### 14. notes from the court’s report that in 2014 the commission signed , on behalf of the institute and other institutions of the union , a framework contract for the acquisition of software , licences and the provision of related information technology maintenance and consultancy , and that the institute did not systematically check the framework contractor’s prices and uplifts charged with the suppliers’ quotes; notes the institute’s reply that it followed the mechanism prescribed in the framework contract and that the framework contract in question has expired and has been replaced by a new one requiring that each quotation shall provide a split between the original pricing and the uplift; calls on the institute to adapt ex-ante controls on payments under such contracts and to ensure there is a competitive procedure for all procurements; ### 14. notes from the court’s report that in 2014 the commission signed , on behalf of the institute and other institutions of the union , a framework contract for the acquisition of software , licences and the provision of related information technology maintenance and consultancy , and that the institute in the ex-ante control did not systematically check the framework contractor’s prices and uplifts charged with the suppliers’ quotes; stresses that total payments to the framework contractor amounted to 64 000 euros;. notes the institute’s reply that it followed the mechanism prescribed in the framework contract and that the framework contract in question has expired and has been replaced by anew one requiring that each quotation shall provide a split between the original pricing and the uplift; highlights that the framework contract itself may restrict competition , as there is no evidence that the framework contractor chooses suppliers on a competitive basis; calls on the commission to report back on the competitiveness of the framework contracts; calls on the institute to adapt ex-ante controls on payments under such contracts and to ensure there is a competitive procedure for all procurements;


### 15. notes that the institute has introduced e-tendering and e-submission in 2018 and has processed several calls for tender via e-procurement tools in 2019; ### 15. welcomes that the institute has introduced e-tendering and e-submission in 2018 and has processed several calls for tender via e-procurement tools in 2019;


### 17. expresses concerns that in 2018 274 trainees worked at the cjeu and only 87 trainees were entitled to a monthly stipend of eur 1 120; welcomes that the cjeu adopted new rules regarding trainees and requested additional appropriations in order to be able to finance internship for trainees in members’ cabinets from 2019 onwards; notes , however , that still not all offered traineeships will be provided with a fair remuneration; instructs with regards to non-discrimination practices and fair remuneration the cjeu to accept swiftly the decision to start paying all offered traineeships; ### 17. expresses concerns that in 2018 , 274 trainees worked at the cjeu and only 87 trainees were entitled to a monthly stipend of eur 1 120; welcomes that the cjeu adopted new rules regarding trainees and requested additional appropriations in order to be able to finance internship for trainees in members’ cabinets from 2019 onwards; notes , however , that still not all offered traineeships will be provided with a fair remuneration; instructs with regards to non-discrimination practices and fair remuneration the cjeu to accept swiftly the decision to start paying all offered traineeships; calls on the cjeu to ensure fair remuneration for all of its working staff;


### 39. regrets not having been informed by the cjeu of any plans to enhance the control system related to the use of official cars; underlines that drivers should accompany members to their home countries only in justified cases; calls for measures to avoid situations in which drivers are going to members’ home countries without having the member on board; ### 39. deplores not having been informed by the cjeu of any plans to enhance the control system related to the use of official cars; underlines that drivers should accompany members to their home countries only in exceptional and justified cases; urges the cjeu to rapidly adopt measures to avoid situations in which drivers are going to members’ home countries without having the member on board; underlines the high reputational and ethical risks these practices may carry to the cjeu; calls on the cjeu to report back to the discharge authority on progress achieved in this regard by june 2020;


### 40. notes that more than 40 % of the translation workload has been outsourced with the cost of an outsourced translated page in 2018 amounting to eur 103 ,1 (compared to eur 111 ,30 in 2017); notes that the cost of an in-house translated page in 2018 amounted to eur 128 ,07 (compared to 136 ,70 in 2017); notes that the internal cost includes all necessary sub-costs , such as it , office space and similar; notes that under the current conditions the cjeu does not consider a further increase of the outsourcing rate advisable; asks the cjeu to explain to the parliament's committee on budgetary control the reasoning for this view; ### 40. notes that more than 40 % of the translation workload has been outsourced with the cost of an outsourced translated page in 2018 amounting to eur 103 ,1 (compared to eur 111 ,30 in 2017); notes that the cost of an in-house translated page in 2018 amounted to eur 128 ,07 (compared to 136 ,70 in 2017); notes that the internal cost includes all necessary sub-costs , such as it , office space and similar; notes that under the current conditions the cjeu does not consider a further increase of the outsourcing rate advisable; recalls , however , that due to the sensitive nature of the information handled by this institution a part of the translation workload should nevertheless remain in-house; asks the cjeu to explain to the parliament's committee on budgetary control the reasoning for this view;


### 8. notes that the handover process to new members of staff is currently being reviewed in order to better transfer knowledge to new staff in the future and that this process is considered to be included in the sensitive posts policy , currently being drafted with a view to its adoption in late 2019; ### 8. notes that the handover process to new members of staff is currently being reviewed in order to better transfer knowledge to new staff in the future and that this process is considered to be included in the sensitive posts policy , invites the agency to inform the discharge authority of the adoption of the above document; ;


### 9. notes the agency’s existing measures on and ongoing efforts to secure transparency , prevention and management of conflicts of interests and notes that the cvs of the members of the management board and their declaration of conflicts of interests have now been published on the agency’s website; ### 9. notes the agency’s existing measures on and ongoing efforts to secure transparency , prevention and management of conflicts of interests and notes that the cvs of the members of the management board and their declaration of conflicts of interests have now been published on the agency’s website; recalls that the agency does not publish the senior management members’ declaration of conflicts of interests on its website; reiterates its calls on the agency to publish the cvs of all the members of the management board and the declarations of conflicts of interests of its senior management and to report to the discharge authority on the measures taken in this regard;


### 13. regrets that the agency has not yet formalised a strategy to ensure an environment-friendly working place; notes , however , the agency’s internal initiatives implemented with a view to reducing its impact on the environment; ### 13. regrets that the agency has not yet formalised a strategy to ensure an environment-friendly working place; calls on the agency to do so as a matter of urgency;


### 10. regrets that , due to serious shortcoming in the budget planning process in 2017 , the payment appropriations finally needed in 2017 and 2018 significantly exceeded the payment appropriations of the initial budget; observes that the additional payment appropriations needed by the joint undertaking amounted to eur 160 700 000 , 25% above the initial budget; takes note of the joint undertaking’s reply that the joint undertaking is grateful to euratom for the additional contribution to the 2018 budget , the joint undertaking would also like to report that the lack of payment appropriations would not have had any impact neither risk , as eur 137 000 000 were paid to iter organization as advance on the 2019-in cash contribution; notes that the payment forecasting system has been totally redesigned and integrated in the new financial management tool , and this with the new organisational structure ensures a correct budgetary planning is in place and has already been used to determine the revenue of the 2019 budget; ### 10. regrets that , due to shortcoming in the budget planning process in 2017 , the payment appropriations finally needed in 2017 and 2018 significantly exceeded the payment appropriations of the initial budget; observes that the additional payment appropriations needed by the joint undertaking amounted to eur 160 700 000 , 25% above the initial budget; takes note of the joint undertaking’s reply that the joint undertaking is grateful to euratom for the additional contribution to the 2018 budget , the joint undertaking would also like to report that the lack of payment appropriations would not have had any impact neither risk , as eur 137 000 000 were paid to iter organization as advance on the 2019-in cash contribution; notes that the payment forecasting system has been totally redesigned and integrated in the new financial management tool , and this with the new organisational structure ensures a correct budgetary planning is in place and has already been used to determine the revenue of the 2019 budget;


### 14. notes from the court’ report that the director’s decision to change the place of employment of a newly recruited senior manager from barcelona to cadarache was not supported by adequate documentation to justify the additional salary costs due to the different correction coefficient; takes note of the joint undertaking’s reply that the joint undertaking recognizes that the change on the place was not adequately documented as it was in the power of appointing authority; observes that the joint undertaking was facing with eur 200 000 000 poloidal field (pf) coils project which was a serious risk; therefore , the director decided to ask the candidate to immediately start in cadarache to assure its full attention on the pf crisis; ### 14. notes from the court’ report that the director’s decision to change the place of employment of a newly recruited senior manager from barcelona to cadarache was not supported by adequate documentation to justify the additional salary costs due to the different correction coefficient; takes note of the joint undertaking’s reply that the joint undertaking recognizes that the change on the place was not adequately documented as it was in the power of appointing authority; observes that the joint undertaking was facing some risks in the poloidal field (pf) coils project that required attention from a senior manager; therefore , the director decided to ask the candidate to immediately start in cadarache to assure its full attention on the pf crisis;


