliament,

– having regard to its decision on discharge in respect of the implementation of the general budget of the European Union for the financial year 2023, Section VI – European Economic and Social Committee,

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

Changed– having regard to the report of the Committee on Budgetary Control (A100000/2025),(A10-0054/2025),

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A. whereas in the context of the discharge procedure, the discharge authority wishes to stress the particular importance of further strengthening the democratic legitimacy of the Union institutions by improving transparency and accountability, and by implementing the concept of performance-based budgeting and good governance of human resources;

B. whereas the European Economic and Social Committee (the ‘Committee’) is an advisory body of the Union providing a forum for consultation, dialogue and consensus among representatives of the various economic, social and civil components of organised civil society from the Member States;

C. whereas the Committee contributes to the Union decision-making process and, by ensuring links between Union policies and economic, social and civic circumstances, it pursues its missions of better law making, participatory democracy from the bottom up and the promotion of European values;

D. whereas the consultation of the Committee by the Commission or the Council is mandatory in certain cases, and the Committee may also adopt opinions on its own initiative while enjoying a wide area for referral as defined by the Single European Act, the Maastricht Treaty and the Amsterdam Treaty, allowing it to be consulted by Parliament;

E. whereas the Committee’s commission for financial and budgetary affairs (CAF) is the Committee’s supervisory body for all budgetary procedures and, in particular, the establishment of the budget estimates, the budget implementation, the annual activity report, the discharge and the follow up to the annual report of the Court of Auditors (the ‘Court’);

F. whereas in the last years the Committee has taken initiatives to attract and retain skilled staff, optimise its organisational structure and working methods and promote a respectful working environment, in the context of a limited budget;

1. Notes that the budget of the Committee falls under MFF heading 7 ’European public administration’, which amounted to a total of EUR 12,3 billion, i.e. 6,4 % of Union budget spending, in 2023; notes that, in 2023, the budget of the Committee represented 1,29 % of MFF heading 7 appropriations;

2. Notes that the Court o, in its Annual Report for the financial year 2023 (the ‘Court’s report’), examined a sample of 70 transactions under Heading 7, of which 21 (30 %) contained errors; further notes that for five of those errors, which were quantified by the Court, the Court estimated a level of error below the materiality threshold;

3. Notes from the Court’s report that administrative expenditure includes expenditure on human resources including pensions, which in 2023 accounted for about 70 % of the total administrative expenditure, and on buildings, equipment, energy, communications and information technology; welcomes the fact that the Court concluded, as it did in previous years, that, overall, administrative spending is low risk; notes that the Court did not identify any specific issue concerning the Committee in 2023;

Budgetary and financial management

4. Notes that the final adopted budget for the Committee was EUR 158 767 970 in 2023, representing an overall increase of 4,1 % compared to 2022; notes from the Committee’s replies to the questionnaire submitted by the Committee on Budgetary Control for the 2023 budgetary discharge (the ‘Questionnaire’) and the Committee’s annual activity report for 2023 (the ‘Annual report’) that the remuneration and allowances budget line (expenses with Committee’s staff and Members) increased by 8,4 % between 2022 and 2023 due to the inflation; notes from the Questionnaire that the budget for outside assistance for the operation, development and maintenance of software systems increased by 33,70 % from 2022 to 2023 due to the Committee having made the implementation of its digital strategy for 2024-2026 a priority in 2023; notes that, otherwise, the distribution of appropriations across other budget lines in the Committee’s 2023 budget remained comparable to previous years’ distribution;

5. Notes with satisfaction that the rate of the Committee’s budget implementation of current year commitment appropriations increased further from 96,12 % in 2022 to 98,70 % in 2023, leaving behind the lower budgetary implementation in previous years due to the COVID-19 pandemic and the related travel restrictions; notes further that the current year payment appropriations execution rate increased from 88,12 % in 2022 to 90,67 % in 2023; notes that the average payment time in 2023 was 20,14 days, higher than in 2022 (i.e. 18,34 days);

