Category: European Union

  • MIL-OSI New Zealand: Four arrested following dairy burglary

    Source: New Zealand Police (National News)

    Four youths allegedly responsible for a burglary at a Mount Wellington dairy have been apprehended.

    At about 2.50am, Police were called to the shop on Commissariat Road following a report of a vehicle being used to enter the premises.

    Auckland City East Area Prevention Manager, Inspector Rachel Dolheguy, says the same four people then allegedly broke into another store next door and took a number of items before leaving in a different vehicle.

    “A short time later a Police unit spotted a vehicle travelling at high speed on Ireland Road.

    “The vehicle then crashed into a fence in Panmure and three occupants have fled on foot.”

    Inspector Dolheguy says it was lucky no one was injured.

    “The driver was taken into custody and other Police Units were able to quickly locate the other three people, two hiding in a playground and a third nearby.

    “Our community deserves to conduct their business without the threat of being a victim of crime and we will continue to respond and hold these offenders to account.

    “However we cannot do this alone, if you witness any suspicious or unlawful activity, please contact Police with as much information as possible.”

    You can contact us on 111, or for non-emergencies through 105.police.govt.nz, clicking “Make a Report” or call 105.

    Information can also be provided anonymously through Crime Stoppers at 0800 555 111.

    All four, aged 14 and 15, have been referred to Youth Aid Services.

    ENDS.

    Holly McKay/NZ Police

    MIL OSI New Zealand News

  • MIL-OSI Canada: Prime Minister announces Canadian delegation to the funeral of His Holiness Pope Francis

    Source: Government of Canada – Prime Minister

    The Prime Minister, Mark Carney, today announced that Their Excellencies the Right Honourable Mary Simon, Governor General of Canada, and Mr. Whit Fraser will travel to Vatican City on April 25, 2025, to attend the funeral of His Holiness Pope Francis, which will take place at St. Peter’s Basilica on April 26, 2025. They will lead a Canadian delegation that will also include the Speaker of the Senate, the Honourable Raymonde Gagné.

    As Catholics in Canada and around the world mourn the late Pope Francis through tributes, memorial masses, vigils, and individual prayers, the funeral for His Holiness will be broadcast live from the heart of Rome, allowing everyone the opportunity to witness the official service.

    Quote

    “I join Canadians and Catholics around the world in mourning the passing of His Holiness Pope Francis, Bishop of Rome – a shepherd of deep moral clarity, spiritual courage, and boundless compassion. From every corner of the globe, the prayers of the faithful go with Pope Francis as he journeys to his eternal rest. Pope Francis leaves a spiritual and ethical legacy that will shape our collective conscience for generations to come. May we honour his memory by continuing to work for a world that reflects the solidarity, justice, and sustainability that he so powerfully embodied. Requiescat in pace.”

    Quick Facts

    • His Holiness Pope Francis served as the head of the Catholic Church from March 13, 2013, until his death on April 21, 2025.
    • The first Jesuit and Latin American pope, His Holiness was born in 1936 in Buenos Aires, Argentina, as Jorge Mario Bergoglio. He chose Francis as his papal name in honour of Saint Francis of Assisi.
    • Pope Francis visited Canada in 2022. During his visit, he delivered a historic apology to Survivors of the residential school system, marking an important step on the shared path of reconciliation.
    • Pope Francis’s papacy was notable for his advocacy of the poor and marginalized, his commitment to environmental stewardship, and his efforts to foster greater inclusion within the Catholic Church.
    • The flags on all Government of Canada buildings and establishments across Canada, including the Peace Tower in Ottawa and at Canadian embassies to the Holy See and to Italy, have been half-masted until sunset on April 26, 2025.

    Related Product

    Associated Link

    MIL OSI Canada News

  • MIL-Evening Report: A golden era for personalized medicine is approaching, but are we ready?

    Source: The Conversation (Au and NZ) – By Nazia Pathan, PhD, Postdoctoral Researcher, Population Health Research Institute, McMaster University

    Biobanks have become some of the most transformative tools in medical research, enabling scientists to study the relationships between genes, health and disease on an unprecedented scale (Piqsels/Siyya)

    If there’s a disease that seems to run in your family, if you’ve had a negative reaction to a drug or wondered why a standard treatment didn’t work on you, the answers may lie in your genes.

    The unique sequence of DNA that acts as a blueprint for building and maintaining your body often plays a major role in shaping your predisposition to diseases and reactions to drugs.

    Genes in the DNA make proteins, which can act as biomarkers or influence other types of biomarkers. Biomarkers are molecules in the body that help measure health conditions, such as those detected in blood or urine tests.

    Blood glucose, for example, is a biomarker for diabetes, cholesterol levels can be biomarkers for heart diseases and albumin is a protein used to assess kidney and liver functions.

    Tailoring treatments

    By understanding a patient’s unique genetic profile, biomarker readings and lifestyle information, doctors could tailor the most effective and safest treatments for that individual.

    Genetics offer the opportunity for individualized health care that can improve patient outcomes, save lives and alleviate strain on the health-care system.

    This is the promise of personalized medicine, which is already making a difference in areas such as cardiovascular diseases, cancer, mental health and rare diseases.

    The question is, are we prepared to seize this golden opportunity in Canada?

    Genetic testing and data

    Canadians are not averse to genetic testing. By 2018, a survey by Abacus Data showed around 11 per cent of Canadian adults had used direct-to-consumer genetic testing and analysis kits, and 60 per cent were open to ordering a test.

    This level of interest highlights a general acceptance of and readiness for genetic advancements in health care, which is encouraging, since we need much more reliable, population-level genetic information to make the most of this opportunity.

    Current genetic data is either scattered across relatively small, fragmented groups, which is severely limiting from a broader research perspective, or held by private companies. These companies have varying regulatory standards, raising concerns about privacy and data security, especially if a company is financially unstable or ceases to exist. This recently occurred when genetic testing company 23andMe filed for bankruptcy.




    Read more:
    With 23andMe filing for bankruptcy, what happens to consumers’ genetic data?


    The better model is publicly managed biobanks, which prioritize broad societal health over profit and offer stronger data protection through robust regulation of access, storage and usage. Strict oversight ensures the protection of individual privacy while promoting transparency.

    The potential of biobanks

    In this age of big data, biobanks have become some of the most transformative tools in medical research, enabling scientists to study the relationships between genes, health and disease on an unprecedented scale.

    This is possible because of technological advancements that allow large-scale genetic and biomarker testing, the adoption of cloud-based servers, and improvements in statistical modelling, machine learning and artificial intelligence.

    Establishing a biobank begins with collecting small amounts (five to 10 millilitres) of blood, saliva or tissue from consenting participants in the presence of health experts.

    Biobanks use next-generation sequencers to perform the genetic sequences at high speed, while the latest proteomics platforms enable measurement of thousands different biomarkers from a very small amount of blood. The resulting genetic and biomarker profiles are curated and made accessible through platforms like a national library.

    Countries such as the United Kingdom and the United States are paving the way with national efforts such as the UK Biobank and the All of Us Research Program.

    The British Biobank houses genetic and health data from more than 500,000 participants. Similarly, the U.S. program aims to enrol more than one million participants.

    Genomics in Canada

    As a genetic epidemiologist, I have had the opportunity to identify several potential genetic targets by using these treasure troves of information.

    The problem is that we don’t yet have a ready way of knowing if the results are directly applicable to the Canadian population.

    This is about to change. Genome Canada has launched the Canadian Precision Health Initiative to sequence the genomes of at least 100,000 Canadians.

    Biobanks enable scientists to study the relationships between genes, health and disease on an unprecedented scale.
    (Pixabay/Shameersrk)

    A Pan-Canadian Genome Library (PCGL) is also in the works to harmonize genetic data produced across Canada. It aims to capture, store and provide access to Canadian genomic data in a secure and ethical manner. Although this work is in the developmental phase, and the target population size remains unclear, these efforts are significant.

    These visions are closer to becoming a reality with the recent announcement of a $200 million investment in the Canadian Precision Health initiative. This is in addition to the more than $1 billion previously invested in health genomics research projects.

    These funds will support Canada’s Genomic centres, the PCGL, and enhance the translation of genomics into real-world applications, boosting the development of personalized medicine and advanced diagnostics to treat diseases.

    A potential model for the world

    Canada, with its uniquely diverse population, has a rare opportunity to lead the way in equitable, multi-ethnic genetic research that would address current biases that predominantly focus on individuals with European ancestry.

    This would ensure that everyone in Canada, including Indigenous communities, can benefit from this health-care revolution in an equitable, ethical and safe manner that balances privacy with the opportunities for groundbreaking research.

    With public trust and robust oversight, and making population-level data internationally accessible, Canada’s biobank initiative could become a model for the world in the golden era of personalized medicine.

    Nazia Pathan, PhD does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    ref. A golden era for personalized medicine is approaching, but are we ready? – https://theconversation.com/a-golden-era-for-personalized-medicine-is-approaching-but-are-we-ready-250336

    MIL OSI AnalysisEveningReport.nz

  • MIL-OSI USA: Colorado Helps Lead Lawsuit to Stop Trump Administration’s Illegal Tariffs that Are Raising Prices, Causing Economic Uncertainty

    Source: US State of Colorado

    President Trump’s tariff tax disaster is creating uncertainty in the economy, and drying up investment by plunging markets into chaos

    COLORADO – Today, Governor Polis and Attorney General Phil Weiser announced that the state will take legal action against the Trump administration over its failed tariff taxes that are destroying our economy, increasing costs on Americans, plunging markets, and putting America on the track to a recession. Colorado joins Oregon, Arizona, Connecticut, Delaware, Illinois, Maine, Minnesota, Nevada, New Mexico, New York, and Vermont.

    “Tariffs are awful for Americans and our economy, and it’s important to use every legal tool possible to reduce trade barriers and increase prosperity. Today, Colorado is standing up against President Trump’s recessionary tariff tax increase, which has been disastrous and is jeopardizing both U.S. leadership and the world economy. Here in Colorado, tariffs are already hurting Colorado agriculture and small businesses. We will do everything we can legally to prevent tariffs that are bad for businesses and all Americans,” said Colorado Governor Jared Polis.

    Today, Governor Polis hosted Colorado-Mexico Friendship Day and has met with businesses across the state about the negative impacts of Trump’s tariffs on Colorado jobs and the economy.

    “Coloradans are already starting to feel the effects of the Trump tariffs, with rising prices to consumers and the State of Colorado resulting from them,” Weiser said. “Under the Constitution, only Congress has the power to tax and impose tariffs and there is no ‘emergency’ that justifies the Trump tariffs. We are challenging these tariffs in court because they are illegal and, as one study concluded, they will ‘increase inflation, result in nearly 800,000 lost jobs, and shrink the American economy by $180 billion a year’.”

    The lawsuit challenges President Trump’s executive orders calling for higher tariffs on most products worldwide. These tariffs impose a 25 percent tariff on most products from Canada and Mexico, and a 10 percent tariff on most products from the rest of the world. It also challenges President Trump’s plan to raise tariffs on imports from 46 other trading partners on July 9.

    Studies of the tariffs President Trump issued in his first term show that 95 percent of the cost of tariffs are paid by Americans. The Federal Reserve and the International Monetary Fund project that this round of tariffs will cause inflation.

    The lawsuit explains that under Article I of the Constitution, only Congress has the “Power To lay and collect Taxes, Duties, Imposts and Excises.” The executive orders cite the powers granted by the International Emergency Economic Powers Act (IEEPA), but that law applies only when an emergency presents “unusual and extraordinary threat” from abroad and does not give the President the power to impose tariffs. Congress enacted IEEPA in 1977. No President had imposed tariffs based on IEEPA until President Trump did so this year.

    The case is State of Oregon, et al., v. Trump, et al. and was filed in the U.S. Court of International Trade.

    The case is led by Oregon Attorney General Dan Rayfield and Arizona Attorney General Kris Mayes. Also joining the lawsuit are the attorneys general of Colorado, Connecticut, Delaware, Illinois, Maine, Minnesota, Nevada, New Mexico, New York, and Vermont.

    In 2024, Colorado exported a record $10.5 billion of goods to the world and imported $16.8 B in goods. Colorado’s top export partners are Mexico ($1.7B), Canada ($1.6B), China ($0.8B)  South Korea ($0.6B), and Malaysia ($0.6 B), accounting for half of all Colorado exports in 2024. Top export commodities include meat (17%); nuclear reactors, boilers, machinery (15%); electric machinery (13%); optic, photo, medical or surgical instruments (11%); and aircraft, spacecraft, and related parts (5%). In 2022, exports from Colorado supported an estimated 40 thousand jobs.

    Colorado in 2024 exported $500 million in aerospace, spacecraft, and related parts, accounting for roughly 4.8% of all Colorado exports. The European Union, Brazil, France, Canada and Mexico were the top five export destinations, accounting for 63% of Colorado’s aerospace exports. In 2024, Colorado imported $1 billion of aerospace, spacecraft and related parts, accounting for roughly 6.2% of all Colorado imports. Switzerland, the EU, Germany, Canada, and France were the top five import sources, accounting for over 90% of Colorado’s aerospace imports.

    An estimated 820,200 jobs in Colorado are supported by international trade, representing 20.8% of all jobs in the state. Colorado’s top import partners are Canada ($5.4 B), China ($1.8 B), Mexico ($1.1 B), Switzerland ($0.9 B) and Germany ($0.9 B), accounting for 60% of imports in 2024. Top import commodities include oil, mineral fuel (20%); electric machinery (14%); nuclear reactors, boilers, machinery (11%); optic, photo, medical or surgical instruments (8%); and aircraft, spacecraft and related parts (6%).

    In addition to the commodities traded, Colorado also trades services and runs a services trade surplus. In 2022, Colorado exported $16 B in services, supporting 97,260 jobs. Top services export markets were Canada ($1.3 B), the United Kingdom ($0.9 B), Mexico ($0.9 B), and China ($0.6 B). As a bloc, the EU was the top services export market with $3.8 B in services exports supporting over 18,900 jobs.

    ###
     

    MIL OSI USA News

  • MIL-OSI Global: A golden era for personalized medicine is approaching, but are we ready?

    Source: The Conversation – Canada – By Nazia Pathan, PhD, Postdoctoral Researcher, Population Health Research Institute, McMaster University

    Biobanks have become some of the most transformative tools in medical research, enabling scientists to study the relationships between genes, health and disease on an unprecedented scale (Piqsels/Siyya)

    If there’s a disease that seems to run in your family, if you’ve had a negative reaction to a drug or wondered why a standard treatment didn’t work on you, the answers may lie in your genes.

    The unique sequence of DNA that acts as a blueprint for building and maintaining your body often plays a major role in shaping your predisposition to diseases and reactions to drugs.

    Genes in the DNA make proteins, which can act as biomarkers or influence other types of biomarkers. Biomarkers are molecules in the body that help measure health conditions, such as those detected in blood or urine tests.

    Blood glucose, for example, is a biomarker for diabetes, cholesterol levels can be biomarkers for heart diseases and albumin is a protein used to assess kidney and liver functions.

    Tailoring treatments

    By understanding a patient’s unique genetic profile, biomarker readings and lifestyle information, doctors could tailor the most effective and safest treatments for that individual.

    Genetics offer the opportunity for individualized health care that can improve patient outcomes, save lives and alleviate strain on the health-care system.

    This is the promise of personalized medicine, which is already making a difference in areas such as cardiovascular diseases, cancer, mental health and rare diseases.

    The question is, are we prepared to seize this golden opportunity in Canada?

    Genetic testing and data

    Canadians are not averse to genetic testing. By 2018, a survey by Abacus Data showed around 11 per cent of Canadian adults had used direct-to-consumer genetic testing and analysis kits, and 60 per cent were open to ordering a test.

    This level of interest highlights a general acceptance of and readiness for genetic advancements in health care, which is encouraging, since we need much more reliable, population-level genetic information to make the most of this opportunity.

    Current genetic data is either scattered across relatively small, fragmented groups, which is severely limiting from a broader research perspective, or held by private companies. These companies have varying regulatory standards, raising concerns about privacy and data security, especially if a company is financially unstable or ceases to exist. This recently occurred when genetic testing company 23andMe filed for bankruptcy.




    Read more:
    With 23andMe filing for bankruptcy, what happens to consumers’ genetic data?


    The better model is publicly managed biobanks, which prioritize broad societal health over profit and offer stronger data protection through robust regulation of access, storage and usage. Strict oversight ensures the protection of individual privacy while promoting transparency.

    The potential of biobanks

    In this age of big data, biobanks have become some of the most transformative tools in medical research, enabling scientists to study the relationships between genes, health and disease on an unprecedented scale.

    This is possible because of technological advancements that allow large-scale genetic and biomarker testing, the adoption of cloud-based servers, and improvements in statistical modelling, machine learning and artificial intelligence.

    Establishing a biobank begins with collecting small amounts (five to 10 millilitres) of blood, saliva or tissue from consenting participants in the presence of health experts.

    Biobanks use next-generation sequencers to perform the genetic sequences at high speed, while the latest proteomics platforms enable measurement of thousands different biomarkers from a very small amount of blood. The resulting genetic and biomarker profiles are curated and made accessible through platforms like a national library.

    Countries such as the United Kingdom and the United States are paving the way with national efforts such as the UK Biobank and the All of Us Research Program.

    The British Biobank houses genetic and health data from more than 500,000 participants. Similarly, the U.S. program aims to enrol more than one million participants.

    Genomics in Canada

    As a genetic epidemiologist, I have had the opportunity to identify several potential genetic targets by using these treasure troves of information.

    The problem is that we don’t yet have a ready way of knowing if the results are directly applicable to the Canadian population.

    This is about to change. Genome Canada has launched the Canadian Precision Health Initiative to sequence the genomes of at least 100,000 Canadians.

    Biobanks enable scientists to study the relationships between genes, health and disease on an unprecedented scale.
    (Pixabay/Shameersrk)

    A Pan-Canadian Genome Library (PCGL) is also in the works to harmonize genetic data produced across Canada. It aims to capture, store and provide access to Canadian genomic data in a secure and ethical manner. Although this work is in the developmental phase, and the target population size remains unclear, these efforts are significant.

    These visions are closer to becoming a reality with the recent announcement of a $200 million investment in the Canadian Precision Health initiative. This is in addition to the more than $1 billion previously invested in health genomics research projects.

    These funds will support Canada’s Genomic centres, the PCGL, and enhance the translation of genomics into real-world applications, boosting the development of personalized medicine and advanced diagnostics to treat diseases.

    A potential model for the world

    Canada, with its uniquely diverse population, has a rare opportunity to lead the way in equitable, multi-ethnic genetic research that would address current biases that predominantly focus on individuals with European ancestry.

    This would ensure that everyone in Canada, including Indigenous communities, can benefit from this health-care revolution in an equitable, ethical and safe manner that balances privacy with the opportunities for groundbreaking research.

    With public trust and robust oversight, and making population-level data internationally accessible, Canada’s biobank initiative could become a model for the world in the golden era of personalized medicine.

    Nazia Pathan, PhD does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    ref. A golden era for personalized medicine is approaching, but are we ready? – https://theconversation.com/a-golden-era-for-personalized-medicine-is-approaching-but-are-we-ready-250336

    MIL OSI – Global Reports

  • MIL-OSI USA: TRUMP EFFECT: A Running List of New U.S. Investment in President Trump’s Second Term

    US Senate News:

    Source: The White House
    Since President Donald J. Trump took office, his unwavering commitment to revitalizing American industry has spurred trillions of dollars of investments in U.S. manufacturing, production, and innovation — and the list only continues to grow.
    Here is a non-comprehensive running list of new U.S.-based investments in President Trump’s second term:
    Project Stargate, led by Japan-based Softbank and U.S.-based OpenAI and Oracle, announced a $500 billion private investment in U.S.-based artificial intelligence infrastructure.
    Apple announced a $500 billion investment in U.S. manufacturing and training.
    NVIDIA, a global chipmaking giant, announced it will invest $500 billion in U.S.-based AI infrastructure over the next four years amid its pledge to manufacture AI supercomputers entirely in the U.S. for the first time.
    Taiwan Semiconductor Manufacturing Company (TSMC) announced a $100 billion investment in U.S.-based chips manufacturing.
    Johnson & Johnson announced a $55 billion investment over the next four years in manufacturing, research and development, and technology.
    Roche, a Swiss drug and diagnostics company, announced a $50 billion investment in U.S.-based manufacturing and research and development, which is expected to create more than 1,000 full-time jobs and more than 12,000 jobs including construction.
    Eli Lilly and Company announced a $27 billion investment to more than double its domestic manufacturing capacity.
    United Arab Emirates-based ADQ and U.S.-based Energy Capital Partners announced a $25 billion investment in U.S. data centers and energy infrastructure.
    Novartis, a Swiss drugmaker, announced a $23 billion investment to build or expand ten manufacturing facilities across the U.S., which will create 4,000 new jobs.
    Hyundai announced a $21 billion U.S.-based investment — including $5.8 billion for a new steel plant in Louisiana, which will create nearly 1,500 jobs.
    Hyundai also secured an equity investment and agreement from Posco Holdings, South Korea’s top steel maker.

    United Arab Emirates-based DAMAC Properties announced a $20 billion investment in new U.S.-based data centers.
    France-based CMA CGM, a global shipping giant, announced a $20 billion investment in U.S. shipping and logistics, creating 10,000 new jobs.
    Merck announced it will invest $8 billion in the U.S. over the next several years after opening a new $1 billion North Carolina manufacturing facility.
    Clarios announced a $6 billion plan to expand its domestic manufacturing operations.
    Stellantis announced a $5 billion investment in its U.S. manufacturing network, including re-opening its Belvidere, Illinois, manufacturing plant.
    Regeneron Pharmaceuticals, Inc., a leader in biotechnology, announced a $3 billion agreement with Fujifilm Diosynth Biotechnologies to produce drugs at its North Carolina manufacturing facility.
    NorthMark Strategies, a multi-strategy investment firm, announced a $2.8 billion investment to build a supercomputing facility in South Carolina.
    ArcelorMittal, a steel manufacturer, announced a $1.2 billion investment to build an advanced manufacturing facility in Alabama.
    Chobani, a Greek yogurt giant, announced a $1.2 billion investment to build its third U.S. dairy processing plant in New York, which is expected to create more than 1,000 new full-time jobs.
    GE Aerospace announced a $1 billion investment in manufacturing across 16 states — creating 5,000 new jobs.
    Corning, Inc., a solar component producer, announced a $900 million investment to build a manufacturing plant in Michigan.
    Schneider Electric announced it will invest $700 million over the next four years in U.S. energy infrastructure.
    GE Vernova announced it will invest nearly $600 million in U.S. manufacturing over the next two years, which will create more than 1,500 new jobs.
    Abbott Laboratories announced a $500 million investment in its Illinois and Texas facilities.
    AIP Management, a European infrastructure investor, announced a $500 million investment to solar developer Silicon Ranch.
    London-based Diageo announced a $415 million investment in a new Alabama manufacturing facility.
    Dublin-based Eaton Corporation announced a $340 million investment in a new South Carolina-based manufacturing facility for its three-phase transformers.
    Germany-based Siemens announced a $285 million investment in U.S. manufacturing and AI data centers, which will create more than 900 new skilled manufacturing jobs.
    Clasen Quality Chocolate announced a $230 million investment to build a new production facility in Virginia, which will create 250 new jobs.
    Fiserv, Inc., a financial technology provider, announced a $175 million investment to open a new strategic fintech hub in Kansas, which is expected to create 2,000 new high-paying jobs.
    Paris Baguette announced a $160 million investment to construct a manufacturing plant in Texas.
    TS Conductor announced a $134 million investment to build an advanced conductor manufacturing facility in South Carolina, which will create nearly 500 new jobs.
    Switzerland-based ABB announced a $120 million investment to expand production of its low-voltage electrification products in Tennessee and Mississippi.
    Saica Group, a Spain-based corrugated packaging maker, announced plans to build a $110 million new manufacturing facility in Anderson, Indiana.
    Charms, LLC, a subsidiary of candymaker Tootsie Roll Industries, announced a $97.7 million investment to expand its production plant and distribution center in Tennessee.
    Toyota Motor Corporation announced an $88 million investment to boost hybrid vehicle production at its West Virginia factory, securing employment for the 2,000 workers at the factory.
    AeroVironment, a defense contractor, announced a $42.3 million investment to build a new manufacturing facility in Utah.
    Paris-based Saint-Gobain announced a new $40 million NorPro manufacturing facility in Wheatfield, New York.
    India-based Sygene International announced a $36.5 million acquisition of a Baltimore biologics manufacturing facility.
    Asahi Group Holdings, one of the largest Japanese beverage makers, announced a $35 million investment to boost production at its Wisconsin plant.
    Cyclic Materials, a Canadian advanced recycling company for rare earth elements, announced a $20 million investment in its first U.S.-based commercial facility, located in Mesa, Arizona.
    Guardian Bikes announced a $19 million investment to build the first U.S.-based large-scale bicycle frame manufacturing operation in Indiana.
    Amsterdam-based AMG Critical Minerals announced a $15 million investment to build a chrome manufacturing facility in Pennsylvania.
    NOVONIX Limited, an Australia-based battery technology company, announced a $4.6 million investment to build a synthetic graphite manufacturing facility in Tennessee.
    LGM Pharma announced a $6 million investment to expand its manufacturing facility in Rosenberg, Texas.
    ViDARR Inc., a defense optical equipment manufacturer, announced a $2.69 million investment to open a new facility in Virginia.
    That doesn’t even include the U.S. investments pledged by foreign countries:
    United Arab Emirates announced a $1.4 trillion investment in the U.S. over the next decade.
    Saudi Arabia announced it intends to invest $600 billion in the U.S. over the next four years.
    Japan announced a $1 trillion investment in the U.S.
    Taiwan announced a pledge to boost its U.S.-based investment.
    Last updated on April 23, 2025

    MIL OSI USA News

  • MIL-OSI Canada: Tribunal Initiates Inquiry— Certain carbon or alloy steel wire from China, Chinese Taipei, India, Italy, Malaysia, Portugal, Spain, Thailand, Türkiye and Vietnam

    Source: Government of Canada News (2)

    Ottawa, Ontario, April 23, 2025—The Canadian International Trade Tribunal today initiated a preliminary injury inquiry into a complaint by Sivaco Wire Group 2004 L.P, of Marieville, Quebec and ArcelorMittal Long Products Canada G.P., of Contrecoeur, Quebec, that they have suffered injury as a result of the dumping of certain carbon or alloy steel wire originating in or exported from the People’s Republic of China, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, the Republic of India, the Italian Republic, the Federation of Malaysia, the Portuguese Republic, the Kingdom of Spain, the Kingdom of Thailand, the Republic of Türkiye, and the Socialist Republic of Vietnam. The Tribunal’s inquiry is conducted pursuant to the Special Import Measures Act (SIMA) as a result of the initiation of a dumping investigation by the Canada Border Services Agency (CBSA).