### 17. notes with regret that significant shortcomings were found by the court in relation to the recruitment of key management staff; takes note of the joint undertaking’s reply that following the court finding and using the six sigma methology to analyse , identify and implement the enhancements , the joint undertaking furthered the robustness of its selection process and additional on-going measures; ### 17. notes with regret that shortcomings were found by the court in relation to the recruitment of key management staff; takes note of the joint undertaking’s reply that following the court finding and using the six sigma methology to analyse , identify and implement the enhancements , the joint undertaking furthered the robustness of its selection process and additional on-going measures;


### 20. notes with regret that significant shortcomings in the internal communication strategies did not ensure the dissemination of appropriate information on the estimated costs of the decommissioning phase within the organisation and , therefore , the joint undertaking disclosed no provision for such liability in the accounts of the previous years , which have been estimated in eur 85 200 000; however , takes note of the joint undertaking’s reply that the shortcomings have been already addressed by two actions; the senior management transmits to the accounting officer any relevant information; and furthermore , the internal process ‘pm-76 annual accounts-opening/closure of financial year’ has been updated in may 2019; ### 20. notes with regret that shortcomings in the internal communication strategies did not ensure the dissemination of appropriate information on the estimated costs of the decommissioning phase within the organisation and , therefore , the joint undertaking disclosed no provision for such liability in the accounts of the previous years , which have been estimated in eur 85 200 000; however , takes note of the joint undertaking’s reply that the shortcomings have been already addressed by two actions; the senior management transmits to the accounting officer any relevant information; and furthermore , the internal process ‘pm-76 annual accounts-opening/closure of financial year’ has been updated in may 2019;


### 1. acknowledges that , in the opinion of the court of auditors , the transactions of the european insurance and occupational pensions authority (the ‘authority’) underlying the annual accounts for the year 2018 are legal and regular in all material aspects; ### 1. notes that , in the opinion of the court of auditors , the transactions of the european insurance and occupational pensions authority (the ‘authority’) underlying the annual accounts for the year 2018 are legal and regular in all material aspects;


### 5. emphasises that the authority’s budget is financed 40 % from union funds and 60 % through direct contributions from member states’ supervisory authorities and that this mixed financing arrangements may pose a threat to the authority’s independence and supervisory tasks; ### deleted


### 3. notes that , as the authority’s workload is increasingly shifting from regulatory tasks to enforcing and applying union law , the authority’s budgetary and personnel resources should be reallocated internally; notes that , according to the court , the authority has not yet accomplished the shift from regulation to supervision; ### 3. notes that the authority’s workload is constantly evolving and includes both regulatory tasks and enforcing and applying union law , notes that 32 new staff members are foreseen to fulfil the modified areas of the agency’s work; notes however that , according to the court , the authority has not yet accomplished the shift from regulation to supervision and that the authority should strengthen human resources assigned to supervision;


### 4. shares the court’s concern that national supervisors have a decisive say in the authority’s main governing body , which means that they are in a position to decide the scope of the authority’s action to review their own effectiveness (peer reviews); ### deleted


### 6. recalls that 100 % of the budgetary surplus has been allocated to the commission whereas member states consider that 60 % thereof should be refunded to them; calls on the commission to resolve that issue. ### deleted


### 37. congratulates the committee on its e-learning training with a specific area dedicated to ethics designed mainly for newcomers and placed on the first page of the committee's intranet for easy access for all; appreciates the publication of whistleblowing procedures , occupational activities of former senior officials , etc. on the committee’s website in the context of transparency; ### 37. congratulates the committee on its e-learning training with a specific area dedicated to ethics designed mainly for newcomers and placed on the first page of the committee's intranet for easy access for all; appreciates the publication of whistleblowing procedures , occupational activities of former senior officials , etc. on the committee’s website in the context of transparency; encourages the committee to continue a real policy for the digitalization of its services;


### 8. recalls the suggestion of the court to publish vacancy notices also on the website of the european personnel selection office (epso) in order to increase publicity; notes from the agency’s reply that it intends to publish all vacancy notices on the inter-agencies portal , which is considered equivalent to epso from the agencies’ perspective , and that additionally , the agency publishes its vacancy notices in the specialised space sector; ### 8. welcomes that the agency adopted the suggestion of the court and it finally publishes the vacancy notices on the website of the european personnel selection office (epso) in order to increase publicity; notes from the agency’s reply that it intends to publish all vacancy notices on the inter-agencies portal , which is considered equivalent to epso from the agencies’ perspective , and that additionally , the agency publishes its vacancy notices in the specialised space sector;


### 8. notes with concern that in 2017 the average employment period in the office was only 2 ,7 years which is reflected in a high staff turnover; understands that the office struggles to attract professionals , inter alia because of the low salary correction coefficient of the host country (74 ,9%); expresses its concern that the reduction of the posts authorised under the union budget in recent years together with the additional tasks acquired have increased the workload of the office’s staff; points out that this situation may pose risks to the implementation of its work programmes; observes that the office works towards improving the employment conditions for its staff , and that in 2018 the office started the implementation of an action plan for social welfare; calls on the office to find further possibilities for improving the working and living conditions for the staff with the latvian authorities aiming at the conclusion of a new headquarters agreement; ### 8. notes with concern that in 2017 the average employment period in the office was only 2 ,7 years which is reflected in a high staff turnover; understands that the office struggles to attract professionals , inter alia because of the low salary correction coefficient of the host country(74 ,9%); stresses that the high staff turnover highlights possible problems with the office’s revolving door policy; calls on the agency to re-evaluate its revolving policy; expresses its concern that the reduction of the posts authorised under the union budget in recent years together with the additional tasks acquired have increased the workload of the office’s staff; points out that this situation may pose risks to the implementation of its work programmes; observes that the office works towards improving the employment conditions for its staff , and that in 2018 the office started the implementation of an action plan for social welfare; calls on the office to find further possibilities for improving the working and living conditions for the staff with the latvian authorities aiming at the conclusion of a new headquarters agreement;


### 31. expresses its deep concern on the fact that international organisations did not provide again supporting documentation on time; ### 31. expresses its deep concern on the fact that international organisations did not provide again supporting documentation on time preventing the commission and the court from carrying out rigorous audits;


### 39. is worried by the reports that in some cases eu budget support promotes liberalisation of trade and economy of recipient countries even when these reforms contradict local development strategies (eurodad discussion paper 2016); ### deleted


### 54. believes that the focus on local smes , private sector and civil society organisations should be a core axis of cooperation in the management of the union delegations’ pipelines of projects; stresses that , given the funding gap required to reach the ambitious sustainable development goals , strategic dialogue with the private sector and csos might play a crucial role for the development of local economies; ### 54. believes that a better focus on local smes , private sector and civil society organisations should be a core axis of cooperation in the management of the union delegations’ pipelines of projects; stresses that , given the funding gap required to reach the ambitious sustainable development goals , strategic dialogue with the private sector and csos might play a crucial role for the development of local economies;


### 66. recalls that regional and local authorities , civil society organisations and ngos are natural partners for an effective development policy , and that a constant dialogue with national authorities and local communities is essential in order to define common strategies and priorities; calls on the commission to ensure that the edf and the eu budget does not finance projects through the eutf implemented by the governmental and local forces (militias) that are involved in serious human rights violations , especially in countries such as libya and sudan; ### 66. recalls that regional and local authorities , civil society organisations and ngos and private sector are partners for an effective development policy , and that a constant dialogue with national authorities and local communities is essential in order to define common strategies and priorities; calls on the commission to ensure that the edf and the eu budget does not finance projects through the eutf implemented by the governmental and local forces (militias) that are involved in serious human rights violations , especially in countries such as libya and sudan;


### 5. welcomes the decision of the office’s management board of 6 june 2018 to release the executive director from his duties with immediate effect; emphasises , however , that the budget for the 2017 financial year was implemented under the supervision of the office’s previous management; highlights that this report concerns the discharge procedure for the 2017 financial year; welcomes the designation of an ad interim executive director on 6 june 2018 and the appointment of a new executive director on 16 june 2019; ### 5. welcomes the decision of the office’s management board of 6 june 2018 to release the executive director from his duties with immediate effect; emphasises , however , that the budget for the 2017 financial year was implemented under the supervision of the office’s previous management; highlights that this report concerns the discharge procedure for the 2017 financial year; welcomes the designation of an ad interim executive director on 6 june 2018 and the appointment of a new executive director on 16 june 2019; recognises the commitment of the new executive director to deliver significant reforms ensuring solid governance; appreciates the positive message and intention for future close cooperation expressed by the new executive director in the public hearing of 4 september 2019 ;


### 7. welcomes the follow-up report by the office on the observations of parliament for the 2017 financial year , in particular corrective measures taken by the office’s management board , the ad interim executive director and the new executive director in order to improve the governance structure of the office , restore transparency and build trust; supports the 2019 easo governance action plan; urges the office to report to the discharge authority on the implementation of that action plan; ### 7. welcomes the follow-up report by the office on the observations of parliament for the 2017 financial year , in particular corrective measures taken by the office’s management board , the ad interim executive director and the new executive director in order to improve the governance structure of the office , restore transparency and build trust; supports and appreciates the measures outlined by the 2019 easo governance action plan; urges the office to regularly report to the discharge authority on the implementation of that action plan;


