### 2. member states shall ensure that where a district heating and cooling system is built or substantially refurbished it meets the criteria set out in paragraph 1 applicable at such time when it starts or continues its operation after the refurbishment. in addition , member states shall ensure that when a district heating and cooling system is built or substantially refurbished , there is no increase in the use of fossil fuels other than natural gas in existing heat sources compared to the annual consumption averaged over the previous three calendar years of full operation before refurbishment , and that any new heat sources in that system do not use fossil fuels other than natural gas. ### 2. member states shall ensure that where a district heating and cooling system is built it meets the criteria set out in paragraph 1 applicable at such time. in addition , member states shall ensure that when a district heating and cooling system is substantially refurbished , there is no increase in the use of fossil fuels in existing heat sources compared to the annual consumption averaged over the previous three calendar years of full operation before refurbishment.


### 2. member states shall ensure that where a district heating and cooling system is built or substantially refurbished it meets the criteria set out in paragraph 1 applicable at such time when it starts or continues its operation after the refurbishment. in addition , member states shall ensure that when a district heating and cooling system is built or substantially refurbished , there is no increase in the use of fossil fuels other than natural gas in existing heat sources compared to the annual consumption averaged over the previous three calendar years of full operation before refurbishment , and that any new heat sources in that system do not use fossil fuels other than natural gas. ### 2. member states shall ensure that where a district heating and cooling system is built or substantially refurbished it meets the criteria set out in paragraph 1 applicable at such time when it starts or continues its operation after the refurbishment. in addition , member states shall ensure that when a district heating and cooling system is built or substantially refurbished , there is no increase in the use of fossil fuels other than natural gas in existing heat sources compared to the annual consumption averaged over the previous three calendar years of full operation before refurbishment , and that any new heat sources in that system do not use fossil fuels other than natural gas. furthermore , member states shall ensure that geographic routing of existing district heating and cooling systems are mapped and published.


### 2. member states shall ensure that where a district heating and cooling system is built or substantially refurbished it meets the criteria set out in paragraph 1 applicable at such time when it starts or continues its operation after the refurbishment. in addition , member states shall ensure that when a district heating and cooling system is built or substantially refurbished , there is no increase in the use of fossil fuels other than natural gas in existing heat sources compared to the annual consumption averaged over the previous three calendar years of full operation before refurbishment , and that any new heat sources in that system do not use fossil fuels other than natural gas. ### 2. member states shall ensure that when a district heating and cooling system is built or substantially refurbished , there is no increase in the use of fossil fuels other than natural gas in existing heat sources compared to the annual consumption averaged over the previous three calendar years of full operation before refurbishment , and that any new heat sources in that system do not use fossil fuels other than natural gas.


### 2. member states shall ensure that where a district heating and cooling system is built or substantially refurbished it meets the criteria set out in paragraph 1 applicable at such time when it starts or continues its operation after the refurbishment. in addition , member states shall ensure that when a district heating and cooling system is built or substantially refurbished , there is no increase in the use of fossil fuels other than natural gas in existing heat sources compared to the annual consumption averaged over the previous three calendar years of full operation before refurbishment , and that any new heat sources in that system do not use fossil fuels other than natural gas. ### 2. member states shall ensure that where a district heating and cooling system is built or substantially refurbished it meets the criteria set out in paragraph 1 applicable at such time when it starts or continues its operation after the refurbishment. in addition , member states shall ensure that when a district heating and cooling system is built or substantially refurbished , there is no increase in the direct carbon dioxide emissions in existing heat sources compared to the annual emission averaged over the previous three calendar years of full operation before refurbishment. furthermore , member states shall ensure that the geographic routing of existing district heating and cooling systems are mapped and published.


### 3. member states shall ensure that as from 1 january 2025 , and every five years thereafter , operators of all existing district heating and cooling systems with a total energy output exceeding 5 mw and which do not meet the criteria set out in paragraph 1(b) to (e) , prepare a plan to increase primary energy efficiency and renewable energy. the plan shall include measures to meet the criteria set out in paragraph 1(b) to (e) and shall be approved by the competent authority. ### 3. member states shall ensure that as from 1 january 2029 , and every five years thereafter , operators of all existing district heating and cooling systems with a total energy output exceeding 5 mw and which do not meet the criteria set out in paragraph 1(b) to (e) , prepare a plan to increase primary energy efficiency and renewable energy. the plan shall include measures to meet the criteria set out in paragraph 1(b) to (e) and shall be approved by the competent authority.


### 4. in order to assess the economic feasibility of increasing energy efficiency of heat and cooling supply , member states shall ensure that an installation level cost-benefit analysis in accordance with annex x is carried out where the following installations are newly planned or substantially refurbished : ### 4. in order to increase energy efficiency of heat and cooling supply , member states shall ensure that regulative barriers for the utilisation of waste heat are removed , sufficient support for the uptake of waste heat into heat and cooling supply networks is provided and the use of waste heat is mandatory , where the following installations are newly planned or refurbished :


### a data centre with a total rated energy input exceeding 1 mw level , to assess the cost and benefits of utilising the waste heat to satisfy economically justified demand , and of the connection of that installation to a district heating network or an efficient/res-based district cooling system. the analysis shall consider cooling system solutions that allow removing or capturing the waste heat at useful temperature level with minimal ancillary energy inputs. ### a data centre with a total rated energy input exceeding 100 kw level , shall utilise the waste heat or other waste heat recovery applications.


### 1. national energy regulatory authorities shall apply the energy efficiency first principle in accordance with article 3 of this directive in carrying out the regulatory tasks specified in directives (eu) 2019/944 and 2009/73/ec regarding their decisions on the operation of the gas and electricity infrastructure , including their decisions on network tariffs . ### 1. national energy regulatory authorities shall apply the energy efficiency first principle in accordance with article 3 of this directive , and take into account cost efficiency , system efficiency and security of supply in carrying out the regulatory tasks specified in directives (eu) 2019/944 and 2009/73/ec regarding their decisions on the operation of the gas and electricity infrastructure , including their decisions on network tariffs .


### 1. national energy regulatory authorities shall apply the energy efficiency first principle in accordance with article 3 of this directive in carrying out the regulatory tasks specified in directives (eu) 2019/944 and 2009/73/ec regarding their decisions on the operation of the gas and electricity infrastructure , including their decisions on network tariffs . ### 1. national energy regulatory authorities shall apply the energy efficiency first principle in accordance with article 3 of this directive in carrying out the regulatory tasks specified in directives (eu) 2019/944 and 2009/73/ec regarding their decisions on the operation of the gas and electricity infrastructure , including their decisions on network tariffs , taking into account the system efficiency across sectors.


### 1. national energy regulatory authorities shall apply the energy efficiency first principle in accordance with article 3 of this directive in carrying out the regulatory tasks specified in directives (eu) 2019/944 and 2009/73/ec regarding their decisions on the operation of the gas and electricity infrastructure , including their decisions on network tariffs . ### 1. national energy regulatory authorities shall apply the energy efficiency first principle in accordance with article 3 of this directive in carrying out the regulatory tasks specified in directives (eu) 2019/944 and 2009/73/ec regarding their decisions on the operation of the gas and electricity infrastructure.


### 2. member states shall ensure that gas and electricity transmission and distribution system operators apply the energy efficiency first principle in accordance with article 3 of this directive in their network planning , network development and investment decisions. while taking security of supply and market integration into account , member states shall ensure that transmission system operators and distribution system operators do not invest in stranded assets to contribute to climate change mitigation. national regulatory authorities shall provide methodologies and guidance on how to assess alternatives in the cost-benefit analysis , taking into account wider benefits , and verify the implementation of the energy efficiency first principle by the transmission system operators or distribution system operators when approving , verifying or monitoring the projects submitted by the transmission system operators or distribution system operators. ### 2. member states shall ensure that gas and electricity transmission and distribution system operators apply the energy efficiency first principle in accordance with article 3 of this directive in their network planning , network development and investment decisions. while taking security of supply , operational security and market integration into account , member states shall ensure that transmission system operators and distribution system operators invest in future proof assets to contribute to climate change mitigation. national regulatory authorities shall provide methodologies and guidance on how to assess alternatives in the cost-benefit analysis , taking into account wider benefits , and verify the implementation of the energy efficiency first principle by the transmission system operators or distribution system operators when approving , verifying or monitoring the projects submitted by the transmission system operators or distribution system operators.


