### 7. deplores the delays in the implementation of the just transition fund (jtf); ### 7. deplores the worrying delays in the implementation of the just transition fund (jtf) , urgently needed to support the people and eu regions in the green transition;


### 7. reiterates the imperative need of a single mandatory integrated and interoperable information and monitoring system provided by the commission , allowing for the electronic recording and storage of data on the recipients of union funding , including their beneficial owners and allowing for the availability of this information for data-mining and risk-scoring purposes; underlines that it is essential to get a clear overview of the distribution and potential concentration of union funds disbursed , including through a functionality that allows for the aggregation of these funds; underlines that this would reduce the bureaucratic burden on the financial actors , on controllers and auditors , as well as on the recipients of union funds , and should facilitate risk assessment for the purposes of selection , award , financial management , monitoring , investigation , control and audit and would also contribute to effective prevention , detection , correction and follow-up of fraud , corruption , conflicts of interest , double funding and other irregularities; ### 7. reiterates the imperative need of a single mandatory integrated and interoperable information and monitoring system provided by the commission , allowing for the electronic recording and storage of data on the recipients of union funding , including their beneficial owners and allowing for the availability of this information for data-mining and risk-scoring purposes; underlines that it is essential to get a clear and provide for a transparent overview of the distribution and potential concentration of union funds disbursed , including through a functionality that allows for the aggregation of these funds; underlines that this would reduce the bureaucratic burden on the financial actors , on controllers and auditors , as well as on the recipients of union funds , and should facilitate risk assessment for the purposes of selection , award , financial management , monitoring , investigation , control and audit and would also contribute to effective prevention , detection , correction and follow-up of fraud , corruption , conflicts of interest , double funding and other irregularities;


### 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 and more human resources 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 , and specifically the dg for the environment;


### 2. supports the ambition to bring together public and private actors and achieve synergies between different policies through the global gateway (gg) strategy; stresses that allocations of official development assistance involved should be firmly guided by agenda 2030 and that policy coherence for development should consistently be applied; notes that the only role for parliament in the governance arrangements adopted by the member states is that as an observer in the gg board; stresses the need to ensure proper influence for parliament in strategic choices involving union funds; ### 2. acknowledges the ambition to bring together public and private actors and achieve synergies between different policies through the global gateway (gg) strategy; stresses that allocations of official development assistance involved should be firmly guided by agenda 2030 , the sdgs , as well as the paris agreement with the objective of limiting global warming to under 1 ,5°c as well as improving resilience to adverse climate change impacts , and that policy coherence for development , democratic country ownership and social and human right due diligence should consistently be applied; regrets that the only role for parliament in the governance arrangements adopted by the member states is that as an observer in the gg board; stresses the need to ensure proper influence for parliament in strategic choices involving union funds; calls for regular assessments of the implementation of the global gateway and expects the european parliament , as budgetary authority to be given a significant oversight in this process , beyond a simple observer role , given the scrutiny role the european parliament is entitled to through the ndici-global europe , which is the main source of financing of the global gateway;


### 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;


### 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. stresses the increased importance of performance indicators , including the selection of indicators , definition of targets and milestones and monitoring and reporting in light of the new delivery models for the recovery and resilience facility (rrf) and the reformed common agricultural policy; welcomes in this regard the commission's work to improve monitoring and reporting on performance of the union budget with more streamlined and qualitative indicators , as reflected in the adopted basic acts of the 2021-2027 spending programmes; notes that milestones and targets as well as output indicators are different in nature; notes that the rrf further differentiates between investments and reforms; stresses that performance auditing is a new tool for the respective audit authorities; reiterates its call on the commission to provide an overview of the complete audit cycle within the member states , the commission as well as an overview of the cooperation with the respective audit authorities including the court , as well as olaf and the eppo; ### 9. stresses the increased use and importance of performance indicators , including the selection of indicators , definition of targets and milestones and monitoring and reporting in light of the new delivery models for the recovery and resilience facility (rrf) and the reformed common agricultural policy; calls in this regard on the commission to further improve monitoring and reporting on performance of the union budget with more streamlined and qualitative indicators such as indicators on gender mainstreaming and indicators on biodiversity , as reflected in the adopted basic acts of the 2021-2027 spending programmes; notes that milestones and targets as well as output indicators are different in nature; notes that the rrf further differentiates between investments and reforms; reiterates its call on the commission to provide an overview of the complete audit cycle within the member states , the commission as well as an overview of the cooperation with the respective audit authorities including the court , as well as olaf and the eppo;


### 11. reiterates the need to step up the efforts in the fight against fraud both at union and member state level , in close cooperation with the eppo and olaf; appreciates the remarkable efforts and stresses the role of the eppo in the investigation and prosecution of fraud and other criminal offences affecting the financial interests of the union; highlights the importance of the eppo’s full independence and impartiality for the effective exercise of its functions; recalls the importance of providing the eppo and olaf with sufficient financial and human resources; ### 11. reiterates the need to step up the efforts in the fight against fraud both at union and member state level , in close cooperation with the eppo and olaf; appreciates the remarkable efforts and stresses the role of the eppo in the investigation and prosecution of fraud and other criminal offences affecting the financial interests of the union; highlights the importance of the eppo’s full independence and impartiality for the effective exercise of its functions; stresses the fact that eppo and olaf’s independence , impartiality and their effectiveness demands sufficient financial and human resources;


### 12. regrets the court's finding , in its special report 16/20214 , that eu agricultural funding destined for climate action has not contributed to reducing greenhouse gas emissions; shares the court's view that the new common agricultural policy should have a greater focus on reducing agricultural emissions , and be more accountable and transparent about its contribution to climate mitigation; ### 12. regrets the court's finding , in its special report 16/20214 , that eu agricultural funding destined for climate action has not contributed to reducing greenhouse gas emissions; shares the court's view that the new common agricultural policy should have a greater focus on reducing agricultural emissions , and be more accountable and transparent about its contribution to climate mitigation; reiterates with strong concern that the court concluded that the amount of 17 ,2 billion eur reported by the commission for the cap’s contribution to climate and biodiversity objectives is overstated by 8 ,9 billion eur;


### 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 importance of transparent operations of ngos and of their funding; calls on the commission to further improve the eu lobby register , making sure that ngos who approach eu institutions are registered as lobbyists , set up an effective mechanism to assure ngos’ activities are aligned with the eu values and demand a full transparency on part of their financing; demands the disclosure of their financing be it private 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 an overview of total amount of union’s ngos related expenditure;


### 18. notes the successful efforts of the commission to raise funds on the financial markets to provide the financial means for the rrf; is concerned by the resulting debts , the rising interest rates and the resulting uncertain capacity to repay the loans and the risk this poses for the union budget and union policies; ### 18. notes the successful efforts of the commission to raise funds on the financial markets to provide the financial means for the rrf; is concerned by the resulting debts , the rising interest rates and the resulting uncertain capacity to repay the loans and the risk this poses for the union budget and union policies; calls on the commission to mitigate the risk and keep the parliament fully informed on the annual status of these loans;


### 10. is concerned about the increasing number and complexity of the commission’s quasi-legal instruments such as opinions , recommendations , communications , non-legislative resolutions , notices , guidance documents and statements of administrative priorities; calls on the commission to simplify and streamline these instruments; ### 10. is concerned about the increasing number and complexity of the commission’s quasi-legal instruments such as opinions , recommendations , communications , non-legislative resolutions , notices , guidance documents and statements of administrative priorities; calls on the commission to simplify and streamline these instruments and use them with an intention to further simplify the procedures and cut the bureaucratic burden and not to the opposite;