### 8. acknowledges the progress made on the implementation of internal control systems , including controls on procurement and expenditure operations; supports the court’s observations on the need for further corrective actions; ### 8. acknowledges the efforts and appreciates the progress made on the implementation of internal control systems , including controls on procurement and expenditure operations; supports the decision to reduce and rapidly end outsourcing legal counselling by the establishment of an internal legal service; supports the court’s observations on the need for further corrective actions;


### 9. recognises the corrective actions implemented by the office regarding procurement procedures , in particular the payments under irregular procurement processes , and the completion of new open procedures , which were audited by the court without raising any comments; ### 9. notes with satisfaction the implementation of two thirds of the corrective actions by the office regarding procurement procedures , in particular regarding the payments under irregular procurement processes , and the completion of new open procedures , which were audited by the court without raising any comments;


### 10. welcomes the ambitious recruitment plan put in place and its positive impact on the filling of vacant managerial and other positions; urges the office to quickly finalise the recruitments; ### 10. welcomes the ambitious recruitment plan put in place and its positive impact on the filling of vacant managerial and other positions; notes with satisfaction the implementation of new measures aimed at preventing harassment , increasing staff well-being and reducing turnover; urges the office to quickly finalise the recruitments in full compliance with the relevant legal procedures and to provide a regular follow up on the results achieved;


### 8. notes that at the end of 2020 , a total of 11 recruitments have been completed , including the executive director , and the selected staff are working for the joint undertaking; notes from the court’s report that as the need for key administrative staff has yet to be addressed , it presents risks in terms of weaknesses in financial , budgetary and staff management , and in internal control processes for operational payments and in-kind contributions , and that the high proportion of contractual staff (74 %) may result in a significant level of staff turnover in the near future , further increasing the risks to its management systems; calls on the joint undertaking to report to the discharge authority of any development in that regard; ### 8. notes that at the end of 2020 , a total of 11 recruitments have been completed , including the executive director , and the selected staff are working for the joint undertaking; notes from the court’s report that as the need for key administrative staff has yet to be addressed , it presents risks in terms of weaknesses in financial , budgetary and staff management , and in internal control processes for operational payments and in-kind contributions , and that the high proportion of contractual staff (74 %) may result in a significant level of staff turnover in the near future , further increasing the risks to its management systems; points out that it could negatively affect the joint undertaking’s overall performance , such as the retention of key competences , unclear accountability channels , and lower staff efficiency; calls on the joint undertaking to report to the discharge authority of any development in that regard;


### 16. notes from the court’s report that at the end of 2020 , the joint undertaking had neither developed reliable procedures for the validation and certification of in-kind contributions declared by its private members and participating states , nor established an appropriate accounting procedure for the recognition of these in-kind contributions; calls on the joint undertaking to report to the discharge authority in that regard; ### 16. notes from the court’s report that at the end of 2020 , the joint undertaking had neither developed reliable procedures for the validation and certification of in-kind contributions declared by its private members and participating states , nor established an appropriate accounting procedure for the recognition of these in-kind contributions; highlights that this situation impedes joint undertaking’s ability to manage , monitor and report on the achievement of the minimum level of in-kind contributions to be made by these private members and participating states; calls on the joint undertaking to report to the discharge authority in that regard;


### 8. notes the decision of 9 june 2020 of the committee’s bureau allowing members to claim the usual daily subsistence allowance for having participated in committee meetings remotely; notes that the objective of that decision was to compensate members for the time spent in the performance of their duties and for the related administrative costs; regrets that the committee’s proposal for a specific daily allowance for remote attendance of meetings (eur 145 compared to the standard allowance of eur 290) could not be put into practice until the council’s adoption of that proposal and its subsequent entry into force on 1 july 2021; understands that none of those decisions covered reimbursements in addition to the daily subsistence allowance , thus excluding the reimbursement of travel costs and allowances; notes that the total cost of the daily subsistence allowance in 2020 was eur 4 440 099 of which eur 2 270 700 was for remote participation and eur 2 169 399 for physical participation; acknowledges that the budgetary authorities were notified of each relevant decision of the bureau; ### 8. deplores the decision of 9 june 2020 of the committee’s bureau allowing members to claim the usual daily subsistence allowance for having participated in committee meetings remotely; underlines that the objective of that decision was to compensate members for the time spent in the performance of their duties and for the related administrative costs; regrets that the committee’s proposal for a specific daily allowance for remote attendance of meetings (eur 145 compared to the standard allowance of eur 290) could not be put into practice until the council’s adoption of that proposal and its subsequent entry into force on 1 july 2021; understands that none of those decisions covered reimbursements in addition to the daily subsistence allowance , thus excluding the reimbursement of travel costs and allowances; notes that the total cost of the daily subsistence allowance in 2020 was eur 4 440 099 of which eur 2 270 700 was for remote participation and eur 2 169 399 for physical participation; acknowledges that the budgetary authorities were notified of each relevant decision of the bureau; calls on the committee to withdraw the daily allowance for remote participation in meetings which is not proportionate to the real cost of participation and represents a loss for the union budget;


### 15. notes the committee’s efforts in disseminating its opinions together with other reports and activities that also contribute to achieving its mission; acknowledges that the commission’s impact assessment regularly takes into account the committee’s opinions; calls on the committee to ensure that every opinion is shared with the members of the relevant committees of parliament and to officially and systematically request a speaking slot at the presentation of parliament’s draft reports; recommends that the committee carries out a more quantitative and qualitative impact analysis of its opinions; urges , therefore , the committee to reinforce the staff working in the areas of legislative work and inter-institutional relations; ### 15. notes the committee’s efforts in disseminating its opinions together with other reports and activities that also contribute to achieving its mission; acknowledges that the commission’s impact assessment regularly takes into account the committee’s opinions; calls on the committee to ensure that every opinion is shared with the members of the relevant committees of parliament and to officially and systematically request a speaking slot at the presentation of parliament’s draft reports; recommends that the committee carries out a more quantitative and qualitative impact analysis of its opinions;


### 26. encourages the committee to explore specific incentives and measures successfully implemented in other entities to promote women’s access to management positions , such as the formal recognition of management responsibilities below head of unit level , mentoring support and pre-managerial trainings; believes that the committee should set more ambitious targets on gender balance to make the working environment fairer and more diverse and attractive; suggests the appointment of an equal opportunity officer to facilitate actions on the ground in this regard; ### 26. encourages the committee to explore specific incentives and measures successfully implemented in other entities to promote women’s access to management positions , such as the formal recognition of management responsibilities below head of unit level , mentoring support and pre-managerial trainings; recalls the several measures to enhance gender mainstreaming in political and administrative work that have been discussed and identified by parliament's committee on women's rights and gender equality; believes that the committee should set more ambitious targets on gender balance to make the working environment fairer and more diverse and attractive; suggests the appointment in its human resource department of an equal opportunity officer to facilitate actions on the ground in this regard;


### 27. notes that the committee employs staff from all member states; observes that , as regards the geographical distribution of managers , 15 % of managers were from eu-13 member states in december 2020 (compared to 19 % in 2019); encourages the committee to maintain its commitment towards a diversification of its workforce by taking into account the geographical distribution , and in particular the current shortfall of eu-13 managers , in succession planning; ### 27. notes that the committee employs staff from all member states; observes that , as regards the geographical distribution of managers , 15 % of managers were from eu-13 member states in december 2020 (compared to 19 % in 2019); calls on the committee to make significant progress and to take steps to reach geographical balance within its staff so that a proper representation of nationals from all member states , including at management level , reflecting their diversity , is achieved , as indicated in article 27 of the staff regulations;


### 30. welcomes that in 2020 the committee adopted an individualised approach to prevent cases of burnout , i.e. proactive contact with the members of staff at risk , together with general measures , including flexible working schedules (without time registration) , a newsletter with tips and tricks , and specific communication actions; calls on the committee to go beyond awareness-raising actions and adopt validated good practices on , inter alia , workload management , communication and conflict solving training for managers or a return-to-work policy that takes into account the specificities related to that particular burnout; ### 30. welcomes that finally in 2020 the committee adopted an individualised approach to prevent cases of burnout , i.e. proactive contact with the members of staff at risk , together with general measures , including flexible working schedules (without time registration) , a newsletter with tips and tricks , and specific communication actions; calls on the committee to go beyond awareness-raising actions and adopt validated good practices on , inter alia , workload management , communication and conflict solving training for managers or a return-to-work policy that takes into account the specificities related to that particular burnout; calls for a compulsory training in the zero-harassment policy for staff ,