### 3. member states shall ensure that transmission and distribution system operators map network losses and take cost-effective measures to reduce network losses. transmission and distribution system operators shall report those measures and expected energy savings through the reduction of network losses to the national energy regulatory authority. national energy regulatory authorities shall limit the possibility for transmission and distribution system operators to recover avoidable network losses from tariffs paid by consumers. member states shall ensure that transmission and distribution system operators assess energy efficiency improvement measures with regard to their existing gas or electricity transmission or distribution systems and improve energy efficiency in infrastructure design and operation. member states shall encourage transmission and distribution system operators to develop innovative solutions to improve the energy efficiency of existing systems through incentive based regulations. ### 3. member states shall ensure that transmission and distribution system operators map network losses. national regulatory authorities shall encourage transmission and distribution system operators to optimize network losses and monitor the development of network losses. member states shall ensure that transmission and distribution system operators assess energy efficiency improvement measures with regard to their existing gas or electricity transmission or distribution systems and improve energy efficiency in infrastructure design and operation. member states shall encourage transmission and distribution system operators to develop innovative solutions to improve the energy efficiency of existing systems through incentive based regulations.


### 8. by 31 december 2024 the commission shall provide guidance for member states and market actors on how to unlock private investment. ### 8. no later than by 31 december 2023 the commission shall provide guidance for member states and market actors on how to unlock private investment.


### 10. member states may allow public bodies to fulfil the obligations set out in article 6(1) by means of annual contributions to the energy efficiency national fund equivalent to the amount of the investments required to achieve those obligations. ### 10. member states may on a case-by-case basis allow public bodies to fulfil the obligations set out in article 6(1) by means of annual contributions to the energy efficiency national fund equivalent to the amount of the investments required to achieve those obligations. however , such practice shall not undermine the energy efficiency objectives or result in state-aid rules being abused.


### the union's 2030 headline targets on energy efficiency set out in article 4(1) with a view to revising those that targets upwards in the event of substantial cost reductions resulting from economic or technological developments , or where needed to meet the union's decarbonisation targets for 2040 or 2050 , or its international commitments for decarbonisation; ### the union's 2030 headline targets on energy efficiency set out in article 4(1) with a view to revising those that targets upwards in the event of substantial cost reductions resulting from economic or technological developments , or where needed to meet the union's decarbonisation targets for 2040 or 2050 , or its international commitments for decarbonisation , without prejudice to parts of the energy saving obligation in order to allow for new requirements under this directive as well as directive (eu) 2022/... of the european parliament and of the council on the energy performance of buildings to take effect , and with a view to creating greater flexibility and better synergies between energy efficiency measures and the deployment of renewable energy production capacities;


### — direct emissions of the carbon dioxide from cogeneration production that is fuelled with fossil fuels , are less than 270 gco2 per 1 kwh of energy output from the combined generation (including heating/cooling , power and mechanical energy). ### — direct emissions of the carbon dioxide from cogeneration production that is fuelled with the most polluting fossil fuels. for existing plants this criteria may apply starting with 2030.


### — direct emissions of the carbon dioxide from cogeneration production that is fuelled with fossil fuels , are less than 270 gco2 per 1 kwh of energy output from the combined generation (including heating/cooling , power and mechanical energy). ### — direct emissions of the carbon dioxide from cogeneration production that is fuelled with fossil fuels , are less than 270 gco2 per 1 kwh of energy output from the combined generation (combining electrical , heating/cooling , power and mechanical energy) as of 1 january 2030.


### — when a cogeneration unit is built or substantially refurbished , member states shall ensure that there is no increase in the use of fossil fuels other than natural gas in existing heat sources compared to the annual consumption averaged over the previous three calendar years of full operation before refurbishment , and that any new heat sources in that system do not use fossil fuels other than natural gas. ### — when a cogeneration unit is built or substantially refurbished , member states shall ensure that there is no increase in the use of fossil fuels in existing heat sources compared to the annual consumption averaged over the previous three calendar years of full operation before refurbishment , and that any new heat sources in that system do not use fossil fuels other than natural gas.


### savings resulting from the implementation of mandatory union law shall be considered to be savings that would have occurred in any event , and thus shall not be claimed as energy savings for the purpose of article 8(1). by way of derogation from that requirement , savings related to the renovation of existing buildings may be claimed as energy savings for the purpose of article 8(1) , provided that the materiality criterion referred to in point 3(h) of this annex is ensured. measures promoting energy efficiency improvements in the public sector pursuant to article 5 and article 6 may be eligible to be taken into account for the fulfilment of energy savings required under article 8(1) , provided that they result in verifiable , and measurable or estimable , end-use energy savings. the calculation of energy savings shall comply with the requirements of this annex; ### savings resulting from the implementation of mandatory union law shall be considered to be savings that would have occurred in any event , and thus shall not be claimed as energy savings for the purpose of article 8(1). by way of derogation from that requirement , savings related to the renovation of existing buildings may be claimed as energy savings for the purpose of article 8(1) , provided that the materiality criterion referred to in point 3(h) of this annex is ensured. savings resulting from the implementation of national minimum requirements established for new buildings prior to the transposition of directive 2010/31/eu can be claimed as energy savings for the purpose of article 8 (1) of this directive , provided that the materiality criterion referred to in point 3(h) of this annex is ensured and those savings have been notified by member states in their national energy efficiency action plans. measures promoting energy efficiency improvements in the public sector pursuant to article 5 and article 6 may be eligible to be taken into account for the fulfilment of energy savings required under article 8(1) , provided that they result in verifiable , and measurable or estimable , end-use energy savings. the calculation of energy savings shall comply with the requirements of this annex;


### member states cannot count reduced energy use in sectors , including the transport and building sector , that would have occurred in any event as a result of emission trading pursuant to the eu ets directive towards the fulfilment of the energy savings obligation pursuant to article 8(1). if an entity is an obligated party under a national energy efficiency obligation scheme under article 9 of this directive and under the eu emissions trading system for buildings and road transport [com(2021) 551 final ,2021/0211 (cod)] , the monitoring and verification system shall ensure that the carbon price passed through when releasing fuel for consumption [according article 1(21) of com(2021) 551 final ,2021/0211 (cod)] is taken into account when calculating and reporting the energy savings of its energy saving measures; ### member states can count reduced energy use in sectors , including the transport and building sector , that would have occurred in any event as a result of emission trading pursuant to the eu ets directive towards the fulfilment of the energy savings obligation pursuant to article 8(1). if an entity is an obligated party under a national energy efficiency obligation scheme under article 9 of this directive and under the eu emissions trading system for buildings and road transport [com(2021) 551 final ,2021/0211 (cod)] , the monitoring and verification system shall ensure that the carbon price passed through when releasing fuel for consumption [according article 1(21) of com(2021) 551 final ,2021/0211 (cod)] is taken into account when calculating and reporting the energy savings of its energy saving measures;


### member states cannot count reduced energy use in sectors , including the transport and building sector , that would have occurred in any event as a result of emission trading pursuant to the eu ets directive towards the fulfilment of the energy savings obligation pursuant to article 8(1). if an entity is an obligated party under a national energy efficiency obligation scheme under article 9 of this directive and under the eu emissions trading system for buildings and road transport [com(2021) 551 final ,2021/0211 (cod)] , the monitoring and verification system shall ensure that the carbon price passed through when releasing fuel for consumption [according article 1(21) of com(2021) 551 final ,2021/0211 (cod)] is taken into account when calculating and reporting the energy savings of its energy saving measures; ### member states cannot count reduced energy use in the transport and building sector , that would have occurred in any event as a result of emission trading pursuant to the eu ets directive towards the fulfilment of the energy savings obligation pursuant to article 8(1). if an entity is an obligated party under a national energy efficiency obligation scheme under article 9 of this directive and under the eu emissions trading system for buildings and road transport [com(2021) 551 final ,2021/0211 (cod)] , the monitoring and verification system shall ensure that the carbon price passed through when releasing fuel for consumption [according article 1(21) of com(2021) 551 final ,2021/0211 (cod)] is taken into account when calculating and reporting the energy savings of its energy saving measures;


### policies with the purpose of encouraging higher levels of energy efficiency of products , equipment , transport systems , vehicles and fuels , buildings and building elements , processes or markets shall be permitted , except those policy measures regarding the use of direct combustion of fossil fuel technologies that are implemented as from 1 january 2024 ; ### policies with the purpose of encouraging higher levels of energy efficiency of products , equipment , transport systems , vehicles and fuels , buildings and building elements , processes or markets shall be permitted;


### energy savings as a result of policy measures regarding the use of direct fossil fuel combustion in products , equipment , transport systems , vehicles , buildings or works shall not count towards the fulfilment of energy savings obligation as from 1 january 2024; ### deleted


### energy savings as a result of policy measures regarding the use of direct fossil fuel combustion in products , equipment , transport systems , vehicles , buildings or works shall not count towards the fulfilment of energy savings obligation as from 1 january 2024; ### energy savings as a result of policy measures regarding the use of direct fossil fuel combustion in products , equipment , transport systems , vehicles , buildings or works shall not count towards the fulfilment of energy savings obligation as from 1 january 2035;


### for policies that accelerate the uptake of more efficient products and vehicles , except those regarding the use of direct fossil fuel combustion , full credit may be claimed , provided that it is shown that such uptake takes place before expiry of the average expected lifetime of the product or vehicle , or before the product or vehicle would usually be replaced , and the savings are claimed only for the period until end of the average expected lifetime of the product or vehicle to be replaced; ### for policies that accelerate the uptake of more efficient products and vehicles , full credit may be claimed , provided that it is shown that such uptake takes place before expiry of the average expected lifetime of the product or vehicle , or before the product or vehicle would usually be replaced , and the savings are claimed only for the period until end of the average expected lifetime of the product or vehicle to be replaced;


### identify energy efficiency measures to decrease energy consumption; ### comprise a detailed review of the existing energy efficiency measures and identify the technical potential and the economic feasibility to decrease energy consumption;


### identify the potential for cost-effective use or production of renewable energy; ### comprise a detailed review of the current potential for cost-effective use or production of renewable energy and identify the technical potential and economic feasibility for further improvements;


### energy audits shall allow detailed and validated calculations for the proposed measures so as to provide clear information on potential savings. ### energy audits shall allow detailed and validated calculations for the proposed measures so as to provide clear information on potential savings and pay-back time for the relevant investments.


