### 14. points to the court special report 17/2022 "external consultants at the european commission" which emphasises that the european commission contracts about eur 1 billion each year on external consultants' services , using them to support a wide range of consultancy , study , evaluation and research activities and concluded that commission's management of the use of external consultants did not ensure that it maximises value for money , nor fully safeguards its interests; demands in this context the commission to improve its reporting on the use of external consultants' services , providing accurate and complete data on the volume and types of acquired services. moreover stresses the unused potential of union agencies to provide for specific , relevant information and the same quality products as external consultants , if their mandates would allow for it; invites the commission to look into this possibility in the future for consultancy and research purposes in specific areas; ### 14. points to the court special report 17/2022 "external consultants at the european commission" which emphasises that the european commission contracts about eur 1 billion each year on external consultants' services , using them to support a wide range of consultancy , study , evaluation and research activities and concluded that commission's management of the use of external consultants did not ensure that it maximises value for money , nor fully safeguards its interests; stresses furthermore that there are significant gaps in the framework governing the use of these services , with potential risks related to the concentration of service providers , overdependence and conflicts of interest which are not sufficiently monitored; demands in this context the commission to further develop its framework governing the use of external consultants , make better use of the results of external consultants’ services , enhance monitoring to mitigate the risks arising from using external consultants’ services and improve its reporting on the use of external consultants' services , providing accurate and complete data on the volume and types of acquired services. moreover stresses the unused potential of union agencies to provide for specific , relevant information and the same quality products as external consultants , if their mandates would allow for it; invites the commission to look into this possibility in the future for consultancy and research purposes in specific areas;


### 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 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;


### 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 the commission , and reduces the control burden from the commission towards the member states , in particular in comparison with the cohesion policy; calls on the commission to assess the advantages and disadvantages of this performance-based delivery model as part of the evaluation of the implementation of the rrf due by 20 february 2024; welcomes the publication of the framework for assessing milestones and targets under the rrf regulation and the commission methodology for the determination of payment suspension under the rrf regulation in the commission communication “recovery and resilience facility : two years on , a unique instrument at the heart of the eu’s green and digital transformation”;1a


### 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 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; recalls the importance to know whether the absorption of funds is on course , as 2023 is the mid-point of the rrf;


### 33. highlights that the biggest contributors to the 3.0 % error rate were 'cohesion , resilience and values' (1.2 percentage points) , followed by 'natural resources and environment' (0.7 percentage points) , 'neighbourhood and the world' (0.4 percentage points) and 'single market , innovation and digital' (0.4 percentage points); ### 33. notes that the court found that low-risk expenditure was free from material error but that high-risk expenditure remained affected by material error; highlights that the biggest contributors to the 3.0 % error rate were 'cohesion , resilience and values' (1.2 percentage points) , followed by 'natural resources and environment' (0.7 percentage points) , 'neighbourhood and the world' (0.4 percentage points) and 'single market , innovation and digital' (0.4 percentage points);


### 35. notes that the court found that low-risk expenditure was free from material error but that high-risk expenditure remained affected by material error; ### deleted


### 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 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. however doubts remain on the commission’s assessment of the milestone and targets associated with the related rrf expenditure; recalls that only a strong methodology of partial payments would permit to quantify identified error found in one member state;


### 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. considers 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 , one milestone in the payment to a member state found to be non-material can be regarded as not satisfactorily fulfilled , as the commission did not assess all criteria associated with the milestone; recalls that the commission has on the 21st of february 2023 published the framework for assessing the milestones and targets under the rrf regulation and welcomes this increased transparency;


### 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. 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 normally fall as ngeu draws to a close; underlines that a certain level of outstanding commitments is a logical consequence of the union budget system with commitment appropriations and payment appropriations but recalls that a too important amount of outstanding commitments can constitute a risk for the smooth operation of the budget in the future;


### a. ensure the protection of the union budget by making general and systematic use of digital and automated systems for reporting , monitoring and audit and urgently establish a compulsory integrated and interoperable system building on , but not limited to , existing tools and databases in the context of the upcoming revisions of the financial regulation; develop the recovery and resilience scoreboard to ensure that the description of milestones and the target and outcome of the audit are transparent; ensure that all member states use the systems and central registers to report on beneficial owners and end beneficiaries; ### a. ensure the protection of the union budget by making general and systematic use of digital and automated systems for reporting , monitoring and audit (arachne , edes etc.) and urgently establish a compulsory integrated and interoperable system building on , but not limited to , existing tools and databases in the context of the upcoming revisions of the financial regulation; develop the recovery and resilience scoreboard to ensure that the description of milestones and the target and outcome of the audit are transparent; ensure that all member states use the systems and central registers to report on beneficial owners and end beneficiaries;


### e. work with the court to align the respective risk categorisation methodologies; ### e. work with the court to align the respective risk categorisation methodologies and the audit working methodologies;


### 58. notes with concern that customs duties are at risk of either not being declared or being declared incorrectly to the national customs authorities by importers; highlights that these evaded amounts , known as the ‘customs gap’ , are not captured in member states’ tor accounting systems and do not fall within the scope of the court’s audit opinion on revenue; notes with concern that the customs gap may affect the amounts of duties established by member states; is worried that , according to the court , for a third year in a row , the union actions taken to reduce the gap and mitigate the risk that tor are not complete; is worried that weaknesses persist in member states’ accounting and management of tor; notes with concern the insufficient progress on a number of actions of the commission’s customs action plan; ### 58. notes with concern that customs duties are at risk of either not being declared or being declared incorrectly to the national customs authorities by importers; highlights that these evaded amounts , known as the ‘customs gap’ , are not captured in member states’ tor accounting systems and do not fall within the scope of the court’s audit opinion on revenue; notes with concern that the customs gap may affect the amounts of duties established by member states; is worried that , according to the court , for a third year in a row , the union actions taken to reduce the gap and mitigate the risk that tor are not complete; is worried that serious weaknesses persist since several years in member states’ accounting and management of tor; notes with concern the insufficient progress on a number of actions of the commission’s customs action plan;


### 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; emphasises therefore that streamlining of the h2020 rules for the declaration of personnel costs and wider use of simplified cost options , such as unit costs , lump sums and flat rates , is a precondition to stabilise error rates to below materiality level; draws attention to the court’s observation that private entities , in particular smes and new entrants , are prone to error;


### f. increase awareness , coherence , and sustainability of the support to sme internationalisation; ### f. increase awareness , coherence , and sustainability of the support to sme internationalisation; reiterates the need to 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 others relevant stakeholders;


### 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; 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 in addressing certain fraud risks , such as illegal ‘land-grabbing’; emphasises that weaknesses in member states’ checks are prone to be exploited by the fraudsters and that the commission should monitor national anti-fraud measures better , provide more concrete guidance , and promote the use of new technologies for preventing and detecting fraud; notes with concern that some paying agencies have indicated a need for more practical advice from the commission;


