On discharge in respect of the implementation of the budget of the decentralised agencies for the financial year 2023

The Committee on Employment and Social Affairs calls on the Committee on Budgetary Control, as the committee responsible, to incorporate the following into its motion for a resolution:

–having regard to the European Court of Auditors’ Annual report on EU agencies for the financial year 2023,

–having regard to the European Commission’s Evaluation of the EU agencies under the remit of DG Employment – Eurofound, Cedefop, ETF and EU-OSHA,

–having regard to the Eurofound's Consolidated Annual Activity report 2023,

–having regard to the Cedefop's Consolidated Annual Activity report 2023,

–having regard to the ETF's Consolidated Annual Activity report 2023,

–having regard to the EU-OSHA's Consolidated Annual Activity report 2023,

–having regard to the ELA's Consolidated Annual Activity report 2023,

–having regard to Commission’s report: Evaluation of EU Agencies: Eurofound, Cedefop, ETF and EU-OSHA,

General comments

1.Expresses its satisfaction that the European Court of Auditors (ECA) has declared the transactions underlying the European Foundation for the Improvement of Living and Working Conditions (Eurofound), the European Agency for Safety and Health at Work (EU-OSHA), the European Centre for the Development of Vocational Training (CEDEFOP), the European Training Foundation (ETF), and the European Labour Authority (ELA) annual accounts for the financial year 2023 to be overall legal and regular, and that their financial position as at 31 December 2023 is fairly represented;

2.Welcomes the five agencies’ continued and growing cooperation and sharing of resources among them and with other institutions, including other EU agencies, the Commission and the Parliament;

3.Calls on the Commission to ensure better use of the Agencies’ expertise in relevant policy areas regarding, which can allow for more efficient utilisation of Union budget resources compared to alternative solutions;

4.Acknowledges that the high inflation rate in 2023, and the related increase in various costs and utilities, affects significantly the agencies’ budget dedicated to operational expenditure, in particular for agencies located in Member States experiencing the highest inflation rates;

European Foundation for the Improvement of Living and Working Conditions (Eurofound)

5.Appreciates the Foundation’s work on enhancing and disseminating knowledge, and providing evidence-based expertise to support the development of better informed social, employment and work-related policies in Europe, to analyse policy options to improve working conditions, industrial relations, employment and living, and to produce expertise on right to disconnect, telework, hybrid work and related impacts on work–life balance and quality of working conditions;

6.Expresses its satisfaction for the positive ECA’s opinion on the Foundation’s accounts and invites the Foundation to address the ECA’s remarks;

7.Notes the 16,8 % of carryover rate, above the 15 % benchmark, and the Foundation’s reply making a distinction between planned and unplanned carry-overs, the latest being assessed at 4 % by the Foundation;

8.Notes the Commission’s recommendation to further improve staff training through formal guidelines and a more systematic approach;

European Agency for Safety and Health at Work (EU-OSHA)

9.Appreciates the Agency’s activities to develop, gather and provide reliable and relevant information, analysis and tools on national and EU priorities in the field of occupational safety and health;

10.Expresses its satisfaction for the positive ECA’s opinion on the Agency’s accounts and invites the Agency to address the ECA’s remarks;

11.Welcomes the Agency’s prompt and successful action in a procurement procedure to protect the interest of the EU budget and notes the related ECA’s opinion on the alternative procedure taken in extreme urgency;

12.Notes the 29 % of carryover rate, way above the 15 % benchmark, and the Agency’s reply linking part of the carryover to commitments planned in the Agency’s Single Programming Document;

13.Notes with satisfaction the cost-cutting actions performed by the Agency for allocating resources to the Agency’s core tasks;

14.Notes the Commission’s recommendation to strengthen its cooperation with the other agencies related to the EMPL committee remit;

European Centre for the Development of Vocational Training (Cedefop)

15.Appreciates the Cedefop’s activities to provide research, analyses and technical advice and expertise in vocational education and training (VET), qualifications and skills policies, to compile and disseminate research on skills mismatches, and to ensure digital skills are integrated into VET across the Union, as well as, the Cedefop involvement in the 2023 European Year of Skills;

16.Expresses its satisfaction for the positive ECA’s opinion on the Agency’s accounts and invites the Agency to address the ECA’s observations;

17.Notes the Cedefop’s corrective action taken regarding the daily subsistence allowances paid to Greek seconded national experts;

18.Notes the Commission’s recommendation to review the Cedefop Management Board’s working arrangements to increase efficiency and effectiveness;

European Training Foundation (ETF)

19.Appreciates the ETF’s activities in helping the Union, Member States and its partner countries to harness the potential of their human capital and to improve the employment prospects through the reform of education, vocational training, skills and labour market systems, as well as, the ETF role in the 2023 European Year of Skills;

20.Expresses its satisfaction for the positive ECA’s opinion on the Agency’s accounts and invites the Agency to address the ECA’s remarks, especially concerning open procurement procedure;

21.Notes the ETF’s confirmation that it has reviewed its methodologies on financial solvency in the tendering evaluation process and on financial assessment;

22.Notes the Commission’s recommendation to improve the geographical and gender balance among its staff, and to further cooperate with the ELA and the European Institute for Gender Equality;

European Labour Authority (ELA)

23.Appreciates the Authority’s work to assist Member States and the Commission in ensuring a fair and effective enforcement of Union rules on labour mobility and coordination of social security systems, in facilitating effective labour mobility in Europe through European Employment Services (EURES) activities, and to raising awareness, through training and information campaigns, about the rights and obligations of workers and employers;

24.Expresses its satisfaction for the overall positive ECA’s opinion on the Authority’s accounts; notes, however, the ECA’s remarks on a basis for qualified opinion on the legality and regularity of payments underlying the accounts;

25.In this regards, notes the ECA’s opinion on an irregular contract awarding and the Authority’s reply that the concerned contract was not renewed and ran until the end to avoid disruption in the Authority’s activities;

26.Notes the ECA’s opinion on shortcomings in ELA’s ex-ante checks and the 3,8 % of irregular expenditure above the materiality threshold; takes note of the Authority’s commitment to enhance its ex-ante checks by reviewing and formalising the process for assessing key parameters;

27.Notes the 26 % of carryover rate, way above the 15 % benchmark, and the 19 % of Title II appropriations cancelled, and takes note of the Agency’s reply committing to make efforts to enhance budget implementation;

28.Expects the Authority to deliver on its commitments and address all ECA’s remarks without delay;

Conclusion

29.Asks the Agencies and the Commission to implement as soon as possible all outstanding ECA's recommendations;

30.Recommends, based on the facts available, that discharge be granted to the Executive Directors of the Eurofound, EU-OSHA, the CEDEFOP, the ETF, and the ELA in respect of the implementation of the Authorities’ budget for the financial year 2023.