### — environmental , health and safety costs , to the extent possible; ### — environmental , health and safety costs , including on content of persistent , bioaccumulative , toxic substances , to the extent possible;


### (109) member states should encourage the use of financing facilities to further the objectives of this directive. such financing facilities could include financial contributions and fines from non-fulfilment of certain provisions of this directive; resources allocated to energy efficiency under article 10(3) of directive 2003/87/ec of the european parliament and of the council84 ; resources allocated to energy efficiency in the european funds and programmes , and dedicated european financial instruments , such as the european energy efficiency fund. ### (109) member states should encourage the use of financing facilities to further the objectives of this directive. such financing facilities could include financial contributions and fines from non-fulfilment of certain provisions of this directive; resources allocated to energy efficiency under article 10(3) of directive 2003/87/ec of the european parliament and of the council84 ; resources allocated to energy efficiency in the european funds and programmes , and dedicated european financial instruments , such as the european energy efficiency fund. member states should work on building platforms aimed at aggregating small and medium-sized projects with a view to creating pools of projects suitable for financing purposes.


### (113) available union funding programmes , financial instruments and innovative financing mechanisms should be used to give practical effect to the objective of improving the energy performance of public bodies’ buildings. in that respect , member states may use their revenues from annual emission allocations under decision no 406/2009/ec in the development of such mechanisms on a voluntary basis and taking into account national budgetary rules. ### (113) available union funding programmes , financial instruments and innovative financing mechanisms should be used to give practical effect to the objective of improving the energy performance of public bodies’ buildings. in that respect , member states may use their revenues from annual emission allocations under decision no 406/2009/ec in the development of such mechanisms on a voluntary basis and taking into account national budgetary rules. the commission and member states should provide regional and local administrations with adequate information on such programmes. the covenant of mayors platform could be one of the tools for providing adequate information.


### 1. notes that the court of auditors , in its annual report for 20211 , estimated a level of error for the eu budget spending on ‘cohesion , resilience and values’ of 3.6 % in 2021 , up from 3.5 % in 2020; underlines that , for subheading ‘economic , social and territorial cohesion’ alone , the estimated level of error is 4.1 %; regrets that the downward trend of the previous years could not be maintained; ### 1. notes that the court of auditors , in its annual report for 20211 , estimated a level of error for the eu budget spending on ‘cohesion , resilience and values’ of 3.6 % in 2021 , up from 3.5 % in 2020; underlines that , for subheading ‘economic , social and territorial cohesion’ alone , the estimated level of error is 4.1 %; regrets that the downward trend of the previous years could not be maintained; believes that it would be appropriate , therefore , to include in the procedures the need for greater scrutiny and careful analysis of errors , with a view to making it easier to avoid or prevent errors in future; calls on the commission and the member states to pay careful attention to the increase in the error rate and the consequent increased level of risk , and the possibility of a subsequent loss of funding;


### 1. stresses that a gender equality perspective should be integrated and ensured into all policy areas , particularly in light of the multiple gendered impacts of various ongoing climate , energy and social crises; reiterates therefore its call for the implementation of gender budgeting at all stages of the budgetary process; ### 1. stresses that a gender equality perspective should be integrated and ensured into all policy areas , particularly in light of the multiple gendered impacts of various ongoing climate , energy and social crises; reiterates therefore its call for the implementation of gender budgeting throughout of the budgetary process;


### 1. questions the large-scale tapping of the cushion within the neighbourhood , development and international cooperation instrument – global europe , established by regulation (eu) 2021/947 of the european parliament and of the council1 , for other purposes than the response to new needs it is aimed for; calls on the member states to cover from their budgets any additional funding for syrian refugees in türkiye; ### 1. questions the large-scale tapping of the cushion within the neighbourhood , development and international cooperation instrument – global europe , established by regulation (eu) 2021/947 of the european parliament and of the council1 , for other purposes than the response to new needs it is aimed for; reminds that the european parliament resolution of 7 october 2021 on the implementation report on the eu trust funds and the facility for refugees in turkey recalled that the funds from the emerging challenges and priorities cushion under the ndici-global europe are expected to top up funding from the geographic and thematic programmes and rapid response actions; underlines that the commission has committed to discussing the use of these funds as part of the geopolitical dialogue with parliament , and to providing detailed information before their mobilisation , while fully taking into consideration parliament’s remarks on the nature , objectives and financial amounts envisaged;


### 3. takes note that by the end of 2021 , outstanding commitments totalled eur 341.6 billion; highlights that outstanding commitments decreased significantly from a historic high of eur 303.2 billion at the end of 2020 , mainly due to delays to the start of the implementation of shared management under the 2021-2027 mff; notes that outstanding commitments for heading 2a ‘cohesion policy’ amounted to eur 120.4 billion; ### 3. takes note that by the end of 2021 , total outstanding commitments totalled eur 341.6 billion; highlights , however , that outstanding commitments from the eu budget decreased significantly from a historic high of eur 303.2 billion at the end of 2020 , mainly due to delays to the start of the implementation of shared management under the 2021-2027 mff; notes that outstanding commitments for heading 2a ‘cohesion policy’ amounted to eur 120.4 billion;


### 3. acknowledges the mitigating measures taken by the commission and eacea to safeguard programme implementation , in particular eacea’s efforts to deliver calls for proposals and tailored support for applicants at a high pace in the second half of the year; ### 3. acknowledges the mitigating measures taken by the commission and eacea to safeguard programme implementation , in particular eacea’s efforts to deliver calls for proposals and tailored support for applicants at a high pace in the second half of the year; regrets the unavailability of consolidated implementation data for 2021 as a result of these delays at the time of finalising the commission’s annual activity report; expects implementation and reporting to resume their normal path from 2022 onwards;


### 3. welcomes the fact that the absorption rate of the 2014-2020 european structural and investment (esi) funds has increased in 2021; points out that this was largely due to programme amendments linked to crii/crii+ , which allowed to quickly mobilise unspent cohesion resources towards health actions , support for businesses and workers and vulnerable groups; ### 3. welcomes the fact that the absorption rate of the 2014-2020 european structural and investment (esi) funds has increased in 2021; points out that this was largely due to programme amendments linked to crii/crii+ , which allowed to quickly mobilise unspent cohesion resources towards health actions , support for businesses and workers and vulnerable groups; stresses that similar , harmonised programme amendments would make sense in the context of other programmes too , if they can lead to greater efficiency and faster and simplified absorption at the same times as a reduction in errors;


### 3. deplores the fact that nine out of the 28 transactions examined by the court contained quantifiable errors which had a financial impact on the amounts charged to the union budget; highlights that such cases may have an important negative reputational impact and may eventually undermine compliance with the principles of sound financial management of union spending; urges the commission to address that situation and report to the discharge authority about the progress achieved; deplores that the court only conducted checks on 25 transactions under directorate-general for migration and home affairs’ (dg home) responsibility , and that consequently is was unable to verify the dg home’s declaration of assurance against the results of its own audit work; calls on the court to further examine and extend the scope of its audit in that regard; ### 3. deplores the fact that nine out of the 28 transactions examined by the court contained quantifiable errors which had a financial impact on the amounts charged to the union budget; highlights that such cases may have an important negative reputational impact and may eventually undermine compliance with the principles of sound financial management of union spending; urges the commission to address that situation and report to the discharge authority about the progress achieved;


### 4. underlines that the covid-19 pandemic continued to have a heavy impact on learners , teachers , young people , cultural professionals and athletes in 2021; ### 4. underlines that the covid-19 pandemic continued to have a heavy impact on learners , teachers , young people , cultural professionals and athletes in 2021; acknowledges the commission’s adoption in june 2021 of a communication on eu guidelines on the safe resumption of activities in the cultural and creative sectors , which aimed to support the coordinated reopening of the cultural sector in europe;