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Changed6. Notes that the carry-over of appropriations from 2023 to 2024 amounted to EUR 13 827 713 (i.e. approx. 8,70 % of the Committee’s budget for 2023), which represents a decrease from the previous year’s level of EUR 20 162 518 (i.e. approx. 13 % of the Committee’s budget for 2022); notes further with appreciation that the rate of implementation of the appropriations carried over from 2022 to 2023 was 86,76 % in 2023, compared to 76,91 % in 2022; encourages the Committee to continue the efficient use of the provided funds;

7. Notes that the Committee’s own services launched 12 negotiated procedures below EUR 60 000 in 2022, mainly for case studies, studies and logistical support; notes that the Committee also launched six procurement procedures with the joint services shared with the European Committee of the Regions (the ‘CoR’) mainly in the field of logistics and maintenance;

8. Notes that, in 2023, the Committee continued to improve the cost-effectiveness of its activities, including through hybrid work, increased teleworking, full dematerialisation of financial circuits and reduced energy consumption; notes from the Questionnaire that the Committee achieved financial savings of EUR 65 000 in 2023 due to a reduction in energy consumption; commends the Committee for having signed a new framework contract for medical checks that provides for lower prices, increased flexibility and better service overall than the previous contract; acknowledges the significant budgetary and administrative savings achieved by the Committee through interinstitutional cooperation, notably the joint services with the CoR and the outsourcing (Service level agreements) of specific services to the Commission in the handling of HR and the use of financial and HR management IT tools, as well as the participation in interinstitutional procurement procedures led by other institutions; notes from the Questionnaire that the total cost incurred by the Committee for the outsourcing of specific services to the Commission increased from EUR 743 600 in 2022 to EUR 793 000 in 2023;

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Changed9. Recalls that the Council decision of 25 May 2023 set the allowance for remote attendance of members of the Committee at non-statutory meetings at EUR 145 per remote meeting per day, which represents 50 % of the daily allowance for physical participation in 2023; considers that despite remote attendance being an important instrument for modern institutions given that, inter alia, it reduces the costs of meetings and allows broader participation, the allocation of an allowance for remote attendance of meetings, even if reduced and intended only for some types of events, is difficult to understand for the public, even more so when taking into consideration the difference paid to the members of the Committee and members of the CoR for remote attendance; notes with satisfaction from the Committee’s follow-up report to Parliament’s resolution on the implementation of the Committee’s budget for 2022 (the ‘Follow-up report’) that the application of that decision has already produced budgetary savings of EUR 1 677 000 due to lower travel costs and allowances paid, as well as environmental savings of some 553,66 tons of CO2, due to less travel in 2023; notes from the Annual report that the number of reimbursed meetings days attended remotely was 2006 (6 259 in 2022), with an average duration of 3 hours per meeting for a total cost of EUR 294 930 in 2023 (EUR 922 925 in 2022); welcomes multiple checks carried out by the Committee to prove the remote attendance of members prior to the payment of the allowance;

10. Notes that the impact of Russia’s war of aggression against Ukraine continued to put pressure on the Committee’s budget in 2023, through rising inflation and salary adjustments, challenges in building projects due to delays and higher raw material prices, the indexation of rental contracts (+10,3 % in 2023 compared to 2022), as well as indexation of maintenance and security service contracts (+13,50 % in 2023 compared to 2021); notes in particular that the energy costs increased from EUR 726 000 to EUR 3 125 000 between 2021 and 2022, before decreasing to EUR 1 923 391 in 2023; acknowledges the 2 % cap for non-salary-related expenses; commends in this context the Committee for its initiative in addressing challenges at budgetary level by e.g. implementing energy-saving strategies through short-term, as well as medium- and long-term measures, thus not needing an amending budget in 2023;

11. Notes a decrease in the current year appropriations for budget line 1004 (expenditure for Member’s travel, including subsistence and meetings allowances) from EUR 19,790 million in 2022 (of which EU 15,895 million were paid) to EUR 19,761 million in 2023 (of which EU 18,344 million were paid); notes with satisfaction an improvement in the implementation rate of those appropriations from 80,31 % in 2022 to 92,83 % in 2023; notes that the Committee President participated in 35 missions totalling EUR 71 926 in 2023 against 26 missions totalling EUR 38 042 in 2022;