### 34. is aware that settlement agreements have been reached with the two victims of moral harassment , who are still working in the committee , and requests the committee to report on the effective enforcement of those agreements; regrets that the committee has not yet reached settlement agreements with the two victims of serious misconduct and rejects the view that the fact that those two victims are no longer working in the committee is a valid justification for not having reached settlement agreements.; notes that the settlement agreements aim to cover moral damages , legal costs and impact on careers , and is concerned that the individual negotiations at different stages of the case might result in imbalanced agreements for the victims; ### 34. is aware that settlement agreements have been reached with the two victims of moral harassment , who are still working in the committee , and requests the committee to report on the effective enforcement of those agreements; regrets that the committee has still not yet reached settlement agreements with the two victims of serious misconduct and rejects the view that the fact that those two victims are no longer working in the committee is a valid justification for not having reached settlement agreements.; notes that the settlement agreements aim to cover moral damages , legal costs and impact on careers , and is concerned that the individual negotiations at different stages of the case might result in imbalanced agreements for the victims; urges the committee to take all necessary measures immediately when a case arises and to put in place specific measures to prevent all potential cases of harassment in the future; recalls the importance of a compulsory training on the zero-harassment policy for staff;


### 5. notes that the institute cooperates closely with union agencies by means of bilateral collaboration and active participation in established networks and that the regulation establishing the institute provides for agreements to cooperate with the european foundation for the improvement of living and working conditions (eurofound) , the european agency for safety and health at work , the european centre for the development of vocational training , and the european union agency for fundamental rights; notes that , in addition , the institute actively participates in the justice and home affairs agencies network; ### 5. notes that the institute cooperates closely with union agencies by means of bilateral collaboration and active participation in established networks and that the regulation establishing the institute provides for agreements to cooperate with the european foundation for the improvement of living and working conditions (eurofound) , the european agency for safety and health at work , the european centre for the development of vocational training , and the european union agency for fundamental rights; notes that , in addition , the institute actively participates in the justice and home affairs agencies network; welcomes these cooperations and those synergies as an example for other agencies and institutions worth following;


### 6. notes that , on 31 december 2020 , the establishment plan was 100 % executed , with 27 temporary agents appointed out of 27 temporary agents authorised under the union budget (compared with 27 authorised posts in 2019); notes that 11 calls for applications were launched , including two for contract agent posts , eight for seconded national experts and one for a trainee position; notes that during the course of 2020 , the turnover rate was 11 %; ### 6. notes that , on 31 december 2020 , the establishment plan was 100 % executed , with 27 temporary agents appointed out of 27 temporary agents authorised under the union budget (compared with 27 authorised posts in 2019); notes that 11 calls for applications were launched , including two for contract agent posts , eight for seconded national experts and one for a trainee position; notes that during the course of 2020 , the turnover rate was 11 %; welcomes the measures taken by the agency to reduce the turnover;


### 7. notes the gender distribution in senior management (1 man (25 %) and 3 women (75 %)) , on the management board (7 men (21 ,9 %) and 25 women (78 ,1 %)) and for staff overall (11 men (23 ,4 %) and 36 women (76 ,6 %)); notes that the institute , excluding applications for traineeships and seconded national expert posts , received 142 applications in 2020 , 67 % of which were submitted by women , representing an improvement compared to 2019 , when 87 % of the applications were submitted by women; ### 7. notes the unbalanced gender distribution in senior management (1 man (25 %) and 3 women (75 %)) , on the management board (7 men (21 ,9 %) and 25 women (78 ,1 %)) and for staff overall (11 men (23 ,4 %) and 36 women (76 ,6 %)); notes that the institute , excluding applications for traineeships and seconded national expert posts , received 142 applications in 2020 , 67 % of which were submitted by women , representing an improvement compared to 2019 , when 87 % of the applications were submitted by women;


### 14. notes with concern the conclusion of the internal control assessment for the year 2020 that states that the internal control system is partially effective due to an issue in component 3 ‘control activities’ , as the business continuity plan is obsolete , that there is a lack of business continuity testing (since 2015) , and that there is a lack of ex-post controls; recalls the findings and recommendations of both the ias and the court and calls on the institute to also reflect those findings in the assessment of the internal control system , if not already done; welcomes the mitigating measures taken by the institute and calls on the institute to keep the discharge authority informed about the progress made; ### 14. notes with concern the conclusion of the internal control assessment for the year 2020 that states that the internal control system is partially effective due to an issue in component 3 ‘control activities’ , as the business continuity plan is obsolete , that there is a lack of business continuity testing (since 2015); recalls the findings and recommendations of both the ias and the court and calls on the institute to also reflect those findings in the assessment of the internal control system , if not already done; welcomes the mitigating measures taken by the institute and calls on the institute to keep the discharge authority informed about the progress made; notes with concerns that the institute did not carry out any ex-post controls of operations and budgetary implementation since september 2016;


### 14. notes that the installation allowance for the court’s members , governed by article 4 of council regulation (eu) 2016/3002 , is conditioned on providing evidence that a change in the place of residence was necessary to reside “either in the place where he is employed or at no greater distance there from as is compatible with the proper performance of the duties assigned to him” as stated in article 20 of the staff regulations; points out that the mere declaration of an address is not sufficient , but regrets that a rental contract for or a purchase of a property is considered satisfactory proof of installation in luxembourg as such rented or purchased property may be destined for other uses than primary residence; ### 14. notes that the installation allowance for the court’s members , governed by article 4 of council regulation (eu) 2016/3002 , is conditioned on providing evidence that a change in the place of residence was necessary to reside “either in the place where he is employed or at no greater distance there from as is compatible with the proper performance of the duties assigned to him” as stated in article 20 of the staff regulations; points out that the mere declaration of an address is not sufficient , but regrets that a rental contract for or a purchase of a property is considered satisfactory proof of installation in luxembourg as such rented or purchased property may be destined for other uses than primary residence; considers that the court's code of conduct should set out the obligation to reside in luxembourg where the court has its seat;


### 15. acknowledges that the court has received from all its members both a rental contract for or a proof of purchase of a property and a residence certificate in luxembourg; is of the view , however , that installation allowance should be paid only on production of documents establishing the fact that members have settled at the place where they are employed , following article 5(3) of annex vii of the staff regulations; deems that having requested that allowance should be considered as proof of the members’ intention to relocate their residence to luxembourg on an effective and stable basis during their term of office; points out that the installation allowance is equal to two months’ basic salary , instead of one month’s basic salary , for officials entitled to the household allowance , which means that family dependants also have to change their place of residence; ### 15. acknowledges that the court has received from all its members both a rental contract for or a proof of purchase of a property and a residence certificate in luxembourg; recalls that the installation allowance is only paid upon presentation of documents establishing the fact that members have settled at the place where they are employed , following article 5(3) of annex vii of the staff regulations; deems that having requested that allowance should be considered as proof of the members’ intention to relocate their residence to luxembourg on an effective and stable basis during their term of office; points out that the installation allowance is equal to two months’ basic salary , instead of one month’s basic salary , for officials entitled to the household allowance ,


### 20. is concerned that the eur 100 contribution system could facilitate potential misuses of the car fleet; reiterates its opinion that the use of the car fleet outside of the strict performance of the duties of the members of the court should not take place under any circumstance; calls on the court to rationalise all uses of the car fleet that are reasonably necessary for the performance of the duties of its members and include them in the travel orders with the aim of putting an end to the eur 100 contribution system; ### 20. is concerned that the eur 100 contribution system could facilitate potential misuses of the car fleet; reiterates its opinion that the use of the car fleet outside of the strict performance of the duties of the members of the court should not take place under any circumstance; calls on the court to rationalise all uses of the car fleet that are reasonably necessary for the performance of the duties of its members; is of the view that private use of official cars could be maintained if the eur 100 contribution system were substantially increased to reflect the full cost of such use.