### 4. underlines that the covid-19 pandemic continued to have a heavy impact on learners , teachers , young people , cultural professionals and athletes in 2021; ### 4. underlines that the covid-19 pandemic continued to have a heavy impact on learners , teachers , young people , cultural professionals and athletes in 2021; therefore , it is instrumental to keep investing in people , developing their social and digital skills , creating education and mobility opportunities , promoting eu values and active citizenship;


### 4. welcomes the quick roll-out of the additional funding provided under react-eu; highlights that , by the end of 2021 , eur 39.4 billion (99% of the overall amount available for the year) had been programmed and that the first payments to member states were made as early as in june 2021; ### 4. welcomes the quick roll-out of the additional funding provided under react-eu; highlights that , by the end of 2021 , eur 39.4 billion (99% of the overall amount available for the year) had been programmed and that the first payments to member states were made as early as in june 2021; stresses that any increase in funding requires more attention and that if errors are made the institutions risk losing credibility; stresses , therefore , the need to closely monitor further payments and to ensure that the intensity of payments is not reduced , with appropriate transparency and safeguards to prevent misuse of funds;


### 4. notes with concern that , despite the fact that member states stepped up implementation of their national programmes in 2021 , for both the asylum , migration and integration fund (amif) and the internal security fund (isf) significant amounts remain undisbursed; deeply regrets that its previous calls for splitting the amif lines by priority has not been followed up; stresses that such splitting could help increase transparency and accountability in budget spending and therefore reiterates its call to do so; ### 4. notes with concern that , despite the fact that member states stepped up implementation of their national programmes in 2021 , for both the asylum , migration and integration fund (amif) and the internal security fund (isf) significant amounts remain undisbursed; notes that the cumulative absorption rate of amif and isf under shared management is equal to 72.54% , up from 60.75% by the end of 20204a;


### 4. welcomes the commission's work on a new classification to measure the gender impact of union spending; calls on the commission to ensure that this classification focuses on an accurate and comprehensive representation of the impact of programmes on gender equality; ### 4. welcomes the commission's work on a new classification when evaluating the gender impact of union spending; calls on the commission to ensure that this classification focuses on an accurate and comprehensive representation of the impact of programmes on gender equality;


### 4. reiterates its deep concerns regarding the situation concerning the rule of law in a number of member states , which is deeply worrying in its own right and leads to serious losses for the union budget; underlines that union funds must not be used for anti-democratic activities or for strengthening authoritarianism; welcomes the first application of the conditionality mechanism in the case of hungary , procedure launched in november 2021 and concluded in december 2022 with the freezing of 55% of three cohesion policy programmes (around eur 6 ,35 billion); reiterates its strong conviction that member states must respect democracy and the rule of law in order to receive union funds and draws attention to the commission that the rule of law situation has also been deteriorating in other member states , calls therefore on the commission to trigger without delay the application of the conditionality mechanism whenever breaches of the principles of the rule of law are identified to be affecting or are in serious risk of affecting the sound financial management of the union budget or the protection of the financial interests of the union in a sufficiently direct way; moreover stresses that parliament , council and the commission need to closely co-operate together as allies; underlines its strong and repeated requests to the commission and executive agencies to ensure the protection of the union budget by making global and systematic use of digital and automated systems for reporting , monitoring and audit; ### 4. reiterates its deep concerns regarding the situation concerning the rule of law in a number of member states , which is deeply worrying in its own right and leads to serious losses for the union budget; underlines that union funds must not be used for anti-democratic activities or for strengthening authoritarianism; reminds that the eu introduced a legal conditionality mechanism to withhold funding from member states that subvert the rule of law and welcomes the first application of this mechanism in the case of hungary , procedure launched in november 2021 and concluded in december 2022 with the freezing of 55% of three cohesion policy programmes (around eur 6 ,35 billion); notes that hungary's and poland's recovery plans have been approved; emphasises that both plans contain several so-called rule of law supermilestones; demands the commission to continuously monitor the situation and withhold funding as long as the rule of law violations threaten the sound financial management of the union budget; reiterates in this context its strong conviction that member states must respect democracy and the rule of law in order to receive union funds and draws attention to the commission that the rule of law situation has also been deteriorating in other member states; calls therefore on the commission to trigger without delay the application of the conditionality mechanism whenever breaches of the principles of the rule of law are identified to be affecting or are in serious risk of affecting the sound financial management of the union budget or the protection of the financial interests of the union in a sufficiently direct way; moreover stresses that parliament , council and the commission need to closely co-operate together as allies; underlines its strong and repeated requests to the commission and executive agencies to ensure the protection of the union budget by making global and systematic use of digital and automated systems for reporting , monitoring and audit;


### 4. is concerned about destruction and confiscation of union-funded projects in the west bank; reminds of the position of the council , expressing its commitment to ensure that all agreements between israel and the eu must unequivocally and explicitly indicate the inapplicability to the territories occupied by israel since 1967 , as well as to continue the effective implementation of existing union legislation and bilateral arrangements applicable to settlement products; ### 4. is concerned about the union-funded projects in the west bank; reminds of the position of the council , expressing its commitment to ensure that all agreements between israel and the eu must unequivocally and explicitly indicate the inapplicability to the territories occupied by israel since 1967 , as well as to continue the effective implementation of existing union legislation and bilateral arrangements applicable to settlement products;


### 5. notes that the first year of the new mff saw the launch or further development of several major policy initiatives; ### 5. notes that the first year of the new mff saw the launch or further development of several major policy initiatives , such as the european education area and the new digital education action plan 2021-2027;


### 5. warns however that certain member states present very low absorption rates for the esi funds and will be under significant pressure to absorb all the available funds before the closure of the programmes; regrets that the rrf may have led to delays in the implementation of esi funds; ### 5. warns however that certain member states present very low absorption rates for the esi funds and will be under significant pressure to absorb all the available funds before the closure of the programmes; regrets that the rrf may have led to delays in the implementation of esi funds; stresses the need to develop integrated , cohesive , stimulative , effective and reliable mechanisms and , in particular , recommendations and technical guidance on promoting the absorption of european funds in the member states , so that they can be increasingly effective in their use european funds; stresses the need to identify member states which have very low absorption and to establish and analyse the reason why that lower absorption is actually happening , and that appropriate measures should then be taken to improve the absorption rate , including through the exchange of best practices between countries and administrative training; calls on the commission , in a structured dialogue with the member states , to analyse administrative practices and procedures for the elimination of inefficiencies , and to disseminate examples of effective administrative practices and procedures to all competent authorities;


### 5. warns however that certain member states present very low absorption rates for the esi funds and will be under significant pressure to absorb all the available funds before the closure of the programmes; regrets that the rrf may have led to delays in the implementation of esi funds; ### 5. warns however that certain member states present very low absorption rates for the esi funds and will be under significant pressure to absorb all the available funds before the closure of the programmes; regrets that the rrf may have led to delays in the implementation of esi funds; urges to take adequate measures to eliminate the obstacles


### 5. regrets the lack of specific budget lines for measures dedicated to gender equality , especially within the daphne programme , leading to a lack of transparency and accountability. ### 5. recalls the significance of measures dedicated to gender equality , especially within the daphne programme.


### 5. recognises the critical role performed by unrwa in providing palestine refugees with vital services; commends the results of the study on palestinian schoolbooks performed by the georg eckert institute , confirming that they adhere to unesco standards and adopt criteria that are prominent in international education discourse. ### 5. recognises the role performed by unrwa in providing palestine refugees with vital services; notes that the eu-commissioned study by the georg-eckert institute published last june confirmed previous reports of antisemitism , glorification of terror and the erasure of israel on maps in palestinian schoolbooks; deplores that the results of the study on palestinian schoolbooks performed by the georg eckert institute , confirm that they do not adhere to unesco standards; stresses that the eu should never finance or support any organisation that do not adhere to unesco standards;


### 5. recognises the critical role performed by unrwa in providing palestine refugees with vital services; commends the results of the study on palestinian schoolbooks performed by the georg eckert institute , confirming that they adhere to unesco standards and adopt criteria that are prominent in international education discourse. ### 5. recognises the critical role performed by unrwa in providing palestine refugees with vital services;


### 5. regrets the continued great difficulties faced by small local ngos in accessing union funding because of the highly demanding procedures involved; invites the commission to fully use existing flexibilities , without taking unreasonable fiduciary risks , and to propose necessary changes to rules. ### 5. regrets the continued great difficulties faced by small local ngos , including faith-based organisations , in accessing union funding because of the highly demanding procedures involved; invites the commission to fully use existing flexibilities , without taking unreasonable fiduciary risks , and to propose necessary changes to rules.