    On June 19, 2025, the Tribunal will determine whether there is a reasonable indication that the alleged dumping has caused injury or retardation, or is threatening to cause injury, as these words are defined in SIMA. If so, the CBSA will continue its investigation and, by July 21, 2025, will make a preliminary determination. If this preliminary determination indicates that there has been dumping, the CBSA will then continue its investigation and, concurrently, the Tribunal will initiate a final injury inquiry.

    The Tribunal is an independent quasi-judicial body that reports to Parliament through the Minister of Finance. It hears cases on dumped and subsidized imports, safeguard complaints, complaints about federal government procurement and appeals of customs and excise tax rulings. When requested by the federal government, the Tribunal also provides advice on other economic, trade and tariff matters.

    Any interested person, association or government that wishes to participate in the Tribunal’s inquiry may do so by filing a Form I – Notice of Participation.

    MIL OSI Canada News

  • MIL-Evening Report: The origin story of the Anzac biscuit is largely myth – but that shouldn’t obscure the history of women during the war

    Source: The Conversation (Au and NZ) – By Garritt C. Van Dyk, Senior Lecturer in History, University of Waikato

    Australian Comforts Fund buffet in Longueval, France, 1916. Australian War Memorial

    The Anzac biscuit is a cultural icon, infused with mythical value, representing the connection between women on the home front and soldiers serving overseas during the first world war.

    A baked good developed to survive the trip to the trenches and lift the spirits of the troops has the seductive appeal of folklore specific to Australia and Aotearoa New Zealand.

    There is another story linked to the myth, however, about women who worked to provide necessities and small comforts to those serving in the Australian and New Zealand Army Corps.

    The Anzac biscuit myth

    Soldiers at the front had biscuits, of a sort, in their rations but these were more like 18th century “ship’s biscuit”, or hard tack, called “tile”, “wafers”, or “army biscuits”.

    Made from flour, water and dry milk, tile was nonperishable and didn’t get mouldy, but it was so hard it had to be soaked before eating to avoid cracking a tooth. Soldiers would sometimes grate the moistened biscuit and cook it with water for an improvised porridge.

    The biscuits were so tough that soldiers even used them as stationery.

    Cakes and biscuits in sealed tins were requested as donations from the public, but had to meet requirements to ensure they would not spoil by the time they arrived.

    It is unlikely Anzac biscuits made according to today’s recipe were packed in tins by mothers, wives and girlfriends and shipped overseas to soldiers. As a matter of practicality, shredded coconut included in the recipe would have probably become rancid in transit.

    Australia soldiers at Ribemont, France, opening parcels from the Australian Comforts Fund, March 1917.
    Australian War Memorial

    The idea of our modern Anzac biscuits being sent to the front line is most likely an invented tradition, created after the fact. The first thing we would recognise as our current recipe did not appear until 1927.

    But women were sending biscuits, and more, to their men on the front lines in the crucial role of providing creature comforts.

    The War Chest Cookery Book

    The Australian Comforts Fund was a national group founded in 1916 to coordinate state volunteer organisations, run mainly by women.

    The War Chest Cookery Book, published in 1917.
    Trove

    In 1917, the New South Wales branch printed the The War Chest Cookery Book. Paid advertisements on every page allowed the fund to donate all proceeds from the sale of the cookbook “to substantially augment the funds of the War Chest”.

    In this book we find the first printed recipe for a biscuit with “Anzac” in the title. The recipe bears no resemblance to today’s version, except for the name. Neither oats nor coconut were included. Instead, the recipe called for eggs, rice flour, cinnamon and mixed spice, and the baked biscuits were sandwiched together with jam and topped with icing.

    The motto of the Australian Comforts Fund, “keep the fit man fit”, differentiated their mission from the lifesaving supplies delivered by the Red Cross.

    The war chest allowed the distribution of nonessential items that included necessities like such as socks, mittens and singlets, but also comforts of home like such as pyjamas, razor blades and tobacco.

    Special shipments included morale boosters like such as Christmas hampers with plum puddings, gramophones, sporting goods, postcards and pencils.

    Women from the Australian Comforts Fund distributing packages to soldiers in Abbassieh, Egypt, during the first world war.
    State Library Victoria

    Women in the fund also ran canteens near the front serving soup, coffee, tea, and cocoa. The fund provided twelve million mugs of hot drinks between January 1917 and June 1918 alone.

    A soldier’s memoir from the winter of 1916 in the Somme recalled how the promise of the kitchen kept him going:

    We desire to acknowledge our debt to the Australian Comforts Fund. Their soup kitchen was the goal to which even the weariest man persevered during the dreadful outward journeys from the line.

    A dubious debut: not your Nan’s Anzac biscuit

    Today, Anzac biscuits baked for commercial production and sale must adhere to the Australian Department of Veteran Affairs Guidelines, established in 1994, which regulate the use of the word Anzac (and prohibit the use of the word “cookie” to describe them).

    This first iteration of Anzac biscuits would most certainly not comply with the guidelines as they “substantially deviate from the accepted recipe” which features ingredients including oats, golden syrup and coconut.

    Two other recipes in the War Chest Cookbook for rolled oat biscuits are closer, and omit eggs, but they lack the binding power of golden syrup and the characteristic crunch of desiccated coconut.

    The combination of oats and golden syrup first appears in the Melbourne newspaper The Argus on September 15 1920 when Josephine, from East Brunswick, contributed her recipe for “ANZAC Biscuits or Crispies”.

    A recipe for Anzac biscuits with “cocoanut” was not published until the late 1920s, in the Brisbane Sunday Mail on June 26 1927.

    This late introduction of the full recipe is a reminder that while biscuits got sent overseas, they were not the “official” Anzac biscuits we know today.

    A recipe for Anzac biscuits with ‘cocoanut’ was not published until the late 1920s.
    May Lawrence/Unsplash

    The story behind the biscuit

    Defining and preserving the identity of the Anzac biscuit affirms a tangible symbol of national identity. While the recipe may have been invented after the fact, a consistent standard encourages the continuity of remembrance through the uniformity of a shared tradition.

    Women packing food for the Australian Comfort Fund’s war chests.
    Mitchell Library, State Library of New South Wales

    The myth of domestic bakers dispatching this specific recipe to soldiers, however, should not eclipse the efforts of the Australian Comforts Fund, fundraising on a national scale, and running makeshift canteens in a war zone.

    Women weren’t just baking in their kitchens: they were organising and delivering resources at home and overseas, benefiting soldiers at the front lines.

    Garritt C. Van Dyk has received funding from the Getty Research Institute.

    ref. The origin story of the Anzac biscuit is largely myth – but that shouldn’t obscure the history of women during the war – https://theconversation.com/the-origin-story-of-the-anzac-biscuit-is-largely-myth-but-that-shouldnt-obscure-the-history-of-women-during-the-war-252039

    MIL OSI AnalysisEveningReport.nz

  • MIL-OSI: Northrim BanCorp Earns $13.3 Million, or $2.38 Per Diluted Share, in First Quarter 2025

    Source: GlobeNewswire (MIL-OSI)

    ANCHORAGE, Alaska, April 23, 2025 (GLOBE NEWSWIRE) — Northrim BanCorp, Inc. (NASDAQ:NRIM) (“Northrim” or the “Company”) today reported net income of $13.3 million, or $2.38 per diluted share, in the first quarter of 2025, compared to $10.9 million, or $1.95 per diluted share, in the fourth quarter of 2024, and $8.2 million, or $1.48 per diluted share, in the first quarter a year ago. The increase in first quarter 2025 profitability as compared to the first quarter a year ago was primarily the result of an increase in purchased receivable income, higher net interest income, increased mortgage banking income, and a benefit for the provision for credit losses, which were only partially offset by higher other operating expenses. Purchased receivable income increased primarily due to the Company’s acquisition of Sallyport Commercial Finance, LLC (“Sallyport or SCF”), which was completed on October 31, 2024. Sallyport and its direct and indirect subsidiaries provide services and products related to purchased receivable factoring and asset-based lending in the United States, Canada, and the United Kingdom.

    Dividends per share in the first quarter of 2025 increased to $0.64 per share as compared to $0.62 per share in the fourth quarter of 2024 and $0.61 per share in the first quarter of 2024.

    “Our record first quarter earnings are the result of Northrim’s focus on profitable, market share driven growth,” said Mike Huston, Northrim’s President and Chief Executive Officer. “Our strong financial performance is due to our history of investing in our people and banking infrastructure to consistently deliver ‘Superior Customer First Service’. We remain confident that our dedication to serving our customers and communities will support future growth.”

    First Quarter 2025 Highlights:

    • Net interest income in the first quarter of 2025 increased 1% to $31.3 million compared to $30.8 million in the fourth quarter of 2024 and increased 18% compared to $26.4 million in the first quarter of 2024.
    • Net interest margin on a tax equivalent basis (“NIMTE”)* was 4.61% for the first quarter of 2025, up 14-basis points from the fourth quarter of 2024 and up 39-basis points from the first quarter a year ago.
    • Return on average assets (“ROAA”) was 1.76% and return on average equity (“ROAE”) was 19.70% for the first quarter of 2025. ROAA was 1.19% and ROAE was 13.84% for the first quarter of 2024.
    • Portfolio loans were $2.12 billion at March 31, 2025, down slightly from the preceding quarter and up 17% from a year ago. Portfolio loans in the first quarter of 2025 decreased from the preceding quarter primarily due to the reclassification of $100 million of consumer mortgages previously held as residential real estate loans to loans held for sale. The consumer mortgages are expected to be sold in the second quarter of 2025 to reduce the concentration of residential real estate loans and provide additional liquidity for future commercial and construction loan growth.
    • Total deposits were $2.78 billion at March 31, 2025, up 4% from the preceding quarter, and up 14% from $2.43 billion a year ago. Non-interest bearing demand deposits increased 5% from the preceding quarter and increased 4% year-over-year to $742.6 million at March 31, 2025 and represent 27% of total deposits.
    • The average cost of interest-bearing deposits was 2.01% at March 31, 2025, down from 2.15% at December 31, 2024 and 2.13% at March 31, 2024.
    • Mortgage loan originations were $121.6 million in the first quarter of 2025, down from $185.9 million in the fourth quarter of 2024 and up from $101.7 million in the first quarter a year ago. Mortgage loans funded for sale were $108.5 million in the first quarter of 2025, compared to $162.5 million in the fourth quarter of 2024 and $84.3 million in the first quarter of 2024.
    Financial Highlights Three Months Ended
    (Dollars in thousands, except per share data) March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024
    Total assets $ 3,140,960   $ 3,041,869   $ 2,963,392   $ 2,821,668   $ 2,759,560  
    Total portfolio loans $ 2,124,330   $ 2,129,263   $ 2,007,565   $ 1,875,907   $ 1,811,135  
    Total deposits $ 2,777,977   $ 2,680,189   $ 2,625,567   $ 2,463,806   $ 2,434,083  
    Total shareholders’ equity $ 279,756   $ 267,116   $ 260,050   $ 247,200   $ 239,327  
    Net income $ 13,324   $ 10,927   $ 8,825   $ 9,020   $ 8,199  
    Diluted earnings per share $ 2.38   $ 1.95   $ 1.57   $ 1.62   $ 1.48  
    Return on average assets   1.76 %   1.43 %   1.22 %   1.31 %   1.19 %
    Return on average shareholders’ equity   19.70 %   16.32 %   13.69 %   14.84 %   13.84 %
    NIM   4.55 %   4.41 %   4.29 %   4.24 %   4.16 %
    NIMTE*   4.61 %   4.47 %   4.35 %   4.30 %   4.22 %
    Efficiency ratio   64.47 %   66.96 %   66.11 %   68.78 %   68.93 %
    Total shareholders’ equity/total assets   8.91 %   8.78 %   8.78 %   8.76 %   8.67 %
    Tangible common equity/tangible assets*   7.41 %   7.23 %   8.28 %   8.24 %   8.14 %
    Book value per share $ 50.67   $ 48.41   $ 47.27   $ 44.93   $ 43.52  
    Tangible book value per share* $ 41.47   $ 39.17   $ 44.36   $ 42.03   $ 40.61  
    Dividends per share $ 0.64   $ 0.62   $ 0.62   $ 0.61   $ 0.61  
    Common stock outstanding   5,520,892     5,518,210     5,501,943     5,501,562     5,499,578  
                                   

    * References to NIMTE, tangible book value per share, and tangible common equity to tangible common assets, (both of which exclude intangible assets) represent non-GAAP financial measures. Management has presented these non-GAAP measurements in this earnings release, because it believes these measures are useful to investors. See the end of this release for reconciliations of these non-GAAP financial measures to GAAP financial measures.

    Alaska Economic Update
    (Note: sources for information included in this section are included on page 13.)

    The Alaska Department of Labor (“DOL”) has reported Alaska’s seasonally adjusted unemployment rate in February of 2025 was 4.7% compared to the U.S. rate of 4.1%. The total number of payroll jobs in Alaska, not including uniformed military, increased 1.6% or 5,200 jobs between February of 2024 and February of 2025.

    According to the DOL, the Oil and Gas sector had the largest growth rate in new jobs of 7.5% through February 2025 compared to the prior year, up 600 direct jobs. The Construction sector added 1,000 positions for a year-over-year growth rate of 6.1% in February of 2025. The larger Health Care sector grew by 1,400 jobs for an annual growth rate of 3.4%. Transportation, Warehousing and Utilities added 1,100 jobs for a 5% growth rate. Leisure and Hospitality increased 500 jobs year-over-year through February of 2025, up 1.6%.

    The Government sector grew by 600 jobs for 0.7% growth, adding 100 Federal jobs, and 500 State positions in Alaska over the same period. Declining sectors between February 2024 and February 2025 were Manufacturing (primarily seafood processing) shrinking 500 positions (-4.4%), Financial Activities, down 100 jobs (-0.9%), and Retail lost 100 jobs (-0.3%).

    Alaska’s seasonally adjusted personal income was $56.5 billion in the fourth quarter of 2024 according to the Federal Bureau of Economic Analysis (“BEA”). This was an annualized improvement in the fourth quarter of 4.7% for Alaska, compared to the national average of 4.6%. Alaska enjoyed an annual personal income improvement of 6% in 2024 compared to the U.S. increase of 5.4%, ranking Alaska 6th best in the nation. The $650 million increase in personal income in the fourth quarter in Alaska came from a $446 million increase in net earnings from wages, $154 million growth in government transfer receipts, and a $49 million increase in investment income.

    Alaska’s Gross State Product (“GSP”) in 2024, reached $70 billion for the first time according to the BEA. Alaska’s inflation adjusted “real” GSP increased 1.5% in 2024 and 4% annualized in the fourth quarter of 2024, placing Alaska third best of all 50 states for the quarter. The average U.S. GDP growth rate was 2.8% for the year and 2.4% in the fourth quarter of 2024. Alaska’s real GSP improvement in the fourth quarter of 2024 was primarily caused by growth in the Mining, Oil & Gas; Transportation & Warehousing; and to a lesser extent the Health Care sector. Construction played a larger role in the annual state GSP performance.

    Based on data from the U.S. Chamber of Commerce, Alaska exported $5.2 billion in goods to foreign countries in 2023. China is the largest importer of Alaska’s products at $1.2 billion, followed by Japan at $710 million and Korea at $702 million in 2023. Fish and related maritime products accounted for the largest volume at $2.1 billion, followed by minerals and ores $1.5 billion, and primary metals at $780 million in 2023. Chief Credit Officer and Bank Economist Mark Edwards stated, “President Trump’s significant changes to international tariffs has created uncertainty in trade markets. At this time, it is unknown how each country will respond. Alaska’s natural resources are highly valued commodities throughout the world. If issues arise with one country, such as China, it is most likely that Alaska’s products will be redirected to other markets like Japan and South Korea or sold domestically in the United States. Canada is the largest long-term investor in Alaska’s mining industry. This involves significant fixed capital investments made over decades that are unlikely to shift dramatically in the short-run.”

    According to the US Bureau of Labor Statistics, the Consumer Price Index, or CPI, for the U.S. increased 2.8% between February of 2024 and February of 2025. In Alaska, the rate of increase was 2.9% for the same time period. Food and beverage; housing rents and mortgage rates; transportation; and medical care costs are the largest causes for inflation. Declining motor fuel prices, new and used car prices, and household furnishing costs have helped moderate inflationary pressures in Alaska.

    The monthly average price of Alaska North Slope (“ANS”) crude oil was $76.39 in January, $74.03 in February and $73.39 in March of 2025. The Alaska Department of Revenue (“DOR”) calculated ANS crude oil production was 461 thousand barrels per day (“bpd”) in Alaska’s fiscal year ending June 30, 2024. Through nine months of the fiscal year 2025, production has averaged slightly above the State of Alaska forecast of 467 thousand bpd. In the Spring 2025 Revenue Forecast published March 12, 2025, the DOR expects production to continue to grow to 663 thousand bpd by fiscal year 2034. This is primarily a result of new production coming on-line in and around the NPR-A region west of Prudhoe Bay. A partnership between Santos and Repsol is constructing the new Pikka oil field and ConocoPhillips is developing the new Willow oil field. There are also a number of smaller new oil fields in Alaska’s North Slope that are contributing to the State of Alaska’s production growth estimates.

    The Alaska Permanent Fund is seeded annually by the oil wealth the State continues to save each year and has grown significantly over 40 years of successful investment. As of February 28, 2025 the funds value was $81.35 billion. According to the DOR it is scheduled to contribute $3.7 billion to the Alaska General Fund in fiscal year 2025 for general government spending and to pay the annual dividend to Alaskan residents.

    According to the Alaska Multiple Listing Services, the average sales price of a single family home in Anchorage rose 6.2% in 2024 to $510,109, following a 5.2% increase in 2023. This was the seventh consecutive year of price increases.

    The average sales price for single family homes in the Matanuska Susitna Borough rose 3.8% in 2024 to $412,859, after increasing 4% in 2023. This continues a trend of average price increases for more than a decade in the region. These two markets represent where the vast majority of the residential lending activity for Northrim Bank (the”Bank”) occurs.

    The Alaska Multiple Listing Services reported a 3.4% increase in the number of units sold in Anchorage when comparing 2024 to 2023. There was virtually no change in the number of homes sold in the Matanuska Susitna Borough, with only four fewer homes sold in 2024 than in 2023 or -0.2%.

    Northrim Bank sponsors the Alaskanomics blog to provide news, analysis, and commentary on Alaska’s economy. Join the conversation at Alaskanomics.com, or for more information on the Alaska economy, visit: www.northrim.com and click on the “Business Banking” link and then click “Learn.” Information from our website is not incorporated into, and does not form, a part of this earnings release.

    Review of Income Statement

    Consolidated Income Statement

    In the first quarter of 2025, Northrim generated a ROAA of 1.76% and a ROAE of 19.70%, compared to 1.43% and 16.32%, respectively, in the fourth quarter of 2024 and 1.19% and 13.84%, respectively, in the first quarter a year ago.

    Net Interest Income/Net Interest Margin

    Net interest income increased 1% to $31.3 million in the first quarter of 2025 compared to $30.8 million in the fourth quarter of 2024 and increased 18% compared to $26.4 million in the first quarter of 2024. Interest expense on deposits decreased to $9.9 million in the first quarter of 2025 compared to $10.6 million in the fourth quarter of 2024 and increased compared to $9.2 million in the first quarter of 2024.

    NIMTE* was 4.61% in the first quarter of 2025 up from 4.47% in the preceding quarter and 4.22% in the first quarter a year ago. NIMTE* increased 39 basis points in the first quarter of 2025 compared to the first quarter of 2024 primarily due to a favorable change in the mix of earning-assets towards higher loan balances as a percentage of total earning-assets, slightly higher yields on those assets, and a decrease in costs on interest-bearing liabilities. The weighted average interest rate for new loans booked in the first quarter of 2025 was 7.30% compared to 7.23% in the fourth quarter of 2024 and 7.84% in the first quarter a year ago. The yield on the investment portfolio in the first quarter of 2025 increased to 2.97% from 2.84% in the fourth quarter of 2024 and 2.82% in the first quarter of 2024. “We are starting to see some benefit from lower deposit costs that benefit our net interest margin and outweigh the impact of the recent Fed rate cuts on our loan portfolio, which we could continue to see for the next couple of quarters,” said Jed Ballard, Chief Financial Officer. Northrim’s NIMTE* continues to remain above the peer average of 3.23% posted by the S&P U.S. Small Cap Bank Index with total market capitalization between $250 million and $1 billion as of December 31, 2024.

    Provision for Credit Losses

    Northrim recorded a benefit to the provision for credit losses of $1.4 million in the first quarter of 2025, which was comprised of a benefit to the provision for credit losses on loans of $1.1 million, a $322,000 benefit to the provision for credit losses on unfunded commitments, and a provision for credit losses on purchased receivables of $46,000. This compares to a provision for credit losses of $1.2 million in the fourth quarter of 2024, and provision for credit losses of $149,000 in the first quarter a year ago.

    The benefit to the provision for unfunded commitments in the first quarter of 2025 was primarily due to a decrease in estimated loss rates due to changes in mix that was only partially offset by management’s assessment of economic conditions and estimated funding rates. The decrease to the provision for credit losses on loans in the first quarter of 2025 as compared to the prior quarter and the same quarter a year ago was primarily a result of the reclassification of $100 million in mortgage loans to loans held for sale, which provided a benefit to the provision of $2.2 million in the Home Mortgage Lending segment for the first quarter of 2025. This benefit was only partially offset by a $1.5 million provision for credit losses in the Home Mortgage Lending segment due to changes in the Company’s loss rate regression models for home mortgage loans. Additionally, the Company recorded $1.7 million net benefit for credit losses in the Community Banking segment related to changes in the Company’s loss rate regression models for commercial, commercial real estate, and construction loans. These decreases in the provision were only partially offset by increases in estimated loss rates for management’s assessment of economic conditions, an increase for higher loan balances in other loan segments, and specific provisions for credit losses in the Specialty Finance segment. These items reduced the overall benefit by $1.3 million. The provision for credit losses related to the Specialty Finance segment of $666,000 in the first quarter of 2025 consisted of a $621,000 provision for credit losses on loans and a $46,000 provision for credit losses on purchased receivables and represents management’s estimate of collateral shortfalls for four loans.

    Nonperforming loans, net of government guarantees, increased during the quarter to $8.0 million at March 31, 2025, compared to $7.5 million at December 31, 2024, and $5.3 million at March 31, 2024.

    The allowance for credit losses on loans was 262% of nonperforming loans, net of government guarantees, at the end of the first quarter of 2025, compared to 292% three months earlier and 333% a year ago.

