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 2024, Section V – Court of Auditors

(2025/2149(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 2024, Section V – Court of Auditors,

– 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 (A100000/2026),(A10-0052/2026),

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 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 Court of Auditors (the ‘Court’) is the Union’s external auditor, entrusted, through independent, professional and impactful audit work, to assess the economy, effectiveness, efficiency, legality and regularity of Union action to improve accountability, transparency and financial management, and thereby enhance citizens’ trust and respond effectively to current and future challenges facing the Union;

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ChangedC. whereas, without prejudice to ArticleArticles 287 and 319 of the Treaty on the Functioning of the European Union (TFEU), every year since the close of the financial year 1987, the Court has had its revenue and expenditure accounts audited by an independent external auditor and, since the report on the financial year 1992, the external auditor’s reports have been published in the Official Journal of the European Union;

D. whereas management accountability towards the budgetary authorities is provided via the annual activity report of the Secretary-General of the Court, the purpose of which, in accordance with Article 74(9) of the Financial Regulation, is to provide information about the management of resources, including systems, and about the efficiency and effectiveness of the Court’s internal control systems;

E. whereas, by performing its tasks in a transparent and independent way, the Court contributes to democratic oversight, public debate and sound financial management of the Union;

F. whereas the Court has taken a position according to which, to assess Union governance, its accountability and transparency and the quality and reliability of the information and data reported on the implementation of Union policies, the best solution would be for the Court to be mandated to audit all Union institutions, bodies, offices and agencies set up by or under the Treaties and all the intergovernmental structures of key relevance to the functioning of the Union; whereas Parliament strongly supports the Court and would welcome initiatives that would strengthen the ability of the Court to deliver on its mandate;

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Changed1. Notes that the budget of the Court falls under MFF heading 7, ‘European public administration’, which amounted to EUR 13,3 billion in 20232024 (representing 6,9 % of the total Union budget); notes that the Court’s budget of approximately EUR 0,2 billion represents approximately 1,5 % of the total administrative expenditure of the Union;

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2. Notes that the Court, in its Annual Report for the financial year 2024 (the ‘Court’s report’) examined a sample of 70 transactions under the heading ‘Administration’, the same number as in 2023; notes that the Court further states that administrative expenditure comprises expenditure on human resources, including expenditure on pensions, which in 2024 accounted for approximately 69 % of the total administrative expenditure, and expenditure on buildings, equipment, energy, communications and information technology (IT), and that its work over many years indicates that, overall, this spending is low risk;

3. Notes that 16 (23 %) of the 70 transactions contained errors but that the Court, based on the 3 errors which were quantified, estimates the level of error to be below the materiality threshold;

4. Notes that the financial statements of the Court are audited by an independent external auditor in order to ensure the same principles of transparency, accountability and independence as the Court applies to its auditees;

5. Welcomes Special Report 24/2024 of the Court and its findings and recommendations on the Union civil service’s employment framework; recalls that it considers it important to have a more in-depth investigation into the administrative expenditure and repeats its call to include in its work comprehensive data on all institutions in order to provide a coherent basis for a consistent discharge procedure; invites the Court to keep the discharge authority updated on any initiative on this matter;

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Added6. Notes the announcement by the Court of 1 October 2025 on the introduction of a revised audit approach for Joint Undertakings starting with the 2025 financial year; notes that this change was prompted, inter alia, by staff capacity constraints and by the cessation of audits of Joint Undertakings under Horizon Europe by the Commission’s Internal Audit Service, which had previously audited Joint Undertakings, thereby limiting the availability of complementary audit assurance; notes further that the new approach foresees an adequate audit sample size, the consolidation of audit work across all Joint Undertakings and the issuance of two separate statements of assurance, supported by additional thematic and special reports; calls on the Court to ensure that the revised methodology is implemented in a timely manner and that it continues to meet the highest standards of audit quality, reliability and assurance for the protection of the Union’s financial interests;

Budgetary and financial management

7. Notes that the overall budget (C1 appropriations) of the Court for 2024 amounted to EUR 185 655 890, equivalent to an increase of 6,05 % from EUR 175 059 922 in 2023; notes that the increase was primarily due to salary adjustments; notes that for 2024, 89,50 % of appropriations (up from 88,50 % in 2023) were for its members and staff, while 10,50 % were for buildings, equipment and miscellaneous expenditure (down from 11,60 % in 2023);