### 89. notes with concern that the court , in its special report 10/2022 “leader and community-led local development facilitates local engagement but additional benefits still not sufficiently demonstrated” found that local action groups facilitate local engagement but involve additional costs and slow approval processes; is worried that additional benefits of leader and community-led local development are still not demonstrated; ### 89. notes with concern that the court , in its special report 10/2022 “leader and community-led local development facilitates local engagement but additional benefits still not sufficiently demonstrated” found that local action groups facilitate local engagement but involve additional costs and slow approval processes; stresses that there is little evidence to suggest that leader’s additional benefits justify its costs compared to other types of funding; call on the commission to perform a thorough and in-depth evaluation of leader and the community-led local development approach to assess the relevance , effectiveness , efficiency , coherence and added value of leader and to inform the discharge authority about the outcome;


### b. make better use and encourage the use of ai and data from new technologies such as the union owned copernicus sentinel satellites to monitor and control the correct use of cap funds; ### b. make better use and encourage to systematise the use of ai and data from new technologies such as the union owned copernicus sentinel satellites to monitor and control the correct use of all cap funds;


### 98. furthermore , calls on the commission to consider the activities employed by dg cnect for the horizon europe funds in support of smes , such as webinars and coordinator days , and copy successful elements of dg cnect’s approach to the edf; ### 98. furthermore , calls on the commission to consider the activities employed by dg cnect for the horizon europe funds in support of smes , such as webinars and coordinator days , and copy successful elements of dg cnect’s approach to the edf , notably to give more specific knowledge of union funding to smes and decrease the administrative burden for them;


### neighborhood and the world ### neighbourhood and the world


### 115. supports the recommendations of the court in its annual report as well as in related special reports; calls on the commission and the central office of the european schools in their respective remits to implement them without delay and to keep the discharge authority informed on the progress of the implementation; ### 115. supports the recommendations of the court in its annual report as well as in related special reports; calls on the commission and the central office of the european schools in their respective remits to implement them without delay and to keep the discharge authority informed on the progress of the implementation; calls for full parliamentary scrutiny of the european school system in order to increase accountability and improve governance;


### b. continue its work to ensure a fair geographical balance of its staff at all levels while at the same time fulfilling the requirements in the staff regulation regarding competences and merits of candidates; ### b. continue its work to ensure a fair geographical balance of its staff at all levels , and especially at senior management level , where strong imbalances persist , while at the same time fulfilling the requirements in the staff regulation regarding competences and merits of candidates; stresses that according to the article 27 of the staff regulations of officials , the commission like all european institutions , must ensure that all member states are proportionally represented;


### 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 the limitations of the court's assessment of the commission’s ex-ante work on all milestones associated with the payment to spain in 2021 due to the absence of the methodology for calculating the amount of suspension of , or reduction in , payments if milestones and/or targets are not being achieved; welcomes the publication of the commission's framework assessing fulfilment of milestones and targets and its methodology to determine the amount to be suspended in case of a member state's partial achievement of the milestones and targets related to a payment request;1a


### 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; regrets that it will not be possible for the court to assess all milestones associated with future payments and urges the commission to put in place a serious ex ante and ex post work to check if all milestones and targets are really implemented;


### 125. is worried by the court’s serious finding that for the payment made to spain in 2021 , one milestone was not satisfactorily fulfilled; regrets to note that the court was not able to quantify this error because of the absence of a methodology to quantify the impact of (partially) not achieving a milestone or target; notes the commission’s internal auditor also observed the absence of this methodology; considers it grave negligence of the commission to not have this methodology in place before making payments , as this calls into question the commission’s sincerity of assessing the satisfactory fulfilment of milestones and targets; ### 125. is worried by the court’s serious finding that for the payment made to spain in 2021 , one milestone was not satisfactorily fulfilled; regrets to note that the court was not able to quantify this error because of the absence of a methodology to quantify the impact of (partially) not achieving a milestone or target; notes the commission’s internal auditor also observed the absence of this methodology; regrets that the commission did not have a stronger methodology in place before making payments; regrets that not all member states make use of the commission’s data-mining and risk-scoring tool for identifying projects , beneficiaries and contractors at risk of fraud , conflict of interest and irregularities under the rrf; notes that five of the member states in the court's audit sample (greece , spain , france , croatia and italy) will use the commission’s data mining and risk scoring tool; recalls that a common data-mining and risk-scoring tool is a key element in protecting the eu’s financial interests and , more specifically , in preventing fraud , conflicts of interest and double funding , and in increasing transparency and accountability;


### 125. is worried by the court’s serious finding that for the payment made to spain in 2021 , one milestone was not satisfactorily fulfilled; regrets to note that the court was not able to quantify this error because of the absence of a methodology to quantify the impact of (partially) not achieving a milestone or target; notes the commission’s internal auditor also observed the absence of this methodology; considers it grave negligence of the commission to not have this methodology in place before making payments , as this calls into question the commission’s sincerity of assessing the satisfactory fulfilment of milestones and targets; ### 125. is worried by the court’s finding that for the payment made to a member state in 2021 , one milestone was not satisfactorily fulfilled according to the court; notes that the court was not able to quantify this error; notes the commission’s internal auditor observed the absence of a methodology to quantify the impact of (partially) not achieving a milestone or a target; considers it necessary to have this methodology in place and therefore welcomes the inclusion in annex i of the commission communication “recovery and resilience facility : two years on , a unique instrument at the heart of the eu’s green and digital transformation” which details the framework for assessing milestones and targets under the rrf regulation and the increased transparency that the publication of this framework provides;


### 125. is worried by the court’s serious finding that for the payment made to spain in 2021 , one milestone was not satisfactorily fulfilled; regrets to note that the court was not able to quantify this error because of the absence of a methodology to quantify the impact of (partially) not achieving a milestone or target; notes the commission’s internal auditor also observed the absence of this methodology; considers it grave negligence of the commission to not have this methodology in place before making payments , as this calls into question the commission’s sincerity of assessing the satisfactory fulfilment of milestones and targets; ### 125. notes the court’s finding that for the payment made to spain in 2021 , one milestone was not satisfactorily fulfilled; regrets to note that the court was not able to quantify this error because of the absence of a methodology to quantify the impact of (partially) not achieving a milestone or target; welcomes the establishment of a methodology for the partial suspension of payments in case of non-fulfillment of some milestones or targets as established in the annex ii of the communication from the commission on the “recovery and resilience facility: two years on a unique instrument at the heart of the eu’s green and digital transformation”; calls on the commission to remain vigilant and rigorous in his assessments of the fulfilment of all milestones and targets;


