### 130. notes the commission’s approach to adherence to procurement and state aid rules in the investments under the rrp is to rely on national systems , and revert to infringement procedures when cases of non-compliance in member states are detected; considers that the protection of the union financial interests is not timely guaranteed and does not necessarily target the beneficiaries that enjoyed an unfair advantage of the cases of non-compliance; acknowledges that the first responsibility in this regard lies with the member states; recalls the repeated findings by the court as reflected in previous discharge reports that the work of certain national authorities is too error-prone and unreliable; stresses therefore that the commission has the residual responsibility to make sure that effective and efficient internal control systems are in place , and to step in where member states do not act as is required by the rrf regulation; ### 130. notes the commission’s approach to adherence to procurement and state aid rules in the investments under the rrp is to rely on national systems , and revert to infringement procedures when cases of non-compliance in member states are detected; acknowledges that the first responsibility in this regard lies with the member states , that are obliged to put in place suitable control systems and compliance with all relevant national and european legislation , including procurement and state aid rules; recalls the repeated findings by the court as reflected in previous discharge reports that the work of certain national authorities or certifying bodies is considered too error-prone and thus unreliable; stresses therefore that the commission has the residual responsibility to make sure that effective and efficient internal control systems are in place , and to step in where member states do not act as is required by the rrf regulation; welcomes in that regard the commission’s audit strategy and the launch in 2022 of system audits on the protection of financial interest of the eu in 16 member states , as well as the plans to cover all member states by the end of 2023;


### 131. is concerned that differences in the quality of controls and the complexity of the control systems applied by the member states result in a less effective internal control system for the funds available under the rrf; is concerned by repeated warnings by olaf , the eppo , europol and other competent bodies that a less effective internal control system attracts misuse , fraud and organised crime; ### 131. is concerned that differences in the quality of controls and the complexity of the control systems applied by the member states is liable to generate deficiencies in the internal control system , making this less effective for the funds available under the rrf; points out that olaf , the eppo , europol and other competent bodies are warning that a less effective internal control system could attract misuse , fraud and organised crime;


### 131. is concerned that differences in the quality of controls and the complexity of the control systems applied by the member states result in a less effective internal control system for the funds available under the rrf; is concerned by repeated warnings by olaf , the eppo , europol and other competent bodies that a less effective internal control system attracts misuse , fraud and organised crime; ### 131. is concerned that differences in the quality of controls and the complexity of the control systems applied by the member states could risk of resulting in a deficiencies in internal control system for the funds available under the rrf; recalls that olaf , the eppo , europol and other competent bodies warn that a less effective internal control system could attract misuse , fraud and organised crime;


### 132. reiterates that the effectiveness of the rule of law conditionality mechanism in part rests on information stemming from audits and investigations at union level and not having this information available will make the mechanism less effective; ### 132. recalls that the rrf must be implemented by the commission in direct management in accordance with the relevant rules adopted pursuant to article 322 tfeu , in particular the financial regulation and the regulation (eu , euratom) 2020/2092 of 16 december 2020 on a general regime of conditionality for the protection of the union budget; reiterates that the effectiveness of the rule of law conditionality mechanism in part rests on information stemming from audits and investigations at union level and not having this information available will make the mechanism less effective;


### 133. notes the commission’s reporting on the implementation of the rrf on the rrf scoreboard , as stipulated by article 30 of the rrf regulation; notes that most of the reporting so far , in particular on the common indicators , is about expected results and not about achieved results; recalls that this same issue was identified by the court in its special report 09/2022 on climate spending; ### 133. notes that the commission has established the rrf scoreboard , as stipulated by article 30 of the rrf regulation , in order to display the progress of the implementation of the nrrps; observes that the reporting so far display achieved results across countries , pillars and milestones and targets , in particular on the 14 common indicators identified by the commission , the member states and parliament; notes that part of the reporting is about expected results and recalls that this same issue was identified by the court in its special report 09/2022 on climate spending;


### 134. notes the rrf scoreboard on which the commission reports progress on the implementation of the rrf; considers the information presented useful; is however worried that it is not sufficient to establish actual performance of the rrf; considers that actual achieved progress on the indicators , not just budgeted or expected , should be presented; ### 134. notes the rrf scoreboard on which the commission reports progress on the implementation of the rrf; considers the information presented useful , but that it should be further developed to include indicators on the progress made to establish the actual performance of the rrf;


### 134. notes the rrf scoreboard on which the commission reports progress on the implementation of the rrf; considers the information presented useful; is however worried that it is not sufficient to establish actual performance of the rrf; considers that actual achieved progress on the indicators , not just budgeted or expected , should be presented; ### 134. considers the information presented on the rrf scoreboard as useful and readable considering the vast amount of information available; commends in particular the inclusion of a detailed list of fulfilled milestones and targets indicators that displays the rrf achieved progress across member states and policy pillars;


### 135. acknowledges that the scoreboard contains a complete and useful repository of official documents that gives insight in the most important agreements reached with the member states in the national rrps and related documents; regrets however that the rrf scoreboard does not allow tracing financial flows from union-level to the level of the final beneficiaries in the member states and does not provide a clear overview of the actual implementation of the rrf in that regard; ### 135. acknowledges that the rrf scoreboard contains a complete and useful repository of official documents that gives insight in the most important agreements reached with the member states in the national rrps and related documents , such as the commission preliminary assessment of payments to member states; notes that the rrf scoreboard allows tracing financial flows from union-level to the level of the member states as beneficiaries of the rrf according to article 22 (1) of the rrf regulation , in particular the grants and loans allocated and disbursed to each member state , and thus provides a clear overview of the actual implementation of the rrf in that regard;


### 136. considers that the element of union funding being additional to national funding is not satisfactorily communicated by the commission , and that it cannot be excluded with certainty that money from the rrf is used to replace national expenditure; considers an analysis of national expenditure is necessary to see if the funding made available through the rrf is truly additional and was not used to substitute recurring national expenditure , in accordance with article 5(1) of the rrf regulation; considers in this regard that it is unclear what has happened with the payments and pre-financing received by member states for which no investment related costs were incurred yet; ### 136. considers that the element of union funding being additional to national funding is satisfactorily and clearly communicated in article 4 (2) of the rrf regulation which stipulates that the specific objective of the rrf is to provide member states with financial support; understands that it is prohibited with certainty that money from the rrf is used to replace recurring national budgetary expenditure in accordance with the article 5(1) of the rrf regulation; recalls in this regard that the payments to member states depend on the fulfilment of milestones and targets of the nrrps , which excludes recurring national budgetary expenditure; notes that the commission developed guidelines to frame the interpretation of double funding and provided member states with clear information to ensure synergies and avoid double funding; notes further that member states report on the funding received from other funds for the measures under the rrf;