    Other Operating Income

    In addition to home mortgage lending, Northrim has interests in other businesses that complement its core community banking activities, including purchased receivables financing and wealth management. Other operating income contributed $14.2 million, or 31% of total first quarter 2025 revenues, as compared to $13.0 million, or 30% of revenues in the fourth quarter of 2024, and $7.8 million, or 23% of revenues in the first quarter of 2024. The increase in other operating income in the first quarter of 2025 as compared to the preceding quarter and the first quarter of 2024 was primarily the result of increased purchased receivable income due to the Company’s acquisition of Sallyport on October 31, 2024. The fair market value of marketable equity securities decreased $50,000 in the first quarter of 2025 compared to a decrease of $364,000 in the prior quarter and an increase of $314,000 in the first quarter of 2024. Additionally, the increase in other operating income in the first quarter of 2025 as compared to the fourth quarter of 2024 was partially offset by a decrease in mortgage banking income due to a lower volume of mortgage activity. See further discussion regarding mortgage activity contained under “Home Mortgage Lending” below.

    Other Operating Expenses

    Operating expenses were $29.3 million in the first quarter of 2025, compared to $29.4 million in the fourth quarter of 2024, and $23.6 million in the first quarter of 2024. The decrease in other operating expenses in the first quarter of 2025 compared to the fourth quarter of 2024 was primarily due to a decrease in salaries and other personnel expense, including $623,000 in lower mortgage commissions expense due to lower mortgage volume and a decrease in profit share expense. Professional fees decreased in the first quarter of 2025 compared to the fourth quarter of 2024 primarily due to one-time deal costs associated with the acquisition of Sallyport of $1.1 million recorded in the fourth quarter of 2024. These decreases were only partially offset by $600,000 in compensation expense for Sallyport acquisition payments and an increase in other operating expense for a decrease in fair value of loans held for sale of $1.2 million as a result of reclassifying the consumer mortgages discussed above. The increase in other operating expenses in the first quarter of 2025 compared to the first quarter a year ago was primarily due to an increase in salaries and other personnel expense, the increase in compensation expense for Sallyport acquisition payments, the increase in other operating expense for the decrease in fair value of loans held for sale, as well as an increase in other real estate owned, or OREO, expense due to a gain on sale recorded in the first quarter of 2024 for proceeds received related to a government guarantee on an OREO property in prior years. Total other operating expense increased $2.7 million in the Specialty Finance segment in the first quarter of 2025 compared to the first quarter of 2024 from the addition of Sallyport on October 31, 2024.

    Income Tax Provision

    In the first quarter of 2025, Northrim recorded $4.3 million in state and federal income tax expense for an effective tax rate of 24.2%, compared to $2.4 million, or 17.8% in the fourth quarter of 2024 and $2.3 million, or 21.9% in the first quarter a year ago. The increase in the tax rate in the first quarter of 2025 as compared to the fourth and first quarters of 2024 is primarily the result of a decrease in tax credits and tax exempt interest income as a percentage of pre-tax income in 2025 as compared to 2024.

    Community Banking

    Northrim is committed to meeting the needs of the diverse communities in which it operates. As a testament to that support, the Bank has branches in four regions of Alaska identified by the Federal Reserve as ‘distressed or underserved non-metropolitan middle-income geographies’.

    Net interest income in the Community Banking segment totaled $28.2 million in the first quarter of 2025, compared to $27.6 million in the fourth quarter of 2024 and $24.2 million in the first quarter of 2024. Net interest income increased slightly in the first quarter of 2025 as compared to the fourth quarter of 2024 mostly due to lower interest expense on deposits and borrowings and higher interest income on loans. These increases were only partially offset by lower interest income on investments.

    Other operating expenses in the Community Banking segment totaled $18.6 million in the first quarter of 2025, down $535,000 or 3% from $19.1 million in the fourth quarter of 2024, and up $1.4 million or 8% from $17.2 million in the first quarter a year ago. The decrease in the first quarter of 2025 as compared to the prior quarter was mostly due to decreases in salaries and other personnel expense, marketing expense, and professional and outside services expense. The increase in the first quarter of 2025 as compared to the first quarter a year ago was primarily due to an increase in OREO expense due to a gain on sale recorded in the first quarter of 2024 for proceeds received related to a government guarantee on an OREO property sold in prior years, as well as increases in data processing expense, insurance expense, salaries and other personnel expense, and marketing expense.

    The following table provides highlights of the Community Banking segment of Northrim:

      Three Months Ended
    (Dollars in thousands, except per share data) March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024
    Net interest income $ 28,151   $ 27,643   $ 25,928   $ 24,318   $ 24,215  
    (Benefit) provision for credit losses   (1,768 )   771     1,492     (184 )   197  
    Other operating income   2,703     2,535     3,507     2,450     2,468  
    Other operating expense   18,581     19,116     18,723     18,068     17,178  
    Income before provision for income taxes   14,041     10,291     9,220     8,884     9,308  
    Provision for income taxes   3,253     1,474     2,133     1,786     1,966  
    Net income $ 10,788   $ 8,817   $ 7,087   $ 7,098   $ 7,342  
    Weighted average shares outstanding, diluted   5,608,102     5,597,889     5,583,055     5,558,580     5,554,930  
    Diluted earnings per share attributable to Community Banking $ 1.93   $ 1.58   $ 1.26   $ 1.27   $ 1.32  
                                   

    Home Mortgage Lending

    During the first quarter of 2025, mortgage loans funded for sale were $108.5 million, compared to $162.5 million in the fourth quarter of 2024, and $84.3 million in the first quarter of 2024.

    During the first quarter of 2025, the Bank purchased loans of $13.1 million from its subsidiary, Residential Mortgage. of which approximately half were jumbos, one-quarter were mortgages for second homes, and one-quarter were adjustable rate mortgages, with a weighted average interest rate of 6.39%, as compared to $23.4 million and 6.30% in the fourth quarter of 2024, and $17.4 million and 6.65% in the first quarter of 2024. Net interest income contributed $3.0 million to total Home Mortgage Lending revenue in the first quarter of 2025, down from $3.3 million in the prior quarter, and up from $2.2 million in the first quarter a year ago.

    The income statement impact from the reclassification of the consumer mortgages was a decrease in provision for credit losses of $2.2 million and a $1.2 million decrease in the fair value of mortgages.

    The Arizona, Colorado, and Pacific Northwest mortgage expansion markets were responsible for 20% of Residential Mortgage’s $122 million total production in the first quarter of 2025, 19% of $186 million total production in the fourth quarter of 2024, and 19% of $102 million total production in the first quarter of 2024.

    The net change in fair value of mortgage servicing rights decreased mortgage banking income by $855,000 during the first quarter of 2025 compared to an increase of $873,000 for the fourth quarter of 2024 and a decrease of $25,000 for the first quarter of 2024. Mortgage servicing revenue decreased to $2.7 million in the first quarter of 2025 from $2.8 million in the prior quarter and increased from $1.6 million in the first quarter of 2024 due to an increase in production of Alaska Housing Finance Corporation (AHFC) mortgages, which contribute to servicing revenues at origination. In the first quarter of 2025, the Company’s servicing portfolio increased $24.0 million compared to a $294.1 million increase in the fourth quarter of 2024, which included the purchase of the AHFC servicing portfolio of $235.6 million, and an increase of $15.5 million in the first quarter of 2024.

    As of March 31, 2025, Northrim serviced 6,391 loans in its $1.48 billion home-mortgage-servicing portfolio, a 2% increase compared to the $1.46 billion serviced as of the end of the fourth quarter of 2024, and a 40% increase from the $1.06 billion serviced a year ago.

    The following table provides highlights of the Home Mortgage Lending segment of Northrim:

      Three Months Ended
    (Dollars in thousands, except per share data) March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024
    Mortgage commitments $ 68,258   $ 32,299   $ 77,591   $ 88,006   $ 56,208  
               
    Mortgage loans funded for sale $ 108,499   $ 162,530   $ 209,960   $ 152,339   $ 84,324  
    Mortgage loans funded for investment   13,061     23,380     38,087     29,175     17,403  
    Total mortgage loans funded $ 121,560   $ 185,910   $ 248,047   $ 181,514   $ 101,727  
    Mortgage loan refinances to total fundings   11 %   11 %   6 %   6 %   4 %
    Mortgage loans serviced for others $ 1,484,714   $ 1,460,720   $ 1,166,585   $ 1,101,800   $ 1,060,007  
               
    Net realized gains on mortgage loans sold $ 2,740   $ 3,747   $ 5,079   $ 3,188   $ 1,980  
    Change in fair value of mortgage loan commitments, net   660     (665 )   60     391     386  
    Total production revenue   3,400     3,082     5,139     3,579     2,366  
    Mortgage servicing revenue   2,696     2,847     2,583     2,164     1,561  
    Change in fair value of mortgage servicing rights:          
    Due to changes in model inputs of assumptions1   (322 )   1,372     (566 )   239     289  
    Other2   (533 )   (499 )   (402 )   (320 )   (314 )
    Total mortgage servicing revenue, net   1,841     3,720     1,615     2,083     1,536  
    Other mortgage banking revenue   170     238     293     222     129  
    Total mortgage banking income $ 5,411   $ 7,040   $ 7,047   $ 5,884   $ 4,031  
               
    Net interest income $ 3,046   $ 3,280   $ 2,941   $ 2,775   $ 2,232  
    Provision (benefit) for credit losses   (307 )   305     571     64     (48 )
    Mortgage banking income   5,411     7,040     7,047     5,884     4,031  
    Other operating expense   7,650     7,198     7,643     6,697     6,086  
    Income (loss) before provision for income taxes   1,114     2,817     1,774     1,898     225  
    Provision (benefit) for income taxes   310     842     497     532     63  
    Net income (loss) $ 804   $ 1,975   $ 1,277   $ 1,366   $ 162  
               
    Weighted average shares outstanding, diluted   5,608,102     5,597,889     5,583,055     5,558,580     5,554,930  
    Diluted earnings per share attributable to Home Mortgage Lending $ 0.14   $ 0.35   $ 0.23   $ 0.25   $ 0.03  

    1Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates.
    2Represents changes due to collection/realization of expected cash flows over time.

    Specialty Finance

    The Company’s Specialty Finance segment includes Northrim Funding Services and Sallyport Commercial Finance. Northrim Funding Services is a division of the Bank and has offered factoring solutions to small businesses since 2004. Sallyport is a leading provider of factoring, asset-based lending and alternative working capital solutions to small and medium sized enterprises in the United States, Canada, and the United Kingdom that the Company acquired on October 31, 2024 in an all cash transaction valued at approximately $53.9 million. The composition of revenues for the Specialty Finance segment are primarily purchased receivable income, but also includes interest income and other fee income.

    The acquisition of Sallyport included $1.1 million in one-time deal related costs which are reflected in other operating expenses for the fourth quarter of 2024 in the tables below. Total pre-tax income for Sallyport for the first quarter of 2025 was $1.3 million compared to $945,000 for the two months of operations in the fourth quarter of 2024, excluding transaction costs.

    Average purchased receivables and loan balances at Sallyport were $59.9 million for the first quarter of 2025, and yielded 35.8%. This included the recognition of $899,000 in fee income collected during the quarter related to two nonperforming receivables that was previously deferred and the collection of a $350,000 line termination fee. The yield excluding these items for the first quarter of 2025 was 27.4%.

    The following table provides highlights of the Specialty Finance segment of Northrim:

      Three Months Ended
    (Dollars in thousands, except per share data) March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024
    Purchased receivable income $ 6,150   $ 3,526   $ 1,033   $ 1,243   $ 1,345  
    Other operating income   (64 )   (68 )            
    Interest income   596     407     158     170     212  
    Total revenue   6,682     3,865     1,191     1,413     1,557  
    Provision for credit losses   666     125              
    Compensation expense – SCF acquisition payments   600                  
    Other operating expense   2,500     3,063     362     429     374  
    Interest expense   496     489     185     210     212  
    Total expense   4,262     3,677     547     639     586  
    Income before provision for income taxes   2,420     188     644     774     971  
    Provision for income taxes   688     53     183     218     276  
    Net income Specialty Finance segment $ 1,732   $ 135   $ 461   $ 556   $ 695  
    Weighted average shares outstanding, diluted   5,608,102     5,597,889     5,583,055     5,558,580     5,554,930  
    Diluted earnings per share attributable to Specialty Finance $ 0.31   $ 0.02   $ 0.08   $ 0.10   $ 0.13  
                                   

    Balance Sheet Review

    Northrim’s total assets were $3.14 billion at March 31, 2025, up 3% from the preceding quarter and up 14% from a year ago. Northrim’s loan-to-deposit ratio was 76% at March 31, 2025, down from 79% at December 31, 2024, and up from 74% at March 31, 2024.

    At March 31, 2025, our liquid assets, investments, and loans maturing within one year were $1.11 billion and our funds available for borrowing under our existing lines of credit were $571.7 million. Given these sources of liquidity and our expectations for customer demands for cash and for our operating cash needs, we believe our sources of liquidity to be sufficient for the foreseeable future.

    Average interest-earning assets were $2.78 billion in the first quarter of 2025, down slightly from $2.79 billion in the fourth quarter of 2024 and up 9% from $2.56 billion in the first quarter a year ago. The average yield on interest-earning assets was 6.10% in the first quarter of 2025, up slightly from 6.02% in the preceding quarter and up from 5.69% in the first quarter a year ago.

    Average investment securities decreased to $523.8 million in the first quarter of 2025, compared to $565.8 million in the fourth quarter of 2024 and $670.9 million in the first quarter a year ago. The average net tax equivalent yield on the securities portfolio was 2.97% for the first quarter of 2025, up from 2.84% in the preceding quarter and up from 2.82% in the year ago quarter. The average estimated duration of the investment portfolio at March 31, 2025, was approximately 2.4 years compared to approximately 2.7 years at March 31, 2024. As of March 31, 2025, $70.0 million of available for sale securities with a weighted average yield of 2.25% are scheduled to mature in the next six months, $80.7 million with a weighted average yield of 1.16% are scheduled to mature in six months to one year, and $168.6 million with a weighted average yield of 1.67% are scheduled to mature in the following year, representing a total of $319.4 million or 11% of earning assets that are scheduled to mature in the next 24 months.

    Total unrealized losses, net of tax, on available for sale securities decreased by $2.8 million in the first quarter of 2025 resulting in total unrealized loss, net of tax, of $5.5 million compared to $8.3 million at December 31, 2024, and $17.2 million a year ago. The average maturity of the available for sale securities with the majority of the unrealized loss is 1.3 years. Total unrealized losses on held to maturity securities were $1.1 million at March 31, 2025, compared to $1.0 million at December 31, 2024, and $3.4 million a year ago.

    Average interest bearing deposits in other banks decreased to $38.0 million in the first quarter of 2025 from $72.2 million in the fourth quarter of 2024 and decreased from $61.6 million in the first quarter of 2024, as cash was used to fund the loan growth and provide liquidity.

    Loans held for sale increased to $159.6 million at March 31, 2025, compared to $60.0 million at December 31, 2024, and $43.8 million a year ago, largely due to the reclassification of $100 million consumer mortgage loans from portfolio loans in the first quarter of 2025. Management expects to sell these loans with servicing retained which will result in an increase to mortgage servicing rights when the sale closes in the second quarter of 2025.

    Portfolio loans were $2.12 billion at March 31, 2025, consistent with the preceding quarter and up 17% from a year ago. Portfolio loans, excluding consumer mortgage loans, were $1.94 billion at March 31, 2025, up $77.4 million or 4% from the preceding quarter and up 22% from a year ago. This increase in the first quarter of 2025 was diversified throughout the loan portfolio including nonowner-occupied commercial real estate and multi-family loans increasing by $70.8 million, commercial loans increasing by $55.4 million, and commercial real estate owner-occupied loans increasing $10.4 million from the preceding quarter. These increases were partially offset by a $57.9 million decrease in construction loans. Average portfolio loans in the first quarter of 2025 were $2.17 billion, which was up 5% from the preceding quarter and up 21% from a year ago. Yields on average portfolio loans in the first quarter of 2025 decreased to 6.89% from 6.93% in the fourth quarter and increased from 6.75% in the first quarter of 2024. The decrease in the yield on portfolio loans in the first quarter of 2025 compared to the fourth quarter of 2024 is primarily due to a change in the mix of loans as construction loans decreased and commercial real estate loans increased as a percentage of the overall portfolio. The yield on new portfolio loans, excluding consumer mortgage loans, was 7.43% in the first quarter of 2025 as compared to 7.40% in the fourth quarter of 2024 and 8.39% in the first quarter of 2024.

    Northrim’s loans and credit lines are subject to approval procedures and amount limitations. These limitations apply to the borrower’s total outstanding indebtedness and commitments to us, including the indebtedness of any guarantor. Generally, Northrim is permitted to make loans to one borrower of up to 15% of the unimpaired capital and surplus of the Bank. The legal lending limit was $37.6 million at March 31, 2025. At March 31, 2025, Northrim had 23 relationships totaling $520.2 million in portfolio loans whose total direct and indirect commitments were greater than 50% of the legal lending limit.

    Alaskans continue to account for substantially all of Northrim’s deposit base. Total deposits were $2.78 billion at March 31, 2025, up 4% from $2.68 billion at December 31, 2024, and up 14% from $2.43 billion a year ago. “The increase in deposits in the first quarter of 2025 was not consistent with our customers’ normal business cycles as we normally see decreases in balances during the first quarter, however deposits from new relationships in the quarter were more than able to offset our normal seasonal deposit movement,” said Ballard. At March 31, 2025, 74% of total deposits were held in business accounts and 26% of deposit balances were held in consumer accounts. Northrim had approximately 34,000 deposit customers with an average balance of $61,000 as of March 31, 2025. Northrim had 27 customers with balances over $10 million as of March 31, 2025, which accounted for $694.7 million, or 26%, of total deposits. Demand deposits increased by 5% from the prior quarter and increased 4% from the prior year to $742.6 million at March 31, 2025. Demand deposits remained consistent at 27% of total deposits at both March 31, 2025 and December 31, 2024 and were down from 29% of total deposits at March 31, 2024. Average interest-bearing deposits were up 2% to $2.00 billion with an average cost of 2.01% in the first quarter of 2025, compared to $1.95 billion and an average cost of 2.15% in the fourth quarter of 2024, and up 16% compared to $1.73 billion and an average cost of 2.13% in the first quarter of 2024. Uninsured deposits totaled $1.04 billion or 37% of total deposits as of March 31, 2025 compared to $1.08 billion or 40% of total deposits as of December 31, 2024.

    Shareholders’ equity was $279.8 million, or $50.67 book value per share, at March 31, 2025, compared to $267.1 million, or $48.41 book value per share, at December 31, 2024 and $239.3 million, or $43.52 book value per share, a year ago. Tangible book value per share* was $41.47 at March 31, 2025, compared to $39.17 at December 31, 2024, and $40.61 per share a year ago. The increase in shareholders’ equity in the first quarter of 2025 as compared to the fourth quarter of 2024 was largely the result of earnings of $13.3 million and an increase in the fair value of the available for sale securities portfolio, which increased $5.5 million, net of tax, which were only partially offset by dividends paid of $3.6 million. The Company did not repurchase any shares of common stock in the first quarter of 2025 and currently has no plans to continue to repurchase shares. Tangible common equity to tangible assets* was 7.41% as of March 31, 2025, compared to 7.23% as of December 31, 2024 and 8.14% as of March 31, 2024. Northrim continues to maintain capital levels in excess of the requirements to be categorized as “well-capitalized” with Tier 1 Capital to Risk Adjusted Assets of 9.76% at March 31, 2025, compared to 9.76% at December 31, 2024, and 11.55% at March 31, 2024.

    Asset Quality

    Northrim believes it has a consistent lending approach throughout economic cycles, which emphasizes appropriate loan-to-value ratios, adequate debt coverage ratios, and competent management.

    Nonperforming assets (“NPAs”) net of government guarantees were $12.3 million at March 31, 2025, up from $11.6 million at December 31, 2024 and $5.4 million a year ago. Of the NPAs at March 31, 2025, $4.5 million are attributable to the Community Banking segment and $7.6 million are attributable to the Specialty Finance segment.

    Net adversely classified loans were $20.4 million at March 31, 2025, as compared to $9.6 million at December 31, 2024, and $7.2 million a year ago. Adversely classified loans are loans that Northrim has classified as substandard, doubtful, and loss, net of government guarantees. The increase in adversely classified loans, net of government guarantees, at March 31, 2025 as compared to the prior quarter and prior year is mostly attributable to two commercial relationships totaling $9.4 million. Net loan recoveries were $34,000 in the first quarter of 2025, compared to net loan recoveries of $51,000 in the fourth quarter of 2024, and net loan recoveries of $42,000 in the first quarter of 2024. Additionally, Northrim had three new loan modifications to borrowers experiencing financial difficulty totaling $813,000, for a total of 14 totaling $3.8 million, net of government guarantees in the first quarter of 2025.

    Northrim had $140.7 million, or 7% of portfolio loans, in the Healthcare sector, $122.5 million, or 6% of portfolio loans, in the Tourism sector, $110.9 million, or 5% of portfolio loans, in the Accommodations sector, $91.2 million, or 4% of portfolio loans, in the Retail sector, $85.7 million, or 4% of portfolio loans, in the Aviation (non-tourism) sector, $75.5 million, or 4% of portfolio loans, in the Fishing sector, and $60.2 million, or 3% in the Restaurants and Breweries sector as of March 31, 2025.

    Northrim estimates that $106.3 million, or approximately 5% of portfolio loans, had direct exposure to the oil and gas industry in Alaska, as of March 31, 2025, and $1.5 million of these loans are adversely classified. As of March 31, 2025, Northrim has an additional $32.6 million in unfunded commitments to companies with direct exposure to the oil and gas industry in Alaska, and no unfunded commitments on adversely classified loans. Northrim defines direct exposure to the oil and gas sector as loans to borrowers that provide oilfield services and other companies that have been identified as significantly reliant upon activity in Alaska related to the oil and gas industry, such as lodging, equipment rental, transportation and other logistics services specific to this industry.

    About Northrim BanCorp

    Northrim BanCorp, Inc. is the parent company of Northrim Bank, an Alaska-based community bank with 20 branches throughout the state and differentiates itself with its detailed knowledge of Alaska’s economy and its “Customer First Service” philosophy. The Bank has two wholly-owned subsidiaries, Sallyport Commercial Finance, LLC, a specialty finance company and Residential Mortgage Holding Company, LLC, a regional home mortgage company. Pacific Wealth Advisors, LLC is an affiliated company.

    www.northrim.com

    Forward-Looking Statement
    This release may contain “forward-looking statements” as that term is defined for purposes of Section 21E of the Securities Exchange Act of 1934, as amended. These statements are, in effect, management’s attempt to predict future events, and thus are subject to various risks and uncertainties. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. All statements, other than statements of historical fact, regarding our financial position, business strategy, management’s plans and objectives for future operations are forward-looking statements. When used in this report, the words “anticipate,” “believe,” “estimate,” “expect,” and “intend” and words or phrases of similar meaning, as they relate to Northrim and its management are intended to help identify forward-looking statements. Although we believe that management’s expectations as reflected in forward-looking statements are reasonable, we cannot assure readers that those expectations will prove to be correct. Forward-looking statements, are subject to various risks and uncertainties that may cause our actual results to differ materially and adversely from our expectations as indicated in the forward-looking statements. These risks and uncertainties include: descriptions of Northrim’s and Sallyport’s financial condition, results of operations, asset based lending volumes, asset and credit quality trends and profitability and statements about the expected financial benefits and other effects of the acquisition of Sallyport by Northrim Bank; expected cost savings, synergies and other financial benefits from the acquisition of Sallyport by Northrim Bank might not be realized within the expected time frames and costs or difficulties relating to integration matters might be greater than expected; the ability of Northrim and Sallyport to execute their respective business plans; potential further increases in interest rates; the value of securities held in our investment portfolio; the impact of the results of government initiatives, including tariffs, on the regulatory landscape, natural resource extraction industries, and capital markets; the impact of declines in the value of commercial and residential real estate markets, high unemployment rates, inflationary pressures and slowdowns in economic growth; changes in banking regulation or actions by bank regulators; potential further increases in inflation, supply-chain constraints, and potential geopolitical instability, including the wars in Ukraine and the Middle East; financial stress on borrowers (consumers and businesses) as a result of higher rates or an uncertain economic environment; the general condition of, and changes in, the Alaska economy; our ability to maintain or expand our market share or net interest margin; the sufficiency of our allowance for credit losses and the accuracy of the assumptions or estimates used in preparing our financial statements, including those related to current expected credit losses accounting guidance; our ability to maintain asset quality; our ability to implement our marketing and growth strategies; our ability to identify and address cyber-security risks, including security breaches, “denial of service attacks,” “hacking,” and identity theft; disease outbreaks; and our ability to execute our business plan. Further, actual results may be affected by competition on price and other factors with other financial institutions; customer acceptance of new products and services; the regulatory environment in which we operate; and general trends in the local, regional and national banking industry and economy. In addition, there are risks inherent in the banking industry relating to collectability of loans and changes in interest rates. Many of these risks, as well as other risks that may have a material adverse impact on our operations and business, are identified in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and from time to time are disclosed in our other filings with the Securities and Exchange Commission. However, you should be aware that these factors are not an exhaustive list, and you should not assume these are the only factors that may cause our actual results to differ from our expectations. These forward-looking statements are made only as of the date of this release, and Northrim does not undertake any obligation to release revisions to these forward-looking statements to reflect events or conditions after the date of this release.