### 22. notes that a register of attendance was set up in 2018 to record the presence or absence of the members at all formal meetings of the court and its chambers and committees; notes that for the first time , the court’s 2020 annual activity report includes information on attendance; is aware that such meetings constitute only a part of the members’ activities and agrees that the independence required of the members necessarily encompasses a certain degree of autonomy in organising their work; reminds , however , that the members have an obligation to devote themselves fully to the fulfilment of their mandate and , therefore , calls on the court to use the attendance register as a tool to proactively prevent potential cases of absenteeism; ### 22. notes that a register of attendance was set up in 2018 to record the presence or absence of the members at all formal meetings of the court and its chambers and committees; notes that for the first time , the court’s 2020 annual activity report includes information on attendance; is aware that such meetings constitute only a part of the members’ activities and agrees that the independence required of the members necessarily encompasses a certain degree of autonomy in organising their work; reminds , however , that the members have an obligation to devote themselves fully to the fulfilment of their mandate and , therefore , calls on the court to use the attendance register as a tool to proactively prevent potential cases of absenteeism; proposes that the register of attendance be extended to represent an accurate mapping of the work carried out by the members on the basis of the members' presence and activities week by week in luxembourg , strasbourg and brussels , including missions , periods of leave and days of justified absence , in order to obtain an overall view of their activities


### 23. notes that missions , essential to audit national bodies on the spot , are limited by the annual budget and have to undergo both comprehensive ex ante controls and ex post controls carried out on monthly samples; welcomes that court decision no 59-2017 delegated the role of authorising officer for all court members’ mission and expenses to the secretary-general , while court decision no 61-2017 clarified the rules governing missions , in particular the obligation to demonstrate the relation to the court’s work; notes with concern , however , that no limitation or condition applies to the duration or place of missions; calls on the court to set appropriate rules to prevent any possible misuse of mission orders which may call into question the integrity , independence and objectivity of its members , in particular to introduce a general prohibition of missions to or from the domiciles of the members outside of luxembourg; ### 23. notes that missions , essential to audit national bodies on the spot , are limited by the annual budget and have to undergo both comprehensive ex ante controls and ex post controls carried out on monthly samples; welcomes that court decision no 59-2017 delegated the role of authorising officer for all court members’ mission and expenses to the secretary-general , while court decision no 61-2017 clarified the rules governing missions , in particular the obligation to demonstrate the relation to the court’s work; notes with concern , however , that no limitation or condition applies to the duration or place of missions; calls on the court to set appropriate rules to prevent any possible misuse of mission orders which may call into question the integrity , independence and objectivity of its members;


### 24. notes that , under court decision no 60-2017 , each member has an annual budgetary allocation to use for representation expenses , subject to ex ante controls and with the reimbursement being made upon presentation of supporting documents; is surprised by the fact that part of this allocation can be used , even in a limited manner , to cover events without external participants , like team-building activities or to celebrate an important event; recalls that the court defines ‘representation’ as professional interaction by members of the court with external persons and that the current use is not in line with that definition; calls on the court to rationalise and clarify the rules governing the use , conditions and ceilings of budgetary lines for the purposes they were meant to serve in order to respect the principles of sound financial management and transparency; ### 24. notes that , under court decision no 60-2017 , each member has an annual budgetary allocation to use for representation expenses , subject to ex ante controls and with the reimbursement being made upon presentation of supporting documents; is surprised by the fact that part of this allocation can be used , even in a limited manner , to cover events without external participants , like team-building activities or to celebrate an important event; recalls that the court defines ‘representation’ as professional interaction by members of the court with external persons and that the current use is not in line with that definition; calls on the court to rationalise and clarify the rules governing the use , conditions and ceilings of budgetary lines for the purposes they were meant to serve in order to respect the principles of sound financial management and transparency; asks the court to improve the current situation so that events without external participation can no longer be covered by representation expenses;


### 27. regrets the media coverage of a number of ethical and financial management issues at the court relating to its members; emphasises that the court's audit work has never been called into question; is concerned , however , about the damage caused to the reputation of the court , which should be a model with respect to the implementation of the union budget and the highest ethical standards; welcomes the court’s decision to entrust the external auditor with a specific audit task on the areas reported , namely members’ representation expenses , missions and language courses; trusts that the discharge procedure will , in close cooperation with the court , help to identify existing errors and lead to the necessary reforms being undertaken; recalls the court’s role as the union’s independent external auditor and guardian of its finances and thus , strongly reaffirms its belief that any unethical behaviour by the members of the court has a huge impact on the reputation of both the court and the union as a whole , raising the question of who is watching the watchman; ### 27. regrets the media coverage of a number of ethical and financial management issues at the court relating to its members; emphasises that the court's audit work has never been called into question; is concerned , however , about the damage caused to the reputation of the court , which should be a model with respect to the implementation of the union budget and the highest ethical standards; welcomes the court’s decision to entrust the external auditor with a specific audit task on the areas reported , namely members’ representation expenses , missions and language courses; trusts that the discharge procedure will , in close cooperation with the court , help to identify existing errors and lead to the necessary reforms being undertaken; recalls the court’s role as the union’s independent external auditor and guardian of its finances and thus , strongly reaffirms its belief that any unethical behaviour by the members of the court has a huge impact on the reputation of both the court and the union as a whole , raising the question of who is watching the watchman; requests the court to review its code of conduct as soon as possible;


### 32. welcomes that the code of conduct elaborates procedural rules for the obligations of the members of the court regarding external activities and occupations after ceasing to hold office; agrees that members should not engage in any external activity that is incompatible with their duties and , therefore , is alarmed that article 12 explicitly allows for members to hold honorary , unremunerated offices in organisations in the political sphere; stresses that the values of independence and objectivity are specifically and seriously compromised the moment a ember during his or her term of office maintains any concrete relation with a political party , as clearly declared by the court of justice in its judgment of 30 september 20213 ; notes that the president of the court must be a model in avoiding any real or perceived conflict of interest that can undermine the court’s impartiality; ### 32. welcomes that the code of conduct elaborates procedural rules for the obligations of the members of the court regarding external activities and occupations after ceasing to hold office; agrees that members should not engage in any external activity that is incompatible with their duties and , therefore , is alarmed that article 12 explicitly allows for members to hold honorary , unremunerated offices in organisations in the political sphere; stresses that the values of independence and objectivity are specifically and seriously compromised the moment a ember during his or her term of office maintains any concrete relation with a political party , as clearly declared by the court of justice in its judgment of 30 september 20213 ; notes that the president of the court must be a model in avoiding any real or perceived conflict of interest that can undermine the court’s impartiality; welcomes the court's determination to clarify its code of conduct in that area.


### 33. highlights that both the ethical guidelines of the court and the code of conduct protect the principle of equal treatment by prohibiting spouses and partners from working under a hierarchical relationship and , specifically , from being part of the cabinet of the relevant member; is of the view that , beyond personal perception , the fact that the president of the court shares an apartment with two full-time officials of his cabinet is clearly comparable to the prohibited situations and should therefore never have occurred; regrets the infringement of the right to privacy of the concerned members of staff caused by the publication of their names in the press; understands that the secretary-general of the court is its appointing authority and that the grading of the staff of members’ cabinets is based on the years of experience , but points out that this circumstance is insufficient to avoid the perception of a conflict of interest or a violation of the principle of equal treatment with regard to the members of staff concerned as it is now questioned whether they were appointed on the basis of their merit or because of a relationship of trust; welcomes the court’s intention to further specify the principles governing the living arrangements of its members; ### 33. highlights that both the ethical guidelines of the court and the code of conduct protect the principle of equal treatment by prohibiting spouses and partners from working under a hierarchical relationship and , specifically , from being part of the cabinet of the relevant member; is of the view that , beyond personal perception , the fact that the president of the court shares an apartment with two full-time officials of his cabinet is clearly comparable to the prohibited situations and should therefore never have occurred; regrets the infringement of the right to privacy of the concerned members of staff caused by the publication of their names in the press; understands that the secretary-general of the court is its appointing authority and that the grading of the staff of members’ cabinets is based on the years of experience , but points out that this circumstance is insufficient to avoid the perception of a conflict of interest or a violation of the principle of equal treatment with regard to the members of staff concerned as it is now questioned whether they were appointed on the basis of their merit or because of a relationship of trust; welcomes the court's intention to further clarify the principles governing the establishment of the individual domicile of its members;


### 34. welcomes that the code of conduct also provides for an organisational framework for its application , namely an ethics committee that shall consider any ethics matter it deems relevant to the standards laid down in the code of conduct and to its reputation; welcomes that the ethics committee is assisted by the legal service of the court as that measure will help to avoid any legal risks of its decisions; ### 34. welcomes that the code of conduct also provides for an organisational framework for its application , namely an ethics committee that shall consider any ethics matter it deems relevant to the standards laid down in the code of conduct and to its reputation; welcomes that the ethics committee is assisted by the legal service of the court as that measure will help to avoid any legal risks of its decisions; suggests that the ethics committee no longer be appointed on the proposal of the president of the court and the establishment of a rotating presidency of members;


### a. whereas , according to its statement of revenue and expenditure1 , the final budget of the agency for the cooperation of energy regulators (the ‘agency’) for the financial year 2020 was eur 17 297 383 , representing an increase of 7 ,12 % compared to 2019 , whereas the budget of the agency derives entirely from the union budget; ### a. whereas , according to its statement of revenue and expenditure1 , the final budget of the agency for the cooperation of energy regulators (the ‘agency’) for the financial year 2020 was eur 17 297 383 , representing an increase of 7 ,12 % compared to 2019 , whereas the inflation rate was 0 ,7 % in the union in 2020; whereas the budget of the agency derives entirely from the union budget;


### 5. notes that the agency reported to have one woman (16 ,7 %) in its senior management and five men (83 ,3 %); notes that among its staff overall , the gender ratio is 68 men (67 ,3 %) and 33 women (32 ,7 %); notes that the agency’s management board is composed of four men (44 ,4 %) and five women (55 ,6 %); ### 5. reiterates its concern on the gender distribution within the agency's senior management as the agency reported to have one woman (16 ,7 %) in its senior management and five men (83 ,3 %); is of the opinion that the gender balance among the staff overall needs to be improved and notes that the gender distribution is 68 men (67 ,3 %) and 33 women (32 ,7 %); notes that the agency’s management board is composed of four men (44 ,4 %) and five women (55 ,6 %);