### 126. notes that the commission’s internal audit service did not perform any audit engagement as regards the ngeu programme in 2021; notes that the internal auditor draws attention to the need to continue work on control design and implementation of appropriate financial management , and audit and control strategies; considers the internal auditor to be an essential element of internal checks and balances within the commission and that independent and objective information derived from its own audit activities is indispensable for the internal auditor to function effectively; underlines that the work by the court as external auditor cannot substitute the work of the internal audit service; ### 126. notes that the commission’s internal audit service did not perform any audit engagement as regards the ngeu programme in 2021; notes that the internal auditor draws attention to the need to continue work on control design and implementation of appropriate financial management , and audit and control strategies; considers the internal auditor to be an essential element of internal checks and balances within the commission and that independent and objective information derived from its own audit activities is indispensable for the internal auditor to function effectively; underlines that the work by the court as external auditor cannot substitute the work of the internal audit service; notes the conclusions by the cont mission to spain on the 20-23rd of february 2023 , whereby the difficulties with the full implementation of the management and control platform for the spanish rrf funds , coffee , were acknowledged , especially in relation to the lack of interoperability with regional and eu platforms; notes that there are indices that the european commission evaluated positively the spanish recovery plan milestone related to the full functionality of the coffee platform at a time where , according to several stakeholders , this was not yet the case; regrets the lack of transparency as regards final beneficiaries of the ngeu funds and execution rates in terms of payments , which could be provided to the public in an aggregated and comprehensible manner; calls on the commission to thoroughly evaluate the fullfilment of milestones in targets , and in particular reforms;


### 126. notes that the commission’s internal audit service did not perform any audit engagement as regards the ngeu programme in 2021; notes that the internal auditor draws attention to the need to continue work on control design and implementation of appropriate financial management , and audit and control strategies; considers the internal auditor to be an essential element of internal checks and balances within the commission and that independent and objective information derived from its own audit activities is indispensable for the internal auditor to function effectively; underlines that the work by the court as external auditor cannot substitute the work of the internal audit service; ### 126. regrets that the commission’s internal audit service did not perform any audit engagement as regards the ngeu programme in 2021; notes that the internal auditor draws attention to the need to continue work on control design and implementation of appropriate financial management , and audit and control strategies; considers the internal auditor to be an essential element of internal checks and balances within the commission and that independent and objective information derived from its own audit activities is indispensable for the internal auditor to function effectively; underlines that the work by the court as external auditor cannot substitute the work of the internal audit service;


### 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 concerned available in the framework of discharge , for the discharge authority; regrets the lack of information on how the commission protects the european union’s financial interests while disbursing payments;


### 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; 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;


### 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 it is important to ensure that the additionality of union funding should be guaranteed throughout the implementation of the rrf; calls on the commission to perform relevant audits and controls to certify such additionality;


### 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 the investments made under 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 investments and reforms , 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;


### 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;


### 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 those related to audit , monitoring and control;


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


### s. strongly encourage member states that seek to amend their rrps to include cross-border projects in their investments and to put more emphasis on such truly european projects in general; ### s. strongly encourage member states that seek to amend their rrps to include cross-border projects in their investments and to put more emphasis on such truly european projects in general; recalls that cross-border projects should address existing bottlenecks in energy transmission , distribution and storage , thus providing european added value;


### t. include in its system audits in the member states for each internal control system (in case of decentralised or implementation methods) a minimum number of 25 tests of individual procurement files under the rrf in order to not just provide assurance on the set-up of the internal control system in all member states , but also on the effectiveness in practice of the systems; ### t. strengthen , where relevant , its system audits in the member states for each internal control system (in case of decentralised or implementation methods); to ensure a minimum reasonable number of tests of individual procurement files in order to guarantee the effectiveness in practice of the internal control systems;


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


### 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); welcomes in particular the agency's efforts to accelerate work towards the electrification of aviation and the use of hydrogen; 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 ;


### 11. welcomes the progress of the military programme (2020 - open end) and highlights the role of the agency within the european military mobility; calls on increasing the eu budget line for military mobility; ### 11. welcomes the progress of the military programme (2020 - open end) and highlights the role of the agency within the european military mobility; calls on increasing the eu budget line for military mobility; calls for a rapid and substantial increase of the budget allocation for military mobility


### (3) it is necessary to ensure that clear taxation rules for energy products and electricity continue to contribute to the smooth functioning of the internal market while at the same time tackling the climate and environmental-related challenges in the context of the communication from the commission ‘the european green deal’28 . energy taxation can contribute to the ambition of at least 55 % reduction in net greenhouse gas emissions by 2030 compared to 1990 , as well as to the objective of zero pollution through the implementation of the polluter-pays principle , by ensuring that the taxation of motor fuels , heating fuels and electricity better reflects the impact they have on the environment and on health. the contribution of energy taxation to those objectives has been endorsed by the council conclusions on the eu energy taxation framework29 . ### (3) it is necessary to ensure that clear taxation rules for energy products and electricity continue to contribute to the smooth functioning of the internal market while at the same time tackling the climate and environmental-related challenges in the context of the communication from the commission ‘the european green deal’28. energy taxation can contribute to the new union energy targets for 2030. however , it remains essential that the union climate policy and energy taxation are regarded as two different aspects. thus , seeing the union energy taxation as a tool to incentivise climate-neural policy developments. the contribution of energy taxation to 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 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 , while preserving member states' flexibility and sovereignty over tax prerogatives , not least with respect to promoting economic and social development of their insular , peripheral and remote regions.


### (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 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. to that end , this directive should foster energy efficiency in a technology neutral manner , while co2price signals should be given by the eu emissions trading system.


### (13) as a general principle , member states should apply to energy products and electricity levels of taxation not less than the minimum levels of taxation as set out by the directive. member states should be permitted to comply with the union minimum taxation levels by taking into account the total charge levied in respect of all indirect taxes which they have chosen to apply (excluding vat). ### (13) as a general principle , member states should apply to energy products and electricity levels of taxation not less than the minimum levels of taxation as set out by the directive in order to generate a level playing field between member states as well as competitiveness. member states should be permitted to comply with the union minimum taxation levels by taking into account the total charge levied in respect of all indirect taxes which they have chosen to apply (excluding vat).


### (13) as a general principle , member states should apply to energy products and electricity levels of taxation not less than the minimum levels of taxation as set out by the directive. member states should be permitted to comply with the union minimum taxation levels by taking into account the total charge levied in respect of all indirect taxes which they have chosen to apply (excluding vat). ### deleted


### (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.


### (19) the need to pursue the objectives of the directive requires that no distinction is made between commercial and non-commercial diesel as well as business and non-business use for heating fuels and electricity. ### (19) member states may need to differentiate between commercial and non-commercial diesel. member states should have the option to use that possibility to reduce the gap between the taxation of non-commercial gas oil used as propellant and petrol.