### 136. considers that the element of union funding being additional to national funding is not satisfactorily communicated by the commission , and that it cannot be excluded with certainty that money from the rrf is used to replace national expenditure; considers an analysis of national expenditure is necessary to see if the funding made available through the rrf is truly additional and was not used to substitute recurring national expenditure , in accordance with article 5(1) of the rrf regulation; considers in this regard that it is unclear what has happened with the payments and pre-financing received by member states for which no investment related costs were incurred yet; ### 136. considers an analysis of national expenditure is necessary to see if the funding made available through the recovery and resilience facility is truly additional and was not used to substitute recurring national expenditure , in accordance with article 5(1) of the recovery and resilience facility regulation; notes that the commission has developed guidelines to define the interpretation of double funding and to ensure the exchange of clear information with member states on how best to prepare their recovery and resilience plans in order to ensure synergies and avoid double funding; notes , furthermore , that the member states report on the funding received from other funds for measures under the recovery and resilience facility;


### 137. recalls that keeping documentation supporting payments is an important principle of sound financial management; is very worried by the finding of the court that the audit trail was insufficient to cover all elements considered relevant in the assessment process of milestones and targets for the first payment request; recalls in particular the court’s findings regarding milestone 215 and the commission’s reply to this finding , suggesting that there was at least an analysis performed; recalls the written question of the discharge authority requesting this analysis and the staggering reply from the commission that there was ‘no analysis’ , but that ‘several commission staff reviewed the dataestur site and confirmed that the required information was present’; concludes that such method of working is a flagrant violation of the principle of sound financial management; ### 137. recalls that keeping documentation in support of payments is an important principle of sound financial management; is worried by the finding of the court that the audit trail was insufficient to cover all elements considered relevant in the assessment process at the second milestone for the first payment request; recalls in particular the court’s findings concerning milestone 215 and the commission’s reply to this finding , suggesting that the commission’s assessment was based on an in-depth analysis of the content of the dataestur site , and that the commission gathered screenshots from the dataestur site in october and november 2021 which prove the conclusions of the commission’s assessment; notes that the commission acknowledges that the recording of such screenshots was not done in accordance with internal guidelines; recalls the written question of the discharge authority requesting this analysis and the reply from the commission that it had not drawn up a detailed report on this matter , so it could not furnish it with an ‘analysis’ , but that ‘several commission staff had consulted the dataestur site and confirmed that the required information was present’; calls on the commission to ensure an adequate audit trail for recording the assessment of the milestones and calls on the court to follow up this issue as part of its future audits;


### 137. recalls that keeping documentation supporting payments is an important principle of sound financial management; is very worried by the finding of the court that the audit trail was insufficient to cover all elements considered relevant in the assessment process of milestones and targets for the first payment request; recalls in particular the court’s findings regarding milestone 215 and the commission’s reply to this finding , suggesting that there was at least an analysis performed; recalls the written question of the discharge authority requesting this analysis and the staggering reply from the commission that there was ‘no analysis’ , but that ‘several commission staff reviewed the dataestur site and confirmed that the required information was present’; concludes that such method of working is a flagrant violation of the principle of sound financial management; ### 137. recalls that keeping documentation supporting payments is an important principle of sound financial management; is worried by the finding of the court that the audit trail was insufficient to cover all elements considered relevant in the assessment process in the case of two milestones for the first payment request; recalls in particular the court’s findings regarding milestone 215 and the commission’s reply to this finding , explaining that the commission positive assessment was based on a thorough analysis of the content of the dataestur website , including screenshots taken in october and november 2021; notes the commission recognition that the registration of these screenshots did not take place in line with the internal guidance and that improvements in record-keeping could be made; recalls the written question of the discharge authority requesting this analysis and the reply from the commission that it did not write a detailed report on this matter so has no ‘analysis’ to be provided , but that ‘several commission staff reviewed the dataestur site and confirmed that the required information was present’; calls on the commission to ensure suficient audit trail recording the assessment of milestones and calls on the court to follow this issue in its future audits;


### 138. notes that the declaration of assurance of the directorate-general for economic and financial affairs for 2021 is different from the declaration of assurance of all other directorate-generals; notes that the declaration concerns the legality and regularity of the underlying transactions , which is aligned with the other directorates-general; notes further that ‘the implementation of article 22(5) of the rrf regulation’ , is added; notes the commission’s reply to written questions from the discharge authority that ‘it is different only in format but not as regards the level of assurance provided’; questions why it was then necessary to explicitly limit the assurance to article 22(5) of the rrf regulation , and not to provide assurance over article 22 in its entirety; concludes that the declaration of assurance by the commission as guardian of the treaty , in particular as regards protection of the union financial interests and accountability towards taxpayers , must be trustworthy and cannot leave any room for doubt that the commission were to evade its responsibility through diverging declarations of individual authorising officers; ### 138. takes note that the declaration of assurance of the directorate-general for economic and financial affairs for 2021 is different from the declaration of assurance of all other directorate-generals; notes that the declaration concerns the legality and regularity of the underlying transactions , which are aligned with the other directorates-general; notes further the addition of ‘the implementation of article 22(5) of the recovery and resilience facility regulation’; notes the commission’s reply to written questions from the discharge authority that ‘it is different only in format but not as regards the level of assurance provided’; also notes that in accordance with article 22(5) of the recovery and resilience facility regulation , and in line with the performance-based approach , the obligation to protect the union’s financial interests lies with the member state; notes , moreover , the commission’s reply that it ensures , both through an initial assessment of each recovery and resilience programme and through audits of the systems that member states have put in place to protect the financial interests of the union , that each member state implements the necessary monitoring and control systems; concludes that the declaration of assurance by the commission as guardian of the treaty , in particular as regards protecting the union's financial interests and accountability towards taxpayers , must be trustworthy and cannot leave room for doubt of the commission evading its responsibility through the diverging declarations of individual authorising officers;