### 9. notes that the court has issued a qualified opinion regarding the legality and regularity of the payments underlying the accounts for the financial year 2020; notes that for the 2019 financial year , the court concluded that several specific contracts under a framework contract for it services were irregular , because no competitive procurement procedure had been followed by the agency , and more precise , certain ordered items and services were not covered by the price lists of the bids submitted for the contract; notes that payments made in 2020 for out-of-price list items under this framework contract amounted to eur 752 654 (3 ,71 % of the total payment appropriations available in 2020); notes the statements of the director of the agency in the discharge hearing with the agencies on 29 november 2021 , and the agency’s reply to written questions that the court’s finding was related to an excessive use of the option of ‘out-of-price list items’ , and that the agency has taken steps to prevent this from happening in the future; ### 9. notes with concern that the court has issued a qualified opinion regarding the legality and regularity of the payments underlying the accounts for the financial year 2019; notes with concern that for the 2019 financial year , the court concluded that several specific contracts under a framework contract for it services were irregular , because no competitive procurement procedure had been followed by the agency , and more precise , certain ordered items and services were not covered by the price lists of the bids submitted for the contract; notes that payments made in 2020 for out-of-price list items under this framework contract amounted to eur 752 654 (3 ,71 % of the total payment appropriations available in 2020); notes the statements of the director of the agency in the discharge hearing with the agencies on 29 november 2021 , and the agency’s reply to written questions that the court’s finding was related to an excessive use of the option of ‘out-of-price list items’ , and that the agency has taken steps to prevent this from happening in the future; calls on the agency to report to the court and the discharge authority on the above mentioned framework contracts as well as on the steps taken;


### 18. notes from the court’s follow up of 2019’s observations that corrective actions towards problems and risks at senior management and corporate culture level identified by an external expert panel are still ongoing; calls on the joint undertaking to report to the discharge authority in that regard; notes that in 2020 the policy on contracts of employment in the joint undertaking was modified; ### 18. notes with concerns from the court’s follow up of 2019’s observations that corrective actions towards problems and risks at senior management and corporate culture level identified by an external expert panel are still ongoing; reiteraits that this situation , if remaining unsolved , could negatively affect the performance of the staff; calls on the joint undertaking to report to the discharge authority in that regard; notes that in 2020 the policy on contracts of employment in the joint undertaking was modified;


### 30. notes from the court’s report that the joint undertaking uses its own e-procurement portal , which is not fully synchronized with the commission’s eprocurement solution and could lead to unnecessary duplications with the commission's development efforts and investment in the future; notes from the joint undertaking reply that when the tool offered by the commission covers all procurement procedure types relevant for the joint undertaking and the incident reported rate decreases , the joint undertaking will evaluate a potential move to the commission toolset and take a decision based on joint undertaking’s operational requirements; calls on the joint undertaking to report to the discharge authority in that regard; ### 30. notes from the court’s report that the joint undertaking uses its own e-procurement portal , which is not fully synchronized with the commission’s eprocurement solution and could lead to unnecessary duplications with the commission's development efforts and investment in the future; reminds that this is not in line with the principle of a single ‘electronic data interchange area’ for participants , as foreseen by the eu financial regulation; notes from the joint undertaking reply that when the tool offered by the commission covers all procurement procedure types relevant for the joint undertaking and the incident reported rate decreases , the joint undertaking will evaluate a potential move to the commission toolset and take a decision based on joint undertaking’s operational requirements; calls on the joint undertaking to report to the discharge authority in that regard;


### 3. notes that the pif report highlights the risks related to the covid-19 pandemic both in terms of revenue and expenditure; notes in particular that customs fraud appears to have affected eu member states to differing degrees; notes , moreover , that the use of simplified procedures and the lower quality of tender specifications in the emergency pose risks to competitive public procurement , in particular by increasing the risk of conflicts of interest and corruption , and by inflating costs or reducing the quality of implementation; ### 3. notes that the pif report highlights the risks related to the covid-19 pandemic both in terms of revenue and expenditure; notes in particular that customs fraud appears to have affected eu member states to differing degrees; notes , moreover , that the use of simplified procedures and the lower quality of tender specifications in the emergency pose risks to competitive public procurement , in particular by increasing the risk of conflicts of interest and corruption , and by inflating costs or reducing the quality of implementation; notes that proper focus was given to healthcare sector and the recovery and resilience facility (rrf) and the additional risks;


### 5. notes that the total number of fraudulent and non-fraudulent irregularities reported in 2020 amounted to 9 726 cases overall , and involved a value of approximately eur 1.33 billion; ### 5. notes that the total number of fraudulent and non-fraudulent irregularities reported in 2020 amounted to 11 755 cases overall , and involved a value of approximately eur 1.46 billion; notes the new approach of the long-term budget 2021–2027 , which focuses on the eu added value;


### 7. takes note of the number of fraudulent irregularities reported in 2020 (989 cases) and their related financial value (approximately eur 361.42 million); ### 7. takes note of the number of fraudulent irregularities reported in 2020 (1056 cases) and their related financial value (approximately eur 374 million);


### 9. takes into consideration the fact that the number of non-fraudulent irregularities registered in 2020 (8 737 cases , of which 5 371 cases related to expenditure) was lower than in the previous years , and that the drop in detection and reporting in certain areas of spending cannot easily be explained and is of concern; notes that the total related financial value of these cases is approximately eur 967.02 million; ### 9. takes into consideration the fact that the number of non-fraudulent irregularities registered in 2020 (10699 cases , of which 6696 cases related to expenditure) was lower than in the previous years , and that the drop in detection and reporting in certain areas of spending cannot easily be explained and is of concern; notes that the total related financial value of these cases is approximately eur 1.09 billion;


### 15. notes that over the past five years , the annual recovery rate has varied between 52 % and 71 % and that the recovery rate for cases reported in 2020 is currently 71 %; notes , however , that recovery rates vary among the member states owing to factors such as the type of fraud or irregularity , or the type of debtor involved; ### 15. notes that over the past five years , the annual recovery rate has varied between 52 % and 71 % and that the recovery rate for cases reported in 2020 is currently 71 %; notes , however , that recovery rates vary among the member states owing to factors such as the type of fraud or irregularity , or the type of debtor involved; notes that china remained also in 2020 the most important country of origin of goods affected by fraudulent and non-fraudulent irregularities;


### 18. notes that , over the period 2016-2020 , the detection of fraud in the context of the common agricultural policy (cap) was concentrated in a small number of member states and that this was not substantiated by a similar level of payments to those member states from the cap budget; notes moreover that , the majority of fraudulent irregularities concerning support to agriculture involved the use of false documents or false requests for aid , and that their number remained largely stable; observes furthermore that , as a proportion of the payments received by the member states , the rural development part of the budget was more affected by fraud than support for agriculture , with the exception of market measures , for which incidences of fraud were higher than for rural development; notes that in relation to rural development , the falsification of documents was the main fraudulent practice; ### 18. notes that , over the period 2016-2020 , the detection of fraud in the context of the common agricultural policy (cap) was concentrated in a small number of member states and that this was not substantiated by a similar level of payments to those member states from the cap budget; notes moreover that , the majority of fraudulent irregularities concerning support to agriculture involved the use of false documents or false requests for aid , and that their number remained largely stable; observes furthermore that , as a proportion of the payments received by the member states , the rural development part of the budget was more affected by fraud than support for agriculture , with the exception of market measures , for which incidences of fraud were higher than for rural development; notes that in relation to rural development , the falsification of documents was the main fraudulent practice; underlines that more investigations need to be carried out and further appropriate measures to be put in place against the use of eu funds in agriculture-related activities by companies that do not respect employment laws or fundamental rights of workers , as attested by the situation of workers in agriculture especially during the covid19 pandemic;


### 19. notes that between 2016 and 2020 , the number of irregularities reported related to the cohesion fund , the european regional development fund , the european social fund and the fisheries funds for the 2014-2020 programming period increased; stresses , however , that for all funds , and in particular the european regional development fund , as regards non-fraudulent irregularities , this increase was limited , highlighting an exceptional fall in the number of detected irregularities (and related financial amounts) in comparison to the previous programming period; ### 19. notes that between 2016 and 2020 , the number of irregularities reported related to the cohesion fund , the european regional development fund , the european social fund and the fisheries funds for the 2014-2020 programming period increased; stresses , however , that for all funds , and in particular the european regional development fund , as regards non-fraudulent irregularities , this increase was limited , highlighting an exceptional fall in the number of detected irregularities (and related financial amounts) in comparison to the previous programming period; notes moreover , that in relation to the 2007-2013 programming period the number of fraudulent and non-fraudulent irregularities decreased for the cohesion fund , the european regional development fund , the european social fund and the fisheries funds , in line with the implementation cycle; notes that a number of implementation rules changed between the two programming periods;