### 6. underlines that the funding of the ten-t network revision shall well reflect and further focus on the extension of connection towards the eastern neighbourhood; in this regard insists to not further delay the acceptation of bulgaria and romania to the schengen area to ensure seamless transport connection to the east; ### 6. underlines that the funding of the ten-t network revision shall well reflect and further focus on the extension of connection towards the eastern neighbourhood as well as revising priorities of the eastern member states towards cross-border missing links. requests also the commission to propose an 'eu-eastern europe' or 'eastern partnership' transport community , including an eastern europe investment framework; in this regard insists to not further delay the acceptation of bulgaria and romania to the schengen area to ensure seamless transport connection to the east;


### 6. underlines that the funding of the ten-t network revision shall well reflect and further focus on the extension of connection towards the eastern neighbourhood; in this regard insists to not further delay the acceptation of bulgaria and romania to the schengen area to ensure seamless transport connection to the east; ### 6. underlines that the funding of the ten-t network revision shall well reflect and further focus on the extension of connection towards the eastern neighbourhood , as well as means of connecting the outermost regions to the european continent; in this regard insists to not further delay the acceptation of bulgaria and romania to the schengen area to ensure seamless transport connection to the east; urges that specific calls be issued for transport links serving the outermost regions and , in the digital sector , for the modernisation of submarine cables;


### 6. takes note that , from 2021 , the commission manages the brexit adjustment reserve , which provides support to the regions most affected by the withdrawal of the united kingdom from the eu; takes note that two pre-financing payments under the bar were made in 2021; ### 6. takes note that , from 2021 , the commission manages the brexit adjustment reserve , which provides support to the regions most affected by the withdrawal of the united kingdom from the eu; takes note that two pre-financing payments under the bar were made in 2021; stresses that a clear overview of the situation should be prepared and that affected countries should be helped to improve their absorption through technical assistance programmes for cooperation with administrative authorities and technical guidance and training programmes;


### 7. deplores the delays in the implementation of the just transition fund (jtf); ### 7. deplores the delays in the implementation of the just transition fund (jtf) and stresses the need to identify what exactly is the reason for the delay , and consequently to adapt procedures or simplify rules and reduce administrative burdens that potentially hinder absorption; stresses that , particularly in the case of new funds , all stakeholders need to be better connected in the procedures so as to avoid bottlenecks and payment backlogs in the absorption process;


### 7. deplores the delays in the implementation of the just transition fund (jtf); ### 7. deplores the delays in the implementation of the just transition fund (jtf) and urges to remedy deficiencies by taking adequate measures.


### 2. acknowledges that the record high level of payments under cohesion in 2021 , together with the complex rules that govern spending in this area , might partly explain the increased error rate; expresses its concern , however , at the court’s conclusion that controls in place do not offset the high inherent risk error in this area; underlines the need for improvements in the control and assurance framework for cohesion; ### 2. acknowledges that the record high level of payments under cohesion in 2021 , together with the complex rules that govern spending in this area , might partly explain the increased error rate; expresses its concern , however , at the court’s conclusion that controls in place do not offset the high inherent risk error in this area; underlines the need for improvements in the control and assurance framework for cohesion; stresses that a better and broader exchange of good practice between countries is essential for increasing efficiency and reducing the error rate; stresses that further simplification of the rules and procedures governing absorption in this area could also significantly contribute to a more efficient and , at the same time , more targeted use of funds and reduce errors in application procedures; recalls in this respect the court’s previous position on vat reimbursement errors and the need to simplify the rules in this area to help member states comply with obligations to pay beneficiaries;


### 2. notes that for the audited spending areas related to migration and border management , and security and defence policies , the court chose to examine a sample of 28 transactions , which is not representative of the spending under mff headings 4 and 5; notes that the selected sample of examined transactions does not allow the court to provide an estimate of the error rate for these mff headings; regrets this choice by the court despite multiple calls from the parliament to calculate the estimated level of error; deeply regrets that the court did not estimate the error rate for these headings , while taking into account the court’s explanation that the audit scope was not designed to be representative for these headings; calls on the court to further examine and extend the scope of its audit in that regard; ### 2. notes that for the audited spending areas related to migration and border management , and security and defence policies , the court chose to examine a sample of 28 transactions , which is not representative of the spending under mff headings 4 and 5; notes that the selected sample of examined transactions does not allow the court to provide an estimate of the error rate for these mff headings; regrets this choice by the court despite multiple calls from the parliament to calculate the estimated level of error; notes the court’s explanation that the audit scope was not designed to be representative for these headings; calls on the court to consider further examining and extending the scope of its audit in that regard;


### 2. notes with concern that special report 10/2021 , published by the eca1 , confirmed that the union’s budget cycle does not yet adequately take gender equality into account and that the commission has not yet fully implemented its commitment to include gender mainstreaming in the union budget; ### 2. recalls that special report 10/2021 , published by the eca1 , confirmed that the union’s budget cycle does not yet adequately take gender equality into account and that the commission had not fully implemented its commitment to include gender mainstreaming in the union budget;


### 2. is satisfied with the work carried out by the five decentralised agencies which are under its remit , which carry out technical , scientific or managerial tasks that help the union institutions elaborate and implement policies in the area of environment , climate action , public health and food safety , as well as with the way in which those agencies' budgets are implemented; stresses that , given the scale of current and upcoming challenges , sufficient funding must be guaranteed for the agencies and the commission directorates-general ('dg') working in the areas of environment , climate action , public health and food safety; ### 2. is satisfied with the work carried out by the five decentralised agencies which are under its remit , which carry out technical , scientific or managerial tasks that help the union institutions elaborate and implement policies in the area of environment , climate action , public health and food safety , as well as with the way in which those agencies' budgets are implemented; stresses that , given the scale of current and upcoming challenges , sufficient funding must be guaranteed for the agencies and the commission directorates-general ('dg') working in the areas of environment , climate action , public health and food safety , while at the same time maintaining a responsible budgetary policy;


### 8. notes with satisfaction that easi financial instruments (encompassing the easi microfinance and social entrepreneurship guarantee , the capacity building investments window and the funded instrument) continued in 2021 to support microenterprises and social enterprises , and that from its launch until 30 september 2021 , guarantee agreements worth of eur 401 million were signed which resulted in a total of 154 137 loans to micro- and social enterprises worth of eur 2.5 billion; ### 8. notes with satisfaction that easi financial instruments (encompassing the easi microfinance and social entrepreneurship guarantee , the capacity building investments window and the funded instrument) continued in 2021 to support microenterprises and social enterprises , and that from its launch until 30 september 2021 , guarantee agreements worth of eur 401 million were signed which resulted in a total of 154 137 loans to micro- and social enterprises worth of eur 2.5 billion; regrets , however , the late start of easi in 2021 as a result of the covid-19 pandemic and other issues;


### 8. notes the progress made regarding personal data protection for beneficiaries of and participants in erasmus+ and the european solidarity corps; ### 8. notes the progress made regarding personal data protection for beneficiaries of and participants in erasmus+ and the european solidarity corps , in particular as regards third country personal data transfers , specifically through the roll-out of a ‘transfer tool’ in the form of a legally binding agreement with entrusted bodies in third countries;


### 8. regrets the delays in the launch of new programmes for the funds under the cpr; acknowledges that this delay is the result of the late adoption of cohesion legislation , the reprogramming exercise under the covid-19 emergency measures and the work on national recovery and resilience plans; underlines that only 2% of the available amount of commitment appropriations for the cpr funds has been used; ### 8. regrets the delays in the launch of new programmes for the funds under the cpr; acknowledges that this delay is the result of the late adoption of cohesion legislation , the reprogramming exercise under the covid-19 emergency measures and the work on national recovery and resilience plans; underlines that only 2% of the available amount of commitment appropriations for the cpr funds has been used; stresses the need to closely monitor absorption intensity and if the situation does not improve to urge the member states to take action;


### 9. welcomes dg education , youth , sport and culture’s introduction in 2021 of a new internal reporting tool that allows national agencies to detect more easily double submission , double funding and accreditation plagiarism. ### 9. welcomes dg education , youth , sport and culture’s introduction in 2021 of a new internal reporting tool that allows national agencies to detect more easily double submission , double funding and accreditation plagiarism; encourages dg eac and dg cnect to continue offering anti-fraud and data protection training for staff , targeting especially newcomers , and entrusted bodies , and to make attendance in such trainings mandatory;