### 138. notes that the declaration of assurance of the directorate-general for economic and financial affairs for 2021 is different from the declaration of assurance of all other directorate-generals; notes that the declaration concerns the legality and regularity of the underlying transactions , which is aligned with the other directorates-general; notes further that ‘the implementation of article 22(5) of the rrf regulation’ , is added; notes the commission’s reply to written questions from the discharge authority that ‘it is different only in format but not as regards the level of assurance provided’; questions why it was then necessary to explicitly limit the assurance to article 22(5) of the rrf regulation , and not to provide assurance over article 22 in its entirety; concludes that the declaration of assurance by the commission as guardian of the treaty , in particular as regards protection of the union financial interests and accountability towards taxpayers , must be trustworthy and cannot leave any room for doubt that the commission were to evade its responsibility through diverging declarations of individual authorising officers; ### 138. notes that the declaration of assurance of the directorate-general for economic and financial affairs for 2021 is different from the declaration of assurance of all other directorate-generals; notes that the declaration concerns the legality and regularity of the underlying transactions , which is aligned with the other directorates-general; notes further that ‘the implementation of article 22(5) of the rrf regulation’ , is added; notes the commission’s reply to written questions from the discharge authority that ‘it is different only in format but not as regards the level of assurance provided’; understands that article 22 of the rrf regulation overall relates to obligations for the member states , including elements to be included in the financing agreements , while article 22(5) provides for the commission to intervene in cases of fraud , corruption , and conflicts of interests affecting the financial interests of the union that have not been corrected by the member state , or a serious breach of an obligation resulting from the financing agreements; takes note , in addition , of the commission's reply that it assures , both through an initial assessment of each rrp , as well as audits of the systems that member states have put in place to protect the financial interests of the union , that each member state implements the necessary monitoring and control systems;


### 139. notes the court’s observations in its review 01/2023 on union financing through cohesion policy and the rrf that address the complementarity of both funding stems; notes in particular that during the 2014-2020 period , the european regional development fund and the cohesion fund already provided an equivalent of around 10 % of total public investment across the eu-27 and that the rrf will further increase the share of eu-financed public investments in member states; recalls in this regard the court’s finding that the absorption rate for cohesion was exceptionally low in 2021; ### 139. notes the court’s observations in its review 01/2023 on union financing through cohesion policy and the rrf that address the complementarity of both funding stems; notes in particular that during the 2014-2020 period , the european regional development fund and the cohesion fund already provided an equivalent of around 10 % of total public investment across the eu-27 and that the rrf will further increase the share of eu-financed public investments in member states; recalls in this regard the court’s finding that the absorption rate for cohesion was exceptionally low in 2021 , explained by the combined impact on the managing authorities of the late adoption in mid-2021 of the cpr and fund-specific regulations , the programming of react-eu , and the implementation of other emergency measures;


### 140. notes the court’s conclusion that in member states where the share is already high , the additional rrf funding may further add to the pressure on member states’ ability to spend the funds available to them; is worried that because of the different delivery methods , with direct management for the rrf and shared management for the cohesion policy , the more straight forward implementation method of the rrf will ‘crowd-out’ the more complex funding through cohesion; notes that this will come at the detriment of the involvement of local authorities and regions , civil society organisations and economic and social partners in union funding; ### 140. notes the court’s conclusion that in member states where the share of eu-financed public investments is already high , the additional rrf funding may further add to the pressure on member states’ ability to spend the funds available to them; recalls that the rrf is implemented under direct management , while cohesion policy funds are implemented under shared management , which means that eu and member state authorities have different responsibilities in connection witheach source of funding; is worried that because of the different delivery methods , with direct management for the rrf and shared management for the cohesion policy , the more straight forward implementation method of the rrf may ‘crowd-out’ the more complex funding through cohesion;


### 141. is worried by the negligible contribution of the rrf to cross-border cooperation , especially considering the amounts of union funding involved; ### 141. observes that according to the commission staff working documents , twenty member states foresee cross-border projects in their nrrps and notes that the amounts invested per member state vary widely; is worried by the negligible contribution of the rrf to cross-border cooperation , especially considering the amounts of union funding involved; takes into account , however , that a stronger focus on cross-border projects would have required more time for planning and implementation as well as a clear incentive mechanism for member states , in addition to the fact that other eu funds might be better designed to implement cross-border projects; welcomes that in its january 2021 guidance , the commission offered to provide interested member states a coordination platform to assist in setting up cross-border projects;


### 142. notes the court’s findings in its special report 21/2022 on “the commission’s assessment of national rrps - overall appropriate but implementation risks remain”; ### 142. notes the court’s findings in its special report 21/2022 on “the commission’s assessment of national rrps - overall appropriate but implementation risks remain”; observes that the court's assessment is based on a sample of six member states; welcomes the court's conclusion that the commission’s assessment of the nrrps was overall appropriate given the complexity of the process and the time constraints , although a number of weaknesses in the process and risks for the successful implementation of the rrf were also identified; welcomes the fact that the commission accepts the court's recommendations and also notes that the commission considers that some of the risks and limitations highlighted stem from the design of the rrf itself;


### 142. notes the court’s findings in its special report 21/2022 on “the commission’s assessment of national rrps - overall appropriate but implementation risks remain”; ### 142. notes the court’s findings in its special report 21/2022 on “the commission’s assessment of national rrps - overall appropriate but implementation risks remain”; does not consider the court’s assessment to be based on a sample of six member states: the four with the highest grant allocations in absolute terms and the two with the highest grant allocations relative to their gross domestic product for 2020;


### 143. is worried that the court found that there were gaps in addressing the 2019 and 2020 country specific recommendations in the national rrps ; notes that the court assessed that rrps of relatively small member states did not contain gaps , whereas the court assessed that the rrps of the bigger member states contain serious gaps; is worried the ‘negotiations’ observed by the court in agreeing on the rrps leads to inequality in treatment of member states; questions in addition whether important parts of the csrs , which even with the rrf’s financial incentives are not taken up by the member states , will ever be implemented; ### 143. notes the court's observation that important aspects of the country specific recommendations remained unaddressed across the member states , in particular those of 2019 , representing recurrent structural changes; recalls that the commission's assessment of the relevance of the nrrps includes the contribution to effectively addressing all or a significant subset of challenges identified in the relevant csr; welcomes that a link has been made between the it systems used by member states to report on the csrs and on rrps respectively , to ensure adequate reporting and to avoid duplication of work;


### 144. criticises that the commission has not explained how the size of a payment tranche relates to the amount and magnitude of underlying milestones and targets; is worried that this discrepancy in the size of a payment and the number of underlying milestones and targets may incentivise member states not to submit final payment requests , which in some cases depend on a comparatively large number of milestones and targets , and thus not to complete all reforms and investments agreed in its rrp , after having already received the largest share of their rrf contribution; ### deleted