### (20) energy products should essentially be subject to a union framework when used as heating fuel or motor fuel. to that extent , it is in the nature and the logic of the tax system to exclude from the scope of the framework dual uses and non-fuel uses of energy products . electricity used in similar ways should be treated on an equal footing. ### (20) energy products should essentially be subject to a union framework when used as heating fuel or motor fuel. to that extent , it is in the nature and the logic of the tax system to exclude from the scope of the framework dual uses and non-fuel uses of energy products as well as mineralogical processes. electricity used in similar ways should be treated on an equal footing.


### (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. in the absence of more efficient alternatives for energy products and electricity supplied to cargo and passenger flights , the tax exemption is still needed in order to pursue the objectives of this directive without prejudice to the international commitments.


### (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 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. 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.


### (23) fuel used for waterborne navigation , including fishing , should also be taxed , and the member states party to international agreements providing for the exemption of that fuel , have to , by the date of the application of this directive , ensure they eliminate the incompatibilities. it is necessary to allow for a different level of taxation to be applied to the use of energy products and electricity for intra-eu waterborne regular service navigation , fishing and freight transport and their respective at berth activities. considering the specificity of those uses , the minimum levels of taxation should be lower than the ones applicable to general motor fuel use. in order to provide an incentive to the use of sustainable alternative fuels and electricity , such fuels and electricity should be exempted from taxation for ten years. energy products and electricity used for the remaining intra-eu waterborne navigation should be subject to the standard levels of taxation applicable to motor fuels and electricity in the member states. ### (23) fuel used for waterborne navigation , including fishing , should also be taxed , and the member states party to international agreements providing for the exemption of that fuel , have to , by the date of the application of this directive , ensure they eliminate the incompatibilities. it is necessary to allow for a different level of taxation to be applied to the use of energy products and electricity for intra-eu waterborne regular service navigation , fishing and freight transport and their respective at berth activities. considering the specificity of those uses , the minimum levels of taxation should be lower than the ones applicable to general motor fuel use. in order to provide an incentive to the use of sustainable alternative fuels and electricity , such fuels and electricity should be exempted from taxation. energy products and electricity used for the remaining intra-eu waterborne navigation should be subject to the standard levels of taxation applicable to motor fuels and electricity in the member states.


### (23) fuel used for waterborne navigation , including fishing , should also be taxed , and the member states party to international agreements providing for the exemption of that fuel , have to , by the date of the application of this directive , ensure they eliminate the incompatibilities. it is necessary to allow for a different level of taxation to be applied to the use of energy products and electricity for intra-eu waterborne regular service navigation , fishing and freight transport and their respective at berth activities. considering the specificity of those uses , the minimum levels of taxation should be lower than the ones applicable to general motor fuel use. in order to provide an incentive to the use of sustainable alternative fuels and electricity , such fuels and electricity should be exempted from taxation for ten years. energy products and electricity used for the remaining intra-eu waterborne navigation should be subject to the standard levels of taxation applicable to motor fuels and electricity in the member states. ### (23) fuel used for waterborne navigation , including fishing , should also be taxed , and the member states party to international agreements providing for the exemption of that fuel , have to , by the date of the application of this directive , ensure they eliminate the incompatibilities. it is necessary to allow for a different level of taxation to be applied to the use of energy products and electricity for intra-eu waterborne regular service navigation , freight transport and their respective at berth activities. considering the specificity of those uses , the minimum levels of taxation should be lower than the ones applicable to general motor fuel use. in order to provide an incentive to the use of sustainable alternative fuels and electricity , such fuels and electricity should be exempted from taxation. energy products and electricity used for the remaining intra-eu waterborne navigation should be subject to the standard levels of taxation applicable to motor fuels and electricity in the member states.


### (26) in particular , highly efficient combined heat and power generation and , in order to promote the use of alternative energy sources , renewable forms of energy may qualify for preferential treatment. ### (26) in particular , highly efficient combined heat and power generation and , in order to promote the use of alternative energy sources , renewable forms of energy may qualify for preferential treatment. it is desirable to establish a union framework to allow member states to exempt or reduce excise duties so as to promote biofuels , thereby contributing to the better functioning of the internal market and affording member states and economic operators a sufficient degree of legal certainty. distortions of competition should be limited and the incentive of a reduction in the basic costs for producers and distributors of biofuels should be maintained through , inter alia , the adjustments by member states taking into account changes in raw material prices.


### (27) targeted reductions in the tax level may prove necessary to incentivise the achievement of environmental protection objectives and improvements in energy efficiency of the union productive sector. ### (27) targeted exemptions or reductions in the tax level may prove necessary to incentivise the achievement of environmental protection objectives , the improvement in energy efficiency and the international competitiveness of the union productive sector.


### (28) targeted reductions in the tax level may prove necessary to tackle the social impact of energy taxes. an exemption from taxation may temporarily prove necessary to protect vulnerable households. ### (28) targeted exemptions or reductions in the tax level may prove necessary to tackle the social impact of energy taxes. an exemption from taxation may temporarily prove necessary to protect vulnerable households recognised as lower and middle income by member states.


### (28) targeted reductions in the tax level may prove necessary to tackle the social impact of energy taxes. an exemption from taxation may temporarily prove necessary to protect vulnerable households. ### (28) certain exemptions or reductions in the tax level may prove necessary; notably because of the lack of a stronger harmonisation at the union level , because of the risks of a loss of international competitiveness or because of social or environmental considerations.


### (28) targeted reductions in the tax level may prove necessary to tackle the social impact of energy taxes. an exemption from taxation may temporarily prove necessary to protect vulnerable households. ### (28) targeted reductions in the tax level may prove necessary to tackle the social or sectoral impact of energy taxes. an exemption from taxation may temporarily prove necessary to protect vulnerable households or strategic sectors. the agricultural sector , and particularly food production , merit specific treatment as the value of energy products used in agriculture , forestry and horticulture represents a significant share of agricultural costs.


### (28) targeted reductions in the tax level may prove necessary to tackle the social impact of energy taxes. an exemption from taxation may temporarily prove necessary to protect vulnerable households. ### (28) targeted reductions in the tax level may prove necessary to tackle the social impact of energy taxes. an exemption from taxation may temporarily prove necessary to protect vulnerable households based on a long-term plan for a european-wide energy independence strategy.


### (29) in view of the financial , economic and environmental effects on each member state , such as the need of electrification of the transport sector , it is necessary to provide for a procedure authorising the introduction by member states , for a set period , of other exemptions or reduced levels of taxation. for reasons of protection of environment and human health , including the reduction of air pollution , it is necessary to provide for a procedure authorising the introduction by member states , for a set period , of specific increased rates. such authorisation , following a justified request by member states and on a proposal from the commission , should be adopted by means of a council implementing decision in accordance with article 291 of the tfeu. such measures should be under regular review. ### (29) in view of the financial , economic and environmental effects on each member state , such as the need of decarbonisation of the transport sector , it is necessary to provide for a procedure authorising the introduction by member states , for a set period , of other exemptions or reduced levels of taxation. for reasons of protection of environment and human health , including the reduction of air pollution , it is necessary to provide for a procedure authorising the introduction by member states , for a set period , of specific increased rates. such authorisation , following a justified request by member states and on a proposal from the commission , should be adopted by means of a council implementing decision in accordance with article 291 of the tfeu. such measures should be under regular review.