### 15. welcomes the rrf's contribution to preventing a strong economic downturn following the covid-19 pandemic; notes that the rrf has been instrumental in making progress with the implementation of the country specific recommendations (csrs) stemming from the european semester in almost all member states; notes however that several csrs remain unaddressed , despite the financial incentives stemming from the rrf ### 15. welcomes the rrf's potential to preventing economic downturn following the covid-19 pandemic; notes that the rrf has been instrumental in making progress with the implementation of the country specific recommendations (csrs) stemming from the european semester in almost all member states; notes however that several csrs remain unaddressed , despite the financial incentives stemming from the rrf;


### 16. is concerned by the findings of the court in its first annual assessment of the rrf; considers that the implementation of the rrf takes place under time pressure , with however a much more straight forward delivery model that puts much , lighter requirements on the commission , and reduces the control burden from the commission towards the member states , in particular in comparison with the cohesion policy; is therefore concerned by the types of findings of the court which fundamentally calls into question whether the commission can handle even this reduced control burden; calls on the commission not to apply the performance based delivery model as used in the implementation of the rrf for other policies until the advantages and disadvantages are more clear , following the evaluation of the implementation of the rrf by 20 february 2024; ### 16. is concerned by the findings of the court in its first annual assessment of the rrf; considers that the implementation of the rrf takes place under time pressure , with however a much more straight forward delivery model that puts much , lighter requirements on both the commission and member states , and reduces commission’s control levels , in particular in comparison with the financing , reporting and control structure of cohesion or agricultural policy; is concerned whether the commission can handle even this reduced control burden; calls on the commission not to apply the performance based delivery model as used in the implementation of the rrf to other eu programs and policies until the advantages and disadvantages are more clear , following the evaluation of the implementation of the rrf in early 2024;


### 17. welcomes the agreement reached in the inter-institutional negotiations on repowereu on the bi-annual publication of the 100 biggest final beneficiaries per member state on the rrf scoreboard; reiterates its call for the list of all final beneficiaries and projects to be made available to auditors and the discharge authority; ### 17. welcomes the agreement reached in the inter-institutional negotiations on repowereu on the bi-annual publication of the 100 biggest final beneficiaries per member state on the rrf scoreboard; reiterates its call for the list of final beneficiaries in all eu policies and projects to be made available to the relevant eu institutions and to the discharge authority;


### 20. is concerned that the late adoption of a number of regulations governing different union polices has implied a significant delay in the starting of implementation for the 2021-2027 period; invites the commission to take all the necessary measures to speed up the implementation of the policies on the ground , while keeping a high focus on quality and the need to step up the fight against fraud and protect the financial interests of the union; draws attention to the fact that especially under shared management a significant part the 2021 budgetary allocation has to be reprogrammed to the following years; highlights in this context the risk that outstanding commitments bear on the union budget , possibly generating significant decommitments which in turn would decrease the impact of the union budget; demands that the commission indicates to the discharge authority the measures it intends to take to avoid this situation; ### 20. is concerned that the late adoption of a number of regulations governing different union polices has , similarly as at the beginning of 2014 - 2020 period , implied a significant delay in the starting of implementation for the 2021-2027 period; urges the commission to take all the necessary measures to speed up the implementation of the policies on the ground , while keeping a high focus on quality and the need to step up the fight against fraud and protect the financial interests of the union; draws attention to the fact that especially under shared management a significant part the 2021 budgetary allocation has to be reprogrammed to the following years; highlights in this context the risk that outstanding commitments bear on the union budget , possibly generating significant decommitments which in turn would decrease the impact of the union budget; demands that the commission indicates to the discharge authority the measures it intends to take to avoid this situation and draws the necessary conclusions and experience to avoid the similar situation from repeating at the start of the 2028 -2034 mff;


### 28. regrets that the court has again issued an adverse opinion on the legality and regularity of the expenditure side of the budget; ### 28. regrets an adverse opinion on the legality and regularity of the expenditure side of the eu budget , issued by the court;


### 29. notes the overall error rate calculated by the court of 3 ,0 % , which is 1 ,0 % point above the materiality threshold; notes that this is a deterioration in comparison with 2020 , when the error rate was 2 ,7 % , also well above the materiality threshold; notes the commission’s reply that it does not dispute the court’s established error rate , and defends the results of its own work resulting in an estimated error rate at payment which is based on a different methodology; notes that the commission calculates its risk at payment for 2021 as 1.9 %; is worried by the fact that , contrarily to the court , the commission estimates its error rate to be both below the materiality threshold and the lower range of the estimated level of error of the court , of 2.2%; ### 29. notes the overall error rate calculated by the court of 3 ,0 % , which is 1 ,0 % point above the materiality threshold; notes that this is a deterioration in comparison with 2020 , when the error rate was 2 ,7 % , also well above the materiality threshold; notes the commission’s reply that it does not dispute the court’s established error rate but at the same time defends the results of its own work resulting in an estimated error rate at payment which is based on a different methodology; notes that the commission calculates its risk at payment for 2021 as 1.9 %; is worried by the fact that , contrary to the court , the commission estimates its error rate to be both below the materiality threshold and goes even lower than the bottom range of the estimated level of error of the court , of 2.2%;


### 30. notes with concern that the court considers that the commission’s risk assessment is likely to underestimate the level of risk in several areas; highlights that the court has reported weaknesses in the commission’s ex-post audits in heading 1 'single market , innovation and digital' , underestimation of errors in heading 2 'cohesion , resilience and values' , and underestimations of risk and a high number of errors in heading 6 'neighbourhood and the world' , among other issues; highlights that in ‘natural resources and environment’ both institutions are aligned in their calculations while for example for ‘single market , innovation and digital’ the court estimates a level of error of 4.4 % while the commission estimates a risk at payment of 1.3 %; ### 30. agrees with the court that the commission’s risk assessment is likely to underestimate the level of risk in several areas; highlights that the court has reported weaknesses in the commission’s ex-post audits in heading 1 'single market , innovation and digital' , underestimation of errors in heading 2 'cohesion , resilience and values' , and underestimations of risk and a high number of errors in heading 6 'neighbourhood and the world' , among other issues; highlights that in ‘natural resources and environment’ both institutions are aligned in their calculations but stresses the fact that for ‘single market , innovation and digital’ the court estimates a level of error of 4.4 % while the commission estimates a risk at payment of 1.3 %;


### 31. expresses its support for the audit approach and methodology of the court; notes with concern the divergences between the error rates and risk at payment as calculated by the court and the commission; highlights that these differences do not occur in all expenditure areas; remarks the fact that the commission’s estimates for risk at payment are consistently in the lower range or below the statistical estimations of the court and is concerned that this represents a systematic underestimation of the existing error level by the commission; is worried that the commission , acting on potentially underestimated risks , is not able to effectively protect the financial interests of the union; is also concerned by the confusion this creates for the discharge authority and union citizens , as the commission on the one hand embraces the court’s error rate in areas where this is below the materiality threshold (natural resources) , however presents its own estimated error at payment in areas where the court’s error rate is above the materiality threshold; ### 31. reiterates its support for the audit approach and methodology of the court; notes with concern the divergences between the error rates and risk at payment as calculated by the court and the commission; highlights that these differences can not simply be attributed to a different methodologies used as they do not occur in all expenditure areas; remarks the fact that the commission’s estimates for risk at payment are consistently in the lower range or below the statistical estimations of the court and is concerned that this represents a systematic underestimation of the existing error level by the commission;