### 145. notes the statements made by commission representatives that all payments will go towards the investments made under the rrf , so that after a certain time lag where instalments are paid out for reforms as well , by august 2026 , the total amount of payments will have been spent on investments; recalls the court’s finding that the commission , in its assessment of all national rrps , gave a ‘b-rating’ for the cost estimates of these investments , calling into question the accuracy of the amounts involved; underlines in the light of the commission’s statement the problematic fact that of front-loading reforms and back-loading investments in the rrps; reiterates its concern that this only amplifies the risk that member states might not request the last payment tranche , and thus might fail to fulfil all reforms and investments after having received the largest part of their total financial support under the rrf; emphasises that the discharge authority cannot wait to receive full clarity on the proper use of union funds until after the end of the rrf; ### 145. notes the court’s observations that despite the differences in the frequency and severity of the weaknesses identified by the commission in the member states forming the subject of the court’s sample , all of them were given the same rating (‘b’); notes , furthermore , that these weaknesses range from a lack of information for some measures at the planning stage to underlying assumptions that are not fully plausible for each measure;


### 145. notes the statements made by commission representatives that all payments will go towards the investments made under the rrf , so that after a certain time lag where instalments are paid out for reforms as well , by august 2026 , the total amount of payments will have been spent on investments; recalls the court’s finding that the commission , in its assessment of all national rrps , gave a ‘b-rating’ for the cost estimates of these investments , calling into question the accuracy of the amounts involved; underlines in the light of the commission’s statement the problematic fact that of front-loading reforms and back-loading investments in the rrps; reiterates its concern that this only amplifies the risk that member states might not request the last payment tranche , and thus might fail to fulfil all reforms and investments after having received the largest part of their total financial support under the rrf; emphasises that the discharge authority cannot wait to receive full clarity on the proper use of union funds until after the end of the rrf; ### 145. notes that the commission assessed the estimated total costs of the nrrps on the basis of the criteria mentioned in the annex v of the rrf regulation , namely relevance , effectiveness , efficiency and coherence; notes that the rrf regulation does not specify how these four criteria should be consolidated into an overall rating for costs and welcomes that the commission developed a rating system for each one a as well as for the consolidated overall rating to ensure fair treatment; observes that the commission required each member state to improve its cost estimates and submit additional evidence and justification until the plausibility and reasonability of the costestimate reached at least a ‘b’ , which allow the nrrps to be put forward to the council for adoption;


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


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


### 148. is worried by the finding of the court that milestones and targets are often based on output and even input indicators , which limits the possibility of measuring the performance of measures and ultimately their impact on the union policy objectives of the rrf; ### 148. notes the finding of the court that milestones and targets are often based on output and even input indicators , as well as its observation that impact indicators have by definition a longer time horizon , which may not be well suited to the limited timeframe for implementing the recovery and resilience facility , notes the court’s view that avoiding impact indicators will considerably limit the possibility of measuring the performance of measures and ultimately their impact on the rather general eu policy objectives of the rrf;


### 148. is worried by the finding of the court that milestones and targets are often based on output and even input indicators , which limits the possibility of measuring the performance of measures and ultimately their impact on the union policy objectives of the rrf; ### 148. notes the finding of the court that milestones and targets are often based on output and even input indicators as well as its observation that impact indicators have by definition a longer time horizon , which may not be well suited to the limited timeframe for implementing the rrf; takes note of the court's opinion that avoiding impact indicators will limit the possibility of measuring the performance of measures and ultimately their impact on the rather general eu policy objectives of the rrf;


### 149. notes the court’s finding that the commission’s assessment of rrps was often based on arrangements not yet in place; notes in this regard the court’s finding that the commission included additional milestones and targets to be achieved before the first payment in order to adopt the rrp; is worried that not having a fully functional monitoring system in place at the start of the implementation of the rrp risks that milestones and targets in reality may not have been fulfilled until the milestones on monitoring are fulfilled; highlights the fact that the monitoring systems or implementing bodies were partly not yet in place at the time the rrps were approved also limited the commission’s assessment of their administrative capacity; notes further in this regard the court’s finding that even on audit and control arrangements , the last resort in terms of reliability of information , an a rating was given despite several measures not being in place; recalls that adequate audit and control structures are a prerequisite for receiving funds from the rrf; ### 149. notes the court’s finding that the commission included additional milestones and targets to be achieved before the first payment in order to adopt the nrrps and that its assessment contributed to improving the quality of milestones and targets; notes the court observation that the controls systems in the sampled member states at the time of the assessment were partly not yet in place , as well as the court's conclusion that the ‘a’ rating for all nrrps in this area is at least partly explained by the fact that the rrf regulation only allowed for either an ‘a’ (adequate) or a ‘c’ (insufficient) rating with a ‘c’ resulting in the rejection of the rrp as a whole; recalls that adequate audit and control structures are a prerequisite for receiving funds from the rrf;


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


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


### b. make the list of all final beneficiaries and projects of rrf funding available to auditors and the discharge authority for all payments (in 2021 and throughout the implementation of the rrf); ### b. take steps to operationalise the new obligation on member states to publish the 100 final recipients receiving the highest amount of rrf funding;


### c. adopt as soon as possible the methodology for establishing partial payments for not or partially fulfilled milestones and targets and make it available to the discharge authority; ### deleted


### d. apply additional vigilance to signals of organised crime targeting the funds available under the rrf together with europol , the eppo , olaf and other relevant actors; ### d. apply additional vigilance whether there are signals of organised crime targeting the funds available under the rrf together with europol , the eppo , olaf and other relevant actors;


### d. apply additional vigilance to signals of organised crime targeting the funds available under the rrf together with europol , the eppo , olaf and other relevant actors; ### d. apply additional vigilance , together with europol , the eppo , olaf and other relevant actors , to cases where there are signals of organised crime targeting the funds available under the rrf;


### e. make clear that all projects and measures described in any rrps are to be considered as financed by european money from the rrf , and thus fall under the scope of the eppo; ### e. make clear that all projects and measures funded by any nrrps of member states participating in enhanced cooperation pursuant to regulation (eu) 2017/1939 , are to be considered as financed by european money from the rrf , and thus fall under the scope of the eppo;


### e. make clear that all projects and measures described in any rrps are to be considered as financed by european money from the rrf , and thus fall under the scope of the eppo; ### e. make clear that all projects and measures financed in any rrps are to be considered as financed by european money from the rrf , and thus fall under the scope of the eppo;


### f. explain and duly justify to the discharge authority why the internal auditor has not performed internal audit engagements related to the rrf , especially in light of the internal auditor’s risk assessment as the basis for its audit planning , where the implementation of the rrf should feature prominently , given its innovative character and high financial stakes; ### f. requests , especially in light of the internal auditor’s risk assessment as the basis for its audit planning , that the implementation of the rrf should continue to feature prominently in its audit plans , given its innovative character and high financial stakes;