    References:

    https://www.bea.gov/

    http://almis.labor.state.ak.us/

    http://www.tax.alaska.gov/programs/oil/prevailing/ans.aspx

    http://www.tax.state.ak.us/

    www.mba.org

    https://www.alaskarealestate.com/MLSMember/RealEstateStatistics.aspx

    https://www.akleg.gov/basis/Bill/Text/34?Hsid=HJR011C

    https://www.uschamber.com/assets/static/maps/international-trade/AK_Chamber_2024.pdf

    https://tax.alaska.gov/programs/programs/reports/RSB.aspx?Year=2025&Type=Spring

    https://www.capitaliq.spglobal.com/web/client?auth=inherit&overridecdc=1&#markets/indexFinancials

    Income Statement      
    (Dollars in thousands, except per share data) Three Months Ended
    (Unaudited) March 31, December 31, March 31,
        2025     2024     2024  
    Interest Income:      
    Interest and fees on loans $ 37,470   $ 37,059   $ 30,450  
    Interest on portfolio investments   3,675     3,844     4,520  
    Interest on deposits in banks   416     883     838  
    Total interest income   41,561     41,786     35,808  
    Interest Expense:      
    Interest expense on deposits   9,935     10,568     9,180  
    Interest expense on borrowings   329     377     181  
    Total interest expense   10,264     10,945     9,361  
    Net interest income   31,297     30,841     26,447  
           
    (Benefit) provision for credit losses   (1,409 )   1,201     149  
    Net interest income after provision for credit losses   32,706     29,640     26,298  
           
    Other Operating Income:      
    Purchased receivable income   6,150     3,526     1,345  
    Mortgage banking income   5,411     7,040     4,031  
    Bankcard fees   1,074     1,148     917  
    Service charges on deposit accounts   677     622     549  
    Unrealized gain (loss) on marketable equity securities   (50 )   (364 )   314  
    Other income   938     949     688  
    Total other operating income   14,200     13,033     7,844  
           
    Other Operating Expense:      
    Salaries and other personnel expense   17,223     18,254     15,417  
    Data processing expense   3,104     3,108     2,659  
    Occupancy expense   1,889     1,893     1,962  
    Professional and outside services   1,115     1,967     755  
    Insurance expense   1,017     894     779  
    Marketing expense   672     965     513  
    Compensation expense – SCF acquisition payments   600          
    OREO expense, net rental income and gains on sale   3     2     (391 )
    Other operating expense   3,708     2,294     1,944  
    Total other operating expense   29,331     29,377     23,638  
           
    Income before provision for income taxes   17,575     13,296     10,504  
    Provision for income taxes   4,251     2,369     2,305  
    Net income $ 13,324   $ 10,927   $ 8,199  
           
    Basic EPS $ 2.41   $ 1.99   $ 1.49  
    Diluted EPS $ 2.38   $ 1.95   $ 1.48  
    Weighted average shares outstanding, basic   5,519,998     5,509,078     5,499,578  
    Weighted average shares outstanding, diluted   5,608,102     5,597,889     5,554,930  
                       
    Balance Sheet      
    (Dollars in thousands)      
    (Unaudited) March 31, December 31, March 31,
        2025     2024     2024  
           
    Assets:      
    Cash and due from banks $ 29,671   $ 42,101   $ 30,159  
    Interest bearing deposits in other banks   35,852     20,635     50,205  
    Investment securities available for sale, at fair value   463,096     478,617     592,479  
    Investment securities held to maturity   36,750     36,750     36,750  
    Marketable equity securities, at fair value   8,669     8,719     13,467  
    Investment in Federal Home Loan Bank stock   5,342     5,331     3,236  
    Loans held for sale   159,603     59,957     43,818  
           
    Portfolio loans   2,124,330     2,129,263     1,811,135  
    Allowance for credit losses, loans   (20,922 )   (22,020 )   (17,533 )
    Net portfolio loans   2,103,408     2,107,243     1,793,602  
    Purchased receivables, net   95,489     74,078     37,698  
    Mortgage servicing rights, at fair value   26,814     26,439     20,055  
    Other real estate owned, net            
    Premises and equipment, net   37,070     37,757     40,836  
    Lease right of use asset   7,632     7,455     8,867  
    Goodwill and intangible assets   50,824     50,968     15,967  
    Other assets   80,740     85,819     72,421  
    Total assets $ 3,140,960   $ 3,041,869   $ 2,759,560  
           
    Liabilities:      
    Demand deposits $ 742,560   $ 706,225   $ 714,244  
    Interest-bearing demand   1,187,465     1,108,404     889,581  
    Savings deposits   256,650     250,900     246,902  
    Money market deposits   193,842     196,290     209,785  
    Time deposits   397,460     418,370     373,571  
    Total deposits   2,777,977     2,680,189     2,434,083  
    Other borrowings   13,136     23,045     13,569  
    Junior subordinated debentures   10,310     10,310     10,310  
    Lease liability   7,682     7,487     8,884  
    Other liabilities   52,099     53,722     53,387  
    Total liabilities   2,861,204     2,774,753     2,520,233  
           
    Shareholders’ Equity:      
    Total shareholders’ equity   279,756     267,116     239,327  
    Total liabilities and shareholders’ equity $ 3,140,960   $ 3,041,869   $ 2,759,560  
           

    Additional Financial Information
    (Dollars in thousands)
    (Unaudited)

    Composition of Portfolio Loans                        
      March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
      Balance % of total   Balance % of total   Balance % of total   Balance % of total   Balance % of total
    Commercial loans $ 573,593   27 %   $ 518,148   24 %   $ 492,414   24 %   $ 495,781   26 %   $ 475,220   26 %
    Commercial real estate:                            
    Owner occupied properties   430,442   20 %     420,060   20 %     412,827   20 %     383,832   20 %     372,507   20 %
    Nonowner occupied and multifamily properties   690,277   32 %     619,431   29 %     584,302   31 %     551,130   30 %     529,904   30 %
    Residential real estate:                            
    1-4 family properties secured by first liens   188,219   9 %     270,535   13 %     248,514   12 %     222,026   12 %     218,552   12 %
    1-4 family properties secured by junior liens & revolving secured by first liens   53,836   3 %     48,857   2 %     45,262   2 %     41,258   2 %     35,460   2 %
    1-4 family construction   34,017   2 %     39,789   2 %     39,794   2 %     29,510   2 %     27,751   2 %
    Construction loans   156,211   7 %     214,068   10 %     185,362   9 %     154,009   8 %     153,537   8 %
    Consumer loans   7,424   %     7,562   %     7,836   %     6,679   %     6,444   %
    Subtotal   2,134,019         2,138,450         2,016,311         1,884,225         1,819,375    
    Unearned loan fees, net   (9,689 )       (9,187 )       (8,746 )       (8,318 )       (8,240 )  
    Total portfolio loans $ 2,124,330       $ 2,129,263       $ 2,007,565       $ 1,875,907       $ 1,811,135    
                                 
    Composition of Deposits                        
      March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
      Balance % of total   Balance % of total   Balance % of total   Balance % of total   Balance % of total
    Demand deposits $ 742,560   27 %   $ 706,225   27 %   $ 763,595   29 %   $ 704,471   29 %   $ 714,244   29 %
    Interest-bearing demand   1,187,465   43 %     1,108,404   41 %     979,238   37 %     906,010   36 %     889,581   37 %
    Savings deposits   256,650   9 %     250,900   9 %     245,043   9 %     238,156   10 %     246,902   10 %
    Money market deposits   193,842   7 %     196,290   7 %     204,821   8 %     195,159   8 %     209,785   9 %
    Time deposits   397,460   14 %     418,370   16 %     435,870   17 %     420,010   17 %     373,571   15 %
    Total deposits $ 2,777,977       $ 2,680,189       $ 2,628,567       $ 2,463,806       $ 2,434,083    
                                                     

    Additional Financial Information
    (Dollars in thousands)
    (Unaudited)

    Asset Quality March 31,   December 31,   March 31,
        2025       2024       2024  
    Nonaccrual loans – Community Banking $ 4,274     $ 4,337     $ 4,472  
    Nonaccrual loans – Home Mortgage Lending   221       233       263  
    Nonaccrual loans – Specialty Finance   3,573       2,946       525  
    Nonaccrual loans – Total   8,068       7,516       5,260  
    Loans 90 days past due and accruing – Community Banking         17        
    Loans 90 days past due and accruing – Total         17        
    Total nonperforming loans – Community Banking   4,274       4,354       4,472  
    Total nonperforming loans – Home Mortgage Lending   221       233       263  
    Total nonperforming loans – Specialty Finance   3,573       2,946       525  
    Total nonperforming loans – Total   8,068       7,533       5,260  
    Nonperforming loans guaranteed by gov’t – Community Banking   80              
    Nonperforming loans guaranteed by gov’t – Total   80              
    Net nonperforming loans – Community Banking   4,194       4,354       4,472  
    Net nonperforming loans – Home Mortgage Lending   221       233       263  
    Net nonperforming loans – Specialty Finance   3,573       2,946       525  
    Net nonperforming loans – Total   7,988       7,533       5,260  
                 
    Repossessed assets – Community Banking   297       297        
    Repossessed assets – Total   297       297        
                 
    Nonperforming purchased receivables – Specialty Finance   4,007       3,768       183  
                 
    Net nonperforming assets – Community Banking   4,491       4,651       4,472  
    Net nonperforming assets – Home Mortgage Lending   221       233       263  
    Net nonperforming assets – Specialty Finance   7,580       6,714       708  
    Net nonperforming assets – Total $ 12,292     $ 11,598     $ 5,443  
                 
    Adversely classified loans, net of gov’t guarantees – Community Banking $ 16,592     $ 6,332     $ 6,374  
    Adversely classified loans, net of gov’t guarantees – Home Mortgage Lending   252       358       307  
    Adversely classified loans, net of gov’t guarantees – Specialty Finance   3,573       2,946       525  
    Adversely classified loans, net of gov’t guarantees – Total $ 20,417     $ 9,636     $ 7,206  
                 
    Special mention loans, net of gov’t guarantees – Community Banking $ 14,496     $ 19,769     $ 9,976  
    Special mention loans, net of gov’t guarantees – Home Mortgage Lending   637              
    Special mention loans, net of gov’t guarantees – Total $ 15,133     $ 19,769     $ 9,976  
                           
    Asset Quality, Continued March 31, December 31, March 31,
        2025     2024     2024  
    Nonperforming loans, net of government guarantees / portfolio loans   0.38 %   0.35 %   0.29 %
    Nonperforming loans, net of government guarantees / portfolio loans, net of government guarantees   0.40 %   0.38 %   0.31 %
    Nonperforming assets, net of government guarantees / total assets   0.39 %   0.38 %   0.20 %
    Nonperforming assets, net of government guarantees / total assets net of government guarantees   0.41 %   0.40 %   0.20 %
                 
    Loans 30-89 days past due and accruing, net of government guarantees / portfolio loans   0.04 %   0.11 %   0.03 %
    Loans 30-89 days past due and accruing, net of government guarantees / portfolio loans, net of government guarantees   0.04 %   0.11 %   0.04 %
                 
    Allowance for credit losses for loans / portfolio loans   0.98 %   1.03 %   0.97 %
    Allowance for credit losses for loans / portfolio loans, net of gov’t guarantees   1.06 %   1.10 %   1.03 %
    Allowance for credit losses for loans / nonperforming loans, net of government guarantees   262 %   292 %   333 %
                 
    Gross loan charge-offs for the quarter – Community Banking $ 50   $ 44   $ 25  
    Gross loan charge-offs for the quarter – Specialty Finance       105      
    Gross loan charge-offs for the quarter – Total   50     149     25  
                 
    Gross loan recoveries for the quarter – Community Banking   (84 )   (200 )   (67 )
    Gross loan recoveries for the quarter – Home Mortgage Lending            
    Gross loan recoveries for the quarter – Specialty Finance            
    Gross loan recoveries for the quarter – Total $ (84 ) $ (200 ) $ (67 )
                 
    Net loan (recoveries) charge-offs for the quarter – Community Banking $ (34 ) $ (156 ) $ (42 )
    Net loan (recoveries) charge-offs for the quarter – Specialty Finance       (105 )    
    Net loan (recoveries) charge-offs for the quarter – Total $ (34 ) $ (51 ) $ (42 )
                 
    Net loan charge-offs (recoveries) for the quarter / average loans, for the quarter   %   %   %
                 
    Allowance for credit losses for purchased receivables / purchased receivables   3.72 %   4.69 %   %
                 
    Net purchased receivable charge-offs (recoveries) for the quarter $   $   $  
                 

    Additional Financial Information
    (Dollars in thousands)
    (Unaudited)

    Average Balances, Yields, and Rates                
      Three Months Ended
      March 31, 2025   December 31, 2024   March 31, 2024
        Average     Average     Average
      Average Tax Equivalent   Average Tax Equivalent   Average Tax Equivalent
      Balance Yield/Rate   Balance Yield/Rate   Balance Yield/Rate
    Assets                
    Interest bearing deposits in other banks $ 37,969   4.44 %   $ 72,212   4.72 %   $ 61,561   5.38 %
    Portfolio investments   523,753   2.97 %     565,785   2.84 %     670,937   2.82 %
    Loans held for sale   46,223   5.86 %     83,304   5.97 %     32,635   6.13 %
    Portfolio loans   2,173,425   6.89 %     2,066,216   6.93 %     1,793,425   6.75 %
    Total interest-earning assets   2,781,370   6.10 %     2,787,517   6.02 %     2,558,558   5.69 %
    Nonearning assets   293,415         251,364         201,137    
    Total assets $ 3,074,785       $ 3,038,881       $ 2,759,695    
                     
    Liabilities and Shareholders’ Equity                
    Interest-bearing deposits $ 2,002,594   2.01 %   $ 1,954,495   2.15 %   $ 1,731,923   2.13 %
    Borrowings   37,081   3.55 %     29,251   3.95 %     23,944   2.95 %
    Total interest-bearing liabilities   2,039,675   2.04 %     1,983,746   2.18 %     1,755,867   2.14 %
                     
    Noninterest-bearing demand deposits   697,534         738,911         705,134    
    Other liabilities   63,348         49,815         60,407    
    Shareholders’ equity   274,228         266,409         238,287    
    Total liabilities and shareholders’ equity $ 3,074,785       $ 3,038,881       $ 2,759,695    
    Net spread   4.06 %     3.84 %     3.55 %
    NIM   4.55 %     4.41 %     4.16 %
    NIMTE*   4.61 %     4.47 %     4.22 %
    Cost of funds   1.52 %     1.59 %     1.53 %
    Average portfolio loans to average interest-earning assets   78.14 %       74.12 %       70.10 %  
    Average portfolio loans to average total deposits   80.49 %       76.71 %       73.59 %  
    Average non-interest deposits to average total deposits   25.83 %       27.43 %       28.93 %  
    Average interest-earning assets to average interest-bearing liabilities   136.36 %       140.52 %       145.71 %  
                                 

    Additional Financial Information
    (Dollars in thousands, except per share data)
    (Unaudited)

    Capital Data (At quarter end)          
      March 31, 2025   December 31, 2024   March 31, 2024
    Book value per share $ 50.67     $ 48.41     $ 43.52  
    Tangible book value per share* $ 41.47     $ 39.17     $ 40.61  
    Total shareholders’ equity/total assets   8.91 %     8.78 %     8.67 %
    Tangible Common Equity/Tangible Assets*   7.41 %     7.23 %     8.14 %
    Tier 1 Capital / Risk Adjusted Assets   9.76 %     9.76 %     11.55 %
    Total Capital / Risk Adjusted Assets   10.62 %     10.94 %     12.47 %
    Tier 1 Capital / Average Assets   8.02 %     7.68 %     9.01 %
    Shares outstanding   5,520,892       5,518,210       5,499,578  
    Total unrealized loss on AFS debt securities, net of income taxes $ (5,452 )   $ (8,295 )   $ (17,205 )
    Total unrealized gain on derivatives and hedging activities, net of income taxes $ 1,097     $ 1,272     $ 1,172  
                           
    Profitability Ratios                            
      March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
    For the quarter:                            
    NIM 4.55 %   4.41 %   4.29 %   4.24 %   4.16 %
    NIMTE* 4.61 %   4.47 %   4.35 %   4.30 %   4.22 %
    Efficiency ratio 64.47 %   66.96 %   66.11 %   68.78 %   68.93 %
    Return on average assets 1.76 %   1.43 %   1.22 %   1.31 %   1.19 %
    Return on average equity 19.70 %   16.32 %   13.69 %   14.84 %   13.84 %

    *Non-GAAP Financial Measures
    (Dollars and shares in thousands, except per share data)
    (Unaudited)

    Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although we believe these non-GAAP financial measures are frequently used by stakeholders in the evaluation of the Company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of results as reported under GAAP.

    Net interest margin on a tax equivalent basis

    Net interest margin on a tax equivalent basis (“NIMTE”) is a non-GAAP performance measurement in which interest income on non-taxable investments and loans is presented on a tax equivalent basis using a combined federal and state statutory rate of 28.43% in both 2025 and 2024. The most comparable GAAP measure is net interest margin and the following table sets forth the reconciliation of NIMTE to net interest margin for the periods indicated.

      Three Months Ended
      March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
    Net interest income $ 31,297     $ 30,841     $ 28,842     $ 27,053     $ 26,447  
    Divided by average interest-bearing assets   2,781,370       2,787,517       2,674,291       2,568,266       2,558,558  
    Net interest margin (“NIM”)2   4.55 %     4.41 %     4.29 %     4.24 %     4.16 %
                       
    Net interest income $ 31,297     $ 30,841     $ 28,842     $ 27,053     $ 26,447  
    Plus: reduction in tax expense related to tax-exempt interest income   379       379       385       378       379  
      $ 31,676     $ 31,220     $ 29,227     $ 27,431     $ 26,826  
    Divided by average interest-bearing assets   2,781,370       2,787,517       2,674,291       2,568,266       2,558,558  
    NIMTE2   4.61 %     4.47 %     4.35 %     4.30 %     4.22 %
                                           

    2Calculated using actual days in the quarter divided by 365 for the quarters ended in 2025 and 366 for the quarters ended in 2024, respectively.

    *Non-GAAP Financial Measures
    (Dollars and shares in thousands, except per share data)
    (Unaudited)

    Tangible Book Value Per Share

    Tangible book value per share is a non-GAAP measure defined as shareholders’ equity, less intangible assets, divided by shares outstanding. The most comparable GAAP measure is book value per share and the following table sets forth the reconciliation of tangible book value per share and book value per share for the periods indicated.

      March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
                       
    Total shareholders’ equity $ 279,756     $ 267,116     $ 260,050     $ 247,200     $ 239,327  
    Divided by shares outstanding   5,521       5,518       5,502       5,502       5,500  
    Book value per share $ 50.68     $ 48.41     $ 47.26     $ 44.93     $ 43.52  
                                           
      March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
                       
    Total shareholders’ equity $ 279,756     $ 267,116     $ 260,050     $ 247,200     $ 239,327  
    Less: goodwill and intangible assets   50,824       50,968       15,967       15,967       15,967  
      $ 228,932     $ 216,148     $ 244,083     $ 231,233     $ 223,360  
    Divided by shares outstanding   5,521       5,518       5,502       5,502       5,500  
    Tangible book value per share $ 41.47     $ 39.17     $ 44.36     $ 42.03     $ 40.61  
                                           

    Tangible Common Equity to Tangible Assets

    Tangible common equity to tangible assets is a non-GAAP ratio that represents total equity less goodwill and intangible assets divided by total assets less goodwill and intangible assets. The most comparable GAAP measure of shareholders’ equity to total assets is calculated by dividing total shareholders’ equity by total assets and the following table sets forth the reconciliation of tangible common equity to tangible assets and shareholders’ equity to total assets for the periods indicated.

    Northrim BanCorp, Inc. March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
                       
    Total shareholders’ equity $ 279,756     $ 267,116     $ 260,050     $ 247,200     $ 239,327  
    Total assets   3,140,960       3,041,869       2,963,392       2,821,668       2,759,560  
    Total shareholders’ equity to total assets   8.91 %     8.78 %     8.78 %     8.76 %     8.67 %
    Northrim BanCorp, Inc. March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
    Total shareholders’ equity $ 279,756     $ 267,116     $ 260,050     $ 247,200     $ 239,327  
    Less: goodwill and other intangible assets, net   50,824       50,968       15,967       15,967       15,967  
    Tangible common shareholders’ equity $ 228,932     $ 216,148     $ 244,083     $ 231,233     $ 223,360  
                       
    Total assets $ 3,140,960     $ 3,041,869     $ 2,963,392     $ 2,821,668     $ 2,759,560  
    Less: goodwill and other intangible assets, net   50,824       50,968       15,967       15,967       15,967  
    Tangible assets $ 3,090,136     $ 2,990,901     $ 2,947,425     $ 2,805,701     $ 2,743,593  
    Tangible common equity ratio   7.41 %     7.23 %     8.28 %     8.24 %     8.14 %
                                           
    Contact:     Mike Huston, President, CEO, and COO
    (907) 261-8750
    Jed Ballard, Chief Financial Officer
    (907) 261-3539
         

    Note Transmitted on GlobeNewswire on April 23, 2025, at 12:15 pm Alaska Standard Time.

    The MIL Network

  • MIL-OSI: United Nations Alliance of Civilizations Meeting in Geneva Concludes with Key Recommendations on AI Governance and Launches HUMAN-AI-T: A Global Initiative to Integrate Humanity into Artificial Intelligence

    Source: GlobeNewswire (MIL-OSI)

    United Nations Alliance of Civilizations Meeting in Geneva Concludes with Key Recommendations on AI Governance and Launches HUMAN-AI-T: A Global Initiative to Integrate Humanity into Artificial Intelligence
    UNAOC AI for #OneHumanity: Human-Centered Artificial Intelligence

    Geneva, Switzerland – April 23, 2025 –WISeKey International Holding Ltd (“WISeKey”) (SIX: WIHN, NASDAQ: WKEY), a leading global cybersecurity, blockchain, and IoT company, today announces that United Nations Alliance of Civilizations meeting in Geneva concludes with key recommendations on AI Governance and launches HUMAN-AI-T.

    Staying true to its founding motto “Many cultures, one humanity,” the United Nations Alliance of Civilizations (UNAOC), established in 2005 by then UN Secretary-General Kofi Annan, continues to promote cultural diversity, interfaith dialogue, and mutual respect. Today, these foundational principles are essential to shaping the future of artificial intelligence.

    At a high-level meeting held at the United Nations Office in Geneva, UNAOC and its public and private sector partners launched HUMAN-AI-T, a transformative global initiative designed to align the evolution of artificial intelligence with universal ethical values, cultural heritage, and human dignity.

    Building on the momentum of its two previous editions, the third “AI for #OneHumanity” summit gathered a diverse group of global actors—governments, international organizations, business leaders, innovators, academics, media, and civil society—to explore pathways toward inclusive and responsible AI development in the service of the common good.

    Organized by UNAOC in collaboration with the Onuart Foundation, the two-day forum featured thematic sessions on the role of AI in intercultural dialogue, sustainable development, and collective human progress, while addressing critical issues such as cultural bias, AI governance, and equitable access.

    Notable participants from Spain included:

    • José Manuel Albares, Minister of Foreign Affairs, European Union and Cooperation of Spain;
    • Miguel Ángel Moratinos, former Foreign Minister and current High Representative of UNAOC;
    • José Luis Rodríguez Zapatero, former Prime Minister of Spain and President of the Advisory Board of the Onuart Foundation.