### (36) every five years and for the first time five years after the entry into force of this directive , the commission should report to the council on the application of this directive , examining in particular the minimum levels of taxation , the impact of innovation and technological developments , especially as regards energy efficiency , the use of electricity in transport and the justification for the exemptions , reductions and differentiations laid down in this directive. the report should take into account the proper functioning of the internal market , environmental and social considerations , the real value of the minimum levels of taxation and the wider relevant objectives of the treaties. ### (36) every three years and for the first time three years after the entry into force of this directive , the commission should report to the council on the application of this directive , examining in particular the minimum levels of taxation , the impact of innovation and technological developments , especially as regards energy efficiency , the use of electricity in transport and the justification for the exemptions , reductions and differentiations laid down in this directive. the report should take into account the proper functioning of the internal market , environmental and social considerations , the real value of the minimum levels of taxation , the impact of this directive on air connectivity and the economic and social welfare of insular , peripheral and remote regions as well as the wider relevant objectives of the treaties.


### (36) every five years and for the first time five years after the entry into force of this directive , the commission should report to the council on the application of this directive , examining in particular the minimum levels of taxation , the impact of innovation and technological developments , especially as regards energy efficiency , the use of electricity in transport and the justification for the exemptions , reductions and differentiations laid down in this directive. the report should take into account the proper functioning of the internal market , environmental and social considerations , the real value of the minimum levels of taxation and the wider relevant objectives of the treaties. ### (36) every five years and for the first time five years after the entry into force of this directive , the commission should report to the council and to the european parliament on the application of this directive , examining in particular the minimum levels of taxation , the impact of innovation and technological developments , especially as regards energy efficiency , the use of electricity in transport and the justification for the exemptions , reductions and differentiations laid down in this directive. the report should take into account the proper functioning of the internal market , environmental and social considerations , the real value of the minimum levels of taxation and the wider relevant objectives of the treaties.


### b) ‘low-carbon fuels’ shall mean low-carbon hydrogen and synthetic gaseous and liquid fuels the energy content of which is derived from low-carbon hydrogen , as well as any fossil-based fuels , which meet the technical screening criteria for determining the conditions under which a specific economic activity qualifies as contributing substantially to climate change mitigation according to article 10 of regulation (eu) 2020/852 of the european parliament and of the council36 and annex i to delegated regulation (eu) […]/[…]37 . ‘recycled carbon fuels’ , as defined by article 2(35) of directive (eu) 2018/2001 , shall be included in this category. ### b) ‘low-carbon fuels’ shall mean low-carbon fossil-based hydrogen with carbon capture and synthetic gaseous and liquid fuels the energy content of which is derived from fossil-based hydrogen with carbon capture low-carbon hydrogen , as well as any fossil-based fuels , which meet the technical screening criteria for determining the conditions under which a specific economic activity qualifies as contributing substantially to climate change mitigation according to article 10 of regulation (eu) 2020/852 of the european parliament and of the council43 and annex i to delegated regulation (eu) […]/[…]44. ‘recycled carbon fuels’ , as defined by article 2(35) of directive (eu) 2018/2001 , shall be included in this category.


### an energy product has a dual use when it is used both as heating fuel and for purposes other than as motor fuel and heating fuel. the use of energy products for chemical reduction and in electrolytic and metallurgical processes , when energy products are used directly in or to provide a direct energy input to the process , or their consumption is connected to the process , shall be regarded as dual use , ### an energy product has a dual use when it is used both as heating fuel and for purposes other than as motor fuel and heating fuel. the use of energy products for chemical reduction and in electrolytic , mineralogical and metallurgical process , including various hydrogen production methods , such as methane pyrolysis or carbon capture , storage and utilisation , when energy products are used directly in or to provide a direct energy input to the process , or their consumption is connected to the process , shall be regarded as dual use ,


### — electricity used principally for the purposes of chemical reduction and in electrolytic and metallurgical processes , when electricity is used directly in or to provide a direct energy input to the process , or its consumption is connected to the process , ### — electricity used principally for the purposes of chemical reduction and in electrolytic , mineralogical and metallurgical processes , when electricity is used directly in or to provide a direct energy input to the process , or its consumption is connected to the process ,


### 1. the levels of taxation which member states shall apply to the energy products and electricity listed in article 2 may not be less than the minimum levels of taxation prescribed by this directive. ### deleted


### 2. the minimum levels of taxation laid down in this directive shall be adapted every year starting from 1 january 2024 to take account of the changes in the harmonised index of consumer prices excluding energy and unprocessed food as published by eurostat. the minimum levels shall be adapted automatically , by increasing or decreasing the base amount in euro by the percentage change in that index over the preceding calendar year. ### deleted


### 2. the minimum levels of taxation laid down in this directive shall be adapted every year starting from 1 january 2024 to take account of the changes in the harmonised index of consumer prices excluding energy and unprocessed food as published by eurostat. the minimum levels shall be adapted automatically , by increasing or decreasing the base amount in euro by the percentage change in that index over the preceding calendar year. ### 2. where a transitional period is applicable as provided for in annex i , the commission shall assess the need to prolong the transitional period. the commission shall therefore keep the minimum levels of taxation as laid down in this directive under review in line with article 31.in its assessment the commission shall give particular consideration to the technological and market maturity of alternative energy carriers , as well as taking into account assessments from member states that demonstrate that cleaner alternatives are not readily available on the market and are not expected to be available in the short term.


### 2. the minimum levels of taxation laid down in this directive shall be adapted every year starting from 1 january 2024 to take account of the changes in the harmonised index of consumer prices excluding energy and unprocessed food as published by eurostat. the minimum levels shall be adapted automatically , by increasing or decreasing the base amount in euro by the percentage change in that index over the preceding calendar year. ### 2. the minimum levels shall be adapted , on the basis of transparent and holistic assessment taking the risk of loss of international competitiveness fully into account , by increasing or decreasing the base amount in euro by the percentage change in that index over the preceding calendar year.


### the commission is empowered to adopt delegated acts in accordance with article 29 to amend the minimum levels of taxation as referred to in the first subparagraph. ### deleted


### without prejudice to article 5(2) , when a transitional period is applicable as provided for in table a of annex i , the increase in the minimum levels of taxation shall be fixed at one tenth per year until 1 january 2033. for low-carbon fuels , the minimum level of taxation set for the first year of the transitional period shall apply until 1 january 2033. ### without prejudice to article 5(2) , when a transitional period is applicable as provided for in table a of annex i , the increase in the minimum levels of taxation shall be fixed at one tenth per year until 1 january 2033. for low-carbon fuels , the minimum level of taxation set for the first year of the transitional period shall apply.