### 20. is of the opinion that eu institutions and bodies should put more emphasis on the funds spent in non-eu countries in order to verify that those funds are spent in accordance with the rules and without the involvement of fraud or corruption , and to confirm whether they contribute to the goals of the union’s development and external policy; ### 20. is of the opinion that eu institutions and bodies should put more emphasis on the funds spent in non-eu countries in order to verify that those funds are spent in accordance with the rules and without the involvement of fraud or corruption , and to confirm whether they contribute to the goals of the union’s development and external policy; recommends the suspension of budget support in third countries where corruption is widespread and where authorities manifestly fail to take genuine action , while ensuring that the assistance reaches the civil population through other channels;


### 21. calls for a greater degree of digitalisation , interoperability of data systems and harmonisation of reporting , monitoring and auditing in the eu; calls on the commission to explore the possibility of using ai in the service of the protection of the eu’s financial interests; ### 21. calls for a greater degree of digitalisation , interoperability of data systems and harmonisation of reporting , monitoring and auditing in the eu; calls on the commission to explore the possibility of using ai in the service of the protection of the eu’s financial interests; is of the opinion that all eu bodies working in the field of protection of the eu’s financial interest including eurojust and europol should have access to data systems such as arachne and edes;


### 22. calls on the member states to use the arachne risk scoring tool in the mff 2021-2027 and the nextgenerationeu recovery plan , especially with regard to the implementation of the recovery and resilience facility (rrf); believes that arachne should be indicated as a one of the main tools endowing the national anti-fraud strategies (nafs) that the member states are expected to adopt in order to improve the integration of anti-fraud architecture; ### 22. calls on the member states to use the arachne risk scoring tool in the mff 2021-2027 and the nextgenerationeu recovery plan , especially with regard to the implementation of the recovery and resilience facility (rrf); believes that arachne should be indicated as a one of the main tools endowing the national anti-fraud strategies (nafs) that the member states are expected to adopt in order to improve the integration of anti-fraud architecture; calls on the commission to assess , and to report to the parliament , the reasons preventing the member states from fully adopting and using arachne; calls on the commission to make the use of arachne compulsory for the mff and the rrf as well;


### 23. urges the commission to extend the scope of the early detection and exclusion system (edes) to include the funds under shared management in the context of the revision of the financial regulation; ### 23. urges the commission to extend the scope of the early detection and exclusion system (edes) to include the funds under shared management in the context of the revision of the financial regulation; recalls the observations of parliament outlined in its resolution of 24 november 2021 on the revision of the financial regulation as regards the use of digital tools and the data on the final beneficiaries of eu funds;


### 24. notes that by june 2021 , two thirds of the actions of the commission’s 2019 anti-fraud strategy had been implemented , while implementation of the remaining third was ongoing; calls on the commission to report on the implementation of the remaining actions; notes , moreover , that good progress was made on a number of actions aimed at increasing coordination and cooperation between commission departments and equipping the commission with a more effective system of anti-fraud oversight; ### 24. notes that by june 2021 , two thirds of the actions of the commission’s 2019 anti-fraud strategy had been implemented , while implementation of the remaining third was ongoing; calls on the commission to report on the implementation of the remaining actions; notes , moreover , that good progress was made on a number of actions aimed at increasing coordination and cooperation between commission departments and equipping the commission with a more effective system of anti-fraud oversight; notes that the monitoring of the follow up to olaf recommendations was made more efficient in 2020 , taking stock of about 1 400 financial recommendations issued between january 2012 and june 2019;


### 27. notes that by the end of 2020 , 14 member states reported having adopted a nafs , up from 10 in 2019; notes , however , that these strategies vary in scope and depth and that some need to be updated; calls for more member states to adopt a nafs and to report it to the commission; ### 27. notes that by the end of 2020 , 14 member states reported having adopted a nafs , up from 10 in 2019; notes , however , that these strategies vary in scope and depth and that some need to be updated; calls for more member states to adopt a nafs and to report it to the commission; calls on the commission to provide tangible support and advice to the member states , by way of guidelines on drafting nafs , advisory services on the setting and functioning of afcos , and reiterates its call for analyses of the adopted nafs and on the reasons why in some member states a nafs is not adopted;


### 31. takes note of the working arrangement signed on 3 september 2021 for a framework cooperative relationship between both the eppo the eca; ### 31. takes note of the working arrangement signed on 3 september 2021 for a framework cooperative relationship between both the eppo the eca; notes , moreover , the administrative arrangements signed in 2019 between the olaf and the european court of auditors;


### 32. welcomes the fact that the eppo became operational on 1 june 2021; expects its first annual report very soon; deeply regrets that there are still five member states not participating in the eppo; calls on these member states to join the eppo as soon as possible; ### 32. welcomes the fact that the eppo became operational on 1 june 2021; welcomes its first annual report; welcomes that eppo opened 576 investigations and that eppo requested that €154.3 million be seized , of which the seizure of €147 million was granted; is concerned about the estimation of the eppo on the total damages of eur 5.4 billion caused by fraud and corruption; deeply regrets that there are still five member states amongst them poland and hungary as biggest beneficiaries of the eu funds are not participating in the eppo; calls on these member states to join the eppo as soon as possible; urges furthermore the non-participating member states to sign cooperation agreements with eppo; is of the opinion that the failure of member states to cooperate with the eppo has a direct effect on the protection of the eu’s financial interest; calls on the commission to incentivise participation in eppo with positive measures;


### 33. welcomes the joint efforts of olaf and europol to assess the threats and vulnerabilities of the rrf instrument; ### 33. welcomes the joint efforts of olaf and europol to assess the threats and vulnerabilities of the rrf instrument; welcomes 'operation sentinel' launched by europol which intends to focus on proactive intelligence sharing , information exchange and supporting the coordination of operations to tackle fraud against covid-19 eu recovery funds; welcomes the involvement of eppo and olaf and 19 eu member states; is concerned about the fact those member states which are major beneficiary of the cohesion funds , amongst others poland , hungary or bulgaria do not participate in the operation; calls on all member states to join to the operation; furthermore calls on the member states to cooperate closely with one another and the eu bodies to allow action to be taken against fraud involving several countries;


### 35. notes that in july 2020 the council appointed the 22 european prosecutors; recalls that the eppo is to work hand in hand with national law enforcement authorities and that it exercises the function of prosecutor in the competent courts of the participating member states while at the same time closely cooperating with eu agencies and bodies such as eurojust , europol and olaf; ### 35. notes that in july 2020 the council appointed the 22 european prosecutors; recalls that the eppo is to work hand in hand with national law enforcement authorities and that it exercises the function of prosecutor in the competent courts of the participating member states while at the same time closely cooperating with eu agencies and bodies such as eurojust , europol and olaf; notes that this peculiar position is designed to allow eppo drawing upon the existing experience and best practices at national and eu level; expects the commission to duly consider eppo reassessment of its staff needs based on its workload experience and to implement the needed financial adjustments to guarantee eppo operational effectiveness and efficiency;


### 39. is of the opinion that it is high time for the commission to fulfil its duties as ‘guardian of the treaties’ and to tackle the ongoing violations of the principles of the rule of law in several member states , which represent a serious danger to the union’s financial interests; calls on the commission , therefore , to take urgent action and apply the rule of law conditionality mechanism immediately by sending a written notification under article 6(1) of regulation (eu , euratom) 2020/2092; ### 39. is of the opinion that it is high time for the commission to fulfil its duties as ‘guardian of the treaties’ and to tackle the ongoing violations of the principles of the rule of law in several member states , which represent a serious danger to the union’s financial interests; welcomes the announcement of the commission to apply the rule of law conditionality mechanism by sending a written notification under article 6(1) of regulation (eu , euratom) 2020/2092 to hungary; is of the opinion that the rule of law is a universal concept and the commission should consider the application of the rule of law conditionality mechanism against all member states which fail to respect the rule of law without discrimination; warns that the delay might already have detrimental impact on the financial interest of the eu and the state of the rule of law in certain member states;


### 40. recognises the importance of the annual rule of law report and the fact that the fight against corruption is an integral part of the report; is of the opinion , however , that it cannot substitute the anti-corruption report; welcomes the commission’s intention to equip the rule of law report with specific recommendations to the member states; ### 40. recognises the importance of the annual rule of law report and the fact that the fight against corruption is an integral part of the report; is of the opinion , however , that it cannot substitute the anti-corruption report; welcomes the commission’s intention to equip the rule of law report with specific recommendations to the member states; is of the opinion that the commission should consider the establishment of a “corruption index” based on a strict and easy to apply criteria should reflect upon the opinion about the performance of the member states in fighting corruption and add it to the anti-corruption chapter of the rule of law report;