    Key Points:

    1. Ethical AI Governance:
      Minister Albares emphasized the urgent need for ethical AI development rooted in human rights. He announced Spain’s intention to propose a national Artificial Intelligence Governance Law, aimed at ensuring AI applications respect fundamental rights and prioritize dignity, inclusion, and human-centered innovation through multilateral frameworks.
    2. Global Cooperation and Risks:
      Albares warned of the growing dangers of misinformation and the irresponsible use of autonomous military technologies. He called for greater UN involvement to ensure no one is left behind and to maintain a fair and balanced multilateral system in AI development and regulation.
    3. Moratinos’ Concerns:
      Miguel Ángel Moratinos highlighted the risk of AI deepening global inequality or undermining shared values. He stressed that AI is no longer a future issue—it is already at the heart of our communications, economies, and daily lives, and urgently requires global oversight guided by human dignity.
    4. Zapatero’s Message:
      In a video message, José Luis Rodríguez Zapatero expressed optimism about AI’s potential to address humanity’s most urgent needs: peace, democracy, and the eradication of poverty. “We are at a turning point,” he said. “Artificial intelligence must be a tool for peace and social justice. It must help us end hunger, combat inequality, and strengthen democratic values. Let’s ensure that AI, like every great human creation, serves to elevate the human spirit.”

    The opening session, titled “Towards One Humanity: Human-Centered Development Supported by AI,” featured remarks by Moratinos, Dr. José Luis Bonet Ferrer (President of the Onuart Foundation), and Rima Al-Chikh (UNOG), followed by opening addresses from Minister Albares, H.E. Burak Akçapar, Permanent Representative of Türkiye, and former President Zapatero.

    A main session on ethical and equitable AI included insights from David Carmona (VP & CTO of Microsoft), Carlos Moreira (CEO of WISeKey), Francisco Hortigüela (President of Ametic), Moulaye Bouamatou (President of Banque de Mauritanie), and Julian Isla (President of Fundación29), moderated by Fernando Zallo from the Onuart Foundation.

    Other panels focused on the inclusive future of AI, with contributions from Bilel Jamoussi (ITU), Jon Hernández, Enrique Arribas, Alberto Díez, Loida Peral, Matthew Griffin, Danilo McGarry, and Yujun Pian, moderated by Julie Ladanan of UNAOC.

    The session “Artificial Intelligence: Transforming Human Identity and Behavior in the Digital Age” featured video contributions from Dr. Rafael Yuste, Director of Columbia University’s NeuroTechnology Center and President of the NeuroRights Foundation, and Jared Genser, General Counsel of the same foundation. The session was moderated by Juan Carlos Gutiérrez of the Onuart Foundation.

    A complementary session on “AI and Media in the Information Age” addressed challenges such as disinformation and hate speech, with contributions from Catherine Bokonga-Fiankan (President of the Association of UN Correspondents in Geneva), Yfat Barak-Cheney (World Jewish Congress), Eduardo Solana (University of Geneva), Axel Hörger (former CEO of UBS Germany), Lluis Vilella (CEO of K-BOX), Sixtine Crutchfield (Art Director at WiseArt), filmmaker Devy Man, and music writer Soren Sorensen (aka Dorian Gray), moderated by Nihal Saad, Director of UNAOC.

    The HUMAN-AI-T initiative was presented as a secure and globally accessible digital platform to preserve humanity’s ethical, philosophical, and cultural legacy. Inspired by the Svalbard Global Seed Vault, it will function as an ethical digital vault, housing verified content—from religious texts and philosophical works to legal codes, international treaties, and indigenous knowledge—digitally signed and protected by post-quantum cryptographic technologies to ensure long-term trust, traceability, and integrity.

    As general artificial intelligence (AGI) and quantum computing advance, HUMAN-AI-T responds to the increasing ethical risks posed by superintelligent systems by anchoring AI development in shared human values and global moral frameworks. The initiative aligns with the UN General Assembly resolution on safe and trustworthy AI, aiming to make AI a platform for inclusion, cooperation, and ethical progress.

    “At the heart of AI must be the heart of humanity,” emphasized Miguel Ángel Moratinos. “This is not just a technological issue—it is a civilizational imperative. We must develop AI to serve people, not the other way around. That requires an inclusive model centered on dignity.”

    Dr. Bonet Ferrer added: “For AI to truly contribute to human progress, we must incorporate the spirit of One Humanity into its design and governance. Technology must unite us, honor our diversity, and strengthen our shared destiny.”

    Jared Genser also highlighted: “As neurotechnologies and AI converge, we must update human rights frameworks to protect mental sovereignty. HUMAN-AI-T is an urgent ethical safeguard anchoring these tools in principles from the outset.”

    Carlos Moreira, founder and CEO of WISeKey, concluded: “We are approaching a threshold where machines may surpass human intelligence. If we do not act now, we risk losing control over the values embedded in these systems. HUMAN-AI-T is our response: to ensure that the intelligence we build remains deeply human—now and for future generations.”

    Finally, Che Fu, founder and president of the World Public Economic Organization (WPEO) and president of the East-West Cultural Exchange Promotion Agency of Sichuan, remarked: “Artificial intelligence has a unique power to build bridges between civilizations. It is a new language of humanity—one that must be shaped with ethics and cultural understanding. We must come together, East and West, to ensure this technology connects us. I warmly invite the UN Alliance of Civilizations to hold the 4th AI for #OneHumanity Conference in China on January 20, 2026, where we can continue this global dialogue and strengthen our shared commitment to a human-centered digital future.”

    The event concluded with closing reflections from H.E. Mr. Moratinos and Dr. Bonet Ferrer, marking the beginning of a new chapter in the evolution of AI—one guided not only by algorithms and code, but by consciousness, cooperation, and compassion.

    #HUMANAIT #QuantumRisks #AGI #AIForGood #OneHumanity #TrustworthyAI #EthicalAI #China2026

    About WISeKey

    WISeKey International Holding Ltd (“WISeKey”, SIX: WIHN; Nasdaq: WKEY) is a global leader in cybersecurity, digital identity, and IoT solutions platform. It operates as a Swiss-based holding company through several operational subsidiaries, each dedicated to specific aspects of its technology portfolio. The subsidiaries include (i) SEALSQ Corp (Nasdaq: LAES), which focuses on semiconductors, PKI, and post-quantum technology products, (ii) WISeKey SA which specializes in RoT and PKI solutions for secure authentication and identification in IoT, Blockchain, and AI, (iii) WISeSat AG which focuses on space technology for secure satellite communication, specifically for IoT applications, (iv) WISe.ART Corp which focuses on trusted blockchain NFTs and operates the WISe.ART marketplace for secure NFT transactions, and (v) SEALCOIN AG which focuses on decentralized physical internet with DePIN technology and house the development of the SEALCOIN platform.

    Each subsidiary contributes to WISeKey’s mission of securing the internet while focusing on their respective areas of research and expertise. Their technologies seamlessly integrate into the comprehensive WISeKey platform. WISeKey secures digital identity ecosystems for individuals and objects using Blockchain, AI, and IoT technologies. With over 1.6 billion microchips deployed across various IoT sectors, WISeKey plays a vital role in securing the Internet of Everything. The company’s semiconductors generate valuable Big Data that, when analyzed with AI, enable predictive equipment failure prevention. Trusted by the OISTE/WISeKey cryptographic Root of Trust, WISeKey provides secure authentication and identification for IoT, Blockchain, and AI applications. The WISeKey Root of Trust ensures the integrity of online transactions between objects and people. For more information on WISeKey’s strategic direction and its subsidiary companies, please visit www.wisekey.com.

    Disclaimer
    This communication expressly or implicitly contains certain forward-looking statements concerning WISeKey International Holding Ltd and its business. Such statements involve certain known and unknown risks, uncertainties and other factors, which could cause the actual results, financial condition, performance or achievements of WISeKey International Holding Ltd to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. WISeKey International Holding Ltd is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise.

    This press release does not constitute an offer to sell, or a solicitation of an offer to buy, any securities, and it does not constitute an offering prospectus within the meaning of the Swiss Financial Services Act (“FinSA”), the FinSa’s predecessor legislation or advertising within the meaning of the FinSA. Investors must rely on their own evaluation of WISeKey and its securities, including the merits and risks involved. Nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of WISeKey.

    Press and Investor Contacts

    WISeKey International Holding Ltd
    Company Contact: Carlos Moreira
    Chairman & CEO
    Tel: +41 22 594 3000
    info@wisekey.com 
    WISeKey Investor Relations (US) 
    The Equity Group Inc.
    Lena Cati
    Tel: +1 212 836-9611
    lcati@equityny.com

    The MIL Network

  • MIL-OSI Video: IMF Seminar: Pathways to Prosperity: Policies and Partnerships for Success

    Source: International Monetary Fund – IMF (video statements)

    While the path of progress is rarely easy, some countries have successfully turned moments of adversity into opportunities for lasting economic progress and better outcomes for people.

    To hear more about the policies and partnerships that make a difference, join us for a seminar discussion with IMF Deputy Managing Director Nigel Clarke, Minister of Economy and Finance of Greece Kyriakos Pierrakakis, Minister of Economy and Finance of Paraguay Carlos Fernandez Valdovinos, Minister of Economy and Finance of Benin Romuald Wadagni, and President Emeritus of the Center for Global Development Masood Ahmed.

    https://www.youtube.com/watch?v=BmAblYJ5KK0

    MIL OSI Video

  • MIL-OSI Europe: REPORT on discharge in respect of the implementation of the general budget of the European Union for the financial year 2023, Section VII – Committee of the Regions – A10-0046/2025

    Source: European Parliament

    2. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

    with observations forming an integral part of the decision on discharge in respect of the implementation of the general budget of the European Union for the financial year 2023, Section VII – Committee of the Regions

    (2024/2026(DEC))

    The European Parliament,

     having regard to its decision on discharge in respect of the implementation of the general budget of the European Union for the financial year 2023, Section VII – Committee of the Regions,

     having regard to Rule 102 of and Annex V to its Rules of Procedure,

     having regard to the report of the Committee on Budgetary Control (A10-0046/2025),

    A. whereas in the context of the discharge procedure, the discharge authority wishes to stress the particular importance of further strengthening the democratic legitimacy of the Union institutions by improving transparency and accountability, and implementing the concept of performance-based budgeting and good governance of human resources;

    B. whereas the Committee of the Regions (the ‘Committee’) is a political assembly of 329 members elected in the regions, cities, villages and municipalities of the 27 Member States of the Union, operating as a consultative body for the Union institutions, with the mission of contributing to the Union policy shaping and decision making process from the point of view of the local and regional authorities, and at the same time contributing to make the Union more effective and closer to the citizens;

    C. whereas the consultation of the Committee by the Commission or the Council is mandatory in certain cases, while the Committee may also adopt opinions on its own initiative and enjoys a wide area for referral, as set out in the Treaties, allowing it to be consulted by Parliament;

    D. whereas the Committee’s activities are defined on the basis of its overall political strategy as set out in its resolution of 2 July 2020 on its priorities for 2020-2025[7], and whereas the Committee adopted three political priorities for the 2020-2025 mandate, accompanied by three communication campaigns: Bringing Europe closer to people, Building resilient regional and local communities, and Promoting cohesion as a fundamental value of the EU;

    E. whereas the local and regional administrations account for one third of public spending, half of public investment and one fourth of tax revenues and, in many Member States, hold competencies in key areas such as education, economic development and cohesion, environment, social protection, health and services of general interest, hence the coordination of local, regional, national and European levels increases the legitimacy of the legislation, improves ownership and pursues more effectively the benefit of citizens;

    F. whereas the Committee pursues its political goal to strengthen its involvement in the entire Union political and legislative cycle while making more tangible the connection with Union citizens using the Committee’s members as powerful multipliers in their communities and in their national associations of local and regional authorities;

    G. whereas the Committee identified eleven key priority areas to make its action more strategic and impactful in 2023: (1) Follow-up to the Conference on the Future of Europe, Active Subsidiarity and Better Regulation; (2) Ukraine and Enlargement; (3) Energy and climate crisis; (4) Environment; (5) Cohesion Policy – Ramping up Cohesion policy implementation and shaping its future for the post-2027 period; (6) Multi-annual Financial Framework; (7) Economic governance for a fair and sustainable Europe; (8) European Year of Skills 2023; (9) Partnership for Regional Innovation and the promotion of territorial missions; (10) Civil protection; (11) Food security;

    H. whereas Regulation (EU) 2021/1060[8], governing Union cohesion policy and funding between 2021 and 2027, that entered into force in July 2021, encompasses references to the partnership and multilevel governance principle, supported by the Committee and Parliament and entailing the involvement of regions and their local and regional authorities; strongly supports the strengthening of Union investments linked to regional and local resilience in the next Multiannual Financial Framework (MFF);

    I. whereas the over 400 national and regional programmes in place for the delivery of Union cohesion policy in the 2021-2027 programming period will make available around EUR 380 billion, under different funds, to tackle the economic, social and environmental challenges that Union regions, cities, villages and municipalities are facing;

    J. whereas, on 19 February 2021, Regulation (EU) 2021/241[9], establishing the Union’s Recovery and Resilience Facility, entered into force, providing the legal basis for distributing funds and loans of up to EUR 672,5 billion (in 2018 prices) to the Member States between 2021 and 2026 and also aiming to support economic, social and territorial cohesion and to address disparities between the regions of the Union;

    K. whereas, as a Union institution within the meaning of the Financial Regulation, the Committee is required to adopt its own annual accounts, prepared in accordance with the accounting rules adopted by the Commission’s accounting officer (European Union Accounting Rules) and based on the International Public Sector Accounting Standards, which are ultimately consolidated into those of the Union;

    1. Notes that the budget of the Committee falls under MFF Heading 7 ‘European public administration’ (‘Heading 7’), which amounted to a total of EUR 12,3 billion, i.e., 6,4 % of Union budget spending, in 2023; notes that, in 2023, the budget of the Committee represented 0,95 % of MFF Heading 7 appropriations;

    2. Notes that the Court of Auditors (the ‘Court’), in its annual report (the ‘Court’s report’) for the financial year 2023, examined a sample of 70 transactions under Heading 7, of which 21 (30 %) contained errors; further notes that for five of those errors, which were quantified by the Court, the Court estimated a level of error below the materiality threshold;

    3. Notes from the Court’s report its observation that administrative expenditure comprises expenditure on human resources including pensions, which in 2023 accounted for about 70 % of the total administrative expenditure, and expenditure on buildings, equipment, energy, communications and information technology; welcomes the Court’s renewed opinion that, overall, administrative spending is low risk;

    4. Notes with regret from the Court’s report its opinion regarding a transaction made by the Committee in 2023, whereby the 10-year duration of a building maintenance contract was not sufficiently justified;

    Budgetary and financial management

    5. Notes from the Committee’s annual activity report for 2023  that the final adopted budget of the Committee was EUR 116 675 392 in 2023, including the Amending Budget 4/2023 (salary and energy related), representing an increase of EUR 6 698 534 (i.e., +6,10 %) compared to 2022; notes with satisfaction that the rate of the Committee’s budget implementation of current year commitment appropriations increased from 99,20 % in 2022 to 99,9 % in 2023, and the current year payment appropriations execution rate increased from 88 % in 2022 to 91,20 % in 2023; welcomes further an increase in the execution rate of C8 appropriations from 81,60 % in 2022 to 85 % in 2023; considers that these high execution rates are on the one hand a sign of good budgetary and financial management by the Committee, on the account of strengthened budget execution monitoring, timely budget forecasting and reallocation of resources to address unforeseen events, but on the other hand could also be a sign that the Committee needs additional resources; calls on the Commission and the budgetary authority to take this into account in the framework of the budgetary procedure;

    6. Notes that in the course of 2023, the Committee implemented 31 transfers for a total of EUR 2,84 million, of which 25 internal transfers for a total of EUR 0,98 million and six external transfers for a total of EUR 1,86 million, of which approximately EUR 0,8 million transferred to budget lines covering contracts impacted by high inflation/indexation; notes that impact of Russia’s war of aggression against Ukraine continued to create budgetary pressure for the Committee in 2023; notes in this context that the Committee was most affected by the high inflation rate, directly or indirectly, in areas such as travel costs (missions), energy, rents and lease of buildings, maintenance contracts, construction projects and paper and offset plates;

    7. Notes an increase by approximately 20 % of payments made for the members of the Committee, from EUR 6 573 307 in 2022 to EUR 7 955 968 in 2023, with payments made for travel expenses (8 119 payments), travel allowances (4 449 payments), meeting allowances for in-person participation (7 845 payments) and remote participation (152 payments);

    8. Notes that the mission’s budget (current year appropriations) remained stable, with EUR 420 833 in 2023 (compared to EUR 419 657 in 2022) and execution rate of approximately 80 % in 2023 (similar to 2022); notes that, despite an increase in the average cost of accommodation and travel costs, the Committee’s missions budget remained stable due to a reduction of 13 % in the number of missions carried out in 2023 compared to 2022; welcomes that the allowance for the Committee’s Presidency (President and First Vice-President) for travel and meeting expenses, financed from the general budget for members’ expenses, decreased from EUR 71 810 to EUR 62 268, representing a 13 % reduction between 2022 and 2023; encourages the Committee to further rationalize and reduce expenditure in this area, ensuring optimal allocation of resources in line with the principles of sound financial management;

    9. Observes with concern an increase in the current year appropriations for interpreting services of approximately 19 %, from EUR 3,494 million in 2022 to EUR 4,167 million in 2022; asks the Committee to explain the reasons for that increase, given the fact that at the same time the Committee has reported savings in connection with the use of remote interpretation in 2023;

    10. Notes that until 23 July 2023, the flat-rate remote meeting allowance paid by the Committee to its members, their alternates, as well as to rapporteurs’ experts and speakers invited to attend remote or hybrid meetings was EUR 200; notes further that on that date, new rules on the matter entered into force setting the flat-rate remote meeting allowance at 50 % of the regular meeting allowance, with the latter being EUR 359 and the former EUR 179,50; notes in this context a significant decrease in the total amount paid for remote meeting allowances from EUR 1 742 000 in 2021 and EUR 489 600 in 2022 to EUR 32 632 in 2023, while the overall expenditure linked to budget line 1004 (‘Travel and subsistence allowances, attendance at meetings and associated expenditure’) has increased considerably from approximately EUR 6,6 million in 2022 to approximately EUR 8 million in 2023, mainly due to a strong return to in-person meetings in 2023 and the increase in the travel related prices in the aftermath of the Covid-19 pandemic;

    11. Expresses concern over the significant increase in travel and meeting allowances paid to Committee members, rising from EUR 6,6 million in 2022 to EUR 8 million in 2023; calls on the Committee to adopt a clear cost-efficiency strategy for travel expenditures, including greater use of remote participation and hybrid meetings to reduce unnecessary costs and emissions while maintaining political engagement;

    12. Regrets that the average time for payment increased from 17,87 days in 2022 to 21,88 days in 2023; understands nevertheless that that increase is the result of the fact that in 2023 the Committee processed and paid a record number of invoices, i.e., 5 723 compared to 4 260 in 2022; notes in this context that the share of commercial invoices received electronically by the Committee has increased from 68 % in 2022 to 76 % in 2023 and continued to increase in 2024;

    Internal management, performance and internal control

    13. Acknowledges that the Committee plays a fundamental role in contributing to the Union’s policy development and decision-making processes by representing the interests of local and regional authorities within the Union; notes that for 2023, as part of its annual operational plan, the reporting of the performance of the Committee was based on 25 objectives, the achievement of which was assessed through 80 quantitative indicators, whereas the targets of the majority of those indicators (approximately 75 %) was achieved with a level of 90 % or more;

    14. Recalls that the Committee contributes to the Union policy and decision making process from the perspective of the regional and local authorities within the Union and provides a framework to enhance cooperation between the local, regional, national and European levels and to bring Europe closer to its citizens; regrets that budget limitations have impaired the Committee’s ability to fully deliver on its objective of bringing citizens closer to the Union, limiting the Committee’s added value;

    15. Considering the important role of the Committee in increasing the democratic legitimacy of Union legislation by providing an active coordination of regional and local authorities, supports the Committee in its effort to provide more territorial impact assessments (TIA), also in line with the Conference on the Future of Europe final report and recommendations;

    16. Commends the Committee for its political achievements in its key priority areas in 2023; notes that the Committee pursues its mission through opinions, which refer to legislative proposals made by the Commission (referrals), own-initiative opinions, which call on the Union institutions to take action, and through resolutions, which highlight the Committee’s positions on specific topics; notes that, in 2023, the Committee adopted 53 opinions and 6 resolutions, a decrease from 55 opinions and 8 resolutions adopted in 2022 despite the increase in appropriations and staff; encourages the Committee to continue to work on the performance improvement as well as effectiveness improvement; welcomes the Committee’s efforts to introduce reformative and innovative solutions, streamline the administration and avoid overlapping roles with other bodies;

    17. Appreciates that in 2023 the Committee continued implementing measures to modernise its administration and enhance cost-effectiveness in the context of the ‘Going for IMPact’ programme; notes in this context the progress made with regard to digitalisation and workflow optimisation, the modernisation of the Committee’s planning and reporting instruments, the creation of a central meeting service, and the enhancement of cooperation with other institutions or bodies (e.g., the European Economic and Social Committee (‘EESC’), Commission, Parliament, Office for Infrastructure and Logistics), among others; commends the Committee for having implemented almost 90 % of the simplification projects launched in 2021, in the areas of administrative processes, written procedures and (internal) legal documents;

    18. Notes with satisfaction from the Committee’s replies to the questionnaire submitted by the Parliament’s Committee on Budgetary Control for the 2023 budgetary discharge (the ‘Questionnaire’) that, thanks to the ‘Going for IMPact’ programme, the Committee has managed in 2023 to align its objectives to the available resources which were under pressure as a result of the inflationary effects of the war in Ukraine; commends in particular the progress made by the Committee in implementing ‘Project Convergence’ (a SharePoint-based tool for planning, reporting, risk assessment, and business continuity) and the new business continuity policy;

    19. Acknowledges the impact of the Committee’s work, in particular its opinions, some which were reflected in resolutions, positions, proposals, reports, reviews, conclusions or trilogues of the Commission, Parliament or the Council in 2023; invites the Committee to continue on the path of providing useful and relevant input, such as data from the ground and analysis, to Union institutions and other beneficiaries of Union policies; welcomes the Committee’s strengthened involvement along the whole political and legislative cycle of the Union through cooperation agreements and action plans with the Commission, Parliament and the European Investment Bank; considers that members of the Committee and of the EESC should be invited to relevant parliamentary meetings on matters within their remit; notes that, in 2023, Committee members also met the Council and Permanent Representations and participated in the events organised by the Council’s Presidency, in order to ensure that the Committee’s positions are reflected in the Union’s legislation; congratulates the Committee for strengthening its involvement in legislative trilogues, notably by being granted access, for the first time, to trilogue documents in 2023;

    20. Calls on the Committee to ensure stronger involvement of regional and local governments in Union decision-making by creating structured consultation mechanisms with regional and local authorities, including parliaments, municipalities, and local civil society organizations before issuing opinions; urges the Committee to advocate for a mandatory consultation process on legislative matters that significantly impact regional development and cohesion policy;

    21. Notes with regard to its new internal control framework, that the Committee implemented a new methodology on ex post controls as of 2023, aiming to simplify and align the approach to the practice of the other Union institutions, with the ex post controls now being centralised instead of the prior decentralised practice; notes that, in 2023, ex post controls focused on the basic salary and the time worked, with 55 files having been verified, and that the statistical estimate of the error affecting the reference population was 0 %; notes further that in 2023 the Committee renewed its compliance and effectiveness exercise to assess the extent of the Committee’s compliance with certain internal control standards and the effectiveness of their implementation; commends the Committee for reporting an improvement in this matter compared to the results of the 2022 exercise; encourages the Committee to continue its efforts to further step up the level of compliance and the degree of effectiveness of the internal control measures in place; notes with satisfaction, as regards the new sensitive posts policy, that in 2023 the Committee ran a screening exercise to identify the level of risk of each post and, thus, the sensitivity level thereof, as well as the necessary measures to mitigate those risks;

    22. Notes that the Committee launched in 2023 two new audits: one on the compliance of various functions (e.g., risk management, planning, control system) with the relevant data protection legislation and another one on the performance of the IT organisation in Joint Services (the Committee and the EESC’s new joint Directorate for Innovation and IT); notes that for each of those audits: 11 recommendations were issued and seven recommendations were considered very important; notes further that following the audit on management of the vacant posts launched in 2022, 10 recommendations were issued, three of which were very important; calls on the Committee to implement all pending recommendations as soon as possible and keep the discharge authority informed of progress in this matter;

    Human resources, equality and staff well-being

    23. Notes that, at the end of 2023, the Committee had a total of 559 members of staff (seconded national experts, interim, intra muros and trainees not included), compared to 533 in 2022; notes that 74 contract agents, compared to 56 contract agents in 2022 and 96 temporary agents, compared to 89 temporary agents in 2022, were employed by the Committee at the end of 2023, out of which 21 contract agents had an open-ended contract, 53 contract agents had a time-limited contract, 53 temporary agents were on permanent posts with time-limited contract, 50 temporary agents had an open-ended contract and 3 temporary agents held a temporary position (in two cases with an indefinite contract and, in the case of the Secretary-General, for a fixed duration of five years); notes, in addition, that the Committee employed 5 interim agents and 12 external members of staff working on-site, excluding external service providers in the fields of logistics and IT; hopes that the increase in staff has its reasonable justification; notes that in 2023 the occupation rate of the posts in the establishment plan was 98 % (an increase from 96 % in 2022) and the turnover rate was 6,6 % (a decrease from 10,80 % in 2022), respectively;