### 9. takes note that the court reported 15 cases to olaf , in contrast to the 6 cases it reported in 2020; notes as well that only one of these cases was in parallel reported to the eppo; regrets the lack of transparency on the number of cases reported by the commission to the eppo; regrets also the controversy that has arisen concerning the competence adjudication over particular cases in certain member states , especially regarding suspected fraud cases involving crii and crii+ funds; underlines the role of the eppo in protecting the financial interests of the union by means of criminal law; reminds that the eppo regulation entrusts it with the competence to investigate , prosecute and bring to judgment criminal offences affecting the financial interests of the union , while establishing an obligation , for all the institutions , bodies , offices and agencies of the union to report directly to the eppo any criminal conduct in respect of which it could exercise its competence; ### 9. takes note that the court reported 15 cases to olaf in 2021 , in contrast to the 6 cases it reported in 2020; notes as well that only one of these cases was in parallel reported to the eppo; regrets the lack of transparency on the number of cases reported by the commission to the eppo; regrets also the controversy that has arisen concerning the competence adjudication over particular cases in certain member states , especially regarding suspected fraud cases involving crii and crii+ funds; underlines the role of the eppo in protecting the financial interests of the union by means of criminal law; reminds that the eppo regulation entrusts it with the competence to investigate , prosecute and bring to judgment criminal offences affecting the financial interests of the union , while establishing an obligation , for all the institutions , bodies , offices and agencies of the union to report directly to the eppo any criminal conduct in respect of which it could exercise its competence; calls on the commission to monitor more consistently the implementation of programmes and to consistently report any infringements to the eppo , while ensuring transparency in reported cases , and to provide appropriate support to member states so that they can tackle corruption more effectively , which will also increase citizens’ overall trust in the eu institutions;


### b. whereas parliament has repeatedly asked the commission to promote and implement the use of gender mainstreaming , gender budgeting and gender impact assessments in all union policy areas; ### b. whereas parliament has repeatedly asked the commission to promote and implement the use of gender mainstreaming , gender budgeting and gender impact assessments in all policies of the union , where relevant;


### 12. underlines the increasing need to ensure the transparency of ngos and of their funding , as they are important actors in the implementation of the union budget , especially in the area of external action; demands the commission to re-evaluate its identification of entities as ngos , improving the reliability of information (making sure to have them registered as lobbyists , having clearly established whether they stand for the topics they claim they represent , and having insight into their financing); demands the disclosure of their financing be it private (e.g. ngos financed by the industrial actors) or public; recalls that as regards public funding , the union basic acts regulate how transparency and visibility in this regard need to be handled , therefore reminds the commission about the responsibility it has to check the compliance with rules and procedures , especially rules and procedures on sub-granting to ngos; moreover , demands that the commission provides the discharge authority with clear information about the total amount of union funds implemented by ngos; ### 12. underlines the increasing need to ensure the transparency of ngos and of their funding , as they are important actors in the implementation of the union budget , especially in the area of external action; demands the commission to re-evaluate its identification of entities as ngos and a clear definition , improving the reliability of information (making sure to have them registered as lobbyists , having clearly established whether they stand for the topics they claim they represent , and having insight into their financing); demands the disclosure of their financing be it private (e.g. ngos financed by the industrial actors) or public; recalls that as regards public funding , the union basic acts regulate how transparency and visibility in this regard need to be handled , therefore reminds the commission about the responsibility it has to check the compliance with rules and procedures , especially rules and procedures on sub-granting to ngos; moreover , demands that the commission provides the discharge authority with clear information about the total amount of union funds implemented by ngos;


### 18. notes that hera was established as an internal commission service on 1 october 2021 , and that its mission is to support the commission’s priorities for public health , preparedness and crisis management in the sectors of health , research and innovation and industry; ### 18. notes that hera was established as an internal commission service on 1 october 2021 , and that its mission is to support the commission’s priorities for public health , preparedness and crisis management in the sectors of health , research and innovation and industry; notes that the regulation on serious cross-border threats to health1a requires the commission to assess by 31 december 2024 the need to establish hera as a distinct entity , considering relevant agencies or authorities active in the field of health preparedness and response.


### 40. highlights that the time available for implementing shared-management funds under the 2021-2027 mff is shorter than under previous mffs; is aware of the challenges in relation to managing and controlling these funds to ensure compliance and sound financial management; ### 40. highlights that the time available for implementing shared-management funds under the 2021-2027 mff is shorter than under previous mffs; is aware of the challenges in relation to managing and controlling these funds to ensure compliance and sound financial management; is concerned by the increased administrative burden on member states of the implementation of the ngeu programme and the tendency of member states to prioritise implementing ngeu over the traditional shared management funds , as discussed in the public hearing in the cont committee on 23 january 2023;


### 125. is worried by the court’s serious finding that for the payment made to spain in 2021 , one milestone was not satisfactorily fulfilled; regrets to note that the court was not able to quantify this error because of the absence of a methodology to quantify the impact of (partially) not achieving a milestone or target; notes the commission’s internal auditor also observed the absence of this methodology; considers it grave negligence of the commission to not have this methodology in place before making payments , as this calls into question the commission’s sincerity of assessing the satisfactory fulfilment of milestones and targets; ### 125. is worried by the court’s serious finding that for the payment made to spain in 2021 , one milestone was not satisfactorily fulfilled; regrets to note that the court was not able to quantify this error because of the absence of a methodology to quantify the impact of (partially) not achieving a milestone or target; notes the commission’s internal auditor also observed the absence of this methodology; considers it grave negligence of the commission to not have this methodology in place before making payments , as this calls into question the commission’s sincerity of assessing the satisfactory fulfilment of milestones and targets; welcomes however , that the commission following repeated calls by the discharge authority and the court on 21 february 2023 adopted a communication on the rrf including two annexes containing a “framework for assessing milestones and targets under the rrf regulation” and a “commission methodology for the determination of payment suspension under the rrf regulation”;


### 127. recalls the cont committee’s opinion to the committee on budgets and the committee on economic and monetary affairs on the proposal for a european parliament and council regulation establishing the rrf; recalls the call therein for a list of all final beneficiaries and projects of the facility; considers that article 22(2) (d) of that regulation puts the requirement on the member states to keep these records , and that the provisions in article 22(3) call for making the data concerned available in the framework of discharge , for the discharge authority; ### 127. recalls the cont committee’s opinion to the committee on budgets and the committee on economic and monetary affairs on the proposal for a european parliament and council regulation establishing the rrf; recalls the call therein for a list of all final recipients and projects of the facility; considers that article 22(2) (d) of that regulation puts the requirement on the member states to keep these records , and that the provisions in article 22(3) call for making the data concerned available in the framework of discharge , for the discharge authority;


### 128. welcomes the agreement reached in the inter-institutional negotiations on repowereu on the bi-annual publication of the 100 biggest beneficiaries of repowereu and the rrf by february 2024 at the latest; considers however that this does not replace the requirement to provide the list of all final beneficiaries and projects to auditors and the discharge authority for every financial year; ### 128. welcomes the agreement reached in the inter-institutional negotiations on repowereu on the bi-annual publication of the 100 biggest recipients of repowereu and the rrf by february 2024 at the latest; considers however that this does not replace the requirement to provide the list of all final recipients and projects to auditors and the discharge authority for every financial year;


### 129. notes that the commission services implementing the ngeu , cohesion and rural development programmes informed the discharge authority that they have coordinated ex-ante to avoid double funding of activities potentially eligible under these programmes; considers that ex-post checks at the level of the final beneficiaries by the member states are indispensable to identify double funding; reiterates the importance of having a single mandatory integrated information and monitoring system at union level providing interoperability between union and national systems , to , inter alia , identify cases of double funding and misuse of funds across member states; ### 129. notes that the commission services implementing the ngeu , cohesion and rural development programmes informed the discharge authority that they have coordinated ex-ante to avoid double funding of activities potentially eligible under these programmes; considers that ex-post checks at the level of the final recipients by the member states are indispensable to identify double funding; reiterates the importance of having a single mandatory integrated information and monitoring system at union level providing interoperability between union and national systems , to , inter alia , identify cases of double funding and misuse of funds across member states;


### 130. notes the commission’s approach to adherence to procurement and state aid rules in the investments under the rrp is to rely on national systems , and revert to infringement procedures when cases of non-compliance in member states are detected; considers that the protection of the union financial interests is not timely guaranteed and does not necessarily target the beneficiaries that enjoyed an unfair advantage of the cases of non-compliance; acknowledges that the first responsibility in this regard lies with the member states; recalls the repeated findings by the court as reflected in previous discharge reports that the work of certain national authorities is too error-prone and unreliable; stresses therefore that the commission has the residual responsibility to make sure that effective and efficient internal control systems are in place , and to step in where member states do not act as is required by the rrf regulation; ### 130. notes the commission’s approach to adherence to procurement and state aid rules in the investments under the rrp is to rely on national systems , and revert to infringement procedures when cases of non-compliance in member states are detected; considers that the protection of the union financial interests is not timely guaranteed and does not necessarily target the recipients that enjoyed an unfair advantage of the cases of non-compliance; acknowledges that the first responsibility in this regard lies with the member states; recalls the repeated findings by the court as reflected in previous discharge reports that the work of certain national authorities is too error-prone and unreliable; stresses therefore that the commission has the residual responsibility to make sure that effective and efficient internal control systems ensuring compliance with all eu and national rules , including in particular public procurement and state aid rules , and rules to prevent and detect fraud , corruption , conflicts of interests and double-funding are in place , and to step in where member states do not act as is required by the rrf regulation;