### without prejudice to article 5(2) , when a transitional period is applicable as provided for in table b of annex i , the increase in the minimum levels of taxation shall be fixed at one tenth per year until 1 january 2033. for low-carbon fuels , the minimum level of taxation set for the first year of the transitional period shall apply until 1 january 2033. ### without prejudice to article 5(2) , when a transitional period is applicable as provided for in table b of annex i , the increase in the minimum levels of taxation shall be fixed at one tenth per year until 1 january 2033. for low-carbon fuels , the minimum level of taxation set for the first year of the transitional period shall apply permanently.


### without prejudice to article 5(2) , when a transitional period is applicable as provided for in table c of annex i , the increase in the minimum levels of taxation shall be fixed at one tenth per year until 1 january 2033. for low-carbon fuels , the minimum level of taxation set for the first year of the transitional period shall apply until 1 january 2033. ### without prejudice to article 5(2) , when a transitional period is applicable as provided for in table c of annex i , the increase in the minimum levels of taxation shall be fixed at one tenth per year until 1 january 2033. for low-carbon fuels , the minimum level of taxation set for the first year of the transitional period shall apply permanently.


### the minimum levels of taxation referred to in the first subparagraph shall start from zero and increase each year by one tenth of the final minimum rates , set out in tables a and d of annex i , over a transitional period of ten years. a minimum rate of zero shall apply to sustainable biofuels and biogas , low-carbon fuels , renewable fuels of non-biological origin , advanced sustainable biofuels and biogas , and electricity over that transitional period of ten years. ### the minimum levels of taxation referred to in the first subparagraph shall start from zero and increase each year by one tenth of the final minimum rates , set out in tables a and d of annex i , over a transitional period of ten years. a minimum rate of zero shall apply to sustainable biofuels and biogas , low-carbon fuels , renewable fuels of non-biological origin , advanced sustainable biofuels and biogas , and electricity.


### 2. energy products supplied for use as fuel to aircrafts and electricity used directly for charging electric aircrafts , for the purposes of intra-eu air navigation of cargo-only flights shall be exempted. ### 2. energy products supplied for use as fuel to aircrafts and electricity used directly for charging electric aircrafts , for the purposes of intra-eu air navigation of cargo-only flights shall be exempted for all cases when they are covered by existing aviation ets.


### 1. without prejudice to article 5 , member states shall apply , as a single use , under fiscal control not less than minimum levels of taxation as set out in tables b and d of annex i to energy products supplied for use as fuel to vessels , and to electricity used directly for charging electric vessels , for the purposes of intra-eu waterborne regular service navigation , fishing and freight transport. ### 1. without prejudice to article 5 , member states shall apply , as a single use , under fiscal control not less than minimum levels of taxation as set out in tables b and d of annex i to energy products supplied for use as fuel to vessels , and to electricity used directly for charging electric vessels , for the purposes of intra-eu waterborne regular service navigation , fishing and freight transport. the commission shall establish by means of a delegated or implementing act a calculation mechanism to tax the amount of fuel consumed within eu-waters , based on mrv reporting.1a


### 1. without prejudice to article 5 , member states shall apply , as a single use , under fiscal control not less than minimum levels of taxation as set out in tables b and d of annex i to energy products supplied for use as fuel to vessels , and to electricity used directly for charging electric vessels , for the purposes of intra-eu waterborne regular service navigation , fishing and freight transport. ### 1. without prejudice to article 5 , member states shall apply , as a single use , under fiscal control not less than minimum levels of taxation as set out in tables b and d of annex i to energy products supplied for use as fuel to vessels , and to electricity used directly for charging electric vessels , for the purposes of intra-eu waterborne regular service navigation , fishing and freight transport. the commission shall establish by means of a delegated act a calculation mechanism to tax the amount of fuel consumed within eu-waters , based on mrv reporting.1a


### over a transitional period of ten years , minimum rates of zero shall apply to sustainable biofuels and biogas , low-carbon-fuels , renewable fuels of non-biological origin , advanced sustainable biofuels and biogas and electricity. ### minimum rates of zero shall apply to sustainable biofuels and biogas , low-carbon-fuels , renewable fuels of non-biological origin , advanced sustainable biofuels and biogas and electricity.


### for the purposes of this article , ‘freight transport’ shall mean a scheduled or non-scheduled service performed by vessel carrying revenue loads other than revenue passengers , excluding voyages carrying one or more revenue passengers and voyages listed in published timetables as open to passengers. ### for the purposes of this article , ‘freight transport’ shall mean a scheduled or non-scheduled service performed by vessel carrying revenue loads other than revenue passengers , excluding voyages carrying one or more revenue passengers and voyages listed in published timetables as open to passengers. this shall include voyages that are normally used for freight transport , but for logistical reasons do not carry revenue loads.


### 2. member states may exempt or apply the same levels of taxation applied for intra-eu waterborne navigation to extra-eu waterborne navigation according to the type of activity. ### 2. member states may apply the same levels of taxation applied for intra-eu waterborne navigation to extra-eu waterborne navigation according to the type of activity.


### 5. member states may apply under fiscal control total or partial exemptions to electricity directly supplied to vessels berthed in ports. ### 5. member states shall apply under fiscal control total exemptions to electricity directly supplied to vessels berthed in ports.


### electricity: ### electricity and electricity generated by renewable hydrogene:


### renewable fuels of non-biological origin , advanced sustainable biofuels , bioliquids , biogas and advanced sustainable products falling within cn codes 4401 and 4402; ### renewable fuels of non-biological origin , low-carbon fuels , sustainable biofuels , bioliquids , biogas and - sustainable products falling within cn codes 4401 and 4402;


### renewable fuels of non-biological origin , advanced sustainable biofuels , bioliquids , biogas and advanced sustainable products falling within cn codes 4401 and 4402; ### renewable fuels of non-biological origin , sustainable biofuels , bioliquids , biogas and -sustainable products falling within cn codes 4401 and 4402


### reductions in the level of taxation , which shall not go below the minima as set out in table c and d of annex i , to energy products and electricity used for combined heat and power generation , without prejudice to article 13; ### reductions in the level of taxation , which shall not go below the minima as set out in table c of annex i , to energy products and electricity used for combined heat and power generation , without prejudice to article 13;


### reductions in the level of taxation , which shall not go below the minima as set out in table b and d of annex i , to energy products and electricity used for the carriage of goods and passengers by rail , metro , tram and trolley bus , and for local public passenger transport , waste collection , armed forces and public administration , disabled people and ambulances; ### reductions in the level of taxation , which shall not go below the minima as set out in table b and d of annex i , to energy products and electricity used for the carriage of goods and passengers by rail , metro , tram and trolley bus , and for local public passenger transport , waste collection and public administration , disabled people and ambulances;


### for the purposes of point (c) , energy products and electricity used by households recognised as vulnerable may be exempt for a maximum period of ten years after the entry into force of this directive. for the purposes of this paragraph , ‘vulnerable households’ shall mean households significantly affected by the impacts of this directive which , for the purpose of this directive , means that they are below the ‘at risk of poverty’” threshold , defined as 60% of the national median equivalised disposable income. ### for the purposes of point (c) , energy products and electricity used by households recognised as vulnerable may be exempt. member states shall be free to decide on the definition of ‘vulnerable households’.