    24. Observes an increased reliance of the Committee on contract agents and temporary agents (representing up to 26 % of the Committee’s staff); notes from the Questionnaire that said reliance is due in particular to the absence of EPSO reserve lists for generalist administrator profiles since 2018; is worried that the Committee’s long-term stability and business continuity are threatened by the absence of attractiveness of the time-limited contracts offered; underlines the importance of permanent staff in maintaining skills, continuity and productive working environment; notes that the Committee organised an internal competition for generalists across five grades (AST/SC1, AST1, AST3, AD5, and AD7) in 2024; supports the Committee in its endeavours to respond to those challenges; asks the Committee to report to the discharge authority on such competitions organised in 2024;

    25. Notes that, at the end of 2023, the Committee employed 56,9 % women and 43,1 % men; regrets that the Committee has not yet achieved gender parity in leadership positions, but acknowledges the significant progress made under the Committee’s five-year diversity and inclusion strategy and action plan for 2022-2026, including a marked increase in the proportion of women in senior management positions from 37,5 % in 2022 to 44,4 % in 2023; recommends measures to enhance inclusivity in vacancy notices and to encourage greater female participation in senior and middle management roles, including through gender balance targets, balanced representation on selection boards, targeted training opportunities for female staff aspiring to managerial positions, and the promotion of more flexible working arrangements; encourages the Committee to continue its efforts for achieving gender balance and requires, in this context, Member States to nominate both a male and a female candidate for appointments for Committee membership to improve representation at all levels;

    26. Notes that, as a result of a pilot project on a hybrid working regime and a staff satisfaction survey launched in 2022, the Committee adopted on 1 January 2024 a decision which provides for a hybrid working regime and a personalised weekly working schedule for each staff, as well as the possibility to work from home for up to 60 % of staff’s working time (except for staff categories incompatible with telework) and work from outside the city of employment for up to 15 days per year; recognises that these measures aim to enhance work-life balance while maintaining operational efficiency and staff satisfaction;

    27. Notes with satisfaction that the Committee’s hybrid working regime has had a positive impact with regard to short-term sick leave, whereas: – the number of staff without sick leave increased from 71 (or 12 % of all staff) in 2018 to 211 (or 36 % of all staff) in 2023; – the number of staff on sick leave for less than seven days decreased from 257 (or 46 % of all staff) in 2018 to 201 (or 35 % of all staff) in 2023 and; – the number of staff on sick leave for a duration between 7,5 and 21 days decreased from 140 (or 25 % of all staff) in 2018 to 92 (or 16 % of all staff) in 2023; invites the Committee to monitor the impact of the new working regime and keep this topic in upcoming staff satisfaction surveys; notes with satisfaction that 90,25 % (82 % in the case of managers) of those that responded to the staff survey of December 2022 indicated their satisfaction with the flexible arrangements;

    28. Notes with concern that 18 cases of burnout were reported in the Committee in 2023, representing an increase from 16 cases in 2022; underlines the significant social and professional impact of burnout on staff well-being and performance; notes further that the Committee managed to reintegrate 16 members of staff in 2023 after long-term absence as a result of burnout, thanks to a personalised follow-up of long-term sickness leave; welcomes the preventive actions taken by the Committee to reduce psychosocial risks and burnout; appreciates in this regard the proactive approach of the medical service and the awareness-raising conferences, trainings and courses organised by the Committee; stresses, however, the need for further strengthening of efforts to address the root causes of burnout and to foster a healthier work environment;

    29. Notes that in 2023 the Committee continued to raise awareness of the measures put in place to prevent and combat harassment in the workplace, in accordance with its Decision of 26 April 2021 on protecting dignity at work, managing conflict and combatting harassment, notably through dedicated guidance, internal communication and the organisation of several information sessions for staff and managers; welcomes in particular the organisation of five training sessions on ‘Preventing psychological and sexual harassment’ and ‘Respect and Dignity for a high-performing team’ in 2023 and recommends continuity of this initiative; further notes with satisfaction that no new, ongoing, or closed cases concerning sexual harassment were reported during the year;

    30. Commends the Committee for its actions taken in 2023 in connection with the integration of persons with disabilities, such as making accessible the Committee’s buildings to persons with reduced mobility and ensuring that all job vacancies are accessible to candidates with disabilities;

    31. Notes that, in 2023, the Committee was employing staff representing all Union nationalities (and one staff member of Ukrainian nationality), with some of them being overrepresented (e.g., Belgium); welcomes the additional efforts of the Committee aiming at balancing the geographical distribution among staff by targeting a wider audience through the publication on its website and social media of calls for expression of interest for contract and temporary staff; regrets the persistent lack of geographical balance within the Committee’s staff, with certain nationalities remaining overrepresented in comparison to others; encourages the Committee to intensify its efforts to achieve a more balanced geographical distribution, particularly at the management level; asks the Committee to keep the discharge authority informed of the outcome of this type of action;

    32. Welcomes the participation of the Committee’s Traineeships Office, for the second consecutive time, in the session titled ‘Opportunities for young Roma’ in April 2023; commends the initiative to present the Committee’s traineeships scheme to young and motivated Roma and non-Roma participants, reflecting a strong commitment to promoting inclusivity, diversity, and equal opportunities; encourages the continuation and expansion of such initiatives to further engage underrepresented communities and foster a more inclusive European workforce;

    33. Welcomes the progress made with regard to gender balance in management, with an increase of the percentage of women both in middle management positions (from 29,7 % in 2022 to 32,5 % in 2023) and in senior management positions (from 37,5 % in 2022 to 44,4 % in 2023);

    Ethical framework and transparency

    34. Welcomes the work done by the Committees in 2023 to consolidate ethical rules and practices into a single ethical legal framework (Decision n⁰ 157/2023) covering disciplinary procedure, dignity at work, conflict management, combatting harassment, outside activities and whistleblowing among others; notes that that work culminated with a decision (n⁰ 157/2023) which was the outcome of comprehensive consultations with different stakeholders, as well as a follow-up to an internal survey on staff ethics awareness and the implementation of an internal audit recommendation on that topic; commends the Committee for continuing to offer training courses on ethics, integrity and respect and dignity at work to different groups of staff ranging from newcomers, managers and staff overall in 2023;

    35. Notes that the European Anti-Fraud Office (OLAF) processed two cases in 2023: one case on alleged outside gainful activities of a Committee member and another case on allegations of recidivism on unauthorised external activities by a staff member; notes that in the former case no OLAF investigation was opened on the grounds of lack of proportionality between the resources needed to conduct an investigation and the expected results, while the Committee considered that there were no conflicts of interest on the grounds that Committee members do not receive any remuneration from the Union, nor are they required to declare their professional activities, for which they may be paid for local or regional mandates that those members may have; notes with regard to the latter case that OLAF opened an investigation which was concluded with two recommendations, which the Committee implemented by opening a disciplinary procedure against the staff member concerned and by recovering gains in connection with that person’s unauthorised outside activities; recalls that the case closed in 2022 on allegations of financial wrongdoings, harassment and mismanagement in a Committee-EESC joint service, gave rise to a conflict-management exercise involving the persons concerned and to a five-point action plan; notes with satisfaction from the Committee’s follow-up report to Parliament’s discharge decision covering the Committee’s budget implementation year 2022 that that action plan was fully implemented by the end of 2023;

    36. Recalls that the Committee adopted Regulation n⁰ 6/2023 of 4 July 2023 laying down transparency measures that focus on office-holding members and rapporteurs; commends in this context the Committee for having formally joined the EU Transparency Register on 1 January 2024;

    37. Urges the Committee to enhance the detection and prevention of conflicts of interest by introducing a mandatory cooling-off period for outgoing members before they can engage in lobbying or advisory roles involving Union institutions; calls for the proactive publication of all recusal decisions taken by Committee members due to conflicts of interest;

    38. Welcomes the Committee’s renewed efforts in the area of detection and prevention of conflicts of interest in 2023; notes that thanks to its Decision n⁰157/2023, the Committee defined the concept of conflicts of interest and has put in place a mechanism to detect and prevent it whereby staff are required to declare whether they might have a conflict of interest (potential or possible), by filling in a form at various key moments of their career or professional activities; notes with satisfaction from the Questionnaire that the annual information regarding the occupation activities of former senior officials is published in a transparent way on the Committee’s website; notes that the Committee did not detect any situations of conflicts of interest which would have required follow-up by the administration in 2023;

    39. Notes that no cases of whistleblowing were reported to the Committee in 2023, except for information received from OLAF about a whistleblowing case against a staff member of the Committee, which was eventually dismissed by OLAF; notes that the Committee did not adopt any new measures concerning whistleblowing in 2023 and continued to rely on the measures in place since 2015 and to promote them through ethics training and awareness raising; supports regular mandatory ethic trainings both for staff as well as for management level;

    40. Notes that the Committee has had in place a range of anti-fraud measures and actions applicable to its members and its staff which are implemented by different services; observes that no anti-fraud strategy was in place in 2023 despite Parliament’s requests in previous discharge resolutions; notes with satisfaction, following Parliament’s recommendation, and as indicated in the Questionnaire, the Committee’s commitment to further strengthen the existing anti-fraud measures by adopting an anti-fraud strategy in 2025; encourages the Committee to facilitate regular and compulsory anti-fraud trainings as part of the strategy; asks the Committee to keep the discharge authority informed on this matter;

    Digitalisation, cybersecurity and data protection

    41. Notes that the combined IT budget of the Committee and the EESC was EUR 12,7 million in 2023, compared to EUR 11,712 million in 2022, i.e., an increase of 8,40 %, whereas EUR 350 000 of that budget was paid for cybersecurity in 2023;

    42. Welcomes the Committee’s new ‘Digital Strategy 2024-2026’ adopted at the end of 2023; commends in this context the Committee for its digitalisation progress made in 2023 in different areas such as the administrative processes (including staff selection), procurement and interpretation, among others; calls on the Committee to accelerate digital transformation efforts by ensuring the full implementation of electronic workflows, e-signatures, and digital case management tools by 2026, reducing paper-based processes in line with sustainability commitments, shifting towards a more paperless administration;

     

    43. Notes with satisfaction that 90 % of the projects for simplification through digitalisation under the ‘Going for impact’ initiative were fully implemented by the end of 2023; notes in addition that further efficiencies were tapped due to an IT project to define the best tool for the electronic management of form-based workflows with, as a result, many of the Committee’s processes having begun to be simplified and digitalised through Microsoft 365 tools; notes with satisfaction that the Committee uses procurement modules such as e-Tendering, e-Notices, e-Submission, MyWorkplace, as well as the qualified electronic signature, for the signature of contracts, introduced in 2023; welcomes the adoption by the Committee of internal guidelines on use of artificial intelligence laying the ground for possible future solutions and encourages introduction of regular mandatory trainings on safe use of artificial intelligence;

    44. Notes further that the European Data Protection Supervisor (‘EDPS’) did not conduct any investigation or enquiry into the processing of personal data by the Committee in 2023; notes that in 2023 the EDPS launched a general questionnaire on the designation and position of the data protection officer (DPO), which was answered by the Committee’s DPO;

    45. Notes that the Committee did not encounter any cyber-attacks in 2023, other than certain denial of service attacks against the Committee’s externally hosted website; notes from the Questionnaire of the Committee’s tools and strategies for real-time threat monitoring and identifying vulnerabilities in the Committee’s systems; commends the Committee for adhering to standards in matters related to cybersecurity-related risk assessments, as well as for having put in place a system based on incident response plans, recovery measures and lessons learned; notes with satisfaction that the Committee and the EESC adopted the NIST Cybersecurity Framework with focus, in 2023, on the principles: ‘protect’ and ‘detect’; encourages the Committee to raise the cybersecurity awareness of their members and staff, to carry out regular risk assessments of its IT infrastructure and to ensure regular audits and tests of its cyber defences;

    Buildings

    46. Notes that the Committee’s budget (current year appropriations) in 2023 was EUR 18,594 million (compared to EUR 18,930 million in 2022) with a payment execution rate of 93,70 % (compared to 82,60 % in 2022); notes with satisfaction that, as result of exchanging the B68 and TRE74 buildings for the VMA building in 2022, savings were achieved due to lower costs of renting the entire VMA in 2023;

    47. Notes that renovation works of the VMA (third to ninth floor) continued in 2023; notes further a low payment execution rate with regard to the C8 appropriations (carried over from 2022 to 2023), i.e., 18,90 %, used for the fitting-out of the VMA premises; understands the Committee’s explanation for that low rate whereas the contractor was not able to finish parts of the renovation works in the VMA buildings; reiterates its call to the Committee to provide the discharge authority with an update on the return on investment in relation to the smart technologies installed in the VMA;

    48. Welcomes the commitment of the Committee and the EESC to apply systematically the ‘design for all’ principle to their infrastructure, ensuring accessibility of their building by design; notes that the Committees took a range of different measures to ensure accessibility of their buildings to people with various kinds of disabilities (wheelchair users, blind and visually impaired people, deaf persons, elderly people with muscular or vascular problems);

    Environment and sustainability

    49. Notes that the Committee continued to implement a variety of green practices in 2023, such as the use of innovative energy-efficient building installations, the purchase of 100 % green electricity, the replacement of paperless workflows with digital signatures, the application of environmental criteria in all tender procedures (with customised green criteria for calls for tender above EUR 60 000), a focus on waste reduction and increase in the recycling rate, the implementation of measures for a more sustainable travel by staff, including financial contributions by the Committee to its staff’s public transport costs, the use of full remote interpretation for statutory meetings, and other energy saving measures; notes with satisfaction from the Questionnaire a reduction of carbon emissions linked to the Committee’s administration’s activities by 18 % compared to 2019;

    50. Notes with satisfaction from the questionnaire that, thanks to its energy saving measures, the Committee’s energy consumption was reduced by an estimated 3,4 % in 2023 compared to 2022, corresponding to a financial gain of EUR 64 240; congratulates the Committees for having exceeded the EMAS objectives for 2021-2025 in all areas (electricity, gas, water, waste, waste sorting, paper for office use, CO2 emissions);

    Interinstitutional cooperation

    51. Welcomes the budgetary and administrative savings achieved through interinstitutional cooperation, and in particular the close cooperation established at administrative level with the EESC, with which the Committee shares premises and joint services in the areas of translation, infrastructure, logistics and IT, with 470 members of staff and approximately EUR 60 million (excluding salary related expenditures) pooled together by both institutions in 2023; notes with satisfaction that the Committee further extended its cooperation with the EESC by exploiting additional synergies through joint medical services and joint central data protection register and processing operations based on the Joint Controllership Arrangement signed by the Committee and the EESC in 2023; reiterates its call on the Committee to pursue and expand that cooperation in other areas with a view to avoiding duplication and further rationalising the operating costs of services available in the premises shared by the Committee and the EESC; invites the Committee and the EESC to explore the possibility of setting up a single administration for their joint services, keeping separate directorates or units for the services dealing with matters related to their specific and independent mandates; encourages the Committee and the EESC to continue their efforts to develop further cooperation and synergies;

    52. Welcomes the Committee’s search for synergies by purchasing services from other institutions through service-level agreements and by participating in interinstitutional coordination bodies and interinstitutional procurement procedures; welcomes the efficiency gains, with regard to the communication for the 2024 European elections, reported by the Committee in the Questionnaire; notes that those gains were possible because the Committee signed with Parliament a Memorandum of Understanding in February 2024 and a new Cooperation Agreement (CP) in May 2024; notes further that the CP also covered cooperation at political and administrative level between the two institutions;

    53. Calls on the Committee to deepen its cooperation with Parliament and the Commission by establishing a structured annual dialogue between Committee representatives and Union legislators on key legislative files affecting regional development, climate policy, and social cohesion; urges the Committee to explore joint initiatives with Parliament’s Committees on Regional Development (REGI) and on the Environment, Climate and Food Safety (ENVI) to promote sustainable regional investments;

    54. Notes that the Committee cooperates with the Commission (for an annual fee) for the handling of HR matters and the use of various IT platforms for financial management and HR; notes further that the Committee holds its plenary sessions in the premises of Parliament and the Commission to compensate for the lack of capacity in its own conference rooms and buys interpreting services from those two institutions; 

    55. Welcomes the reviewing in 2023 of the Cooperation Agreement of the Committee with Parliament in view of its final signature in 2024; supports the cooperation of the Committee with several parliamentary committees, intergroups and directorates-general of Parliament and convene to considers vital that members of the Committee and EESC be regularly and systematically invited to relevant parliamentary exchanges, including committee meetings, on issues they are dealing with;

    Communication

    56. Notes that the Committee’s communication activities focus on relationship with press, organisation of events and digital content and social media with a total budget (current year appropriations) of approximately EUR 2,8 million in 2023; regrets a very low payment execution rate in those areas (ranging from 24,70 % to 48,20 %); notes nevertheless a high execution rate with regard to C8 appropriations (carried over from 2022 to 2023) of between 98 % and 100 %; calls on the Committee to take measures for improving its budgetary planning with regard to communication related budgetary items;

    57. Notes with satisfaction the Committee’s achievements in promoting Union policies and programs at local and regional level, improving the outreach of its consultative works and enhancing its visibility and impact; notes that the Committee’s communication strategy seeks to strengthen its institutional and political profile as the voice of the Union’s regions, cities, villages, and municipalities, while showcasing the essential contributions of its members in connecting Union policies with citizens and fostering engagement at the local and regional level; notes in this context the Committee’s communication actions in 2023 in areas such as: – cohesion (e.g., the ‘Promoting cohesion as a fundamental value of the Union’s campaign in the framework of the EURegionsWeek with more than 8 000 participants); – climate change (e.g., the ‘Building resilient and innovative local communities’ campaign); – democracy (e.g., the ‘A new chapter for EU democracy’ campaign with 1 400 registrations for participation at the 14th EuropCom conference); – rural development (the ‘2023 LEADER European Congress’ conference) in 2023; commends the Committee for the increase in the number of persons registered in the Network of Regional and Local EU Councillors (from 2 307 in 2022 to 3 000 in 2023) and the number of participants in the Young Elected Politicians programme (from 775 in 2022 to 836 in 2023);

    58. Welcomes the Committee’s efforts to increase outreach to regional governments and local communities, including the expansion of the Network of Regional and Local EU Councillors and the Young Elected Politicians program; calls on the Committee to allocate additional resources to support regional capacity-building programs that empower local governments to better implement Union policies;

    59. Notes the Committee’s success with regard to media outreach as shown by the overall metrics for 2023, such as: 13 210 media mentions, 129 % increase on web visitors and 11 % increase on followers; notes that in terms of digital engagement, the Committee fell short of achieving its target for 2023; notes that, at the end of 2023, the Committee had 200 000 followers on its social media channels, i.e., 15 % more than in 2022 of which 57 603 followers (+5 %) on X (ex-Twitter), 61 170 (+5 %) on Facebook, 68 613 (+31 %) on LinkedIn and 15 392 (+47 %) on Instagram;

    60. Notes with satisfaction from the Questionnaire the Committee’s initiatives to raise awareness about the specific measures of the Digital Services Act and the Digital Markets Acts, as well as cybersecurity and online safety; acknowledges the Committee’s role in advancing the Union’s path to a digital future; commends in this context the Committee for organising in 2023 the Digital Masterclass series, for both staff and external audiences.

    MIL OSI Europe News

  • MIL-OSI Europe: REPORT on discharge in respect of the implementation of the budget of the European Public Prosecutor’s Office for the financial year 2023 – A10-0051/2025

    Source: European Parliament

    2. PROPOSAL FOR A EUROPEAN PARLIAMENT DECISION

    on the closure of the accounts of the European Public Prosecutor’s Office for the financial year 2023

    (2024/2029(DEC))

    The European Parliament,

     having regard to the final annual accounts of the European Public Prosecutor’s Office for the financial year 2023,

     having regard to the Court of Auditors’ annual report on EU agencies for the financial year 2023, together with the agencies’ replies[7],

     having regard to the statement of assurance[8] as to the reliability of the accounts and the legality and regularity of the underlying transactions provided by the Court of Auditors for the financial year 2023, pursuant to Article 287 of the Treaty on the Functioning of the European Union,

     having regard to the Council’s recommendation of 17 February 2025 on discharge to be given to the European Public Prosecutor’s Office in respect of the implementation of the budget for the financial year 2023 (05754/2025 – C10-0023/2025),

     having regard to Article 319 of the Treaty on the Functioning of the European Union,

     having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012[9], and in particular Article 70 thereof,

     having regard to Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union[10], and in particular Articles 70 thereof,

     having regard to Council Regulation (EU) 2017/1939 of 12 October 2017 implementing enhanced cooperation on the establishment of the European Public Prosecutor’s Office (‘the EPPO’)[11], and in particular Article 94 thereof,

     having regard to Commission Delegated Regulation (EU) 2019/715 of 18 December 2018 on the framework financial regulation for the bodies set up under the TFEU and Euratom Treaty and referred to in Article 70 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council[12], and in particular Article 105 thereof,

     having regard to Rule 102 of and Annex V to its Rules of Procedure,

     having regard the opinion of the Committee on Civil Liberties, Justice and Home Affairs,

     having regard to the report of the Committee on Budgetary Control (A10-0051/2025),

    1. Approves the closure of the accounts of the European Public Prosecutor’s Office for the financial year 2023;

    2. Instructs its President to forward this decision to the Administrative Director of the European Public Prosecutor’s Office, the European Council, the Council, the Commission and the Court of Auditors, and to arrange for its publication in the Official Journal of the European Union (L series).