### 34. notes that the court divides their audit population into high risk (mainly reimbursement based payments) and low risk (mainly entitlement based payments) expenditure; notes with concern however , that the commission in its annual management and performance report categorises the expenditure into higher , medium and lower risk segments; emphasises that the use of different risk categories by the court and the commission impedes the work of the discharge authority in making a comparative analysis of the respective reports; notes with concern the discrepancy between the court’s calculation of high-risk expenditure as 63.2 % compared to commission’s calculation of 22 %; ### 34. notes that the court divides their audit population into high risk (mainly reimbursement based payments) and low risk (mainly entitlement based payments) expenditure; notes with concern however , that the commission in its annual management and performance report categorises the expenditure into higher , medium and lower risk segments; emphasises that the use of different risk categories by the court and the commission impedes the work of the discharge authority in making a comparative analysis of the respective reports; notes with concern the discrepancy between the court’s calculation of high-risk expenditure as 63.2 % compared to commission’s calculation of 22 %; highlights that such discrepancies between the court and the commission are hampering the reliability of input data needed for the discharge authority;


### 37. notes that , despite the fact that the court considers the rrf expenditure accepted in the accounts for the year ended 31 december 2021 as legal and regular in all material respects , there is one milestone in the payment to spain that is not satisfactorily fulfilled , casting doubt on the commission’s assessment of the milestone and targets associated with the related rrf expenditure; recalls that the only reason the identified error was not quantified was the absence of a methodology for partial payments by the commission; ### 37. notes that , despite the fact that the court considers the rrf expenditure accepted in the accounts for the year ended 31 december 2021 as legal and regular in all material respects , there is one milestone in the payment to spain that has not been satisfactorily fulfilled; recalls that the reason the identified error was not quantified was the absence of a methodology for partial payments by the commission;


### 38. notes with concern that in 2021 the implementation of commitments was very low , at 68 % of the total available amount , and that the late adoption of sectoral regulations during 2021 delayed the launch of new programmes; welcomes that the overall esif absorption rate increased in 2021 due to higher payments than in 2020; highlights that at the end of 2021 , around eur 161 billion remained to be absorbed by the closure of esif programmes in 2025; notes with concern the significant differences in absorption rates by member states , and the fact that some member states still have more than 40 % of their committed amounts to absorb; ### 38. notes with concern that in 2021 the implementation of commitments was very low , at 68 % of the total available amount , and that the late adoption of sectoral regulations during 2021 delayed the launch of new programmes; welcomes that the overall esif absorption rate increased in 2021 due to higher payments than in 2020; highlights that at the end of 2021 , around eur 161 billion remained to be absorbed by the closure of esif programmes in 2025; reiterates its concern over significant differences in absorption rates by member states , and the fact that some member states still have more than 40 % of their committed amounts to absorb; stresses again that huge differences in absorption capacities between member states in fact present one of the most serious obstacles to more effective development of less developed regions;


### 39. notes with concern that at the end of 2021 , total outstanding commitments reached a record high of eur 341 ,6 billion; highlights that outstanding commitments are likely to exceed eur 460 billion in 2023 but that they will then fall as ngeu draws to a close; ### 39. reiterates its concern that at the end of 2021 , total outstanding commitments reached a record high of eur 341 ,6 billion; highlights that outstanding commitments are likely to exceed eur 460 billion in 2023 but that they will then fall as ngeu draws to a close; despite of the later the discharge authority expresses its utmost concern over the risks that outstanding commitments pose to the normal functioning of the eu budget and its solvency;


### 42. supports the recommendations of the court in its annual report as well as in related special reports; calls on the commission to implement them without delay and to keep the discharge authority informed on the progress of the implementation; ### 42. strongly supports the recommendations of the court in its annual report as well as in related special reports; calls on the commission to implement them without delay and to keep the discharge authority informed on the progress of the implementation;


### b. simplify rules and procedures , develop compulsory training sessions and practical information for applicants , in particular new applicants , and improve the assistance and guidelines for smes , spin-offs , start-ups , administration and payment agencies and all other relevant stakeholders without compromising the quality of the controls; ### b. simplify rules and procedures , develop compulsory training sessions and practical information for applicants , in particular new applicants , and improve the assistance and guidelines for smes and ngos , spin-offs , start-ups , administration and payment agencies and all other relevant stakeholders without compromising the quality of the controls;


### c. keep increasing the administrative capacity of the commission and member states and propose adequate budget lines for the court , the eppo and olaf in relation to the implementation of the new upcoming tasks related to the ngeu instrument in order to protect the union finances; ### c. keep increasing the administrative capacity of the commission and member states and propose adequate budget lines for the court , the eppo and olaf to insure their efficiency in relation to the implementation of the new upcoming tasks related to the ngeu instrument in order to protect the union finances;


### d. summarise and report to the discharge authority and the court the reasons for the differences in the various expenditure areas and recoveries , and also in the results concerning the estimated level of error as calculated by the court and the risk at payment as calculated by the commission in the ampr; ### d. summarise and report to the discharge authority and the court the reasons for the differences in the various expenditure areas and recoveries , and also in the results concerning the estimated level of error as calculated by the court and the risk at payment as calculated by the commission in the ampr and engage in an exchange with the court on both managerial and technical level with the aim of introducing a single methodology on eu expenditure error rate;


### 45. regrets that the court considers that the preparation of this performance report has a negative impact on its audit and emerging union priorities; takes note of the court’s decision to return to reporting on performance along the lines previously used in chapter 3 of the annual report; remarks that due to the legal deadlines in place , the court may find it difficult to include its assessment of the ampr in its annual report; calls for the court to take account of the amprs in their annual reporting or through a separate document if necessary in order to account for the annual discharge exercise; recalls that the staff of the court has been already increased in 2023 in order to account for the increased workload due to ngeu; ### 45. regrets that the court considers that the sources dedicated to the preparation of this performance report have a negative impact on conducting audits on other emerging union priorities; takes note of the court’s decision to return to reporting on performance along the lines previously used in chapter 3 of the annual report; remarks that due to the legal deadlines in place , the court may find it difficult to include its assessment of the ampr in its annual report; calls for the court to nevertheless take account of the amprs in their annual reporting or through a separate document if necessary in order to account for the annual discharge exercise; recalls that the staff of the court has been increased in 2023 in order to account for the increased workload due to ngeu;


### 47. regrets that the ampr provides overly positive conclusions on the progress made towards mainstreaming targets , that there is little information available on whether spending contributes meaningfully to multiple priorities at the same time , that the commission’s performance framework does not yet measure outcomes , and that the commission’s review of reported information faces challenges; ### 47. is deeply concerned by the fact that the ampr provides overly positive conclusions on the progress made towards mainstreaming targets , that there is little information available on whether spending contributes meaningfully to multiple priorities at the same time , that the commission’s performance framework does not yet measure outcomes , and that the commission’s review of reported information faces challenges;