### 131. is concerned that differences in the quality of controls and the complexity of the control systems applied by the member states result in a less effective internal control system for the funds available under the rrf; is concerned by repeated warnings by olaf , the eppo , europol and other competent bodies that a less effective internal control system attracts misuse , fraud and organised crime; ### 131. is concerned that differences in the quality of controls and the complexity of the control systems applied by the member states result in a less effective internal control system for the funds available under the rrf; is worried by the court’s observation in its opinion 04/2022 on the repowereu chapters in the recovery and resilience plans about the lack of an effective fraud reporting mechanism that would permit continuous monitoring and supervision of the protection of the eu’s financial interests with regards to the rrf; is concerned by the court’s observation that member states have no obligation to report suspicions of fraud in the rrf to the commission through olaf’s irregularity management system; is concerned by repeated warnings by olaf , the eppo , europol and other competent bodies that a less effective internal control system attracts misuse , fraud and organised crime;


### 135. acknowledges that the scoreboard contains a complete and useful repository of official documents that gives insight in the most important agreements reached with the member states in the national rrps and related documents; regrets however that the rrf scoreboard does not allow tracing financial flows from union-level to the level of the final beneficiaries in the member states and does not provide a clear overview of the actual implementation of the rrf in that regard; ### 135. acknowledges that the scoreboard contains a complete and useful repository of official documents that gives insight in the most important agreements reached with the member states in the national rrps and related documents; regrets however that the rrf scoreboard does not allow tracing financial flows from union-level to the level of the final recipients in the member states and does not provide a clear overview of the actual implementation of the rrf in that regard;


### 138. notes that the declaration of assurance of the directorate-general for economic and financial affairs for 2021 is different from the declaration of assurance of all other directorate-generals; notes that the declaration concerns the legality and regularity of the underlying transactions , which is aligned with the other directorates-general; notes further that ‘the implementation of article 22(5) of the rrf regulation’ , is added; notes the commission’s reply to written questions from the discharge authority that ‘it is different only in format but not as regards the level of assurance provided’; questions why it was then necessary to explicitly limit the assurance to article 22(5) of the rrf regulation , and not to provide assurance over article 22 in its entirety; concludes that the declaration of assurance by the commission as guardian of the treaty , in particular as regards protection of the union financial interests and accountability towards taxpayers , must be trustworthy and cannot leave any room for doubt that the commission were to evade its responsibility through diverging declarations of individual authorising officers; ### 138. notes that the declaration of assurance of the directorate-general for economic and financial affairs for 2021 is different from the declaration of assurance of all other directorate-generals; notes that the declaration concerns the legality and regularity of the underlying transactions , which is aligned with the other directorates-general; notes further that ‘the implementation of article 22(5) of the rrf regulation’ , is added; notes the commission’s reply to written questions from the discharge authority that ‘it is different only in format but not as regards the level of assurance provided’; questions why it was then necessary to explicitly limit the assurance to article 22(5) of the rrf regulation , and not to provide assurance over article 22 in its entirety; emphasises that contrary to the declaration of assurance of all other directorate-generals , the one by dg ecfin does not ensure compliance of the underlying transactions with all eu and national rules at final recipient or project level; concludes that the declaration of assurance by the commission as guardian of the treaty , in particular as regards protection of the union financial interests and accountability towards taxpayers , must be trustworthy and cannot leave any room for doubt that the commission were to evade its responsibility through diverging declarations of individual authorising officers;


### 140. notes the court’s conclusion that in member states where the share is already high , the additional rrf funding may further add to the pressure on member states’ ability to spend the funds available to them; is worried that because of the different delivery methods , with direct management for the rrf and shared management for the cohesion policy , the more straight forward implementation method of the rrf will ‘crowd-out’ the more complex funding through cohesion; notes that this will come at the detriment of the involvement of local authorities and regions , civil society organisations and economic and social partners in union funding; ### 140. notes the court’s conclusion that in member states where the share is already high , the additional rrf funding may further add to the pressure on member states’ ability to spend the funds available to them; is worried that because of the different delivery methods , with direct management for the rrf and shared management for the cohesion policy , the more straight forward implementation method of the rrf will ‘crowd-out’ the more complex funding through cohesion; notes that this will come at the detriment of the involvement of local authorities and regions , civil society organisations and economic and social partners in union funding; notes that these concernes were shared by experts during the cont hearing on 23 jaunary 2023 on the monitoring and control in cohesions funds and ngeu , particularly the risk that some member states may not have sufficient administrative capacity to handle the burden of these parallel administrative systems; notes that such strain on the administrative capacity was observed on the spot during the cont mission to spain in february 2023;


### 146. notes that it is important that all funds allocated to the member states under the rrf will result in investments , as only then the discharge authority can be sure that all funds were allocated to final beneficiaries in full respect of the principle of additionality; recalls the criticism expressed in previous discharge reports of the practice that some member states systematically overbook funding programmes in shared management and withdraw projects from union funds when irregularities and/or fraud are discovered in its related expenditure , thereby effectively evading union investigations and/or an effective follow-up and possible corrections; deplores that the burden of these irregularities and possible fraud is shifted to the national budget , and thus , the national tax-payer; ### 146. notes that it is important that all funds allocated to the member states under the rrf will result in investments , as only then the discharge authority can be sure that all funds were allocated to final recipients in full respect of the principle of additionality; recalls the criticism expressed in previous discharge reports of the practice that some member states systematically overbook funding programmes in shared management and withdraw projects from union funds when irregularities and/or fraud are discovered in its related expenditure , thereby effectively evading union investigations and/or an effective follow-up and possible corrections; deplores that the burden of these irregularities and possible fraud is shifted to the national budget , and thus , the national tax-payer;


### 150. notes from reports of investigative journalists that several member states have relied on expertise provided by consultancy firms in setting-up the rrf and that these firms in turn offer services to support potential beneficiaries of financial support under the rrf in these member states; ### 150. notes from reports of investigative journalists that several member states have relied on expertise provided by consultancy firms in setting-up the rrf and that these firms in turn offer services to support potential recipients of financial support under the rrf in these member states;


### b. make the list of all final beneficiaries and projects of rrf funding available to auditors and the discharge authority for all payments (in 2021 and throughout the implementation of the rrf); ### b. make the list of all final beneficiaries and projects of rrf funding available to auditors and the discharge authority for all payments (in 2021 and throughout the implementation of the rrf); demands that the member states make the list of all final beneficiaries and projects of rrf funding available to the commission; urges the commission to suspend payments for subsequent programmes if member states do not provide a list of all final beneficiaries;


### b. make the list of all final beneficiaries and projects of rrf funding available to auditors and the discharge authority for all payments (in 2021 and throughout the implementation of the rrf); ### b. make the list of all final recipients and projects of rrf funding available to auditors and the discharge authority for all payments (in 2021 and throughout the implementation of the rrf) , and provide full access to the court to the ‘fenix’ it tool;


### c. adopt as soon as possible the methodology for establishing partial payments for not or partially fulfilled milestones and targets and make it available to the discharge authority; ### c. explain to the discharge authority the reasoning and logic behind the “framework for assessing milestones and targets under the rrf regulation” and the “commission methodology for the determination of payment suspension under the recovery and resilience facility regulation” and consider providing additional definitions to reduce the impact of the subjective elements contained in them;


### d. apply additional vigilance to signals of organised crime targeting the funds available under the rrf together with europol , the eppo , olaf and other relevant actors; ### d. apply additional vigilance to signals of misuse , fraud and organised crime targeting the funds available under the rrf together with europol , the eppo , olaf and other relevant actors and introduce reporting on suspicions of fraud in the rrf to the commission through olaf’s irregularity management system;


### h. make a clear distinction between expected results and achieved results in its communication on the rrf in general and more specific concerning the rrf scoreboard , in order to correctly inform the general public and avoid misunderstandings; ### h. make a clear distinction between budgeted results and achieved results in its communication on the rrf in general and more specific concerning the rrf scoreboard , in order to correctly inform the general public and avoid misunderstandings;


### m. reconsider the formulation of the declaration of assurance of the directorate-general for economic and financial affairs and to re-align it with all other directorates-general for future years given the unsatisfactory justification provided by the commission and the responsibility as guardian of the treaty for the protection of the union’s financial interests; ### m. reconsider the formulation of the declaration of assurance of the directorate-general for economic and financial affairs and extent its scope to the compliance of rrf funded measures with eu and national rules for future years given the unsatisfactory justification provided by the commission and the responsibility as guardian of the treaty for the protection of the union’s financial interests;