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Changed12. Notes from the Questionnaire that the Joint Directorate for Innovation and Information Technology of the Committee and the CoR allocates some 3 % of its IT budget to cybersecurity which is far from the 10 % target provided for in the relevant legislation; askscalls on the co-legislators and the Commission to take this into account in the framework of the annual budgetary procedure;

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Internal management, performance and internal control

13. Notes from the Annual report that, as part of its annual work programme for 2023, the Committee had a total of 31 objectives designed for all entities of its administration and, as part of the general secretariat’s strategy for 2021-2025, the Committee has five core values and five key strategic objectives; notes from the Questionnaire that the number of opinions produced and participations in high-level meetings are key indicators for measures the Committee’s performance; takes note from the Questionnaire that the Committee has performance indicators in various areas, such as IT, HR, translation and communication; asks the Committee to include in its future reporting a list of all key performance indicators and objectives, per activity, as well as the target ( %) set for achieving them and the level ( %) of their achievement;

14. Notes that the Committee pursues its mission through opinions, which refer to legislative proposals made by the Commission (referrals), own-initiative opinions, which call on the Union institutions to take action, and exploratory opinions, which feed into the Commission’s work on its planned initiatives, and that the Committee’s positions can be highlighted in resolutions or included in evaluation and information reports; commends the Committee for its performance in assisting Parliament, the Council and the Commission in the legislative cycle in 2023; notes in that context that, in 2023, the Committee adopted 213 opinions and reports, an increase from 202 in 2022 and organised 146 hearings and 23 conferences, compared to 116 and 29 in 2022, respectively; notes that Committee’s members participated in 429 high-level meetings, summits and conferences in 2023 compared to 345 in 2022;

15. Appreciates that the Committee has taken action in 2023 to improve the visibility and impact of its work in connection with the format of its opinions, the methodology for follow-up opinions, cooperation with Parliament and the Commission and other projects of transversal nature, as well as innovative initiatives such as the EU Youth test, the enlargement candidate member initiative and the European Circular Economy Stakeholder Platform, among other;

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Added16. Commends the initiatives undertaken by the Committee aimed at fostering the active engagement of youth in the policy-making process;

17. Welcomes the pilot project implemented between September 2022 and April 2023 with the aim of strengthening the follow-up of selected opinions in respect of all institutions, whereas 19 opinions were selected for reinforced follow-up under that project; notes from the Questionnaire the overall positive results of that pilot project, such as improving the Committee’s capacity to undertake follow-up actions, improved prioritisation of Committee’s work and increased outreach and impact of the opinions selected;

18. Highlights that the efficient management of limited resources remained a key challenge throughout 2023 due to staffing constraints, compounded by increased activities under a continuous stable staffing policy; notes the Committee’s plan to introduce a new approach to strategic workforce planning and staff allocation, leveraging data collection on staff skills, active listening across the organisation, and reflections on strategic priorities by the Committee’s political bodies; invites the Committee to keep the Parliament informed of the outcome of this new plan, as this it could inspire other institutions who face similar, recurrent challenges resources wise;

19. Notes with regard to internal control standards (ICS), that the 2023 compliance exercise showed improvements compared to 2022; notes in that context that compliance, namely the extent to which the requirements of the 16 ICS are implemented, increased from 80,30 % in 2022 to 87,40 % in 2023, while effectiveness, namely the extent to which the implementation of those requirements works as intended, increased from 74 % in 2022 to 78,10 % in 2023; notes further that the 2023 annual risk assessment exercise showed that the application of internal controls decreased inherent risks (in category ‘critical’ and ‘very important’) by 53 %, from 40 to 19, in 2023;

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Changed19.20. Notes that, inthat thea arearestructuration of financial transactions, the Committee’s internalInternal auditAudit serviceService (IAS) adopted a new decision on the assessment of risks for the implementation of a simplifiedtook procedureplace in the beginning of 2023; notes further that the Committee’s2023, Bureaustrengthening adoptedits acompliance newwith internalinternational audit charterstandards and an audit committee charterstreamlining includingand proceduraldocumenting rulesall inits 2023;process;