### 48. welcomes that climate and biodiversity priorities are integrated into the performance framework; notes with great concern the additional findings of the court in its special report 09/2022 “climate spending in the 2014-2020 eu budget”; is worried that reported spending is not always relevant to climate action and that the union budget contribution to climate and biodiversity is overstated; notes with concern the court’s findings that the overall reporting on climate spending was unreliable , since it involved significant approximation and tracked only the potential positive impact on climate without evaluating the final contribution to union climate goals; notes with concern that the risk that the planned or committed amounts would not be spent , could further inflate reported climate spending; is worried that the court found that limited improvements are expected in the 2021-2027 climate reporting; regrets that the commission has not yet addressed weaknesses in the reported figures of their new methodology; expresses disappointment about the reaction of the commission which indicates a lack of responsibility and a failure to fully recognise the shortcomings in its methodology; cannot accept the commission’s statement about ‘agreeing to disagree’ with members of the discharge authority given the fact that the amount reported as having been spent on climate action had been overstated by at least eur 72 billion for the 2014-2020 period according to the court; ### 48. notes that according to the commission climate and biodiversity priorities are integrated into the performance framework; but notes with great concern the additional findings of the court in its special report 09/2022 “climate spending in the 2014-2020 eu budget”; is worried that reported spending is not always relevant to climate action and that the union budget contribution to climate and biodiversity is overstated; notes with further concern the court’s findings that the overall reporting on climate spending was unreliable , since it involved significant approximation and tracked only the potential positive impact on climate without evaluating the final contribution to union climate goals; notes with concern that the risk that the planned or committed amounts would not be spent , could further inflate reported climate spending; is worried that the court found that only limited improvements are expected in the 2021-2027 climate reporting; regrets that the commission has not yet addressed weaknesses in the reported figures of their new methodology; expresses its profound disappointment about the reaction of the commission which indicates a lack of responsibility and a failure to fully recognise the shortcomings in its methodology; cannot accept the commission’s statement about ‘agreeing to disagree’ with members of the discharge authority given the fact that the amount reported as having been spent on climate action had been overstated by at least eur 72 billion for the 2014-2020 period according to the court;


### 50. welcomes that progress has been made in incorporating gender equality into the performance framework; notes with concern that the court has identified weaknesses in gender mainstreaming; regrets that the commission’s first estimation of the overall contribution of the union budget to promoting gender equality was affected by weaknesses; notes with concern that there are no spending targets and only a few indicators for gender equality; ### 50. notes that progress has been made in incorporating gender equality into the performance framework; notes with great concern that on top numerous discussions of parliament’s committee on women's rights and gender equality the court has identified weaknesses in gender mainstreaming; regrets that the commission’s first estimation of the overall contribution of the union budget to promoting gender equality was affected by weaknesses; notes with concern that the commission continues to implement union’s programs with no spending targets and only a few indicators for gender equality;


### 51. regrets that there is limited information available on the progress of union programmes towards the sdgs; notes with concern that previous work from the court shows that the commission does not report on the budget’s contribution to the sdgs; welcomes that the commission has started reporting on the links between union spending programmes and the sdgs; ### 51. deeply regrets that there is only limited information available on the progress of union programmes towards the sdgs; notes with grave concern that previous work from the court shows that the commission does not report on the budget’s contribution to the sdgs; welcomes that the commission has started reporting on the links between union spending programmes and the sdgs and awaits newest assessment by the court on the reliability of commission’s reporting;


### 52. welcomes that the digital transition is a new priority; understands that the commission has provided information on the contribution to the digital transition for specific programmes; ### 52. welcomes that the digital transition is a new priority; understands that the commission has provided information on the contribution to the digital transition for specific programmes and awaits newest assessment by the court on the reliability of commission’s reporting on the implementation of this priority;


### 53. supports the recommendations of the court in its annual report as well as in related special reports; calls on the commission to implement them without delay and to keep the discharge authority informed on the progress of the implementation; ### 53. strongly supports the recommendations of the court in its annual report as well as in related special reports; calls on the commission to implement them without delay and to keep the discharge authority informed on the progress of the implementation;


### b. follow-up on the court’s recommendations to better link the union’s expenditure to its climate and energy objectives; ### b. follow-up on the court’s recommendations to better link the union’s expenditure to its climate , biodiversity , gender mainstreaming and energy objectives;


### 65. notes with concern that the court found that the estimated level of error in spending on ‘single market , innovation and digital’ was material , reaching 4 ,4 % , compared to 3.9 % in the previous year; is worried that the estimated risk at payment calculated by the commission is 1.3 % , which is below both materiality and the range of estimated level of error of the court; notes the court’s observation that , despite the measures already taken by the commission , its error rate remains understated; ### 65. is deeply concerned that the court found that the estimated level of error in spending on ‘single market , innovation and digital’ was material , reaching 4 ,4 % , compared to 3.9 % in the previous year; is worried that the estimated risk at payment calculated by the commission is 1.3 % , which is below both materiality and the range of estimated level of error of the court; notes the court’s observation that , despite the measures already taken by the commission , its error rate remains understated;


### 67. notes with concern that the rules for declaring personnel costs under h2020 remain complex , despite simplification efforts , and their calculation remains a major source of error in the cost claims; regrets that one of the main causes of error is the incorrect application of the methodology for calculating personnel costs; draws attention to the court’s observation that private entities , in particular smes and new entrants , are prone to error; ### 67. notes with concern that the rules for declaring personnel costs under h2020 remain complex , despite simplification efforts , and their calculation remains a major source of error in the cost claims; regrets that one of the main causes of error is the incorrect application of the methodology for calculating personnel costs; draws attention to the court’s observation that private entities , in particular smes and new entrants , are prone to error; urges the commission to foster and facilitate the application of correct methodology for calculating personnel costs;


### 74. notes with concern that the court found that the level of error in spending on ‘cohesion , resilience and values’ was material and for mff heading 2 , of an estimated overall level of error of 3.6 % , compared to 3.5 % in the previous year; notes that spending under subheading 2a has an estimated level of error of 4.1 %; remarks that the commission reported a combined risk at payment for heading 2 as a whole of between 1.7 % and 2.3 % , while for subheading 2a the commission estimated the risk of at payment to be between 1.8 % and 2.5 %; draws attention to the difference in the figures between the commission and the court; ### 74. is deeply concerned that the court found that the level of error in spending on ‘cohesion , resilience and values’ was material and for mff heading 2 , of an estimated overall level of error of 3.6 % , compared to 3.5 % in the previous year; notes that spending under subheading 2a has an estimated level of error of 4.1 %; remarks that the commission reported a combined risk at payment for heading 2 as a whole of between 1.7 % and 2.3 % , while for subheading 2a the commission estimated the risk of at payment to be between 1.8 % and 2.5 %; draws attention to the difference in the figures between the commission and the court;


### 78. notes with concern that shortcomings remain in the way audit authorities perform and document their work; is worried that the court found quantifiable errors that had not been previously identified by the national audit authorities in many cases when re-performing their audits; ### 78. deeply regrets that shortcomings remain in the way audit authorities perform and document their work; is worried that the court found quantifiable errors that had not been previously identified by the national audit authorities in many cases when re-performing their audits;


### 87. takes note that the court , in its special report 14/2022 “the commission’s response to fraud in the common agricultural policy” found that fraud risks vary between the cap payment schemes; welcomes that the commission has taken action on fraud spending; regrets that according to the court , the actions taken by the commission were not sufficiently proactive; notes with concern that some paying agencies have indicated a need for more practical advice from the commission; ### 87. takes note that the court , in its special report 14/2022 “the commission’s response to fraud in the common agricultural policy” found that fraud risks vary between the cap payment schemes; notes that the commission has taken action on fraud spending; regrets that according to the court , the actions taken by the commission were not sufficiently proactive; notes with concern that some paying agencies have indicated a need for more practical advice from the commission;