### for the purposes of point (c) , energy products and electricity used by households recognised as vulnerable may be exempt for a maximum period of ten years after the entry into force of this directive. for the purposes of this paragraph , ‘vulnerable households’ shall mean households significantly affected by the impacts of this directive which , for the purpose of this directive , means that they are below the ‘at risk of poverty’” threshold , defined as 60% of the national median equivalised disposable income. ### for the purposes of point (c) , energy products and electricity used by households recognised as vulnerable may be exempt for a maximum period of ten years after the entry into force of this directive. member states shall be free to decide on the definition of ‘vulnerable households’.


### 2. the power to adopt the delegated acts referred to in article 2(8) and article 5(2) shall be conferred on the commission for an indeterminate period of time from 1 january 2023. ### 2. the power to adopt the delegated acts referred to in article 2(8) shall be conferred on the commission for an indeterminate period of time from 1 january 2023.


### 3. the delegation of power referred to in article 2(8) and article 5(2) may be revoked at any time by the council. a decision to revoke shall put an end to the delegation of the power specified in that decision. it shall take effect the day following the publication of the decision in the official journal of the european union or at a later date specified therein. it shall not affect the validity of any delegated acts already in force. ### 3. the delegation of power referred to in article 2(8) may be revoked at any time by the council. a decision to revoke shall put an end to the delegation of the power specified in that decision. it shall take effect the day following the publication of the decision in the official journal of the european union or at a later date specified therein. it shall not affect the validity of any delegated acts already in force.


### 6. a delegated act adopted pursuant to article 2(8) and article 5(2) shall enter into force only if no objection has been expressed by the council within a period of two months of notification of that act to the council or if , before the expiry of that period , the council have informed the commission that it will not object. that period shall be extended by two months at the initiative of the council. ### 6. a delegated act adopted pursuant to article 2(8) shall enter into force only if no objection has been expressed by the council within a period of two months of notification of that act to the council or if , before the expiry of that period , the council have informed the commission that it will not object. that period shall be extended by two months at the initiative of the council.


### every five years and for the first time five years after 1 january 2023 , the commission shall submit to the council a report on the application of this directive. ### every five years and for the first time five years after 1 january 2023 , the commission shall submit to the council and the european parliament a report on the application of this directive.


### every five years and for the first time five years after 1 january 2023 , the commission shall submit to the council a report on the application of this directive. ### every three years and for the first time three years after 1 january 2023 , the commission shall submit to the council a report on the application of this directive.


### every five years and for the first time five years after 1 january 2023 , the commission shall submit to the council a report on the application of this directive. ### every five years and for the first time five years after 1 january 2023 , the commission shall submit to the council and to the european parliament a report on the application of this directive.


### the report by the commission shall , inter alia , examine the minimum levels of taxation , the impact of innovation and technological developments , in particular as regards energy efficiency , the use of electricity in transport and the justification for the exemptions , reductions and differentiations laid down in this directive. the report shall take into account the proper functioning of the internal market , environmental and social considerations , the real value of the minimum levels of taxation and the relevant wider objectives of the treaties. ### the report by the commission shall , inter alia , examine the minimum levels of taxation , the impact of innovation and technological developments , in particular as regards energy efficiency , the use of electricity in transport and the justification for the exemptions , reductions and differentiations laid down in this directive. the report shall take into account the proper functioning of the internal market , environmental and social considerations , the real value of the minimum levels of taxation , the impact of this directive on air connectivity and the economic and social welfare of insular , peripheral and remote regions as well as the relevant wider objectives of the treaties.


### the report by the commission shall , inter alia , examine the minimum levels of taxation , the impact of innovation and technological developments , in particular as regards energy efficiency , the use of electricity in transport and the justification for the exemptions , reductions and differentiations laid down in this directive. the report shall take into account the proper functioning of the internal market , environmental and social considerations , the real value of the minimum levels of taxation and the relevant wider objectives of the treaties. ### the report by the commission shall , inter alia , examine the minimum levels of taxation , the impact of innovation and technological developments , in particular as regards energy efficiency , the use of electricity in transport , the overall competitiveness of our industries , and the justification for the exemptions , reductions and differentiations laid down in this directive. the report shall take into account the proper functioning of the internal market , environmental and social considerations , the real value of the minimum levels of taxation and the relevant wider objectives of the treaties.


### the report by the commission shall , inter alia , examine the minimum levels of taxation , the impact of innovation and technological developments , in particular as regards energy efficiency , the use of electricity in transport and the justification for the exemptions , reductions and differentiations laid down in this directive. the report shall take into account the proper functioning of the internal market , environmental and social considerations , the real value of the minimum levels of taxation and the relevant wider objectives of the treaties. ### the report by the commission shall , inter alia , examine the minimum levels of taxation , the impact of innovation and technological developments , in particular as regards energy efficiency , the use of electricity in transport , buildings and industry and the justification for the exemptions , reductions and differentiations laid down in this directive. the report shall take into account the proper functioning of the internal market , environmental and social considerations , the real value of the minimum levels of taxation and the relevant wider objectives of the treaties.


### falling within cn codes 4401 and 4402 , if these are intended for use as heating fuel in installations with a total rated thermal input equal to or exceeding 5 mw. ### deleted


### 1. member states shall ensure that where equal minimum levels of taxation are laid down in annex i in relation to a given use , equal levels of taxation are fixed for products put to that use. member states shall also replicate at any time the ranking of minimum levels of taxation as laid down in annex i in relation to different products for each given use. ### 1. provided that they respect the minimum levels of taxation prescribed by this directive and that they are compatible with community law , differentiated rates of taxation may be applied by member states , under fiscal control , in the following cases: – between business and non-business use , for energy products and electricity referred to in articles 9 and 10.


### member states may also refund to the producer some or all of the amount of tax paid by the consumer on electricity produced from products specified in this paragraph. ### member states may also refund to the producer , including active customers , energy communities or power purchase agreements supplying active customers , some or all of the amount of tax paid by the consumer on electricity produced from products specified in this paragraph.


### reductions in the level of taxation , which shall not go below the minima as set out in table c and d of annex i , to energy products used as heating fuel and electricity if used by households and/or by organisations recognised as charitable by the member state concerned. in the case of such charitable organisations , member states shall confine the reduction to use for the purpose of non-business activities. where mixed use takes place , taxation shall apply in proportion to each type of use. if a use is insignificant , it may be treated as nil. ### reductions in the level of taxation , which shall not go below the minima as set out in table c of annex i , to energy products used as heating fuel and electricity if used by households.