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Changed7.8. Notes that the implementation rates for commitments and payments for 2024 remained high, almost the same as in 2023, whereas the utilisation rate for appropriations stood at 97,30 % and payments represented 94,81 % of total commitments in 2024; notes an increase in the cancelled appropriations at year-end from approximately EUR 3,4 million in 2023 to EUR 4,4 million in 2024; commends the Court for having maintained below 11 days the average time for payment of invoices in 2024; encourages the Court to maintain strict cost discipline, continue prioritising operational efficiency, and further reduce year-end cancellations, thereby improving efficiency and the value-for-money of its appropriations;

9. Notes that the Court regularly carried out budgetary reviews over the year, which in 2024 resulted in 29 budgetary transfers totalling approximately EUR 4,5 million, down from approximately EUR 5,7 million in 2023; notes that those transfers were needed to reinforce budget lines related to, inter alia, IT projects (+20,28 %), fitting-out of premises (+560,18 %), and technical equipment and installations (73,53 %); notes that, according to the Court’s replies to the questionnaire submitted by the Committee on Budgetary Control for the 2024 budgetary discharge (the ‘Questionnaire’), reallocations were also necessary due to a higher-than-budgeted level of inflation and the resulting price indexations affecting new and existing contracts;

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Changed9.10. Notes that, according to the Questionnaire, the impact of the illegal Russia’s war of aggression against Ukraine was felt by the Court through inflation-driven increases in the cost of goods, services and logistics in 2024; welcomes the Court’s measures to counter such effects by conducing more detailed pre-market analyses to ensure realistic planning and effective procurement; notes further with satisfaction that the Court’s costs for energy consumption (Budget Item No. 2024) fell significantly, from EUR 1 556 671 in 2023 to EUR 887 827 in 2024, mainly because of a reduction in the fixed electricity price, in line with the interinstitutional contract with the provider concerned; acknowledges the need for all Union institutions to improve their budget management, including by taking into account price volatility, especially in the energy sector, when concluding contracts with service providers;

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11. Notes that commitments totalling approximately EUR 9,9 million for Budget Title 1 and approximately EUR 8,4 million for Budget Title 2 were carried over automatically from 2024 to 2025 to cover costs for, inter alia, missions, training and translation; notes that an amount of EUR 602 000 was carried over by decision, whereas that amount is linked to a budgetary transfer approved by the budgetary authorities for the replacement of the Court’s K1 lifts;

12. Notes that the budgeted appropriations (C1) for missions of the Court’s members and staff was EUR 2 860 000 in 2024 (up from EUR 2 722 000 in 2023); notes that, of those appropriations, an amount of EUR 2 469 344 was committed, of which EUR 2 184 344 was paid (i.e. an implementation rate of 88,46 %) in 2024;

13. Notes with satisfaction that, according the Questionnaire, with regard to the Court’s budget item for publications, budgeted appropriations decreased from EUR 810 000 in 2014 to EUR 300 000 in 2024 due to an increase in the in-house production of reports and the virtual promotion of publications; notes that the Court’s estimates for that budget item have further decreased in the following budgetary years; notes further the Court’s tendency to decrease the budget for interpretation and the services of experts (consultations, studies etc.) and the plan to decommission its fixed telephony to generate further savings;

14. Welcomes, as reflected in the Court’s response to the various points raised by the discharge authority in the context of the 2023 discharge exercise (hereinafter the ‘Follow-up Report’), the Court’s ongoing work to revise its missions guide in order to address, in a proactive way (i.e. at the moment of the mission preparation), matters such as cost-efficiency and ways to minimise environmental impact, among others; invites the Court to keep the discharge authority informed of the progress made in that regard;

15. Notes with satisfaction that the external auditor declared that the resources allocated had been used for their intended purpose and that the control procedures put in place by the authorising officers provided the necessary guarantees to ensure that financial operations were in compliance with the applicable rules and regulations;