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


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


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


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


### k. report to the discharge authority what member states that received pre-financing from the rrf that could not yet be allocated to investments did with the funds received; ### deleted


### l. only accept milestones and targets for which is has received documentation supporting its implementation , and not just statements of member states; requests in that regard a re-assessment of the fulfilment of milestone 215 in the spanish payment request by a qualified it-expert , accompanied by a declaration of assurance by an it-auditor , taking account of the requirements of the milestone and its related measure , and the statements of the commission in its assessment that the milestone has been satisfactorily fulfilled; ### deleted


### l. only accept milestones and targets for which is has received documentation supporting its implementation , and not just statements of member states; requests in that regard a re-assessment of the fulfilment of milestone 215 in the spanish payment request by a qualified it-expert , accompanied by a declaration of assurance by an it-auditor , taking account of the requirements of the milestone and its related measure , and the statements of the commission in its assessment that the milestone has been satisfactorily fulfilled; ### l. ensure sufficient audit trail recording which cover all elements considered relevant in the assessment process of milestones;


### m. reconsider the formulation of the declaration of assurance of the directorate-general for economic and financial affairs and to re-align it with all other directorates-general for future years given the unsatisfactory justification provided by the commission and the responsibility as guardian of the treaty for the protection of the union’s financial interests; ### deleted


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


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


### o. discontinue the practice of assessing member states’ future audit and control arrangements and in cases where this has already been agreed , to check not just the set-up but also the actual functioning; ### o. check not just the set-up but also the actual functioning of member states’ audit and control arrangements while identifying areas that could be improved or made more efficient;


### q. re-perform the court’s analysis of payment profiles from special report 21/2022 for all payment profiles of all member states and report to the discharge authority how each payment request relates to the number of milestones and targets to be fulfilled for each member state , and to propose measures to guarantee that all reforms and investments are completed by 31 august 2026; ### deleted


### q. re-perform the court’s analysis of payment profiles from special report 21/2022 for all payment profiles of all member states and report to the discharge authority how each payment request relates to the number of milestones and targets to be fulfilled for each member state , and to propose measures to guarantee that all reforms and investments are completed by 31 august 2026; ### q. re-perform the court’s analysis of payment profiles from special report 21/2022 for all payment profiles of all member states and report to the discharge authority how each payment request relates to the number of milestones and targets to be fulfilled for each member state , and to propose measures to guarantee that all milestones and targets are completed by 31 august 2026;


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


### r. address the tension between cohesion and the rrf , in particular concerning the involvement of local , regional , economic and social partners and civil society organisations , that makes it easier to absorb rff funding in comparison to cohesion funding , by putting more emphasis on involvement of these actors in the implementation of the rrf; ### r. notes that there is higher and easier absorption of rrf funding compared to cohesion funding; the lower absorption of cohesion funding is due to cumbersome procedures and the insufficient provision of information on accessing that funding; calls on the commission to ensure a swifter and easier procedure for cohesion funding , such that there is increased involvement of local , regional , economic and social partners and civil society organisations;


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


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


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


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


### 7. commends the work of the agency in supporting the aviation sector deal with the safety consequences of the covid 19 crisis and prepare for the “return to normal operations”; ### 7. commends the work of the agency in supporting the aviation sector deal with the safety consequences of the covid 19 crisis and prepare for the “return to normal operations” , however , suggests the agency to increase checks on aviation safety and employee working conditions , particularly at wizz air , ryanair and qatar airways;


### 11. welcomes the progress of the military programme (2020 - open end) and highlights the role of the agency within the european military mobility; calls on increasing the eu budget line for military mobility; ### 11. welcomes the progress of the military programme (2020 - open end) and highlights the role of the agency within the european military mobility; calls on increasing the eu budget line for military mobility to be able to respond to the challenges in the sector;


### 10. recalls the importance to develop a long term hr policy on work-life balance , lifelong guidance and career development , gender balance , teleworking , geographical balance and recruitment and integration of people with disabilities; ### 10. recalls the importance to develop a long term hr policy on work-life balance , lifelong guidance and the offer of specific training possibilities for career development , gender balance at all staff levels , teleworking , right to disconnect , the enhancement of a geographical balance to have an appropriate representation from all member states , and the recruitment and integration of people with disabilities as well as the promotion of their equal treatment and their opportunities;


### 22. encourages the agency to work in closely cooperation with enisa (european union agency for cybersecurity); suggests to offer regularly updated cybersecurity-related training programmes for all staff within the agency; ### 22. encourages the agency to work in close cooperation with enisa (european union agency for cybersecurity); underlines the importance to carry out regular risk assessments of its it infrastructure and to ensure regular audits and tests of its cyber defences; also encourages the agency to offer systematic updated cybersecurity-related training programmes to all of its staff , including management , as this is a key element in an effective cyber security framework;


### (3) it is necessary to ensure that clear taxation rules for energy products and electricity continue to contribute to the smooth functioning of the internal market while at the same time tackling the climate and environmental-related challenges in the context of the communication from the commission ‘the european green deal’28 . energy taxation can contribute to the ambition of at least 55 % reduction in net greenhouse gas emissions by 2030 compared to 1990 , as well as to the objective of zero pollution through the implementation of the polluter-pays principle , by ensuring that the taxation of motor fuels , heating fuels and electricity better reflects the impact they have on the environment and on health. the contribution of energy taxation to those objectives has been endorsed by the council conclusions on the eu energy taxation framework29 . ### (3) it is necessary to ensure that clear taxation rules for energy products and electricity continue to contribute to the smooth functioning of the internal market while at the same time tackling the climate and environmental-related challenges in the context of the communication from the commission ‘the european green deal’28 . energy taxation can contribute to the ambition of at least 55 % reduction in net greenhouse gas emissions by 2030 compared to 1990 , as well as to the objective of zero pollution through the implementation of the polluter-pays principle , by ensuring that the taxation of motor fuels , heating fuels and electricity better reflects the impact they have on the environment and on health. the contribution of energy taxation to those objectives has been endorsed by the council conclusions on the eu energy taxation framework29. the establishment of minimum levels of taxation should not damage intra-eu connectivity. member states at the periphery , remote regions , islands and areas that are not able to rely on suitable alternative modes of transport for natural or infrastructural reasons depend on aviation and maritime transport and should not be disproportionately affected. new taxes on aviation and maritime fuels that would not take into account these specificities would penalise citizens living and businesses operating in these areas and , to a larger extent , would prove detrimental to the economic , social and territorial cohesion of the union.