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Added21 Notes that, in the area of financial transactions, the Committee’s internal audit service (IAS) adopted a new decision on the assessment of risks for the implementation of a simplified procedure in the beginning of 2023; notes further that the Committee’s Bureau adopted a new internal audit charter and an audit committee charter including procedural rules in 2023;

22. Notes from the Annual report and the Questionnaire that in 2023, the IAS launched four audits, namely on meeting authorisations, selecting the consultative commission on Industrial change, strategic cycle and duration and distance allowances for Committee’s members; calls on the Committee to keep the discharge authority informed on the outcome of those audits and implement all open recommendations resulted from previous audits (on institutional deadlines, interpreting, verification, ethics and integrity, statutory rights and payment times);

Human resources, equality and staff well-being

23. Notes that, at the end of 2023, the Committee was employing 707 staff members, compared to 706 in 2022; notes further that 49 contract agents and 130 temporary agents (of which 52 recruited in 2023) were employed in 2023 (compared to 50 contract agents and 128 temporary agents in 2022); notes, in addition, that the Committee was employing 12 interim agents and 10 external staff working intra muros, excluding external services providers in the fields of logistics and IT; takes note that the occupation rate was 95,50 % in 2023 compared to 95,10 % in 2022 and the staff turnover rate was 7 % in 2023;

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Changed22.24. Welcomes the ongoing efforts of the Committee to improve its HR framework with a view to becoming an attractive employer and a fully inclusive workplace, where every individual is valued and can fully develop their potential; notes that as part of implementing its HR strategy for 2023-2025, the Committee delivered on several key milestones in 2023, with new decisions being adopted on working conditions (hybrid working, overtime, special leave), diversity and inclusion strategy and action plan for 2023-2027, staff mobility and the methodology on sensitive posts, as well as on staff appraisal and promotions system, among other; notes with satisfaction the positive results of the staff satisfaction survey published in May 2023, whereby both staff and managers expressed high levels of satisfaction with various HR related, matters in particular on working arrangements, a topic on which it appears the Committee has found the perfect balance;

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Changed23.25. Notes that the Committee became a net importer of talent (from other institutions) for the second consecutive year as a result of implementing a targeted attractiveness and retention plan; acknowledges nevertheless persistent challenges due to reliance on temporary agents amid a shortfall of EPSO reserve lists, posing risks to expertise retention; underlines the importance of permanent staff in maintaining skills, continuity and productive working environment; recommends the Committee to implement initiatives to respond to those challenges by, for example, organising internal competitions;

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Changed24.26. Notes that with a view to better distributing its scarce resources, an external HR mapping audit, commissioned by the Committee, was finalised in 2023; notes with concern that the results of that audit confirmed the heavy workload in many different services across the Committee, thus putting at risk the fulfilment of the Committee’s mission and obligations; calls on the Committee to implement that audit’s recommendationsrecommendations, including revising the appraisal and continueperformance itssystem cost-efficiencyby 2025, adopting the new working conditions decision, and optimisationconducting regular staff engagement monitoring; stresses the importance of strategic workforce planning to optimize resource allocation, ensure alignment with the high-level priorities set by political authorities and continue its cost-efficiency efforts;

27. Notes that in 2023 the positive trends initiated in 2022 in relation to recruitment of staff continued; commends the Committee for the actions taken in this area such as the alignment of publication of vacancy posts with the publication of new EPSO reserve lists or the publication of job opportunities on the Committee’s website and Linkedin, among other; asks the Committee to keep Parliament informed of the outcome of its pilot project on employer branding activities; underlines that the on-boarding of newcomers constitutes an important factor of strategic alignment by ensuring that staff are informed of the rules and strategies in place in an institution; commends the Committee for having strengthened the on-boarding of new staff members in 2023 through an updated welcome booklet and on-boarding letter, a welcome pack with eco-friendly goodies, a feedback loop on the on-boarding experience, improved welcome session timing, a revamped Newcomers’ Corner, and on-boarding tips for managers;