### reductions in the level of taxation , which shall not go below the minima as set out in table c and d of annex i , to energy products used as heating fuel and electricity if used by households and/or by organisations recognised as charitable by the member state concerned. in the case of such charitable organisations , member states shall confine the reduction to use for the purpose of non-business activities. where mixed use takes place , taxation shall apply in proportion to each type of use. if a use is insignificant , it may be treated as nil. ### reductions in the level of taxation , which shall not go below the minima as set out in table c and d of annex i , to energy products used as heating fuel and electricity if used by households and/or by organisations recognised as charitable by the member state concerned. in the case of such charitable organisations , member states shall confine the reduction to use for the purpose of non-business activities. where mixed use takes place , taxation shall apply in proportion to each type of use. if a use is insignificant , it may be treated as nil. for the purposes of point (c) , the minimum levels of taxation as set out in tables c and d of annex i shall start from zero and increase over a transitional period of ten years by one tenth of the final minimum rates in each year. for the purposes of point (c) , energy products and electricity used by households recognised as lower-and middle-income by member states shall be exempt for a maximum period of ten years after the entry into force of this directive.


### text proposed by the commission ### text proposed by the commission


### for the purposes of the first subparagraph , electricity storage facilities and transformers of electricity may be considered as redistributors when they supply electricity. ### for the purposes of the first subparagraph , electricity storage facilities , including from electric vehicles and household batteries owned by active consumers , and transformers of electricity may be considered as redistributors when they supply electricity and shall not be subject to any double taxation.


### (10) in the interest of fiscal neutrality , the same minimum levels of taxation should apply for each component of energy taxation , to all energy products put to a given use. where equal minimum levels of taxation are thus set , member states should , also for reason of fiscal neutrality , ensure equal levels of national taxation on all products concerned. ### (10) in the interest of fiscal neutrality , the same minimum levels of taxation should apply for each component of energy taxation , to all energy products put to a given use.


### as from 1 january 2023 , the minimum levels of taxation applicable to electricity shall be fixed as set out in table d of annex i . ### deleted


### 1. welcomes the findings of the european court of auditors review no 05/2021 on the eu framework for large transport infrastructure projects: an international comparison; ### 1. welcomes the findings of the european court of auditors review no 05/2021 on the eu framework for large transport infrastructure projects: an international comparison; recalls the need for the european commission and member states to strongly take into consideration the recommendations of the european court of auditors’ works on transport infrastructure projects in order to speed-up their deployment;


### b. whereas the recent crises , in particular the russian war against ukraine , pose severe challenges for the eu transport sector and its workers , in particular supply chain disruptions and rising energy prices , and require a coordinated response at eu level backed by adequate budgetary means; ### b. whereas the recent crises , in particular the russian aggression against ukraine , pose severe challenges for the eu transport sector and its workers , in particular supply chain disruptions and high inflation rates resulting from different factors such as rising energy prices , and require a coordinated response at eu level backed by adequate budgetary means; furthermore , high inflation rates might hamper the financial soundness of infrastructure projects for project promotors and transport operators due to unexpected increases of costs;


### b. whereas , since the adoption of the current multiannual financial framework (mff) in december 2020 , the political , economic and social context has changed beyond recognition , starting with the unprecedented scale and dramatic consequences of the covid-19 pandemic , which is far from over; ### b. whereas , since the adoption of the current multiannual financial framework (mff) in december 2020 , the political , economic and social context has evolved beyond recognition , including with the unprecedented scale and dramatic consequences of the continued covid-19 pandemic , which is not over yet;


### 2. reiterates its calls for increased financing of transport infrastructure through eu funding , particularly the connecting europe facility (cef); suggests to this end , for the current multiannual financial framework (mff) , the mobilisation of unused funds under the recovery and resilience facility and calls on the commission to plan a successor programme to cef ii for the mff 2028-2034 , with reinforced funding; ### 2. reiterates its calls for increased financing of transport infrastructure through eu funding , particularly the connecting europe facility (cef); suggests to this end , for the current multiannual financial framework (mff) , the mobilisation of unused funds under the recovery and resilience facility to ensure the completion of the core network by 2030 and calls on the commission to plan a successor programme to cef ii for the mff 2028-2034 , with reinforced funding;


### 2. underscores that there is a clear consensus among the institutions that , in the wake of the unprovoked and unjustified invasion of ukraine , the eu should provide the strongest possible social , economic and financial assistance to ukraine , while addressing the economic and social consequences of the crisis within the union and delivering the necessary support to its citizens; underlines , in this context , the shared union goals of delivering on the european green deal and the digital transition , scaling up defence cooperation and coordination , improving its strategic autonomy and energy independence and security , ensuring food security , and addressing the challenges caused by high inflation; ### 2. underscores that there is a clear consensus among the institutions that , in the wake of the unprovoked and unjustified invasion of ukraine , the eu should provide the strongest possible social , economic and financial assistance to ukraine , while addressing the economic and social consequences of the crisis within the union and delivering the necessary support to people , in particular by contributing to the alleviation of high energy prices for households and businesses and by preserving purchasing power , quality employment and public services; underlines , in this context , the shared union goals of delivering on the european green deal and the digital transition , scaling up defence cooperation and coordination , improving its strategic autonomy and energy independence and security , ensuring food security , and addressing the challenges caused by high inflation such as increased inequalities , risk of poverty and unemployment , exacerbated by the already high energy prices across europe and having a disproportionate impact on low-income households and smes;


### 2. points out that the sudden emergence of severe european-wide crises , such as the pandemic and russia’s war of aggression against ukraine , have tested the multiannual financial framework (mff) and underlined the need for the mff to be managed in a more flexible , yet sustainable , manner; therefore sees a need for the revision of the mff and calls on the commission to conduct an in-depth review of the functioning of the current mff and to proceed with a legislative proposal for comprehensive mff revision as soon as possible , and no later than the first quarter of 2023; ### 2. points out that the sudden emergence of severe european-wide crises , such as the pandemic and russia’s war of aggression against ukraine , and their detrimental economic spillover , have tested the multiannual financial framework (mff) and underlined the need for the mff to be strengthened and managed in a more flexible , yet sustainable , manner; therefore sees a need for a structural revision of the mff and calls on the commission to conduct an in-depth review of the functioning of the current mff and to proceed with a legislative proposal for comprehensive mff revision as soon as possible , and no later than the first quarter of 2023;


### 2. calls on the commission to adopt , in early 2023 , an ambitious mff revision proposal that substantially increases the resources for heading 6; urges the member states to agree to a significant increase in ceilings; ### 2. calls on the commission to adopt , in early 2023 , an ambitious proposal for a humanitarian revision of the mff that substantially increases the resources for heading 6 and revises the functioning of the sear; urges the member states to agree to a significant increase in ceilings under heading 6;