### 42. considers that the financing of the eu has entered a new era with the adoption of the nextgenerationeu recovery plan and that this provides the eu’s anti-fraud architecture with additional challenges; is therefore strongly of the opinion that the anti-fraud architecture needs to be further strengthened; stresses that olaf , the eppo , europol and eurojust are understaffed and lacking in financial resources; reminds the commission and the council that every euro spent on monitoring and investigation returns to the eu budget; ### 42. considers that the financing of the eu has entered a new era with the adoption of the nextgenerationeu recovery plan and that this provides the eu’s anti-fraud architecture with additional challenges; is therefore strongly of the opinion that the anti-fraud architecture needs to be further strengthened; stresses that olaf , the eppo , europol and eurojust are understaffed and lacking in financial resources especially in light of the new mandates adopted to eurojust and europol; reminds the commission and the council that every euro spent on monitoring and investigation returns to the eu budget;


### 46. reiterates the unsatisfactory level of analysis provided in the annexes to the pif report regarding cases of conflicts of interest; ### 46. reiterates the unsatisfactory level of analysis provided in the annexes to the pif report regarding cases of conflicts of interest; calls for the commission to engage in such analysis , following the amendment of the article 61 of the financial regulation and the issue on 7 april 2021 to the benefit of the member states of the ‘guidance on the avoidance and management of conflicts of interest under the financial regulation’;


### 47. instructs its president to forward this resolution to the council and the commission. ### 47. instructs its president to forward this resolution to the council and the commission and the member states.


### c. whereas sustainability and support for cohesion are at the heart of the eib’s activity – sustainability is required to be integrated into any lending , borrowing and advisory activities because the eib’s remit is to foster sustainable growth within the european union and abroad , and support for cohesion is enshrined in its statute; ### c. whereas territorial and social cohesion , sustainable development and tackling unemployment , poverty and social exclusion should be at the heart of the eib’s activity – sustainability is required to be integrated into any lending , borrowing and advisory activities because the eib’s remit is to foster sustainable growth within the european union and abroad , and support for cohesion is enshrined in its statute;


### 18. notes that the investeu programme , the successor to the european fund for strategic investments (efsi) , is to be deployed under the european union’s 2021-2027 mff and that the eib will also be the key implementing partner , responsible for managing 75 % of the overall budget of the mandate; understands that over the 2021-2027 period , investeu’s eur 26.2 billion guarantee , with provisioning from the mff and ngeu , is expected to mobilise more than eur 372 billion in additional private and public investment in europe , mainly for sustainable infrastructure , research innovation , digitalisation , smes , social investment and skills; ### 18. notes that the investeu programme , the successor to the european fund for strategic investments (efsi) , is to be deployed under the european union’s 2021-2027 mff and that the eib will also be the key implementing partner , responsible for managing 75% of the overall budget of the mandate; understands that over the 2021-2027 period , investeu’s eur 26.2 billion guarantee , with provisioning from the mff and ngeu , is expected to mobilise more than eur 372 billion in additional private and public investment in europe , mainly for sustainable infrastructure , research innovation , digitalisation , smes’ access to finance , social investment and skills;


### 21. is concerned that the current high energy prices could affect european smes’ competitiveness; calls on the eib to assess whether the current level of support for smes is sufficient in the context of high energy prices and rising costs of raw materials and to inform parliament about how it intends to adapt its actions to tackle these new challenges; ### 21. is concerned that the current high energy prices are seriously affecting european smes’ competitiveness; calls on the eib to assess whether the current level of support for smes is sufficient in the context of high energy prices and rising costs of raw materials and to inform parliament about how it intends to adapt its actions to tackle these new challenges;


### 23. stresses that the requirement for financial intermediaries and corporate clients to draw up decarbonisation plans as soon as possible and at the latest by the end of 2025 must not prevent smes from accessing finance; ### 23. stresses that the requirement for financial intermediaries and corporate clients to draw up decarbonisation plans as soon as possible and at the latest by the end of 2025 must facilitate access to finance to smes;


### 25. calls on the eib to increase financing in order to boost the technological transition , provide funds to smes for long-term research and innovation , support the development of skills adapted to real labour market needs , and promote investment in employees’ and entrepreneurs’ digital skills , digital infrastructure and capacity-building for digitalisation; ### 25. calls on the eib to increase financing in order to boost the technological transition , provide funds to smes for long-term research and innovation , support the development of skills adapted to real labour market needs , and promote investment in employees’ and entrepreneurs’ digital skills , digital infrastructure and capacity-building for digitalisation; stresses , that european smes are lagging behind in embracing digital technologies with only 55% of eu smes have at least a basic level in digitalisation;


### 45. acknowledges the efforts made by the eib in recent years to improve the gender balance of its staff , in particular at management and senior official levels; notes that the targets set in the diversity and inclusion strategy 2018-2021 were not fully achieved; ### 45. is concerned that the targets set in the diversity and inclusion strategy 2018-2021 were not fully achieved; calls on the eib to make concrete efforts to improve the gender balance of its staff , in particular at management and senior official levels;


### 3. measures to strengthen support for smes and eligible economic operators when implementing eu policies; ### 3. measures to strengthen support for smes and eligible economic operators when implementing eu policies; and avoid any new requirements that should create more bureaucracy for smes;


### a. whereas , according to its statement of revenue and expenditure1 , the final budget of the agency for support for berec (the ‘berec office’) for the financial year 2020 was eur 7 233 653 , representing an increase of 27 ,96 % compared to 2019 , which mainly represents an increase in staff and operational expenditure; whereas the budget of the berec office derives from the union budget and third countries’ contributions; ### a. whereas , according to its statement of revenue and expenditure1 , the final budget of the agency for support for berec (the ‘berec office’) for the financial year 2020 was eur 7 233 653 , representing an increase of 27 ,96 % compared to 2019 , which mainly represents an increase in staff and operational expenditure; whereas the inflation rate was 0 ,7 % in the union in 2020; whereas the budget of the berec office derives from the union budget and third countries’ contributions;


### 6. notes the gender distribution within the berec office’s senior management members , with 3 out of 4 being men (75 %); further notes the gender distribution within the berec office’s management board , with 23 out of 29 being men (79 ,31 %); notes the gender distribution within the berec office’s overall staff , with 24 out of 42 (57 ,14 %) being men; encourages the berec office to take measures to improve gender balance; ### 6. reiterates its concern about the gender distribution within the berec office’s senior management members , with 3 out of 4 being men (75 %) and the berec office’s management board , with 23 out of 29 being men (79 ,31 %); notes the gender distribution within the berec office’s overall staff , with 24 out of 42 (57 ,14 %) being men; reiterates its call on the berec office to take measures to improve gender balance as soon as possible; reiterates its call on the commission and the member states to take into account the importance of ensuring gender balance when presenting their nominations for members of the board;


### a. whereas the committee of the regions (the ‘committee’) represents and engages with local and regional authorities in the union decision-making process and pursues its missions of better law making and strengthening union democracy from the bottom up; ### a. whereas the committee of the regions (the ‘committee’) represents and engages with local and regional authorities in the union decision-making process and pursues its missions of better law making and strengthening union democracy from the bottom up by sharing opinions on union legislation that directly impact regions and cities;


### 4. notes that the committee budget for 2020 amounted to eur 101 ,5 million (a 2 ,8 % increase compared to the 2019 budget); ### 4. notes that the committee budget for 2020 amounted to eur 101 ,5 million (a 2 ,8 % increase compared to the 2019 budget of eur 98 751 000);


### 10. notes that starting from 2020 members can have up to 100 % of their language course costs reimbursed (instead of 66 % as before) , within a maximum amount of eur 1 200 per year , in order to support their participation in remote meetings that do not always have interpretation services; notes that eur 27 500 was transferred to the relevant budget line in 2020 to support that change; ### 10. notes that starting from 2020 members can have up to 100 % of their language course costs reimbursed (instead of 66 % as before) , within a maximum amount of eur 1 200 per year , in order to support their participation in remote meetings that do not always have interpretation services; notes that eur 27 500 was transferred to the relevant budget line in 2020 to support that change; encourages the committee to ensure a reasonable correlation between the language training and the needs and duties of the requesting member;


### 13. welcomes the intensive cooperation of the committee with the commission with regard to the fit for future platform , the refit platform and the reghub network , as well as the committee’s contribution to the action plan to implement the european pillar of social rights and the porto social summit in 2021; highlights that the committee has set up a committee-uk contact group to provide a framework for political cooperation; ### 13. welcomes the intensive cooperation of the committee with the commission with regard to the fit for future platform , the refit platform , as the input of the committee , capturing the views of regional and local authorities , is important for a balanced policy assessment process , and the reghub network , as well as the committee’s contribution to the action plan to implement the european pillar of social rights and the porto social summit in 2021; highlights that the committee has set up a committee-uk contact group to provide a framework for political cooperation;