Internal management, performance and internal control

16. Notes that the Court spent a total of 3 176 days in Member States and outside the Union, compared with 4 897 days in 2023, and 1 244 days at Union institutions, agencies and bodies and other international organisations and private audit firms, compared to 1 370 in 2023;

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Changed16.17. Notes that, during 2024, the Court presented 2 annual reports, 3 specific annual reports, 28 special reports, 4 reviews and 3 opinions, totalling 40 items (down from 45 items in 2023); welcomes the Court’s focus, through special reports and reviews, in 2024 on pressing challenges that the Union is facing on key topics such as financial instruments in cohesion policy, transparency of Union funding granted to NGOs, Union bodies fighting fraud, security of gas supply, investment in artificial intelligence (AI), climate adaptation, absorption of the Recovery and Resilience Facility (the ‘RFF’), the road to zero-emission cards, support for refugees in Türkiye and the Union’s industrial policy on hydrogen; welcomes further the Court’s planned reports on the RRF in areas such as transparency and traceability, as well as on the Union’s architecture and strategy in the fight against fraud and the Union’s support to Ukraine, Moldova and Georgia; notes an improvement with regard to stakeholders’ satisfaction with the Court’s work, with a survey carried out in 2024 showing that 89 % of respondents (up from 85%85 % in 2023) considered the Court’s reports useful and that 82 % (up from 78 %) considered the Court’s work to have an impact;

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Removed17. Notes that the Court has a set of key performance indicators (KPIs) to measure progress made towards achieving its strategic goals, in line with the Court’s 2021-2025 strategy; notes the Court’s strategic goals for 2024: improvement of accountability, transparency and audit arrangements, targeting of areas and topics where audits can add most value and the provision of strong audit assurance in a challenging and changing environment; invites the Court to present its KPIs, the degree of progress achieved and targets in a summarised way in the future (table format);

Added18. Calls on the Court to provide more detailed and systematic assessments of the spillover effects of Union-funded programmes on Member States, both those with high and those with low absorption rates of Union funds; stresses that a comprehensive analysis of the economic, social, administrative and territorial impacts of such spillover effects, including cross-border and distributional effects, would strengthen the evaluation of the long-term impact, added value and sustainability of Union spending and support better-informed policy-making at both Union and national level;

Added19. Notes that the Court has a set of key performance indicators (KPIs) to measure progress made towards achieving its strategic goals, in line with the Court’s 2021-2025 strategy; notes the Court’s strategic goals for 2024: improvement of accountability, transparency and audit arrangements, targeting of areas and topics where audits can add most value and the provision of strong audit assurance in a challenging and changing environment; invites the Court to present its KPIs, the degree of progress achieved and targets in a summarised way in the future (table format); calls on the Court to further develop KPI based on the performance and results of European policies in order to clearly measure the impact of the policies pursued by the Commission;

Added20. Invites the Court to consolidate its findings into a comparative performance analysis and to develop a methodology for a "performance compass" of Union programmes; believes that such an instrument, while respecting the diversity of policies, would provide the discharge authority, decision-makers and the general public with clear guidance on which programmes use resources effectively and which might be candidates for termination or fundamental restructuring;

21. Appreciates that the Court measures the implementation of its recommendations based on the follow-up carried out by its auditors; notes that, in 2024, the Court analysed the recommendations addressed to the Commission and other institutions in its 2020 reports; notes that 93 % of the 19 recommendations made in the Court’s 2020 annual report and 88 % of the 186 recommendations in the Court’s 2020 special reports had been implemented either in full, or in some or most respects;