### o. discontinue the practice of assessing member states’ future audit and control arrangements and in cases where this has already been agreed , to check not just the set-up but also the actual functioning; ### o. discontinue the practice of assessing member states’ future audit and control arrangements and in cases where this has already been agreed , to check not just the set-up but also the actual functioning in protecting the financial interest of the union and compliance with all eu and national rules without limiting it to fraud , corruption , conflict of interest and double funding;


### r. address the tension between cohesion and the rrf , in particular concerning the involvement of local , regional , economic and social partners and civil society organisations , that makes it easier to absorb rff funding in comparison to cohesion funding , by putting more emphasis on involvement of these actors in the implementation of the rrf; ### r. address the tension between cohesion and the rrf , in particular concerning the involvement of local , regional , economic and social partners and civil society organisations , that makes it easier to absorb rff funding in comparison to cohesion funding , by putting more emphasis on involvement of these actors in the implementation of the rrf through a co-governance approach;


### s. strongly encourage member states that seek to amend their rrps to include cross-border projects in their investments and to put more emphasis on such truly european projects in general; ### s. strongly encourage member states that seek to amend their rrps to include cross-border projects in their investments and to put more emphasis on such truly european projects in general; approve only repowereu chapters of member states which allocate at least 30% of financing to projects having a cross-border or multi-country dimension or effect , as agreed in the repowereu negotiations;


### u. make sure checks on double funding are included in the member states’ audit and control frameworks for the ngeu , rural development and cohesion programmes and to ensure its proper functioning through system checks; calls in addition on the commission to verify that double funding does not take place by performing risk based checks on all payments to final beneficiaries under these programmes; ### u. make sure checks on double funding are included in the member states’ audit and control frameworks for the ngeu , rural development and cohesion programmes and to ensure its proper functioning through system checks; calls in addition on the commission to verify that double funding does not take place by performing risk based checks on all payments to final recipients under these programmes;


### v. make sure that the reliability of the repositories of the final beneficiaries of the member states is guaranteed , in particular as regards the integrity and completeness , with a view that once irregularities concerning final beneficiaries are discovered , correct follow-up at union level is ensured; ### v. make sure that the reliability of the repositories of the final recipients of the member states is guaranteed , in particular as regards the integrity and completeness , with a view that once irregularities concerning final recipients are discovered , correct follow-up at union level is ensured;


### 8. salutes the approval of several european partnerships to accelerate the green and digital transition , including on single european sky atm research 3 with the aim to accelerate the digital transformation of atm in line with the european atm master plan; ### 8. salutes the approval of several european partnerships to accelerate the green and digital transition , including on single european sky atm research 3 with the aim to accelerate the digital transformation of atm in line with the european atm master plan; recalls in this regards the importance of single european sky 2+ to achieve harmonization , improved interoperability and efficiency;


### 8. notes the gender balance within the agency’s senior management members , with 3 out of 5 (60%) being men; notes with concern the lack of gender balance in the agency’s management board , with 63 out of 82 (77%) being men; further notes the gender balance within the agency’s overall staff , with 643 out of 959 (67%) being men; calls on the agency to continue its efforts towards gender balance at staff level through concrete actions that attract applications from women for posts offered by the agency; ### 8. notes the gender balance within the agency’s senior management members , with 3 out of 5 (60%) being men; notes with concern the lack of gender balance in the agency’s management board , with 63 out of 82 (77%) being men; further notes the gender balance within the agency’s overall staff , with 643 out of 959 (67%) being men; calls on the agency to continue its efforts towards gender balance at staff level through concrete actions that attract applications from women for posts offered by the agency; notes that the agency is continuously monitoring the gender balance developments and that the representation of women in managerial positions (from section manager to director) has increased from 16.9% to 21.25% in 2021 and that since january 2020 , out of the 4 directors in the agency , 2 are female;


### 3. notes that in 2021 the agency used certain measures to assess the added value provided by its activities and other measures to improve its budget management , through a mix of 130 objectives and 60 key performance indicators (kpis) across 11 key areas of operation and 9 more projects or initiatives of horizontal nature; notes that , despite the continued effects of the covid-19 crisis , the agency had a good performance , with a 84% implementation rate of its 2021 annual work programme and 76% of kpis on-track; ### 3. notes that in 2021 the agency used certain measures to assess the added value provided by its activities and other measures to improve its budget management , through a mix of 130 objectives and 60 key performance indicators (kpis) across 11 key areas of operation and 9 more projects or initiatives of horizontal nature; notes that , despite the continued effects of the covid-19 crisis , the agency had a good performance , with a 84% implementation rate of its 2021 annual work programme and 76% of kpis on-track; appreciates the kpi’s fulfilled and the fact that the agency has drawn attention to measures that can improve the efficiency and effectiveness of the agency’s work; however points out to the agency to take note on the indicators that are not achieved or lagging behind , especially the timely processing of occurrence reports and corrective action closure rate of audit findings


### 10. recalls the importance to develop a long term hr policy on work-life balance , lifelong guidance and career development , gender balance , teleworking , geographical balance and recruitment and integration of people with disabilities; ### 10. recalls the importance to develop a long term hr policy on work-life balance , lifelong guidance and career development , gender balance , teleworking , geographical balance and recruitment and integration of people with disabilities; notes the importance of providing different training opportunities for all agency’s staff; suggests that the staff engagement survey would be done yearly instead of every three years


### 23. notes the agency’s conservative approach in the second year of the pandemic regarding expenditure planning , including a slow-down of external recruitments; further notes that the growing workload was managed through leveraging new working methods (e.g. remote working and daily hybrid working regime) and investing in efficiency and digitalisation initiatives to reduce pressure on existing resources; ### 23. notes the agency’s conservative approach in the second year of the pandemic regarding expenditure planning , including a slow-down of external recruitments; further notes that the growing workload was managed through leveraging new working methods (e.g. remote working and daily hybrid working regime) and investing in efficiency and digitalisation initiatives to reduce pressure on existing resources; encourages the agency to make use of the lessons learned regarding remote and hybrid working methods , in order to better recognize meetings that are more efficient to be held remotely than in-person in the future;


### (3) it is necessary to ensure that clear taxation rules for energy products and electricity continue to contribute to the smooth functioning of the internal market while at the same time tackling the climate and environmental-related challenges in the context of the communication from the commission ‘the european green deal’28. energy taxation can contribute to the ambition of at least 55 % reduction in net greenhouse gas emissions by 2030 compared to 1990 , as well as to the objective of zero pollution through the implementation of the polluter-pays principle , by ensuring that the taxation of motor fuels , heating fuels and electricity better reflects the impact they have on the environment and on health. the contribution of energy taxation to those objectives has been endorsed by the council conclusions on the eu energy taxation framework29. ### (3) it is necessary to ensure that clear taxation rules for energy products and electricity continue to contribute to the smooth functioning of the internal market while at the same time tackling the climate and environmental-related challenges in the context of the communication from the commission ‘the european green deal’28. energy taxation can contribute to the ambition of at least 55 % reduction in net greenhouse gas emissions by 2030 compared to 1990 , as well as to the objective of zero pollution through the implementation of the polluter-pays principle , by ensuring that the fair taxation of motor fuels , heating fuels and electricity better reflects the impact they have on the environment and on health. the contribution of energy taxation to those objectives has been endorsed by the council conclusions on the eu energy taxation framework29.


### (3) it is necessary to ensure that clear taxation rules for energy products and electricity continue to contribute to the smooth functioning of the internal market while at the same time tackling the climate and environmental-related challenges in the context of the communication from the commission ‘the european green deal’28 . energy taxation can contribute to the ambition of at least 55 % reduction in net greenhouse gas emissions by 2030 compared to 1990 , as well as to the objective of zero pollution through the implementation of the polluter-pays principle , by ensuring that the taxation of motor fuels , heating fuels and electricity better reflects the impact they have on the environment and on health. the contribution of energy taxation to those objectives has been endorsed by the council conclusions on the eu energy taxation framework29 . ### (3) it is necessary to ensure that clear taxation rules for energy products and electricity continue to contribute to the smooth functioning of the internal market while at the same time tackling the environmental-related challenges in the context of the communication from the commission ‘the european green deal’28 . energy taxation can contribute to the ambition of 55 % reduction in net greenhouse gas emissions by 2030 compared to 1990 , as well as to the objective of zero pollution through the implementation of the polluter-pays principle , by ensuring that the taxation of motor fuels , heating fuels and electricity better reflects the impact they have on the environment and on health. the contribution of energy taxation to those objectives has been endorsed by the council conclusions on the eu energy taxation framework29 .