### (3) it is necessary to ensure that clear taxation rules for energy products and electricity continue to contribute to the smooth functioning of the internal market while at the same time tackling the climate and environmental-related challenges in the context of the communication from the commission ‘the european green deal’28 . energy taxation can contribute to the ambition of at least 55 % reduction in net greenhouse gas emissions by 2030 compared to 1990 , as well as to the objective of zero pollution through the implementation of the polluter-pays principle , by ensuring that the taxation of motor fuels , heating fuels and electricity better reflects the impact they have on the environment and on health. the contribution of energy taxation to those objectives has been endorsed by the council conclusions on the eu energy taxation framework29 . ### (3) it is necessary to ensure that clear taxation rules for energy products and electricity continue to contribute to the smooth functioning of the internal market while at the same time tackling the climate and environmental-related challenges in the context of the communication from the commission ‘the european green deal’28 . energy taxation can contribute to the ambition of at least 55 % reduction in net greenhouse gas emissions by 2030 compared to 1990 , as well as to the objective of zero pollution through the implementation of the polluter-pays principle , by ensuring that the taxation of motor fuels , heating fuels and electricity better reflects the impact they have on the environment and on health. the contribution of energy taxation to those objectives has been endorsed by the council conclusions on the eu energy taxation framework29 . the establishment of minimum levels of taxation should not damage intra-eu connectivity. member states at the periphery , remote regions , islands and areas that are not able to rely on suitable alternative modes of transport for natural or infrastructural reasons depend on aviation and maritime transport and should not be disproportionately affected. new taxes on aviation and maritime fuels that would not take into account these specificities would penalise citizens living and businesses operating in these areas and , to a larger extent , would prove detrimental to the economic , social and territorial cohesion of the union.


### (4) environmental taxation can be a cost-effective mean for member states to achieve the targeted reductions of greenhouse gasses. the proper functioning of the internal market requires common rules on that taxation. ### (4) environmental taxation can be a cost-effective mean for member states to achieve the targeted reductions of greenhouse gasses. the proper functioning of the internal market requires common rules on that taxation , while preserving member states' flexibility and sovereignty over tax prerogatives , not least with respect to promoting economic and social development of their insular , peripheral and remote regions.


### (5) member states should , however , be able to use the energy taxation of motor fuels , heating fuels and electricity for a variety of purposes not necessarily nor specifically or exclusively related to the reduction of greenhouse gases. ### (5) member states should , however , be able to use the energy taxation of motor fuels , heating fuels and electricity for a variety of purposes not necessarily nor specifically or exclusively related to the reduction of greenhouse gases. however , the use of the revenues by the member states towards the social inclusive green transition should be welcomed.


### (8) as a party to the united nations framework convention on climate change , the union has ratified the paris agreement . the taxation of energy products and , where appropriate , electricity is one of the instruments available for achieving the paris agreement objectives. ### (8) as a party to the united nations framework convention on climate change , the union has ratified the paris agreement . the taxation of energy products and , where appropriate , electricity is one of the instruments available for achieving the paris agreement objectives. the sourcing of electricity also needs to be taken into account , to incentivize green sourcing as much as possible.


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


### (13) as a general principle , member states should apply to energy products and electricity levels of taxation not less than the minimum levels of taxation as set out by the directive. member states should be permitted to comply with the union minimum taxation levels by taking into account the total charge levied in respect of all indirect taxes which they have chosen to apply (excluding vat). ### (13) as a general principle , member states should apply to energy products and electricity levels of taxation not less than the minimum levels of taxation as set out by the directive , maintaining the level playing field between member states whilst safeguarding the competitiveness of the eu economy. member states wish to introduce or retain different types of taxation on energy products and electricity. to that end , member states should be permitted to comply with the union minimum taxation levels by taking into account the total charge levied in respect of all indirect taxes which they have chosen to apply (excluding vat) , as long as this does not negatively affect the level playing field between member states.


### (18) energy products used as a motor fuel for certain purposes and those used as heating fuel are normally taxed at lower levels than those applicable to energy products used as a propellant. electricity should always be among the least taxed energy sources in view of fostering its use , notably in the transport sector. to that purpose , member states should endeavour to apply the same level of taxation to electricity used to charge electric vehicles as for heating purposes during the necessary time following the entry into force of this directive. ### (18) energy products used as a motor fuel for certain purposes and those used as heating fuel are normally taxed at lower levels than those applicable to energy products used as a propellant. electricity should always be among the least taxed energy sources in view of fostering its use , notably in the transport sector. to that purpose , member states should endeavour to apply the same level of taxation to electricity used to charge electric vehicles as for heating purposes during the necessary time following the entry into force of this directive. considering the maritime transport sector , a tax exemption applying to electricity provided for vessels at berth (ops) should be in place. efforts need to be undertaken to source this electricity in a sustainable way.


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


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


### (21) the union and the member states have concluded multilateral agreements regarding air services and air transport , or bilateral agreements with third countries. those agreements include provisions related to the taxation of aviation fuel. aviation fuel has traditionally had a privileged tax regime. the need to pursue the objectives of the directive requires that , without prejudice to those international agreements , energy products and electricity supplied for intra-eu air navigation , except cargo-only flights should be taxed. the exemption for the fuel used by cargo-only flights is still needed in the absence of more efficient alternatives. ### (21) the union and the member states have concluded multilateral agreements regarding air services and air transport , or bilateral agreements with third countries. those agreements include provisions related to the taxation of aviation fuel. aviation fuel has traditionally had a privileged tax regime. the need to pursue the objectives of the directive requires that , without prejudice to those international agreements , energy products and electricity supplied for intra-eu air navigation , except cargo-only flights should be taxed. the exemption for the fuel used by cargo-only flights is still needed in the absence of more efficient alternatives. the same is true of shipping , which is one of the most energy-efficient modes of transport , and key to ensuring european connectivity. short-sea shipping within the eu is especially important in maintaining links between islands and remote regions and the european mainland.


### (21) the union and the member states have concluded multilateral agreements regarding air services and air transport , or bilateral agreements with third countries. those agreements include provisions related to the taxation of aviation fuel. aviation fuel has traditionally had a privileged tax regime. the need to pursue the objectives of the directive requires that , without prejudice to those international agreements , energy products and electricity supplied for intra-eu air navigation , except cargo-only flights should be taxed. the exemption for the fuel used by cargo-only flights is still needed in the absence of more efficient alternatives. ### (21) the union and the member states have concluded multilateral agreements regarding air services and air transport , or bilateral agreements with third countries. those agreements include provisions related to the taxation of aviation fuel. aviation fuel has traditionally had a privileged tax regime. the need to pursue the objectives of the directive requires that energy products and electricity supplied for intra-eu air navigation should be taxed , even where this requires re-negotiating multilateral agreements.