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Changed19.22. Notes fromthat, according to the Follow-up Report thatReport, the Commission has agreed to provide the Court with a manual extraction of data from the ARACHNE tool; deplores, nevertheless, the fact that the Court’s access to FENIX, the reporting tool on the RRF, remains an open issue, with the Commission granting the Court withpartial access to only some of the FENIX modules;modules, and the information contained therein not being updated in a timely manner; welcomes a reported increase in the number of the Court’s users who have access to FENIX; supports, nevertheless, the Court’s request to the Commission to grant itthe Court full access as soon as possible; recalls that the Commission’s Directorate-General for Economic and Financial Affairs has endeavoured to grant the Court access to FENIX files within 2 weeks of approving a payment request; is alarmed, however, that in practice this deadline is not being met in many cases, and delays of up to 2,5 months have been encountered in some instances, significantly slowing down the delivery of Court findings;findings or undermining the effectiveness and timeliness of the Court’s audit work, in particular on high-risk expenditure such as the RFF; reminds in this context the Commission of its obligation under Article 263 of the Financial Regulation to grant the Court comprehensive access to all relevant systems and databases (ARACHNE, FENIX,FENIX and ARES, among others); calls therefore on the Commission to remedy this situation without delay, including by concluding an interinstitutional arrangement ensuring the Court’s full, systematic and real-time access to all relevant databases, including ARACHNE and FENIX; invites the Court to report back to the discharge authority on concrete improvements achieved;

Human resources, equality and staff wellbeing

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Changed20.23. Notes that the Court, at the end of 2024, had 961 members of staff (down from 969 in 2023), including temporary agents (192 in 2024, down from 204 in 2023), contract staff (84 in 2024, down from 86 in 2023) and seconded national experts (26 in 2024, the same as in 2023); recalls the importance of providing permanent contracts to employees in order to maintain skills andskills, ensureensuring continuity and a productive and stable working environment;

24. Notes that, in 2024, 54 % of the Court’s staff were women (up from 53 % in 2023) and 47 % were men; regrets the fact that women represent only 30 % of the Court’s senior management, the same as in 2023; regrets further a decrease in the proportion of women in middle-management positions from 40 % to 37,30 % in 2023; recalls the fact that gender equality is a Treaty-based principle that should be respected by all institutions and invites the Court to continue its efforts to promote gender balance for middle and senior management;

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Changed22.25. Notes that, according to the Questionnaire, the Court employed 64 trainees, 59 of whom received a monthly allowance in 2024; welcomes the Court’s new programme, entitled TraineEca Career Development, which aims to offer job opportunities to the most deserving trainees; notes, in addition, the Court’s plan to offer special traineeships in the area of AI to recent university graduates and doctoral students in that area; renews its emphasis that traineeships should be remunerated in compliance with Parliament’s resolution of 15 June 2023 on Quality Traineeships in the Union (2020/2005(INL)), which calls for all internships in the Union to be paid; emphasises that unpaid traineeships constitute a form of exploitation of young workers and a barrier to equal opportunities;

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Changed23.26. Notes that, according to the Questionnaire, recruiting officials continued to be a challenge for the Court in 2024, due to a lack of attractiveness of Luxembourg as a place of work or the lack of interest in audit and control jobs among young workers; notes with satisfaction that the Court addressed this issue by organising regular selection procedures that target the Court’s trainees, organising internal competitions to retain the most deserving talent and increasing outreach activities; encourages the Court to continue these efforts, in order to safeguard the continuity of its activity; acknowledges, in this context, that a competition clause is needed with a view to also organising EPSO competitions exclusively for Luxembourg; commends the Court for having joined an interinstitutional agreement whereby staff recruited by Luxembourg-based Union institutions receive a housing allowance as of 2025 in order to compensate for the high cost of living in Luxembourg;

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Changed24.27. Is aware that the Court has no role in the selection process for members under Article 286(2) TFEU; recalls, nevertheless, that there is still ana importantsignificant gender imbalance among the members of the Court, with only 10 women among the 27 members; regrets the fact that several Member States have never nominated a woman to the Court; reiterates its call on Member States to proposetake candidatesthe ofneed differentfor genders,gender balance into account when proposing candidates, aiming for a more balanced and representative composition of the Court;Court, while ensuring that nominations continue to be based on merit, qualification and independence criteria;

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28. Continues to express regret for the Council’s practice of nominating members of the Court despite them being rejected by Parliament; reiterates its call for a revision of the nomination procedure, which would give Parliament a binding role in evaluating the suitability of candidates for the Court;

29. Appreciates the extensive teleworking regime, offered by the Court in order to mitigate the recruitment challenges, of up to 10 days per month, of which 5 days can be spent teleworking from outside the place of employment, capped at 30 days per year; notes that, according to the Questionnaire, the Court revised its hybrid working rules in 2024 to take into account, among other things, feedback received; invites the Court to carry out regular checks to ensure that those rules are adhered to; notes with satisfaction that, according to the Questionnaire, the Court takes action in a variety of ways to ensure its staff’s physical and mental wellbeing;