### a. simplify rules and procedures , develop compulsory training sessions and practical information for applicants , in particular new applicants , and improve the assistance and guidelines for smes , spin-offs , start-ups , administration and payment agencies and all other relevant stakeholders without compromising the quality of the controls; ### a. substantially simplify rules and procedures , develop compulsory training sessions and practical information for applicants , in particular new applicants , and improve the assistance and guidelines for smes , spin-offs , start-ups , administration and payment agencies and all other relevant stakeholders without compromising the quality of the controls;


### 94. notes that , of the 28 transactions the court examined , nine (32 %) were affected by errors , that the court quantified six errors which had an impact on the amounts charged to the union budget , and that the court also found six cases of non-compliance with legal and financial provisions , with no impact on the union budget; ### 94. is concerned that , of the 28 transactions the court examined , nine (32 %) were affected by errors , that the court quantified six errors which had an impact on the amounts charged to the union budget , and that the court also found six cases of non-compliance with legal and financial provisions , with no impact on the union budget;


### 100. welcomes the adoption of ndici-global europe in 2021 as the main funding instrument under this mff heading , with its objective to uphold and promote union values , principles and fundamental interests worldwide , and help promote multilateralism and stronger partnerships with non-eu countries; notes that ndici-global europe reflects a major change compared to the 2014-2020 mff , with the integration of cooperation with african , caribbean and pacific partner countries , previously financed by the european development funds , into the union general budget; ### 100. welcomes the adoption of ndici-global europe in 2021 as the main funding instrument under this mff heading , with its objective to uphold and promote union values , principles and fundamental interests worldwide , and help promote multilateralism and stronger partnerships with non-eu countries; notes that ndici-global europe reflects a major change compared to the 2014-2020 mff , with the integration of cooperation with african , caribbean and pacific partner countries , previously financed by the european development funds , into the union general budget; regrets that a more integrated approach in global development projects is missing;


### 104. notes the results of the seventh study on the residual error rate (rer) carried out in 2021 by dg near , and in particular the overall rer that was found to be 1 ,05 % , below the materiality threshold of 2 %; notes the limitations that the court identified as regards the methodology to determine the rer , in particular that a substantial share of dg near’s expenditure is not considered in the sampling population of the rer , which the court considers to carry the risk that errors remain undetected; is in particular worried that dg near did not disclose the limitations in its 2021 annual activity report; ### 104. notes the results of the seventh study on the residual error rate (rer) carried out in 2021 by dg near , and in particular the overall rer that was found to be 1 ,05 % , below the materiality threshold of 2 %; regrets the limitations that the court identified as regards the methodology to determine the rer , in particular that a substantial share of dg near’s expenditure is not considered in the sampling population of the rer , which the court considers to carry the risk that errors remain undetected; is in particular worried that dg near did not disclose the limitations in its 2021 annual activity report;


### 118. takes note that the court , in its special report 28/2022 “support to mitigate unemployment risks in an emergency (sure)” found that the sure instrument was a timely response to mitigate the risk of unemployment during the covid-19 pandemic and that it entailed a limited financial risk to the union budget; welcomes that sure loans helped to finance the national job retention schemes to contain the rise of unemployment during the covid-19 crisis; regrets that the impact of sure cannot be fully assessed because of limitations in the monitoring of data and the lack of an ex-post evaluation; ### 118. takes note that the court , in its special report 28/2022 “support to mitigate unemployment risks in an emergency (sure)” found that the sure instrument was a timely response to mitigate the risk of unemployment during the covid-19 pandemic and that it entailed a limited financial risk to the union budget; welcomes that sure loans helped to finance the national job retention schemes to contain the rise of unemployment during the covid-19 crisis; regrets that the impact of sure cannot be fully assessed because of limitations in the monitoring of data and the lack of an ex-post evaluation; calls on the commission to significantly improve the monitoring of data and dedicates much needed resources to allow for the reliable assessment of the results and outcomes of its programmes and policies; stresses the fact that a constant lack of ex-post assessments does not provide for a fact based planning of the next union’s budget;


### b. verify that covid-19 vaccine manufacturers comply with the terms of advance purchase agreements , in particular as regards production cost estimates , the use of upfront financing and , where applicable , no-profit clauses , and take corrective action as necessary; ### b. verify that covid-19 vaccine manufacturers comply with the terms of advance purchase agreements , in particular as regards production cost estimates , the use of upfront financing and , where applicable , no-profit clauses , and take corrective action as necessary and keep the discharge authority fully informed;


### 124. notes the court’s observation regarding the rrf in its 2021 annual report concerning the first payment request from spain; notes that the court assessed the commission’s ex-ante work on all milestones associated with the payment to spain in 2021; observes that it will not be possible for the court to assess all milestones associated with future payments; ### 124. notes the court’s observation regarding the rrf in its 2021 annual report concerning the first payment request from spain; notes that the court assessed the commission’s ex-ante work on all milestones associated with the payment to spain in 2021; is concerned by the fact that it will not be possible for the court to assess all milestones associated with future payments;


### 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 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 available at the commission’s disposal in the framework of discharge , for the discharge authority;


### 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 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; including through partial payments when there is non-compliance with public procurement or state aid rules;


### 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 may result in a less effective internal control system for the funds available under the rrf in some/many member states; 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;


### 132. reiterates that the effectiveness of the rule of law conditionality mechanism in part rests on information stemming from audits and investigations at union level and not having this information available will make the mechanism less effective; ### 132. reiterates that the effectiveness of the rule of law conditionality mechanism in smaller part rests on information stemming from audits and investigations at union level and not having this information available could negatively influence the effectiveness of the mechanism;


### 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; notes in this regard that the rrf regulation does not require 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 due to its governance;


### 136. considers that the element of union funding being additional to national funding is not satisfactorily communicated by the commission , and that it cannot be excluded with certainty that money from the rrf is used to replace national expenditure; considers an analysis of national expenditure is necessary to see if the funding made available through the rrf is truly additional and was not used to substitute recurring national expenditure , in accordance with article 5(1) of the rrf regulation; considers in this regard that it is unclear what has happened with the payments and pre-financing received by member states for which no investment related costs were incurred yet; ### 136. considers that the element of union funding being additional to national funding is not satisfactorily communicated by the commission , and that it cannot be excluded with certainty that money from the rrf is used to replace national expenditure; considers an analysis of national expenditure is necessary to see to what extend the funding made available through the rrf has been truly additional and was not used to substitute recurring national expenditure , in accordance with article 5(1) of the rrf regulation; recalls that in line with the regulation at this stage there is no information available on what happened to pre-financing received by member states for which no investment related costs were incurred yet;


### 141. is worried by the negligible contribution of the rrf to cross-border cooperation , especially considering the amounts of union funding involved; ### 141. is deeply worried by the negligible contribution of the rrf to cross-border cooperation , especially considering the amounts of union funding involved; calls on the commission to ask the member states to involve a much stronger element of cross-border cooperation in the updated national recovery and resilience plans and in particular in the repowereu chapters;