### (22) in order to ensure a smooth implementation of this directive , the minimum levels of taxation for motor fuels used for intra-eu non-business and non-pleasure flights would be reached over a transitional period of ten years , whereas sustainable alternative fuels and electricity would be subject to a zero minimum rate for ten years. energy products and electricity used for intra-eu business aviation and pleasure flights should be subject to the standard levels of taxation applicable to motor fuels and electricity in the member states. ### (22) as a tax on kerosene will only lead to a moderate increase in prices , a smooth implementation of this directive , the minimum levels of taxation for motor fuels used for intra-eu flights could be reached over a transitional period of five years , whereas sustainable alternative fuels and electricity would be subject to a zero minimum rate for ten years. energy products and electricity used for intra-eu flights should be subject to the standard levels of taxation applicable to motor fuels and electricity in the member states.


### (23) fuel used for waterborne navigation , including fishing , should also be taxed , and the member states party to international agreements providing for the exemption of that fuel , have to , by the date of the application of this directive , ensure they eliminate the incompatibilities. it is necessary to allow for a different level of taxation to be applied to the use of energy products and electricity for intra-eu waterborne regular service navigation , fishing and freight transport and their respective at berth activities. considering the specificity of those uses , the minimum levels of taxation should be lower than the ones applicable to general motor fuel use. in order to provide an incentive to the use of sustainable alternative fuels and electricity , such fuels and electricity should be exempted from taxation for ten years. energy products and electricity used for the remaining intra-eu waterborne navigation should be subject to the standard levels of taxation applicable to motor fuels and electricity in the member states. ### (23) fuel used for intra-eu waterborne navigation , including fishing , should also be taxed , without prejudice to international obligations. it is necessary to allow for a different level of taxation to be applied to the use of energy products and electricity for intra-eu waterborne navigation , and their respective at berth activities. considering the specificity of those uses , the minimum levels of taxation should be lower than the ones applicable to general motor fuel use. in order to provide an incentive to the use of sustainable alternative fuels and electricity , such sustainable alternative fuels and electricity should be exempted from taxation for ten years.


### (23) fuel used for waterborne navigation , including fishing , should also be taxed , and the member states party to international agreements providing for the exemption of that fuel , have to , by the date of the application of this directive , ensure they eliminate the incompatibilities. it is necessary to allow for a different level of taxation to be applied to the use of energy products and electricity for intra-eu waterborne regular service navigation , fishing and freight transport and their respective at berth activities. considering the specificity of those uses , the minimum levels of taxation should be lower than the ones applicable to general motor fuel use. in order to provide an incentive to the use of sustainable alternative fuels and electricity , such fuels and electricity should be exempted from taxation for ten years. energy products and electricity used for the remaining intra-eu waterborne navigation should be subject to the standard levels of taxation applicable to motor fuels and electricity in the member states. ### (23) according to the polluter pays principle , fuel used for waterborne navigation , including fishing , should also be taxed. when doing so , the international character of shipping and the size of the vessel bunkers , making it possible for shipping to bunker big quantities outside the european union , should be taken into account. member states party to international agreements providing for the exemption of that fuel , have to , by the date of the application of this directive , ensure they eliminate the incompatibilities over time. it is necessary to allow for a different level of taxation to be applied to the use of energy products and electricity for intra-eu waterborne navigation , fishing and freight transport and their respective at berth activities. considering the specificity of those uses , the minimum levels of taxation should be lower than the ones applicable to general motor fuel use. in order to provide an incentive to the use of sustainable alternative fuels , such fuels and electricity should be exempted from taxation for at least ten years. the direct supply of electricity to vessels at berth should be permanently exempt from taxation across the union. energy products and electricity used for the remaining intra-eu waterborne navigation should be subject to the standard levels of taxation applicable to motor fuels and electricity in the member states.


### (24) for extra-eu air navigation , without prejudice to international obligations , and for extra-eu waterborne navigation , including fishing , member states may exempt or apply the same levels of intra-eu taxation , according to the type of activity. ### (24) for extra-eu air navigation , without prejudice to international obligations , member states may exempt or apply the same levels of intra-eu taxation , according to the type of activity.


### (24) for extra-eu air navigation , without prejudice to international obligations , and for extra-eu waterborne navigation , including fishing , member states may exempt or apply the same levels of intra-eu taxation , according to the type of activity. ### (24) the taxation of extra-eu air navigation , without prejudice to international obligations , and for extra-eu waterborne navigation , including fishing , should be reviewed in line with the progress made on the availability and use on alternative fuels as well as in the development of a global market-based measure in the imo.


### (27) targeted reductions in the tax level may prove necessary to incentivise the achievement of environmental protection objectives and improvements in energy efficiency of the union productive sector. ### (27) targeted reductions in the tax level in the short and medium term may prove necessary to incentivise the achievement of environmental protection objectives and improvements in energy efficiency of the union productive sector.


### (27) targeted reductions in the tax level may prove necessary to incentivise the achievement of environmental protection objectives and improvements in energy efficiency of the union productive sector. ### (27) targeted reductions in the tax level may prove necessary to incentivise the achievement of environmental protection objectives , improvements in energy efficiency of the union productive sector and energy independence from countries sanctioned by the union.


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


### (35) reference should be made to the version presently applicable of the combined nomenclature. in order to ensure that the references to combined nomenclature (cn) codes in this directive are updated whenever necessary , and that the minimum rates of taxation reflect prices evolution , the power to adopt acts in accordance with article 290 of the tfeu should be delegated to the commission in respect of updating the reference to those cn codes , and in respect of updating the minimum tax rates based on yearly variations of the consumer price index. it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level , and that those consultations be conducted in accordance with the principles laid down in the interinstitutional agreement of 13 april 2016 on better law-making. in particular , to ensure equal participation in the preparation of delegated acts , the council receives all documents at the same time as member states' experts , and their experts systematically have access to meetings of commission expert groups dealing with the preparation of delegated acts. ### (35) reference should be made to the version presently applicable of the combined nomenclature. in order to ensure that the references to combined nomenclature (cn) codes in this directive are updated whenever necessary , the power to adopt acts in accordance with article 290 of the tfeu should be delegated to the commission in respect of updating the reference to those cn codes , and in respect of updating the minimum tax rates based on yearly variations of the consumer price index. it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level , and that those consultations be conducted in accordance with the principles laid down in the interinstitutional agreement of 13 april 2016 on better law-making. in particular , to ensure equal participation in the preparation of delegated acts , the council receives all documents at the same time as member states' experts , and their experts systematically have access to meetings of commission expert groups dealing with the preparation of delegated acts.