30. Notes an increase in both the vacancy and turnover rates, from 6,60 % in 2023 to 7,90 % in 2024 in the case of the latter, and from 2,27 % to 2,49 % in the case of the former, with the turnover rate representing the number of staff leaving as a proportion of all staff;

31. Notes that several nationalities, in particular from Nordic Member States, are underrepresented among the Court’s staff; notes that there is a risk of the situation further declining due to aging of staff and lack of recruitment of candidates from those Member States; recalls the Court’s recurrent efforts to tackle this imbalance by increasing publicity for the Court’s competition and vacancy notices in significantly underrepresented Member States, cooperating with members of the Court to disseminate its notices and reaching out to potential candidates by attending career fairs in certain Member States; notes in addition that, according to the Follow-up Report, the Court also developed an action plan with 10 actions over the coming 5 years, with a view to reversing the current underrepresentation of certain Member States; invites the Court to keep the discharge authority informed of the progress in and the outcome of the implementation of that action plan;

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Changed29.32. Recalls that, at the end of 2023, all 29 additional posts (temporary agents) required for the RRF audit of EUR 723,8 billion were filled; understands, however, that the materiality, complexity and large amounts of, and rapid disbursements from, the RRF continue to pose challenges and that current resources are not sufficient to systematically ensure that RRF expenditure complies with Union and national rules and to respond to the increased Union activities; commends, nevertheless, the efforts made by the Court to carry out its duties regarding the RRF so far despite the inadequacy of the resources available; supports, in this context, the Court’s request to convert the 29 temporary agents hired for RRF-related audits into permanent posts; highlights the importance of ensuring that the Court is consistently provided with adequate staffing levels and structurally equipped to fulfil both its mandate and additional responsibilities stemming from future performance-based financing instruments, including the Multiannual Financial Framework;

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Added33. Notes with appreciation that also in 2024 the Court exceeded the professional training target of 5 days of non-language training per year for auditors, in line with the International Federation of Accountants’ recommendations, and 2 days for non-audit staff (respectively 5,8 and 3,9);

34. Notes that, in 2024, the average absence due to illness was 9,9 days per staff member, almost the same as in 2023; notes furthermore that, in 2024, 3 staff members (4 in 2023) were absent due to prolonged illness, which is defined as lasting more than 200 days in a year;

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Changed31.35. Notes that 13 cases of burnout were reported in 2024, up from 7 cases in 2023; notes with concern the significant increase in reported burnout cases in 2024; calls on the Court to carry out a thorough analysis of the reasons for this significant increase, including on workload distribution, organisational drivers and structural risks, and to integrate the evidence-based findings into its human-resources planning and management practices, with a view to effectively preventing burnout and improving the working environment; welcomes the fact that the Court took several steps to reduce the risk of burnout by introducing a full wellbeing programme, offering resilience training, publishing and implementing guidelines on returning to work after long-term sick leave, continuing to offer mental health first aid, and providing financial support to staff by covering the cost of 10 sessions with a psychologist of their choice; notes, in particular, that the Court organised 4 compulsory training sessions for managers in 2024, focusing on staff wellbeing, performance, work-life balance and preventing burnout;

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36. Commends the Court’s awareness-raising activities, surveys and training sessions, offered to its staff, members, or both, in 2024, on the Court’s anti-harassment and respectful workplace policy; notes with concern that in 2024 there was one administrative investigation concerning allegations of sexual and psychological harassment which was followed up by disciplinary action on the basis of the conclusion that there was inappropriate behaviour on the part of the person under investigation;