### 145. notes the statements made by commission representatives that all payments will go towards the investments made under the rrf , so that after a certain time lag where instalments are paid out for reforms as well , by august 2026 , the total amount of payments will have been spent on investments; recalls the court’s finding that the commission , in its assessment of all national rrps , gave a ‘b-rating’ for the cost estimates of these investments , calling into question the accuracy of the amounts involved; underlines in the light of the commission’s statement the problematic fact that of front-loading reforms and back-loading investments in the rrps; reiterates its concern that this only amplifies the risk that member states might not request the last payment tranche , and thus might fail to fulfil all reforms and investments after having received the largest part of their total financial support under the rrf; emphasises that the discharge authority cannot wait to receive full clarity on the proper use of union funds until after the end of the rrf; ### 145. recalls the court’s finding that the commission , in its assessment of all national rrps , gave a ‘b-rating’ for the cost estimates of investments made under the rrf , highlighting possible problems with the accuracy of the amounts involved; underlines that the specific combination of investments with reforms ensures that necessary reforms are implemented in a timely manner and often in the earlier years and upheld; emphasises that the discharge authority cannot wait to receive full clarity on the proper use of union funds until after the end of the rrf;


### 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 reforms and 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;


### 147. is worried by the court’s observation that certain milestones and targets lack clarity; shares the court’s concern that the absence of clear definitions of milestones and targets implies the risk that these milestones and targets are difficult to assess and the related risk that the initially aimed at objective was not fulfilled; underlines that this leaves the commission with a large margin of discretion when assessing whether a vaguely defined milestone and target was “sufficiently” achieved; notes in this regard the observation of the court that milestone 395 in the first payment request from spain was not satisfactorily fulfilled; notes the commission’s reply that the element that the court considered as not fulfilled is not part of the milestone , but is contained in the description of the measure; ### 147. is worried by the court’s observation that certain milestones and targets lack clarity; shares the court’s concern that the absence of clear and comparable definitions of milestones and targets implies the risk that these milestones and targets are difficult to assess and the related risk that the initially aimed at objective was not fulfilled; underlines that this leaves the commission with a large margin of discretion when assessing whether a vaguely defined milestone and target was achieved; notes in this regard the observation of the court that milestone 395 in the first payment request from spain was not satisfactorily fulfilled; notes with concern the commission’s reply that the element that the court considered as not fulfilled is not part of the milestone , but is contained in the description of the measure;


### 148. is worried by the finding of the court that milestones and targets are often based on output and even input indicators , which limits the possibility of measuring the performance of measures and ultimately their impact on the union policy objectives of the rrf; ### 148. is worried by the finding of the court that milestones and targets are often based on output and even input indicators , which limits the possibility of measuring the performance of measures by presenting achieved results and ultimately their middle-term impacts on the union policy objectives of the rrf;


### 149. notes the court’s finding that the commission’s assessment of rrps was often based on arrangements not yet in place; notes in this regard the court’s finding that the commission included additional milestones and targets to be achieved before the first payment in order to adopt the rrp; is worried that not having a fully functional monitoring system in place at the start of the implementation of the rrp risks that milestones and targets in reality may not have been fulfilled until the milestones on monitoring are fulfilled; highlights the fact that the monitoring systems or implementing bodies were partly not yet in place at the time the rrps were approved also limited the commission’s assessment of their administrative capacity; notes further in this regard the court’s finding that even on audit and control arrangements , the last resort in terms of reliability of information , an a rating was given despite several measures not being in place; recalls that adequate audit and control structures are a prerequisite for receiving funds from the rrf; ### 149. notes the court’s finding that the commission’s assessment of rrps was often based on arrangements not yet in place; notes in this regard the court’s finding that the commission included additional milestones and targets to be achieved before the first payment in order to adopt the rrp; is worried that not having a fully functional monitoring system in place at the start of the implementation of the rrp risks delays in assessments and monitoring of achieving milestones and targets; highlights the fact that the monitoring systems or implementing bodies were partly not yet in place at the time the rrps were approved also limited the commission’s assessment of their administrative capacity; notes further in this regard the court’s finding that even on audit and control arrangements , the last resort in terms of reliability of information , an a rating was given despite several measures not being in place; recalls that adequate audit and control structures are a prerequisite for receiving funds from the rrf;


### 151. supports the recommendations of the court in its annual report as well as in related special reports; calls on the commission to implement them without delay and to keep the discharge authority informed on the progress of the implementation; ### 151. strongly supports the recommendations of the court in its annual report as well as in related special reports; calls on the commission to implement them without delay and to keep the discharge authority informed on the progress of the implementation;


### a. develop an effective methodology to sample milestones and targets for which it will re-assess the commission’s assessment , since it will not have the resources to check all milestones and all targets of all payment requests in the future; considers that this methodology should effectively identify milestones and targets that have a higher risk of non-fulfilment; ### a. develop an effective methodology to sample milestones and targets for which it will re-assess the commission’s assessment , since it will not have the resources to check all milestones and all targets of all payment requests in the future; considers that this methodology should effectively identify milestones and targets that have a higher risk of non-fulfilment and / or have a higher relevance to contribute to the overall success of the final goals set;


### g. evaluate the procedure on enforcing implementation of csrs in the european semester and the rrf and , where necessary , propose new tools to enforce implementation , considering that for some member states , all country specific recommendations were addressed in the rrp , while for other (bigger) member states , not all csrs were addressed; ### deleted


### i. publish bi-annually on the rrf scoreboard the amounts borrowed to fund the rrf , and the interest incurred to pay for the borrowed amounts; also publish on the rrf the amounts of interest paid by the member states to the commission on the loans made available to them under the rrf; ### deleted


### j. perform , in 2023 , an analysis of national expenditure by comparing expenditure and investments in the national budgets before and after making the rrf funding available for the member states that received the largest share of support under the rrf in order to establish whether funding from the rrf replaced recurring national expenditure instead of investments , while acknowledging that a severe economic downturn after the covid-19 pandemic was averted; ### deleted


### k. report to the discharge authority what member states that received pre-financing from the rrf that could not yet be allocated to investments did with the funds received; ### k. report with each payment request made by member state on the share of pre-financing already cleared;


### l. only accept milestones and targets for which is has received documentation supporting its implementation , and not just statements of member states; requests in that regard a re-assessment of the fulfilment of milestone 215 in the spanish payment request by a qualified it-expert , accompanied by a declaration of assurance by an it-auditor , taking account of the requirements of the milestone and its related measure , and the statements of the commission in its assessment that the milestone has been satisfactorily fulfilled; ### l. only accept milestones and targets for which is has received documentation supporting its implementation , and not just statements of member states following a thorough assessment by the commission; paying particular attention in the assessment to the respect of the dnsh principle as well as to substantiate results for investments contributing to the 37% green target in the rrf;


### n. closely monitor fulfilment of milestones and targets , given negative experience with the first payment request handled by the commission , and the non-satisfactory fulfilment of one milestone , in particular also those where additional milestones were considered necessary for audit , monitoring and control purposes; ### n. closely monitor fulfilment of milestones and targets , in particular where additional milestones were considered necessary for audit , monitoring and control purposes;


### 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. assess not only the set-up but also the functioning of member states audit and control obligations under article 22;


### 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 in their amended rrps to include cross-border projects in their investments and to put more emphasis on such truly european projects in general;


### 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 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 is ensured;


### 5. notes that the agency ended the year with a fees and charges surplus of eur 11.2 million; notes that the ‘fees and charges’ surplus is added to the accumulated surplus , increasing it from eur 60.9 million to eur 72.1 million; ### 5. notes that the agency ended the year with a fees and charges surplus of eur 11.2 million; notes that the ‘fees and charges’ surplus is added to the accumulated surplus , increasing it from eur 60.9 million to eur 72.1 million; considers that given the remarkable surplus , which amounts to nearly a third of the eu subsidy , while the most of the revenues are based on users' charges , the amount of the eu contribution could be lowered , in order to devote this amount instead to underfunded agencies for other transport modes , particularly era;