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Added28. Recalls that the Committee adopted Decision 282/23A, effective 1 January 2024, establishing a flexible, trust-based hybrid working policy while offering staff an improved work-life balance and enhancing adaptability and efficiency; asks the Committee to inform the discharge authority about the developments in this regard in timely manner;

Added29. Welcomes the appointment of a female Secretary-General in January 2024 as a positive development towards achieving gender balance; regrets however that the percentage of women in senior management remained low in 2023, with only two out of seven senior management positions currently being held by women; welcomes nevertheless that the Committee considers the gender balance of its staff and in particular in the senior management as an important factor and invites the Committee to swiftly improve the situation at the highest levels of the Committee, by ensuring a balanced representation in line with the Committee’s commitments to diversity and inclusion;

Added30. Regrets that the Committee was unable to provide data on cases of burnout in 2023 and rejects the Committee’s position expressed in its follow-up report whereby burnout as such is not a recognised medical diagnosis and the reasons for burnout may be manifold; recalls the importance of statistical data on burnout with the aim ofhelping to take decisions on staff well-being, which should be also based on lessons learned from past very unfortunate experiences, and on external evaluations of the current framework; acknowledges data protection constraints but stresses the value of anonymised statistical data to support informed managerial decisions; notes with concern the findings highlighting heavy workloads in several services due to limited human resources; welcomes the adoption of new working arrangements as a positive step, but encourages the Committee to take further steps to ensure the publication of anonymised data on burnout cases;

31. Notes that, in 2023, the Committee was employing staff members from all Member States, with some of them being overrepresented (e.g. Belgium, Italy.); notes that in 2023 24 % of managers employed by the Committee were from the 13 Member States that joined the Union after 2004, which represents a slight increase compared to 21 % in 2022 and 19 % in 2021; reiterates its encouragement to the Committee to continue to take action to reach a proper geographical distribution within its staff, with a particular focus on management level;

32. Welcomes the Committee’s efforts to create a healthy work environment for its staff members; commends particularly the emphasis placed by the Committee on mental and physical health of staff, and the efforts made with regard to awareness-raising about health-related issues; notes the Committee’s measures on the management of sick leave, such as medical part-time and extended remote working, to ensure that staff on long-term sickness related absence return to work in a timely fashion, as well as an increase in the percentage of staff with no absences from 27 % in 2022 to 30 % in 2023; observes with satisfaction that the Committee arranged a free of charge skin cancer screening campaign on the Committee’s premises where 104 staff members over four days were consulted by external dermatologists in 2023;

Ethical framework and transparency

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Removed28. Notes that the Committee continued its internal reform process with the adoption of a decision on the general implementing provisions on administrative investigations and implementing rules for disciplinary proceedings in 2023; commends the Committee for having taken this last step necessary to fully implement the measures for a reinforced ethical framework of the Committee; notes from the Follow-up report that the Committee and the internal auditor have agreed on an action plan relating to the audit of the Committee’s ethics and integrity, with eight recommendations implemented and closed and two recommendations still open to be implemented by March 2025; asks the Committee to keep the discharge informed on the progress made in this matter;

Added33. Welcomes the adoption of the new diversity and inclusion strategy, effective until 2027; commends the specific awareness-raising actions on disability undertaken in early 2024; notes with satisfaction that diversity and inclusion training remains mandatory for managers and recommended for staff; acknowledges the Committee’s strong commitment to fostering a fully inclusive workplace; encourages the Committee to take further steps to monitor the representation of employees with disabilities and ensure the publication of anonymised data in this regard;

Added34. Notes that the Committee continued its internal reform process with the adoption of a decision on the general implementing provisions on administrative investigations and implementing rules for disciplinary proceedings in 2023; commends the Committee for having taken this last step necessary to fully implement the measures for a reinforced ethical framework of the Committee; notes from the Follow-up report that the Committee and the internal auditor have agreed on an action plan relating to the audit of the Committee’s ethics and integrity, with eight recommendations implemented and closed and two recommendations still open to be implemented by March 2025; asks the Committee to keep the discharge authority informed on the progress made in this matter;