37. Notes that, according to the Questionnaire, the Court took many actions in 2024, in line with its Diversity and Inclusion (D&I) Action Plan 2021-2025, in various areas such as recruitment, training, career development, working conditions and staff awareness; notes that the Court integrates D&I into its performance management, evaluation, certification and promotion processes, as well as its training programmes, with 13 managers having taken a voluntary D&I assessment in 2024; welcomes the specialised training course entitled “Women managers rise up: skilling for success” which the Court organised to encourage women to purse management roles; welcomes further the Court’s new positive action programmes for trainees and contract staff targeting people with disabilities, with two traineeships per year offered to people with a recognised disability; notes with satisfaction that the Court organised in 2024 the fourth Court Disabilities Awareness Week, where a new Disability Roadmap was launched, highlighting the Court’s efforts towards a more inclusive workplace; notes with satisfaction that the Court also publishes mid-term reviews of its D&I Action Plan in order to ensure transparency and engagement across the organisation;

Ethical framework and transparency

38. Emphasises the critical role of the Court as the Union’s independent external auditor and guardian of its finances, which requires the Court to uphold the highest standards of integrity, professionalism and accountability, as well as the principle of mutual sincere cooperation between the Union’s institutions, serving as a model institution to inspire confidence and credibility; recalls that, in accordance with Article 285 TFEU, the members of the Court must exercise complete independence and adhere to the highest ethical principles, demonstrating integrity, objectivity, professional conduct, dignity, commitment and loyalty;

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Changed35. Reiterates its39. deepNotes concernwith regardingconcerns the Court’s refusal to lift the immunity of its former President and the Court’s decision to deny the request of the European Public Prosecutor’s Office (EPPO) to allow a number of the Court’s staff members to testify in an ongoing criminal investigation; notesnotes, frombased on the Follow-up Report the Court’sReport, positionthat wherebythe itCourt did not lift said immunity because the EPPO did not provide the Court with “sufficient information enabling it to understand which actions the persons concerned are accused of and in how far such actions might constitute criminal conduct”, citingand that the Court relied on case-law as part of the applicable legal framework in support of the Court’sthat position; notes that, on 10 February 2025, the EPPO filed an appeal (case number T-99/25) with the Court of Justice of the European Union (CJEU) under Article 263, paragraph 4, of the263(4) TFEU against the Court’s decision to deny the EPPO’s request to allow a number of the Court’s staff members to testify in an ongoing criminal investigation; notes further that the aforementioned appeal did not challenge the non-lifting of the immunity of the persons concerned; stresses that the powers of the Union institutionsinstitutions’ toduty withholdof authorisationsincere ofcooperation theirrequires staffthat membersauthorisations to behear heardstaff as witness do not include havingwitnesses ain saycriminal oninvestigations thebe meritsrefused ofonly thein legalstrictly proceedingsexceptional incircumstances; whichurges the staff members areCourt to testify and can onlyclarify bethe invokedcriteria inapplied situationswhen wheredeciding theon interestsrequests offrom the Union, whichEPPO mustand beto ofensure considerablethat importancesuch anddecisions vitalcannot tobe theperceived Union,as wouldobstructing bejudicial atinvestigations; risk;calls urgeson the Court to maintain a high level of transparency and accountability in its cooperation with the EPPO and other Union bodies responsible for combating fraud and misconduct;misconduct and to ensure that immunity is not invoked to hinder legitimate judicial proceedings;

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Changed36.40. notesNotes that there were no whistleblowing cases at the Court in 2024; notes furthermore that, in 2023, the Court launched the process of updating the Court’s rules on conducting administrative investigations and disciplinary procedures, which was finalised in early 2024;

41. Notes with satisfaction that the Court has in place a robust ethical farmwork that includes ethical guidelines applicable to both the Court’s members and staff and a code of conduct for the Court’s members; notes that the Court also has an Ethics Committee that meets regularly to review relevant ethical matters, including members’ external activities, and that is formed by two members of the Court and one external member; notes from the annual report of the Ethics Committee for 2024 that the Ethics Committee held six meetings and received 17 declarations from current Court members (on external activities) and former Court members (on their intended occupations after ceasing to hold office), with all of them having been issued a positive opinion in 2024;

42. Notes that the declarations of interest of the Court’s members are filled in annually and any time there is a significant change and are published on the Court’s websites; notes with satisfaction that details on the Court members’ missions, including costs, are also published online; commends the Court for having finalised the work on updating its rules on conducting administrative and disciplinary measures in 2024; notes that, according to the Questionnaire, no cases of conflict of interest were detected in 2024;