### 9. welcomes the continuation , in cooperation with global partners and industry , of the easa sustainable aviation programme (2020 - 2024) focusing efforts towards achieving a cleaner , quieter and more sustainable aviation system; salutes in particular , in 2021 the developments towards the uptake of sustainable aviation fuels (saf); calls on providing sufficient funding and incentives for further research and development of saf to make them more efficient and affordable and to enhance and open their market ; ### 9. welcomes the continuation , in cooperation with global partners and industry , of the easa sustainable aviation programme (2020 - 2024) focusing efforts towards achieving a cleaner , quieter and more sustainable aviation system; salutes in particular , in 2021 the developments towards the uptake of sustainable aviation fuels (saf); calls on providing sufficient funding and incentives for further research and development of saf to make them more efficient and affordable and to enhance and open their market; underlines that priority needs to go to optimising the production technologies for truly zero-emission saf , namely synthetic fuels from rnfbos and the co2 direct air capture process therein , as well as renewable hydrogen and electric technologies;


### (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 and legislative proposals stemming therein. energy taxation should contribute to the ambition of at least 55 % reduction in net greenhouse gas emissions by 2030 compared to 1990 and climate neutrality by 2050 in line with the climate law , the achievement of the renewable and energy efficiency targets 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 thoroughly reflects the impact they have on the environment , health and biodiversity. 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 climate and environmental-related challenges in the context of the communication from the commission ‘the european green deal’28 and legislative proposals stemming therein. energy taxation should contribute to reducing greenhouse gas emissions in line with the european climate law , the achievement of the renewable and energy efficiency targets 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 thoroughly reflects the impact they have on the environment , health and biodiversity. 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 climate and environmental-related challenges in the context of the communication from the commission ‘the european green deal’28 and legislative proposals stemming therein. energy taxation should contribute to reduce greenhouse gas emissions in line with the climate law , the achievement of the renewable and energy efficiency targets 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 thoroughly reflects the impact they have on the environment , health and biodiversity. 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 climate and environmental-related challenges in the context of the communication from the commission ‘the european green deal’28 . energy taxation should contribute to the ambition of the climate law , including at least 55 % reduction in net greenhouse gas emissions by 2030 compared to 1990 , the achievement of the renewable and energy efficiency targets , 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 , on health , and on biodiversity. the contribution of energy taxation to those objectives has been endorsed by the council conclusions on the eu energy taxation framework29 .


### (4) environmental taxation can be a cost-effective mean for member states to achieve the targeted reductions of greenhouse gasses. the proper functioning of the internal market requires common rules on that taxation. ### (4) environmental taxation is a cost-effective mean for the union and member states to become energy independent and to achieve the targeted reductions of greenhouse gasses , improve energy savings and energy efficiency , while spurring the uptake of renewable energy sources , contributing to reduce the carbon footprint also of the transport system. the proper functioning of the internal market requires common rules on that taxation.


### (4) environmental taxation can be a cost-effective mean for member states to achieve the targeted reductions of greenhouse gasses. the proper functioning of the internal market requires common rules on that taxation. ### (4) environmental taxation is a cost-effective mean for the union and member states to become energy independent and achieve the targeted reductions of greenhouse gasses , improve energy savings and energy efficiency , while spurring the uptake of renewable energy source. the proper functioning of the internal market requires common rules on that taxation


### (4) environmental taxation can be a cost-effective mean for member states to achieve the targeted reductions of greenhouse gasses. the proper functioning of the internal market requires common rules on that taxation. ### (4) environmental taxation is a cost-effective mean for the union and member states to become energy independent and achieve the targeted reductions of greenhouse gasses , improve energy savings and energy efficiency , while spurring the uptake of renewable energy source. the proper functioning of the internal market requires common rules on that taxation.


### (5) member states should , however , be able to use the energy taxation of motor fuels , heating fuels and electricity for a variety of purposes not necessarily nor specifically or exclusively related to the reduction of greenhouse gases. ### (5) member states should , however , be able to use the energy taxation of motor fuels , heating fuels and electricity for a variety of purposes , particularly insofar as they are related to the reduction of greenhouse gases.


### (6) appreciable differences in the national levels of energy taxation applied by member states could prove detrimental to the proper functioning of the internal market. ### (6) appreciable differences in the national levels of energy taxation applied by member states could prove detrimental to the proper functioning of the internal market as well as to the achievement of the climate and energy goals. the european court of auditors also identified that the level of taxation of energy sources does not reflect their greenhouse gas emissions in the european union. in addition , the price of energy products did not reflect the environmental cost of emissions.


### (6) appreciable differences in the national levels of energy taxation applied by member states could prove detrimental to the proper functioning of the internal market. ### (6) appreciable differences in the national levels of energy taxation applied by member states could prove detrimental to the proper functioning of the internal market as well as to the achievement of the climate and energy goals. the european court of auditors also identified that the level of taxation of energy sources does not reflect their greenhouse gas emissions in the union. in addition , the price of energy products does not reflect the environmental cost of emissions.


### (6) appreciable differences in the national levels of energy taxation applied by member states could prove detrimental to the proper functioning of the internal market. ### (6) appreciable differences in the national levels of energy taxation applied by member states could prove detrimental to the proper functioning of the internal market , as well as to the achievement of the climate and energy goals. the european court of auditors also identified that the level of taxation of energy sources does not reflect their greenhouse gas emissions in the union. in addition , the price of energy products did not reflect the environmental cost of emissions


### (8) as a party to the united nations framework convention on climate change , the union has ratified the paris agreement . the taxation of energy products and , where appropriate , electricity is one of the instruments available for achieving the paris agreement objectives. ### (8) as a party to the united nations framework convention on climate change , the union has ratified the paris agreement . the taxation of energy products and , where appropriate , electricity is one of the main instruments available for achieving the paris agreement objectives , also with regard to the transport sector.


### (12) in order to ensure a smooth implementation of certain provisions relating to some products or uses , a transitional period of application is needed. ### (12) in order to ensure a smooth implementation of certain provisions relating to some products or uses , a transitional period of application may be needed.


### (14) fiscal arrangements made in connection with the implementation of this union framework for the taxation of energy products and electricity are a matter for each member state to decide. in this regard , member states might decide not to increase the overall tax burden if they consider that the implementation of such a principle of tax neutrality could contribute to the restructuring and the modernisation of their tax systems by encouraging behaviour conducive to greater protection of the environment and increased labour use. ### (14) fiscal arrangements made in connection with the implementation of this union framework for the taxation of energy products and electricity are a matter for each member state to decide. in this regard , member states might decide not to increase the overall tax burden if they consider that the implementation of such a principle of tax neutrality could contribute to the restructuring and the modernisation of their tax systems by encouraging behaviour conducive to greater protection of the environment , including by spurring energy efficiency renewable energy uptake and increased labour use. it should be strongly encouraged to design the tax system in such a way that the potential regressive nature of the energy taxation directive is minimised and where necessary compensated through a strong progressivity of the tax system , along with redistributive policies , effectively preventing mobility poverty.