     

    3. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

    with observations forming an integral part of the decision on discharge in respect of the implementation of the budget of the European Public Prosecutor’s Office for the financial year 2023

    (2024/2029(DEC))

    The European Parliament,

     having regard to its decision on discharge in respect of the implementation of the budget of the European Public Prosecutor’s Office for the financial year 2023,

     having regard to Rule 102 of and Annex V to its Rules of Procedure,

     having regard to the opinion of the Committee on Civil Liberties, Justice and Home Affairs,

     having regard to the report of the Committee on Budgetary Control (A10-0051/2025),

    A. whereas the EPPO is the independent public prosecution office of the Union, responsible for investigating and prosecuting crimes against the financial interests of the Union, for significantly enhancing the Union’s capacity to safeguard taxpayer funds, and for bringing to judgment the perpetrators of, and accomplices to, criminal offences provided for in Directive (EU) 2017/1371[13] and indicated by Regulation (EU) 2017/1939[14];

    B. whereas the competence of the EPPO encompasses several types of fraud, and includes cross-border VAT fraud with a total damage of at least EUR 10 million, money laundering, corruption, organised crime and other offences for which the EPPO performs prosecutorial functions before the competent courts of the participating Member States;

    C. whereas the EPPO is one of the component of the Union’s anti-fraud architecture and, as such, its actions are coordinated with and complementary to those of the other components of the architecture, to achieve streamlined, efficient coordination that enhances the overall effectiveness of the architecture;

    D. whereas the EPPO intervenes when national authorities could investigate and prosecute crimes but where the prerogatives of national authorities stop at the borders of their country, and other organisations like Eurojust, OLAF and Europol do not have the necessary powers to carry out the relevant criminal investigations and prosecutions;

    E. whereas the procedural acts of the EPPO are subject to judicial review by the national courts and the Court of Justice of the European Union (the ‘Court of Justice’) has, by way of preliminary rulings or judicial reviews of those acts, residual power to ensure a consistent application of Union law;

    F. whereas the EPPO is composed of a central level, with its headquarters in Luxembourg, consisting of the European Chief Prosecutor, 22 European Prosecutors (one per participating Member State), the Administrative Director, and a decentralised, national- level consisting of the European delegated prosecutors (EDPs) in the 22 participating Member States;

    G. whereas at the central level the European Chief Prosecutor and the 22 European Prosecutors compose the College of the EPPO (the ‘College’) and supervise the investigations and prosecutions carried out by the EDPs at the national level, who operate with complete independence from their national authorities;

    H. whereas, under Article 93 of Regulation (EU) 2017/1939, the EPPO Administrative Director, acting as the authorising officer of the EPPO, is to implement its budget under its own responsibility and within the limits authorised in the budget and shall send each year to the budgetary authority all information relevant to the findings of any evaluation procedures;

    I. whereas, in accordance with Article 50(2) of the EPPO’s Financial Rules, the Accounting Officer of the Commission is also to act as Accounting Officer of the EPPO and is responsible for the preparation of the annual accounts, which are consolidated with those of the Union;

    J. whereas, under the current framework, the final annual accounts are scrutinised by the Court of Auditors (the ‘Court’) and it is with the Council to recommend and to the European Parliament to decide whether to grant discharge to EPPO’s Administrative Director in respect of the implementation of the budget for a given financial year;

    K. whereas the scrutiny over the management of the EPPO resources and related expenditure cannot ignore the examination of operational activities, their consequences and impact and the methods of their execution;

    L. whereas the EPPO has been operating autonomously in the implementation of its budget only since 24 June 2021 and it has started its operational activities, necessitating continuous evaluation to ensure resources align with operational effectiveness, on 1 June 2021, which is also the dies a quo for the five-year term indicated in Article 119 of Regulation (EU) 2017/1939 upon reaching which the Commission will have to submit to the European Parliament and to the Council and to national parliaments an evaluation report on the implementation and impact of such Regulation, and on the effectiveness and efficiency of the EPPO and its working practices, together with its conclusions;

    M. whereas, in accordance with Article 119(2) of Regulation (EU) 2017/1939, the Commission is to submit legislative proposals to the European Parliament and to the Council if it concludes that it is necessary to have additional or more detailed rules on the setting up of the EPPO, its functions or the procedure applicable to its activities, including its cross-border investigations;

    1. Welcomes the positive opinion of the Court on the reliability of the EPPO’s accounts for the year ended 31 December 2023 and on the legality and regularity of the underlying revenue and payments;

    2. Recalls the Parliament’s strong support for the establishment of the EPPO; acknowledges the EPPO as an independent Union body; stresses the EPPO’s important role in the protection of the Union’s financial interests and as an essential component of the Union’s anti-fraud architecture and of a wider Union system based on integrity, accountability, transparency and the sound financial management of resources; commends the EPPO for its work in investigating, prosecuting, and ensuring justice for crimes affecting the Union budget, such as fraud, corruption, and cross-border VAT fraud;

    3. Notes that it is possible to compare only the two most recent budgetary and operational performances of the EPPO, for the period 2022 to 2023, following the EPPO’s financial autonomy in June 2021; observes that, in that context, the budgetary increases related to the EPPO’s activities remain very difficult to estimate because of the EPPO’s recent establishment, the unique characteristics of the EPPO and its main activities, the unpredictable level of fraud detection, the wide variety of its cases, its lack of discretion with regard to pursuing prosecutions coupled with its reliance on the resources and procedural constraints of national judicial systems, the lack of a fixed correlation between the number and the costs of investigations, and the magnitude of the Union’s financial interests that are to be protected; also observes that it is difficult to estimate the expenditure for the caseload related to the Recovery and Resilience Facility (RRF) because of its unprecedented manner of implementation and high volume of resources;

    Budgetary and financial management

    4. Notes that the overall final budget allocated to the EPPO for 2023 was EUR 65,9 million, substantially increased (by 14,7 %) from the EUR 51,2 million that was allocated in 2022, while the 2021 budget (EUR 26,2 million) related to a period prior to the EPPO’s financial autonomy; observes that the EPPO’s budget includes the reinforcement, granted by the budgetary authority at the request of the EPPO in June 2023, by EUR 500 000 (the request also included human resources related to the essential enhancement of the EPPO’s security capacity, leading to the grant of eight additional establishment plan posts); appreciates that no budget was returned in 2023, compared to 10 % (EUR 5,9 million) of the initial budget in 2022 and 21 % (EUR 9,5 million) in 2021; re-iterates the need for the EPPO to be provided with sufficient resources to adequately fulfil its mandate;

    5. Welcomes the increasing level of budget implementation, which was 99,6 % in 2023 (compared to 98,1 % in 2022 and 97,4 % in 2021); appreciates that the overall execution rate for payments progressed in 2023 reaching 85,3 % (compared to 76,6 % and 71 % in 2022 and 2021) and the average payment time decreased to 17 days compared to 23,8 in 2022 and 21,0 in 2021); observes that the electronic invoicing module (e-invoicing) was rolled out in June 2023 and it will contribute to further reducing administrative burdens, time-to-payment and the overall processing costs; encourages a further refinement of operational processes to maximise efficiency;

    6. Understands that, because the budget endowment requests were only partially met, the EPPO focused its financial resources on the intake of additional EDPs, which has an impact on the EPPO’s capacity to lead the increasing number of investigations and prosecutions, on the need to improve the security standing of the organisation and on the maintenance of its case-management System (CMS), which could have negatively affected the management of cross-border investigations; underlines the importance of additional funding and strengthening its staffing to enable the EPPO to effectively combat organised crime, protect the Union’s financial interests, and uphold the rule of law, which are key Union priorities; calls for a dedicated increase in funding within the next Multiannual Financial Framework (MFF) to ensure it can continue to meet its objectives and obligations;

    7. Is aware that, following the achievement of its financial autonomy, in June 2021, the EPPO prioritised the operational expenditure related to investigation, prosecution and security measures, and that this has resulted in limiting the non-operational expenditure to essential level support services; remarks that, in this context, a total of EUR 28 312 075 was allocated on operational expenditure lines (Title 3), representing 43 % of the EPPO’s final budget 2023 (compared to EUR 21 047 346, which was 41 % in 2022); observes that the main cost drivers for these activities were the EDPs’ remuneration (51 % of the operational activities compared to 42% in 2022), followed by operational ICT activities like maintenance and development of the EPPO’s CMS (19 % compared to 28 % in 2022), and the linguistic services (translation and interpretation related activities) (14 %, the same as in 2022);

    8. Notes that the remuneration of the EDPs reached EUR 14,5 (compared to EUR 8,7 million in 2022), which represents the main operational expenditure because of the increased number of EDPs in place over 2023; welcomes the accession of Poland and Sweden to the EPPO, which was announced in 2024; notes that it did not affect the 2023 expenditure and concerns the 2024 budget only marginally, due to the late and gradual intake of two European Prosecutors and a number of EDPs; understands that a more solid cost estimation will not be possible until 2025; welcomes the inclusion in the programme of the objective of the new Irish Government to join the EPPO; calls on the Hungarian government, as the sole remaining Member State that has not yet joined the EPPO, despite the absence of any legal or constitutional impediment, to join the EPPO without further delay;

    9. Observes that costs for missions and operational meetings increased further in 2023 (mission costs were EUR 1 175 000 in 2023 and EUR 980 000 in 2022; operational meeting in 2023 were EUR 659 752 compared to EUR 170 000 in 2022), in line with the increasing level of intensity of investigations;

    10. Is aware that the costs for translation services are expected to further increase, in line with the EPPO’s increasing caseload, and recognises the need for additional resources for translation; welcomes both the internal guidance developed on the use of translation services, with a view to reinforcing control over costs and including the recommendation to use machine translation services whenever possible, and the use of national service providers of the limit allowed by the current Regulation to address the problem; observes, in that regard, that while Article 107 of Regulation (EU) 2017/1939 provides for translation services required for the administrative functioning of the EPPO at the central level to be provided by the Union’s Translation Centre for the Bodies of the European Union, it also provides for different handling of operational and urgent matters and empowers EDPs to decide on the arrangements for translations for the purpose of investigations in accordance with applicable national law;

    11. Notes that in 2023 the EPPO signed 234 specific contracts under existing framework contracts, for a total of more than EUR 11 million, with a significant increase in the use of EPPO framework contracts (82 specific contracts for a value of more than EUR 6,5 million) due, to a great extent, to the use of the EPPO’s framework contract for the Provision of Services in the Field of Information Systems; observes that only one contract, concerning the EPPO’s CMS, was awarded via a negotiated procedure without prior publication of a contract notice for reasons of extreme urgency;

    12. Observes that carry-over of appropriations from the previous exercise in 2022 amounted to EUR 10 969 680 (24,4 % of the EPPO’s 2022 final budget), of which 84,8 % was consumed (EUR 9 307 392) and 15,2 % was cancelled (compared to 21,4 % in 2022) and notes that forecasts indicate another carry-over in 2024, pending completion of the deliverables, for payment appropriations (the carry-over from 2023 to 2024 amounted to EUR 9 392 989); understands that partial cancellation is a consequence of the progressive establishment of the EPPO’s administrative practices following the financial autonomy it achieved in 2021; notes that carry-over appropriations cancelled for approved budgets of 2022 and 2023 could be neither used with existing or new contracts nor synchronised with the principle of annuality, while the planning of the corresponding expenses, mainly related to translation, meetings, missions and external contractors, could not be accurate due to a lack of any historical data and figures and the rapid evolving of the organisation; appreciates that the continuous strengthening of the EPPO’s administrative capacity is progressively addressing those issues and that, while a fully estimation cannot be made in advance because of the nature of the EPPO’s operational activity, the expected level of cancelled appropriations will diminish in 2024;

    13. Notes that in 2023 two budget transfers were adopted by the European Chief Prosecutor, on a proposal drawn up by the Administrative Director, and that they were notified to the College for information, for a total transferred between titles of EUR 1,2 million;

    14. Acknowledges the need for adequate budget flexibility, to address unexpected operational needs such as, in 2023, the war in Ukraine, inflationary pressures, or other global challenges and understands that the EPPO made use of its Financial Rules by timely reallocation of appropriations via budget amendments (one in June and one in November) and via budget transfers (one in September and one in December);

    15. Reiterates its observation on the obsolete 2017 Legislative Financial Statement which is deemed to be no longer fit-for-purpose due to a significantly underestimated workload; recalls its previous resolution, underlining that the absence of a mid-term budgetary review obliges the EPPO to wait until the very end of the budgetary adoption process to have clarity on what resource level it can implement in the subsequent year, and it limits the EPPO’s capacity to anticipate budget implementation preparatory activities as well as the options that should be made available to achieve maximum flexibility in the development of an organisational infrastructure for a project as innovative as the EPPO; notes that this, in particular, affects the early launch of recruitment, delaying the progress towards full occupancy among others and the overall absorption capacity of the EPPO;

    16. Maintains that the budgetary and human resources allocated to the EPPO are expected to be adequate to allow the efficient and successful carrying out of its mandate and the normal handling of the related administrative procedures; reiterates its call on the Commission to review the EPPO budgetary framework in close cooperation with the EPPO to find adequate ways to support it in its work; calls on the Commission to allocate additional resources, justified by the growing number of complex cases, and emphasises that these should not be dependent on the revision of Regulation (EU) 2017/1939 or of the EPPO mandate, but rather on the importance of the fight against organised crime and the protection of the Union’s financial interests in the next MFF;

    17. Emphasises that the activities of the EPPO contribute to the protection of the Union’s financial interests and are also expected to recover amounts from the Union’s budget that were not used for its intended purpose due to criminal activities; believes that the amounts resulting from seizing and confiscating measures adopted by the EDPs in the Member States could, after the deduction of costs incurred by the Member States’ authorities to implement those measures, flow back into the Union Budget in accordance with Article 38 of Regulation (EU) 2017/1939; considers that the potential revenue resulting from seizing and confiscating measures should be accounted for in the Union Budget as non-assigned revenue; calls on the Commission to make the necessary arrangements with the relevant national authorities to allow those amounts to enter into the Union Budget;

    18. Acknowledges that the EPPO clearly contributes to European added value in terms of coordination and cooperation with the Member States in investigating and prosecuting crimes against the financial interests of the Union and that the EPPO has been achieving the goals set out in Regulation (EU) 2017/1939 in that regard; expects Member States to comply with legal obligations and to report all relevant cases to the EPPO; notes with concern that in several instances Member States have been declaring criminal offences affecting the financial interests of the Union as national cases, which are within the competence of the EPPO; notes that questions of competence between the national authorities and the EDPs have come up in several cases across several countries; is aware that, according to Article 25(6) of Regulation (EU) 2017/1939, cases of disagreement about the EPPO’s competences are to be decided by the same national judicial authority who is responsible for determining the competent body for prosecution at national level; regrets that in many participating Member States the procedures in force and the national authorities entrusted with the decisions on such cases regarding conflicts of competence are not set in compliance with Regulation (EU) 2017/1939, stresses that in cases of conflicts of competence between the EPPO and a national prosecution authority, the national authority competent to decide on the attribution of competence could come to a conclusion without requesting a preliminary ruling of the Court of Justice and could, instead adopt a decision that is binding on the EPPO and points out that this is against the spirit of Regulation (EU) 2017/1939, which provides that, in accordance with Article 267 TFEU, the Court of Justice has jurisdiction to give a preliminary ruling on the interpretation of the provision on conflicts of competence between the EPPO and national authorities; believes that the current situation lacks legal clarity; encourages all Member States to work more closely with the EPPO; emphasises that the competence of the EPPO is clearly outlined in Article 22(1) and (2), and in Article 23 of Regulation (EU) 2017/1939, and that all Member States are to comply with that Regulation; notes that when Member States have doubts about the competence of the EPPO in a particular case, there is the possibility of submitting a preliminary question to the Court of Justice for a preliminary ruling pursuant to Article 267 TFEU and Article 42(2), point (c), of Regulation (EU) 2017/1939 ; urges the Commission, where there is a breach of Regulation (EU) 2017/1939, to submit the case to the Court of Justice; notes with concern that the question of competence can cause a halt to the investigation; is concerned about potential loss of evidence when cases are paused; calls on the Commission to collect information regarding cases regarding conflicts of competence for the evaluation report that will be submitted in 2026;

    19. Reiterates that Article 91(6) of Regulation (EU) 2017/1939 is to be implemented properly and underlines that the peculiar characteristics of prosecution and investigation expenditure, including the exceptional cases of the EPPO’s operational expenditure governed by that provision, have to be taken into account; understands that, in 2023, a first financing agreement was signed in the framework of a pilot for the reimbursement of claims made under Article 91(6) of Regulation (EU) 2017/1939, to cover exceptionally costly investigation measures carried out at national level on behalf of the EPPO; appreciates that the corresponding payment was audited by the Court during the 2023 audit and was deemed legal and regular;

    Internal management, performance and internal control

    20. Welcomes that, during 2023, the College met 22 times and adopted 73 decisions, among which are the anti-fraud strategy 2023-2025, the anti-harassment policy for staff and for members of the College or the EDPs;

    21. Acknowledges that the EPPO continued its efforts to set in place a system to monitor efficiency gains and cost savings, and notes that in 2023 it launched a review of the budget and activities’ strategic and operational planning and monitoring processes and of the recruitment processes, to make gains in speed and acquired competences; points out that, overall, the internal control systems in force are effective;

    22. Notes that, to further develop the EPPO’s assurance framework, the internal auditor of the EPPO for non-operational matters (IAS) initiated, in 2023, a limited review of the EPPO’s building blocks of assurance; believes that this engagement, scheduled to be finalised during the course of 2024, will provide recommendations to build a stronger capacity for the Authorising Officer to issue a credible declaration of assurance;

    23. Welcomes the benchmarking exercise carried out by the Internal Audit Capability (IAC) by comparing the deployed human resources of the EPPO with a set of other Union entities and national prosecution offices, against a standardised set of pillars which includes administrative support and operational activities; observes that, in 2023, the IAC tested the internal oversight environment and ran the first internal audit as an analysis of the working environment and internal controls of the EPPO’s decentralised office in Sofia, Bulgaria;

    24. Reiterates its view that the IAS and the IAC should coordinate their actions with a view to advising and assisting the EPPO in the establishment of its main core processes and the achievement of its objectives;

    25. Notes that the EPPO has developed its own purchase capacity, resulting from its own specifically run procurement processes launched in 2023, and manages its own specific contracts and order forms with regard to the implementation of existing framework contracts that were signed in 2023; observes that the EPPO continues, in parallel, to operate its purchase capacity through service level agreements with other Union institutions, bodies, offices and agencies, and by joining inter-institutional contracts with various market operators;

    26. Is aware that in 2023 the Administrative Director established the minimum standards (assessment criteria) for each of the 17 internal control principles based on the COSO 2013 Control-Integrated Framework and established by the EPPO Internal Control Framework (ICF) as building blocks of the EPPO internal control system; observes that out of 72 compliance criteria, 51 are observed as fulfilled, 20 have some elements in place but further development is desirable and only in the case of one criterion has no significant implementation has been noted; appreciates that, since its adoption by the College on March 2021, 71 % of the adopted ICF assessment have been successfully implemented whereas additional effort needs to be made for the full implementation of the remaining 29 %;

    27. Welcomes that, on 1 March 2023, an updated version of the EPPO Anti-fraud Strategy 2023- 2025 was adopted setting the objectives to counter fraud at all levels of the organisation in connection with a dedicated action plan which is part of the EPPO internal control environment and is monitored on a regular basis; appreciates the annual review of the Anti-Fraud Strategy action plan by the EPPO Internal Control Officer, reporting the results of that review to the Administrative Director;

    28. Is aware that, in line with the EPPO’s financial rules, the EPPO ensures an adequate level of financial transactions and procurement procedures via ex post controls on financial transactions (payments, commitments and recovery orders) and on procurement procedures for the period 1 January to 31 December 2023;

    29. Observes the increase in crime reports submitted to the EPPO (4 187 in 2023 compared to 3 318 in 2022 and 2 832 in 2021) and, as a result, the increase in open investigations (1 371 in 2023 compared to 865 in 2022 and 567 in 2021) and in the estimation of damage (EUR 19,27 billion in 2023 compared to 14,1 billion in 2022 and 5,4 billion in 2021); remarks that reports from private parties (2 494, which is 29 % more than in 2022) and from national authorities (1 562, which is 24 % more than in 2022) represent the biggest share of operational input received, while regrets that reports from other Union institutions, bodies, offices and agencies remained very low (108), suggesting that no significant improvement in terms of detection and reporting was achieved from their side; notes that the number of indictments (139 in 2023 compared to 87 in 2022 and 5 in 2021) together with the freezing orders obtained by the EPPO (EUR 1,5 billion compared to EUR 359,1 million in 2022 and EUR 147 million in 2021) are indicative of the growing performance level of the EPPO;

    30. Notes that, compared with 2022, the caseload of the EPPO almost doubled in 2023, reaching up to 1 927 active investigations; commends the fruitful activities of the EPPO in 2023, which included 139 indictments, 339 VAT-related cases and over 200 investigations on the implementation of NextGenerationEU; further notes that the EPPO started to bring more perpetrators of Union fraud to justice in front of national courts;

    31. Notes that, in 2023, 48 cases concluded with a court conviction (compared to 20 cases in 2022) and that EUR 60 million was the amount confiscated (compared to EUR 2 million in 2021); underlines the importance of a systematic reporting on the follow-up to these cases in terms of the financial measures adopted (confiscation and recovery) to get a clearer understanding of the impact of the EPPO’s actions; welcomes the actions undertaken by the EPPO and the Commission to streamline their communications and make them adequate in relation to the needs of possible administrative procedures for the adoption of measures to restore the Union’s budget affected by financial crimes; reiterates its call on the Commission to assist the EPPO in monitoring and follow-up activities, in such a way that the EPPO’s limited resources are not diverted from their investigative and prosecutorial tasks; encourages the EPPO, where possible and appropriate, to engage in better cooperation with other components of the Union’s anti-fraud architecture, such as Eurojust and Europol, or using – via OLAF- the Anti-Fraud Coordination Services established in the Member States to monitor the results of its investigations;

    32. Underlines the essential role of asset recovery in the creation of a credible deterrent to organised crime; welcomes the EPPO’s participation in international networks to advance its asset recovery operations further; stresses the need for the Commission to invite the EPPO to participate in the newly created cooperation network on asset recovery and confiscation; notes that the timely and effective investigation and prosecution of fraud-related crimes can generate significant savings for the budget of the Union and the budgets of the Member States;

    33. Is concerned about the increasing number of EPPO investigations regarding the implementation of Recovery and Resilience Plans (RRPs) (there were 233 investigations at the end of 2023, compared to 15 investigations at the end of 2022) and their relevant estimated financial damage (EUR 1,86 billion); is particularly concerned that, despite the high number of investigations, there is currently no obligation on Member States to report RRF cases to the Commission through the Irregularity Management System (IMS); recalls the obligation to report all the cases of fraud affecting RRF to the EPPO and stresses that such cases are also relevant for EDES-related measures; stresses that the EPPO’s workload, initially underestimated, has significantly increased and is expected to continue growing particularly due to the rising number of RRF-related cases and that relevant analyses suggest a possible exponential grow in the number of cases of fraud, corruption, double funding and conflicts of interest in the coming years; calls on the EPPO to systematically analyse and identify fraud patterns in Member States where multiple RRF cases have been detected, and to communicate these patterns to Member States, the Commission and the Recovery and Resilience Task Force, with the objective of enhancing preventative measures to mitigate the risk of fraud; calls on the EPPO, the Commission and OLAF to cooperate closely with the aim of minimising, as much as possible, the impact of such fraudulent misbehaviours on the Union’s budget and safeguarding the achievements of the RRF’s goals; recalls the call on the Commission to provide adequate guidance to the EPPO on how to support and foster the adoption of the remedial measures which follow the EPPO’s independent investigation and prosecution of fraud affecting the RRF and to keep the budgetary authority informed regarding the available options;

    34. Understands that the EPPO reacted to Parliament’s call for a better monitoring system and enhanced follow-up of investigations and prosecutions by launching a project on digital statistical tools which would allow better use of the data that it processes, and the development of a strategic analysis capacity to identify the patterns of fraud; shares the EPPO’s view that the success of those efforts are directly linked to the available resources and calls on the Commission to take these activities and the related costs into consideration for the future proposals on Regulation (EU) 2017/1939 and on budgetary endowments;

    35. Appreciates the EPPO’s efforts in the setting up key performance indicators (KPIs) for both operational and administrative activities with specific targets due to its peculiar business model; maintains its remark on the need for operational activities to include reference to the amounts seized, confiscated and eventually recovered to the Union’s budget, the safeguard of which is ultimately the raison d’être of the Union’s anti-fraud architecture of which the EPPO is an important component; understands that monitoring and follow-up action, including reporting on the recovery results, are not in the EPPO’s remit and require resources and specific prerogatives that are not part of the EPPO’s mission; asks the Commission to support the EPPO in identifying indicators linked to the achievement of that essential task, stressing that a better monitoring system, and more data of good granularity and aggregated in cluster per typology of misconduct, sector of interest or geographical area, could allow making more tangible the impact of the EPPO’s investigations and allow the identification of patterns of fraud;

    Human resources, equality and staff well-being

    36. Observes the upward trend in the number of staff, increasing from 58 in 2020, to 122 in 2021, 217 by the end of 2022 and 238 by the end of 2023; is aware that, for 2023, the EPPO requested from the budgetary authority the suppression of 20 contract agent posts and the creation of 20 temporary agent posts, which was granted and implemented by the EPPO in the same year, resulting in the total number of staff remaining unchanged (248, out of with 171 TAs, 48 CAs and 29 SNEs), with a different allocation of posts (191 TAs, 28 CAs and 29 SNEs); points out, however, that following certain security weaknesses identified, the EPPO requested in May 2023 an amending budget and additional posts to enhance the physical, information and cyber security at central and decentralised levels and that out of 21 security posts identified, only eight posts (1 AD 9, 4 AD 6 and 3 AST 3) were granted in November 2023 for further security implementations which was finalised in 2024;

    37. Points out that, in 2023, the occupancy rate at the central office was 92,97 %, of which 238 were members of staff compared to 256 budgeted posts; notes that out of 140 posts for the EDPs, 130 were on the post at the end of 2023 and another 10 started at the beginning of 2024, reaching 100 % of occupancy rate; observes that the EPPO reinforced its capacity to run timely and transparent recruitment procedures by concluding 24 selection procedures in 2023, on-boarding 45 statutory staff members and 8 new European Prosecutors while 35 new EDPs were appointed;

    38. Notes that, by December 2023, staff turnover (TAs and CAs) was at 4,62 %[15], recording a total of 11 resignations throughout the year, mainly justified by leaving to another institution (four cases) and for more senior positions offered in other Union institutions (seven cases); observes that the main underlying cause for this turnover is the specificity of the Luxembourg labour market, which has a very limited talent pool and small offer of specialised skills;

    39. Acknowledges the Commission’s efforts to satisfy the EPPO’s requests for additional posts; believes that the workload perspectives indicates that further resources are needed, especially considering the backlog and additional RRF-related cases and far-reaching VAT fraud and also considering that the administrative and central support functions are expected to grow, in line with the larger operational population; points out the risk of underestimating needs and capacities; remarks that the cost of interim staff and external service providers working intra-muros in 2023 reached EUR 4 235 242; encourages the Commission and the EPPO to find a sustainable long-term solution which allows for continuity, preserves confidentiality and retains built-in competences; appreciates that the EPPO’s additional operational needs are exhaustively integrated in the EPPO Single Programming Document 2024-2026 and in EPPO budget requests;