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


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


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


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


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


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


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


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


### as from 1 january 2023 , the minimum levels of taxation applicable to motor fuels shall be fixed as set out in table a of annex i. ### as from 1 january 2023 , the minimum levels of taxation applicable to motor fuels shall be fixed as set out in table a of annex i. however , electricity used directly for charging waterborne vessels at berth is exempted from taxation (ops).


### without prejudice to article 5(2) , when a transitional period is applicable as provided for in table a of annex i , the increase in the minimum levels of taxation shall be fixed at one tenth per year until 1 january 2033. for low-carbon fuels , the minimum level of taxation set for the first year of the transitional period shall apply until 1 january 2033. ### for low-carbon fuels , the minimum level of taxation set for the first year of the transitional period shall apply until 1 january 2033 with the possibility of an extension of [five] years following a mid-term evaluation in [2026/2027].


### 1. without prejudice to international obligations and to article 5 of this directive , as applicable as a single use to intra-eu air navigation of flights other than business and pleasure flights , member states shall apply under fiscal control not less than the minimum levels of taxation prescribed in this directive to energy products supplied for use as fuel to aircrafts , and to electricity used directly for charging electric aircrafts , for the purposes of intra-eu air navigation of those flights. ### 1. without prejudice to international obligations and to article 5 of this directive , as applicable as a single use to intra-eu air navigation of flights , member states shall apply under fiscal control not less than the minimum levels of taxation prescribed in this directive to energy products supplied for use as fuel to aircrafts , and to electricity used directly for charging electric aircrafts , for the purposes of intra-eu air navigation of those flights.


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


### for the purposes of this article , ‘business aviation’ shall mean the operation or use of aircraft by companies or individuals for the carriage of passengers or goods as an aid to the conduct of their business , flown for purposes generally considered not for public hire and piloted by individuals having , at the minimum , a valid commercial pilot license with an instrument rating. ### deleted


### 2. energy products supplied for use as fuel to aircrafts and electricity used directly for charging electric aircrafts , for the purposes of intra-eu air navigation of cargo-only flights shall be exempted. ### deleted


### by derogation from the first subparagraph of this paragraph , member states may apply the same level of taxation laid down in paragraph 1 to cargo-only domestic flights referred to in the first subparagraph of this paragraph. ### deleted


### 3. without prejudice to international obligations , member states may exempt or apply the same levels of taxation applied for intra-eu air navigation to extra-eu air navigation according to the type of flight. ### 3. without prejudice to international obligations , member states may apply the same levels of taxation applied for intra-eu air navigation to extra-eu air navigation.


### 1. without prejudice to article 5 , member states shall apply , as a single use , under fiscal control not less than minimum levels of taxation as set out in tables b and d of annex i to energy products supplied for use as fuel to vessels , and to electricity used directly for charging electric vessels , for the purposes of intra-eu waterborne regular service navigation , fishing and freight transport. ### 1. without prejudice to international obligations and to article 5 , member states shall apply , as a single use , under fiscal control not less than minimum levels of taxation as set out in tables b and d of annex i to energy products supplied for use as fuel to vessels , and to electricity used directly for charging electric vessels , for the purposes of intra-eu waterborne regular service navigation , fishing and freight transport.


### 1. without prejudice to article 5 , member states shall apply , as a single use , under fiscal control not less than minimum levels of taxation as set out in tables b and d of annex i to energy products supplied for use as fuel to vessels , and to electricity used directly for charging electric vessels , for the purposes of intra-eu waterborne regular service navigation , fishing and freight transport. ### 1. without prejudice to article 5 , member states shall apply , as a single use , under fiscal control not less than minimum levels of taxation as set out in tables b and d of annex i to energy products supplied for use as fuel to vessels , and to electricity used directly for charging electric vessels , for the purposes of all waterborne regular service navigation , fishing , passengers and freight transport departing union ports.


### 1. without prejudice to article 5 , member states shall apply , as a single use , under fiscal control not less than minimum levels of taxation as set out in tables b and d of annex i to energy products supplied for use as fuel to vessels , and to electricity used directly for charging electric vessels , for the purposes of intra-eu waterborne regular service navigation , fishing and freight transport. ### 1. over a transitional period of ten years , minimum rates of zero shall apply to sustainable biofuels and biogas , low-carbon-fuels , renewable fuels of non-biological origin , advanced sustainable biofuels and biogas and electricity. an extension of the exemption shall be considered as part of a mid-term review in [2026/2027].


### for the purposes of the first subparagraph , electricity shall be ranked among motor fuels indicated in table b of annex i. ### deleted


### for the purposes of this article , ‘intra-eu waterborne navigation’ shall mean navigation between two ports located in the union , including domestic navigation. ### deleted


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


### for the purposes of this article , ‘regular service’ shall mean a series of ro-ro passenger ship or high-speed passenger craft crossings operated so as to serve traffic between the same two or more ports , or a series of voyages from and to the same port without intermediate calls , either: according to a published timetable or with crossings so regular or frequent that they constitute a recognisable systematic series. ### deleted


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


### 2. member states may exempt or apply the same levels of taxation applied for intra-eu waterborne navigation to extra-eu waterborne navigation according to the type of activity. ### 2. in accordance with international obligations , member states shall exempt international waterborne navigation.


### 4. electricity produced on board a vessel shall be exempted from taxation. ### 4. electricity produced on board a vessel shall be exempted from taxation unless generated by fossil fuels as set out in annex 1 , table a.


### 4. electricity produced on board a vessel shall be exempted from taxation. ### 4. electricity produced onboard a vessel shall be exempted from taxation unless generated by fossil marine fuels asset out in annex 1 , table a.


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


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


### 5. member states may apply under fiscal control total or partial exemptions to electricity directly supplied to vessels berthed in ports. ### 5. electricity directly supplied to vessels berthed in ports shall be fully and permanently exempted from taxation in all member states.


### without prejudice to other union provisions , member states may apply under fiscal control exemptions or reductions in the level of taxation to: ### without prejudice to other union provisions , member states shall apply under fiscal control exemptions or reductions in the level of taxation to:


### electricity produced from combined heat and power generation , provided that cogeneration by the combined generators is high-efficiency cogeneration as defined in article 2 , point (34) , of directive 2012/27/eu. ; ### electricity produced from combined heat and power generation , provided that cogeneration by the combined generators is high-efficiency cogeneration as defined in article 2 , point (34) , of directive 2012/27/eu as well as energy products and electricity used for high-efficiency cogeneration.