### (14) fiscal arrangements made in connection with the implementation of this union framework for the taxation of energy products and electricity are a matter for each member state to decide. in this regard , member states might decide not to increase the overall tax burden if they consider that the implementation of such a principle of tax neutrality could contribute to the restructuring and the modernisation of their tax systems by encouraging behaviour conducive to greater protection of the environment and increased labour use. ### (14) fiscal arrangements made in connection with the implementation of this union framework for the taxation of energy products and electricity are a matter for each member state to decide. in this regard , member states might decide not to increase the overall tax burden if they consider that the implementation of such a principle of tax neutrality could contribute to the restructuring and the modernisation of their tax systems by encouraging behaviour conducive to greater protection of the environment , including by spurring energy efficiency renewable energy uptake , and increased labour use. it is strongly encouraged to design the tax system in such way that the potential regressive nature of the energy taxation directive is minimised and where necessary compensated through a strong progressivity of the tax system , along with redistributive policies.


### (14) fiscal arrangements made in connection with the implementation of this union framework for the taxation of energy products and electricity are a matter for each member state to decide. in this regard , member states might decide not to increase the overall tax burden if they consider that the implementation of such a principle of tax neutrality could contribute to the restructuring and the modernisation of their tax systems by encouraging behaviour conducive to greater protection of the environment and increased labour use. ### (14) fiscal arrangements made in connection with the implementation of this union framework for the taxation of energy products and electricity are a matter for each member state to decide. in this regard , member states might decide not to increase the overall tax burden if they consider that the implementation of such a principle of tax neutrality could contribute to the restructuring and the modernisation of their tax systems by encouraging behaviour conducive to greater protection of the environment , including by spurring energy efficiency renewable energy uptake , and increased labour use. it is strongly encouraged to design the tax system in such a way that the potential regressive nature of the energy taxation directive is minimised and where necessary compensated through a strong progressivity of the tax system , along with redistributive policies.


### (18) energy products used as a motor fuel for certain purposes and those used as heating fuel are normally taxed at lower levels than those applicable to energy products used as a propellant. electricity should always be among the least taxed energy sources in view of fostering its use , notably in the transport sector. to that purpose , member states should endeavour to apply the same level of taxation to electricity used to charge electric vehicles as for heating purposes during the necessary time following the entry into force of this directive. ### (18) energy products used as a motor fuel for certain purposes and those used as heating fuel are normally taxed at lower levels than those applicable to energy products used as a propellant. electricity should always be among the least taxed energy sources in view of fostering its use , including in the transport sector and heating and cooling. to that purpose , member states should endeavour to apply the same level of taxation to electricity used to charge electric vehicles as for heating and cooling purposes during the necessary time following the entry into force of this directive.


### (21) the union and the member states have concluded multilateral agreements regarding air services and air transport , or bilateral agreements with third countries. those agreements include provisions related to the taxation of aviation fuel. aviation fuel has traditionally had a privileged tax regime. the need to pursue the objectives of the directive requires that , without prejudice to those international agreements , energy products and electricity supplied for intra-eu air navigation , except cargo-only flights should be taxed. the exemption for the fuel used by cargo-only flights is still needed in the absence of more efficient alternatives. ### (21) the union and the member states have concluded multilateral agreements regarding air services and air transport , or bilateral agreements with third countries. those agreements include provisions related to the taxation of aviation fuel , based on a rather biased interpretation of the original provisions of the chicago convention on civil aviation , which in 1944 established the basis of icao , as the only explicit restriction to fuel taxation in its article 24 refers to fuel already present in the tank when landing , in order to avoid double taxation , but not explicitly on additionally refuelled content.. aviation fuel has traditionally had a privileged tax regime. the need to pursue the objectives of the directive requires that , without prejudice to those international agreements , energy products and electricity supplied for intra-eu air navigation should be taxed. in future revisions of such international aviation agreements , the current loopholes allowing for jet fuel tax exemptions should be eliminated.


### (21) the union and the member states have concluded multilateral agreements regarding air services and air transport , or bilateral agreements with third countries. those agreements include provisions related to the taxation of aviation fuel. aviation fuel has traditionally had a privileged tax regime. the need to pursue the objectives of the directive requires that , without prejudice to those international agreements , energy products and electricity supplied for intra-eu air navigation , except cargo-only flights should be taxed. the exemption for the fuel used by cargo-only flights is still needed in the absence of more efficient alternatives. ### (21) the union and the member states have concluded multilateral agreements regarding air services and air transport , or bilateral agreements with third countries. those agreements include provisions related to the taxation of aviation fuel based on an interpretation of the original provisions of the chicago convention on civil aviation , which in 1944 laid foundation for the international civil aviation organisation. the only explicit restriction to fuel taxation is set out in article 24 of that convention and it refers to fuel already present in the tank when landing , in order to avoid double taxation , but it does not refer explicitly to additionally refuelled content. aviation fuel has traditionally had a privileged tax regime. the need to pursue the objectives of the directive requires that , without prejudice to those international agreements , energy products and electricity supplied for intra-eu air navigation should be taxed. in future revisions of such international aviation agreements , the current loopholes allowing for jet fuel tax exemptions for flights departing from or arriving at union airports should be eliminated.


### (21) the union and the member states have concluded multilateral agreements regarding air services and air transport , or bilateral agreements with third countries. those agreements include provisions related to the taxation of aviation fuel. aviation fuel has traditionally had a privileged tax regime. the need to pursue the objectives of the directive requires that , without prejudice to those international agreements , energy products and electricity supplied for intra-eu air navigation , except cargo-only flights should be taxed. the exemption for the fuel used by cargo-only flights is still needed in the absence of more efficient alternatives. ### (21) the union and the member states have concluded multilateral agreements regarding air services and air transport , or bilateral agreements with third countries. those agreements include provisions related to the taxation of aviation fuel based on an interpretation of the original provisions of the chicago convention on civil aviation1a , which in 1944 established the basis of icao , as the only explicit restriction to fuel taxation in its article 24 refers to fuel already present in the tank when landing , in order to avoid double taxation , but not explicitly on additionally refuelled content. aviation fuel has traditionally had a privileged tax regime. the need to pursue the objectives of the directive requires that , without prejudice to those international agreements , energy products and electricity supplied for intra-eu air navigation should be taxed. in future revisions of such international aviation agreements , the current loopholes allowing for jet fuel tax exemptions for flights departing from or arriving at union airports should be eliminated.


### (22) in order to ensure a smooth implementation of this directive , the minimum levels of taxation for motor fuels used for intra-eu non-business and non-pleasure flights would be reached over a transitional period of ten years , whereas sustainable alternative fuels and electricity would be subject to a zero minimum rate for ten years. energy products and electricity used for intra-eu business aviation and pleasure flights should be subject to the standard levels of taxation applicable to motor fuels and electricity in the member states. ### (22) in order to ensure a proper internalisation of the real costs of aviation sector , enabling a level-playing field with other transport modes , the minimum levels of taxation for motor fuels used for intra-eu flights should be implemented immediately , whereas advanced biofuels , rfnbos and electricity would be subject to a zero minimum rate for ten years , including electricity supplied for stationary functioning and electric taxiing operations on the ground. energy products and electricity used for intra-eu business aviation and pleasure flights should be subject to the standard levels of taxation applicable to motor fuels and electricity in the member states. cargo flights should be subject to the same obligations as other flights , in order not to generate a further distortion of the level-playing field , which would ultimately hinder the objective of a modal shift to rail , also for freight , as set by the sustainable and smart mobility strategy.