35. Notes that the Committee continued to train staff and raise awareness about topics related to whistleblowing, conflicts of interest and other ethical issues in 2023: notes in this context with satisfaction the results of the staff engagement survey carried out in 2023 showing a high awareness rate among staff, with regard to the Committee’s ethical framework, in particular on the networks of confidential counsellors (93 %) and ethics counsellors (83 %); observes that the Committee organised 12 training sessions on those topics with a total participation of 79 staff members in 2023; commends the Committee for organising compulsory training on respect and dignity at work for all staff, including managers;

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Changed30.36. Notes that one harassment complaint was reported in 2023 and closed the same year, as a result of investigation and mediation by the Committee, without sanctions being imposed; recalls that the Committee is a civil party in the ongoing legal proceedings initiated by Belgian national authorities against a former member accused of misconduct that is currently before the Belgian courts; asks the Committee to inform Parliament about developments in that case; believes that fostering a culture of respect and dignity, supported by a zero-tolerance policy on harassment, is crucial to prevent future allegations and to ensure a safe and inclusive working environment within the Committee;

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Removed31. Notes that two OLAF cases were opened in 2023, both of which were dismissed in the same year: one for lack of sufficient evidence and the other referred to the Committee for follow-up; asks the Committee to keep the discharge authority informed of the progress made in the second case; notes further that the Ombudsman opened an enquiry in 2023 in relation to the management of a case involving allegations of harassment; asks the Committee to inform the discharge authority of the outcome of that enquiry;

Added37. Reiterates that a zero-tolerance policy against harassment is needed to protect the wellbeing of staff and is a duty of any employer; reminds that in addressing harassment claims a lesson learned approach should be put in place in order to avoid any possible wrongdoing; still considers that an external and independent investigation into the case currently under legal proceeding would be beneficial to improve the Committee’s reaction to similar cases;

Removed32. Notes with satisfaction the Committee’s work towards more transparency in its activities in 2023; notes in that context the adoption of a decision broadening the range of documents available online via the Transparency Register, such as the Committee’s meeting minutes and attendance lists, as well as a decision requesting the Committee’s members to meet only registered stakeholders, publish their list of meetings and attach their “legislative footprint” to their opinions; appreciates that the Committee publishes online information on its annual budget, performance indicators, expenditure or public procurement;

Added38. Appreciates the Committee's readiness to cooperate with the Union's investigative bodies, namely the European Anti-Fraud Office (OLAF) and the European Public Prosecutor's Office (EPPO) and the Ombudsman; notes that two OLAF cases were opened in 2023, both of which were dismissed in the same year: one for lack of sufficient evidence and the other referred to the Committee for follow-up; asks the Committee to keep the discharge authority informed of the progress made in the second case; notes further that the Ombudsman opened an enquiry in 2023 in relation to the management of a case involving allegations of harassment; asks the Committee to inform the discharge authority of the outcome of that enquiry;

Added39. Notes with satisfaction the Committee’s work towards more transparency in its activities in 2023; notes in that context the adoption of a decision broadening the range of documents available online via the Transparency Register, such as the Committee’s meeting minutes and attendance lists, as well as a decision requesting the Committee’s members to meet only registered stakeholders, publish their list of meetings and attach their “legislative footprint” to their opinions; appreciates that the Committee publishes online information on its annual budget, performance indicators, expenditure or public procurement; calls for the publication of all meetings held by EESC members with third parties;

40. Noes with satisfaction that the Committee has put solid rules and procedures in place to prevent conflicts of interests and avoid revolving doors with regard to staff who engage in outside activities or members who take on jobs after no longer being a Committee member; notes in this context that the Committee has introduced a new “Declaration of financial interests form” in 2023; notes that the form is to be declared by members, delegates, alternates and advisors for both their remunerated and non-remunerated posts or activities outside the Committee; commends further the Committee for its involvement in 2023 in the political negotiations to create the Inter-institutional Ethics Body tasked with setting ethical standards to strengthen transparency and integrity;