    40. Notes with concern that the Luxembourg labour market is very competitive, that the financial conditions offered by the Union administration are not attractive compared to the local market (subject to diverse salary indexations throughout the year), and do not take due account of the high cost of living in Luxembourg, which has become even more difficult because of the inflation rate and the increased cost of housing; notes that the EPPO cannot offer a career path for its members of staff to become Union Officials and that its posts are therefore even less attractive than those in the four other Union institutions operating from Luxembourg; emphasises that this results either in a very limited number of applications for vacant posts or in the rejection by the selected candidates of the employment offer once received, due to the high cost of living; calls on the EPPO and the Commission to implement measures that enhance the EPPO’s attractiveness for highly skilled professionals with international experience, such as the housing allowance for lower-grade staff approved by the budgetary authority for 2025, as recommended by the High-Level Interinstitutional Group; notes the overrepresentation of certain nationalities among staff;

    41.  Notes that, at the end of 2023, geographical and gender balance was adequately pursued overall across the 238 members of staff (with 137 men and 101 women); maintains that the nationality breakdown of the EPPO population is constantly monitored by those hiring new members of staff, in seeking to ensure balance, especially, in light of the uneven distribution of applicants, and with Italy (34), Romania (33), Greece (26) and Belgium (24) being more represented across the 26 different nationalities; encourages the EPPO to adopt proactive measures to ensure a balanced representation of nationalities among its staff, reflecting the diversity of the participating Member States; expresses concerns over the gender distribution among senior management positions (four men to one woman) and calls for this issue to be addressed in the framework of the overall diversity strategy; calls for the publication of an annual report, disaggregated by gender, nationality, and employment category, including concrete measures to close gaps in recruitment and career advancement and to monitor and address imbalances;

    42. Is aware that the decision to implement a strategy on Diversity and Inclusion was made in 2023, with the development of the strategy to be executed in the course of 2024; encourages the EPPO to progress with its adoption and to periodically launch surveys among its staff, by promoting peer-review with other components of the Union’s anti-fraud architecture, such as Eurojust, OLAF and Europol; understands that the EPPO’s policy on Diversity & Inclusion will be based on the EU Agencies Network Charter on Diversity & Inclusion, adopted in March 2023, and believes that it will in general encourage diversity to make the workplace more attractive to candidates with specific needs; reiterates its request to the EPPO to adopt its Charter on Diversity and Inclusion without delay, in light of the increase in staff during 2023;

    43. Remarks that, including TAs, CAs, SNEs and EDPs, 341 out of 396 staff (compared to 275 out of 332 in 2022) were deployed in investigative activities by the end of 2023 (that is 86,10 % compared to 82,83 % in 2022 and 86 % in 2021) while 55 members of staff (compared to 57 in 2022) were engaged in administrative support and control functions;

    44. Welcomes the appointment of 8 new European Prosecutors and 35 new EDP’s to the EPPO in 2023; reiterates that the EPPO can fulfil its role only if it enjoys full judicial independence, which flows from a merit-based and objective appointment procedure; encourages Member States to contribute to the full independence of the EPPO in that regard;

    45. Maintains that the appointment of EDPs is a shared responsibility of the EPPO and the Member States; stresses that the appointment procedure must always comply with Article 17 of Regulation (EU) 2017/1939 and the principle of national procedural autonomy;

    46. Underlines the need for greater career development opportunities for EDPs to attract and retain experienced professionals; calls for improved employment conditions, including a clear career progression path and the standardisation of social security and pension arrangements across participating Member States, ensuring that national salary discrepancies do not deter qualified candidates from applying;

    47. Appreciates that, in the course of 2023 and beginning 2024, the number of EDPs reached the initially foreseen number of 140; welcomes the decision to align the remuneration of EDPs with that of EU Officials of equivalent level of responsibility, rather than 80 % of the salary of EU Officials, as originally provided for; takes the view that this decision increases the attractiveness of the EDP’s function, paving the way to the recruitment of more experienced national prosecutors whose national salary was higher than the remuneration offered by the EPPO, and in the meantime reduces the administrative burden on the EPPO for the implementation of Article 16(1) of the Conditions of Employment of the EDPs, which provides that, in the case of total net remuneration lower than the national salary, a top-up amount is provided to ensure that the remuneration matches the previous level;

    48. Underlines that the selection process for European Prosecutors and EDPs is not managed autonomously by the EPPO, because European Prosecutors are nominated by the Member States and then appointed by the European Council, whereas EDPs are nominated by the Member States and appointed by the College; maintains that the application of qualified candidates to the EDP positions could increase and the process could become more selective by adopting a clear career perspective and more favourable administrative discipline on social security and health insurance coverage; reiterates that the creation of a specific status for EDPs would be consistent with the nature of their judicial function and contribute on making those posts more appealing; calls on the Commission to propose adequate solutions in the event of amending Regulation (EU) 2017/1939;

    49. Understands that each Member State is obliged (under Article 96(6) of Regulation (EU) 2017/1939) to put in place arrangements of legislative or administrative nature to maintain the affiliation and coverage of the EDPs, including any contributions to the relevant national social security, pension and insurance schemes, but a number of Member States have not yet fully complied with this obligation; therefore calls on the Commission to propose an effective solution to the social security and health insurance coverage gap of the EDPs at the revision of Regulation (EU) 2017/1939;

    50. Notes that five complaints about the appointment of EDPs were introduced before the Court of Justice until 2023, of which three were closed (either dismissed or withdrawn) and one was dismissed, but an appeal is currently pending before the Court of Justice, and the last action for annulment of the decision of the College rejecting the nomination as EDP of a person nominated by a Member State was admitted in July 2024 on the grounds of a lack of sufficient reasoning in the College’s decision and an analysis is on-going on the manner in which the annulment is to be implemented; observes that there are no new complaints before the General Court concerning appointments to the EPPO;

    51. Notes that the EPPO’s learning and development strategy was launched in 2023, aiming to promote a culture of continuous learning and facilitate the continuous assessment and adaptation of the staff’s evolving learning needs, together with the pilot learning needs analysis;

    52. Notes, as regards measures and policies in place to safeguard the physical and mental well-being of staff, that in 2023 all measures were subject to revision and consultation by all involved stakeholders (the staff committee, members of staff in general, and management), seeking to find a balance between expectations and reality of the EPPO as a growing and rapidly changing organisation; observes that there the EPPO operates a flexitime scheme and a work-from-home standard scheme, which provides for one day of telework per week as a basis and a maximum of three days per week, plus extensions accepted in light of serious health or family constraints; remarks that current framework also includes 10 days’ work from outside the place of employment in a given year, to be used without link to other days of leave; believes that the EPPO’s current working conditions allow staff to take advantage of digital solutions by integrating a good level of autonomy in the management of working patterns, facilitating the conciliation of private and work life and promoting team morale and spirit; welcomes the on-going development of a policy on well-being which shall contain a section on well-being for staff benefiting from telework;

    53. Highlights that, as suggested by Parliament, in the second semester of 2023 an open consultation on flexible working arrangements took place, and the decisions adopted in 2021 and 2022 underwent an ex post revision; notes that in consideration of the input of all stakeholders, on December 2023 the Administrative Director incorporated updates to the provisions; notes that changes included the enlargement of the notion of ‘place of telework’ (from 2 to 2,5 hours’ time/distance radius around the EPPO’s central office), and the introduction of hybrid working arrangements for interim agency staff; observes that no further change was adopted by College decisions, taking into account that the Administrative Director decisions had already enacted the conclusions of the staff consultations;

    54. Notes that, following Parliament’s calls, a staff satisfaction (engagement) survey is planned in the first quarter of 2025; understands that the EPPO’s staff committee has also run a staff priorities survey, and encourages a more intensive dialogue to enhance the work-life conditions;

    55. Welcomes that no case of burnout or harassment have been reported and that the number of long-term sick leave is very limited; welcomes the EPPO’s awareness of its duty to ensure promotion and preservation of health and wellbeing across staff, as well as the monitoring practices to earn such understanding which take into account untaken annual leave, the carry-over of annual leave and absences, the number of staff on long-term sick leave and the length of the absences; recalls the importance of establishing a clear and structured procedure for reporting cases of harassment by the European Chief Prosecutor and by the European Prosecutors, as well as its divulgation to all the staff;

    56. Observes that, in early 2023, the EPPO’s central office carried out a traineeship pilot and the EPPO legal service sector hosted two trainees followed by two more in March and September 2023 for remunerated, in-person, five-month traineeships; notes that, based on the positive conclusions of the pilot, a traineeship policy was drafted and has been approved in 2024, followed by a first cycle of effective trainees the same year; welcomes the initiative to launch an experimental relationship-building with the local university and if successful, calls for its expansion to additional universities across the EU, which could offer interesting perspectives to further develop the early talent programmes for diversity; stresses that the high cost of living in Luxembourg poses a considerable obstacle for potential trainees; emphasizes that traineeships should be remunerated in compliance with the European Parliament’s resolution of 14 June 2023 with recommendations to the Commission on quality traineeships in the Union (2020/2005(INL), which calls for all internships in the Union to be paid;

    57. Welcomes the intense activity of the staff committee, the final adoption of its internal rules of procedure, the launch of the first staff committee open day, the launch of the first EPPO-wide staff survey, the participation of its representatives in the selection procedures, the retroactive revision of all general implementing provisions adopted by the EPPO before the establishment of the staff committee, the submission of input on internal reorganisation, working time and hybrid working, implementing rules and the improvement of working conditions;

    58. Understands that the EPPO is progressing towards the finalisation of a business continuity plan, which is included in the Union’s administration management standards, and urges the EPPO to adopt it without further delay;

    Ethical framework and transparency

    59. Understands that the EPPO’s ethical framework is being gradually built up; observes that the core values of that ethical framework are clearly set out in codes of conduct, which outline the standards of behaviour expected of employees at all levels; also observes that the ethical framework depends on the EPPO’s code of good administrative behaviour, its anti-fraud strategy and a training programme on ethics, which encompasses harassment, whistleblowing, the prevention of conflicts of interest and other ethical issues; regrets that members of staff of the EPPO are not required to attend that training programme, which would ensure a consistent understanding and application of the EPPO’s codes of conduct; calls on the EPPO to remedy the situation;

    60. Notes the EPPO’s engagement in awareness-raising actions among staff about ethical framework and related matters; encourages the EPPO to make mandatory the attendance of such sessions by European Prosecutors and EDPs at their taking over of duties; believes that internal dialogue needs to be intensified;

    61. Notes that no effective cases of conflict of interest were detected in 2023; is aware that dedicated conflict of interest declaration forms have been established and conflict of interest rules are in force for the members of College, the EDPs, the members of staff of the operational units, and other sensitive posts; welcomes the ongoing development of a structured conflict of interest policy and calls on the EPPO to finalise its adoption; calls for the implementation of a mandatory annual refreshment of an ethics and integrity training course for all EPPO personnel;

    62. Urges the EPPO to enhance its internal integrity framework by mandating public disclosure of all financial interests and external activities of senior officials, including members of the College; calls for a periodic audit of these disclosures to identify and mitigate potential risks of undue influence;

    63. Understands that the EPPO seeks to prevent revolving doors in particular by endorsing the strict application of the provisions of the Staff Regulations, which are set out in all contracts of the EPPO, including ad hoc exit forms that indicate the obligations that apply after termination of engagement; welcomes in this regard the adoption, in 2023, of the Guidelines for the EPPO Staff on Outside Activities and Assignments, which apply to activities that are not considered to relate to hobbies of leisure activities outside the remit of the EPPO;

    64. Calls for the introduction of a more robust revolving door policy, including an extended cooling-off period of at least two years for senior EPPO officials before they can engage in private-sector employment related to EPPO investigations; requests that the EPPO conducts an annual review of compliance with these post-employment restrictions;

    65. Calls the EPPO to adopt a dedicated whistleblowing and anti-retaliation procedure to integrate the implementing rules to the Staff Regulations adopted by the College (College Decision 2021/077 laying down guidelines on whistleblowing applicable within the EPPO) and to accompany Article 45.12 of the EPPO Financial Rules (establishing the actions to be undertaken in the circumstances) in order to ensure a safe and protected workplace; welcomes the initiative of intensifying internal communication on the first network of confidential counsellors and on the anti-harassment provisions and to all National European Delegated Prosecutors’ Assistants (NEDPAs) on whistleblowing mechanism for breaches against the EPPO mandate;

    Digitalisation, Cybersecurity and data protection

    66. Deplores the situation of the EPPO in the area of its IT autonomy, which is adversely affected by the decision of the Commission’s Directorate-General for Digital Services (‘DG Digital Services’, formerly DIGIT) to discontinue the provision of digital workplace services; points out that EPPO IT autonomy requires additional human and financial resources which so far have not been granted because of the limitation imposed by the overall available budgetary resources in the concerned lines; regrets that, on grounds of the risks to its operational activities, the EPPO had to establish its own digital service capacity to accommodate the additional human resources that it was granted in light of the participation of Poland and Sweden;

    67. Notes that the EPPO’s initial approach was to prioritise resources on the setting and working of essential digital services linked to its operational activities, such as its case-management system, while acknowledging that the EPPO’s digital services, which, at least in part, diverge from those of the Commission, would have needed, in the mid-term, a tailored approach; observes that the interruption of service by the Commission occurs in the crucial phase of the consolidation of the EPPO’s establishment;

    68. Understands that, in 2023, the EPPO’s IT, Security and Corporate Services unit continued the implementation of two major programmes: the IT Autonomy Programme, to offer a complete catalogue of administrative IT services fully managed internally, and the EPPO’s CMS programme, to further develop the digitalisation of the organisation in its core business area; acknowledges that in 2023 the EPPO continued to prepare to gradually transition from a digital workplace provided by DG Digital Services  to an EPPO-owned and operated solution; is aware that the resources needed to implement this change, although were included in the EPPO’s budget request for 2023, were not granted by the budgetary authority; notes that following DG Digital Service’s announcement, the EPPO started negotiation to seek a solution which has not yet been achieved;

    69. Appreciates that Commission has temporarily extended the provision of IT services until June 2025 but maintains that the outsourcing of those services is a suboptimal solution in the current situation; understands that not only security and confidentiality-related arguments, but also purely financial aspects, suggest to reconsider the decision, because the outsourcing would appear much more costly than the in-house solution, and the adoption of the latter, after DG Digital Services cease providing their services, would be managed by the EPPO; stresses that, to implement the preferable in-house solution, the complex administrative aspects, the EPPO lack of experience and the de-centralised configuration of the EPPO with EDPs and NEDPAs in several locations across the Union, will require a more relevant budget and a lengthy transition period;

    70. Reiterates its call on DG Digital Services to not interrupt its support to the EPPO until such a time as the EPPO has its own reliable IT system; deems it to be essential to avoid loss of data and to keep the EPPO fully operational in the transition between IT services providers; maintains that clear communication and operational coordination on the transition is to be ensured involving the highest decision-making levels of the Commission and the EPPO; asks the Commission and the EPPO to agree upon a gradual passage of competences for a smooth and continuous transition in the period after the extension, which could be extended beyond June 2025;

    71. Observes that EPPO’s requests for permanent additional posts to fill the gap stemming from the discontinuation of DG Digital Services were refused, in January 2023, when EPPO requested 45 establishment plan, and at the end of February 2024, when a request for an amending budget 2024 for EUR 2,98 million and 37 established plan posts was also rejected; notes that the solution of recruiting intra-muros contractors could be a part of an interim solution to address DG Digital Service’s discontinuation, but while that approach would offer immediate operational continuity, it should not be conceived as a definitive solution for the EPPO, taking into account the extremely sensitive nature of its activities and the need to ensure continuity and reliability of its digital services, as well as the highest level of security of its IT infrastructure, systems and equipment; shares the view that the rejection of the EPPO’s budgetary requests is indicative of differences in the assessment of the problem, which has an adverse impact on the EPPO’s operational activities and represents a potential reputational risk for the Union in the case it results in weakening the EPPO’s operational capacity;

    72. Understands that each EDP has to use any national and the EPPO’s CMS, which are different data bases governed by different access rights; believes that this situation increases the daily complexity in the data management; is also aware that to make it possible the processing and exchange of information between the central services of the EDPs and the EPPO, all the casefiles need to be digitalised by the EDPs using national digital tools and in compliance with national law; appreciates, in this regard, the formal creation of the NEDPA status in the official organisation chart which allows granting access to NEDPAs (staff of the national office) directly to the EPPO’s CMS, like that unburdening the EDPs of administrative tasks and creating the basis for more accuracy and consistency of case data between the two case-management systems; takes the view that the way towards integration between the EPPO’s CMS and national case-management systems would be facilitated by appropriate revision of regulation and that these steps would increase the effectiveness of EPPO investigations; notes, however, that such integration could be primarily a matter of compatible technological solutions used in the different Member States and linked to the actual level of digitalisation of judiciary proceedings in those Member States; observes that the burden of the inherent costs is currently shared, with the national budget covering the costs of the equipment needed for interaction with the national case-management systems, and the EPPO budget covering hardware and the setting of a digital working environment that is secured to the same standard as EPPO central office staff and which is considered part of the operational communication costs provided for by Regulation (EU) 2017/1939;

    73. Understands that interoperability is material to achieving efficient data exchange and cooperation and that in order to adopt minimum common data exchange agreements and the implementation of judicial interoperability tools, an e-CODEX EPPO Use Case Project, initiated in 2023, involved several workshops with the e-CODEX Consortium to align on technical and functional requirements; regrets that, after several workshops with e-CODEX Consortium, the project was paused to allow the transition to the new e-CODEX programme manager, eu-LISA, and due to lack of EPPO resources with expertise in this area; calls on the Commission to act as a facilitator for further progressing in the project and to factor also those actions in the EPPO’s budgetary needs estimate;

    74. Is aware of the increased threat to the EPPO’s IT structural integrity stemming from the aggressiveness of organised crime, combatted by the EPPO, and resulting in the need to step up physical and digital security; notes that in 2023 the EPPO focused on enhancing its security governance; appreciates the EPPO decision to create a dedicated unit to address cyber and physical security; observes that the EPPO prepared a framework including new processes, roles and responsibilities and policies to increase the security of the digital systems used for the handling of operational and administrative data; understands that several risk assessments were carried out to assess the security framework of the digital systems which suggested the implementation of additional technical and governance measures to enhance the EPPO’s security environment; remarks that the policy framework was improved in the circumstance, with a security strategy and global information security policy proposed in 2023 and formally approved and adopted in 2024;

    75. Observes that the EPPO completed, in 2023, the set-up of security contact points in all participating Member States to enhance cooperation on security matters for staff and EPPO offices located in those Member States; welcomes the service level agreement is in place with CERT-EU that provides support and monitoring for specific services for incident response-related matters; underlines that the deployed system to assess risk and to report incidents is well structured and training is provided effectively; appreciates the external assessment performed for physical security whose findings translated in a roadmap for improvement by the host country;

    76. Praises the significant progress made in 2023 towards the implementation of a backup data centre and the deployment of an associated disaster recovery scenario; appreciates, in that regard, the EPPO’s development of its own case-management ecosystem the components of which are all hosted in the EPPO data centre and managed by the EPPO’s staff, guaranteeing the EPPO control, retention and ownership of systems and data processed;

    77. Acknowledges the EPPO’s need for up-to-date equipment and IT systems to deal with increasingly complicated crimes frequently involving digital elements and digital methodologies; stresses as well the urgency of developing a strong cybersecurity framework, given the growing risks posed by highly tech-savvy criminal networks and potential foreign interferences, through cyberattacks; supports the EPPO in its request for resources to be allocated to protecting its cybersecurity and calls for the swift implementation of a robust cybersecurity strategy to safeguard EPPO’s operations and data integrity;

    78. Stresses that the nature of the EPPO’s activities entails the need for specific oversight and dedicated attention to the protection of personal data; takes the view that the EPPO and the EDPS should engage in continuous dialogue to ensure the usability of the data for the investigation and prosecution and, at the same time, ensure respect for the protection of personal data; understands that the requirements relating to data protection handling stems from Regulation (EU) 2017/1939 and from Regulation (EU) 2018/1725[16] and that those requirements are complemented and implemented by College decisions, adopted after consulting the EDPS; appreciates the decision to provide mandatory training for all members of staff, including dedicated data protection training essential to the access to the EPPO’s CMS;

    Buildings and security

    79. Observes that, thanks to the lease agreement by which Luxembourg authorities provide the building currently hosting the EPPO’s headquarters (the TOB building) on a rent-free basis, the costs are limited to a service charge fee of EUR 716 724 per year; notes that, in 2023, EUR 248 103 was paid to the same Luxembourg authorities for security installations in the two additional floors (9 and 10) delivered to the EPPO in Q1 2023;

    80. Welcomes, having regard to physical security, the allocation – with amending budget 2023 and the budget 2024 – of the resources needed to have a proportionate capacity to deliver enhanced security services (21 additional posts to enhance its security capability) and the EPPO’s efforts towards the continuous improvement and efficiency alignment of the physical security processes; maintains the proper functioning of the EPPO implies that prosecutors and staff have to be protected to be able to pursue their mission to its full extent, without threats, influence or pressure;

    Environment and sustainability

    81. Believes that the Luxembourg authorities providing the EPPO’s headquarters should consider their sustainability and energetic performance; calls on the EPPO to engage in discussions with the Luxembourg authorities to explore specific actions for improving the environmental footprint of its premises, including the installation of renewable energy sources such as solar panels, the introduction of CO2 offsetting measures and implementation of the Eco-Management and Audit Scheme to evaluate, report, enhance organisations’ environmental performance and to save energy; calls on the Commission to facilitate dialogue between the EPPO and the local host authorities to ensure the optimal use of resources and the alignment of EPPO’s operations with the Union’s sustainability;

    82. Notes that the EPPO’s central office is integrated in the Luxembourg network of free public transport making it easily reachable through low environmental impact means, at no cost for staff and visitors and that the central office underground car park provides a dedicated zone for bike parking; understands that exchanges are ongoing concerning the installation of charging stations for e-vehicles in the same underground car park;

    Interinstitutional cooperation

    83. Maintains that the EPPO’s role as a major operational component of the Union’s anti-fraud architecture can be effectively pursued only with intense cooperation with and support from its partners and stakeholders; reiterates that the EPPO can fulfil its role only if it enjoys full judicial independence; encourages Member States to contribute to the full independence of the EPPO in that regard and encourages the EPPO to continue its communication and coordination efforts with the several partners whose action has been designed to be reciprocal and complementary;

    84. Welcomes the initiatives launched by OLAF and the EPPO to intensify and streamline their operational cooperation and share knowledge amongst the involved actors; appreciates the first international conference allowing exchange of views between EPPO prosecutors and OLAF investigators, hosted by Parliament in 2024; emphasises that the revision of the regulatory frameworks of OLAF and EPPO provides the opportunity to reconsider many aspects of their working together in the light of the experiences earned in those first years of EPPO operational activity, having specific regard to the opening of complementary OLAF investigations and administrative investigations in support of the EPPO, as well as OLAF’s increased role in detecting and reporting fraud to the EPPO in support of the recovery of the damage to the Union budget; believes that the dialogue and cooperation within the antifraud architecture could be made more effective by the setting of a regular inter-institutional forum with a view to optimising the efficiency and efficacy of the available resources in action;

    85. Welcomes the initiatives launched by OLAF and the EPPO to intensify operational dialogue and improve coordination; underlines the importance of full and effective data-sharing between the EPPO, OLAF, Eurojust, and Europol to ensure seamless cooperation in the fight against cross-border fraud; calls for the establishment of a joint working group to oversee data integration and case management efficiency among these bodies;

    86. Encourages continued and enhanced cooperation between the EPPO and OLAF, in line with their respective regulations, and the obligation on OLAF to report, without undue delay, suspicions of criminal contact to the EPPO, in order to enable it to tackle fraud, corruption and financial crime affecting the Union’s financial interests; supports the further development of joint initiatives, information sharing and coordinated actions between the EPPO and OLAF, as such cooperation is vital in strengthening the protection of the Union’s financial interests and the Union’s fight against financial crime and to ensuring the effective and efficient use of Union resources.

    87. Commends the close cooperation in 2023 between the EPPO and the Court of Auditors, resulting in the timely transmission of information on suspicions of criminal offences falling within the EPPO’s competences;

    88. Expects that the working group established with the Commission, and the meetings on the implementation of the Commission-EPPO Working Arrangement, will ensure that EPPO notifications for the purpose of administrative recovery, as provided for by Article 103(2), point (c), of Regulation (EU) 2017/1939 will duly and effectively enable the Commission to maximise recovery to the Union budget, while complying with the confidentiality and proper conduct of the investigative actions; stresses that, in this specific regard, no feedback has been yet provided by either party, preventing the legislators from earning a comprehensive understanding of the underlying issues, including the specific amounts recovered annually by the Commission from Member States in cases of damage to the Union budget; highlights that the recovery of funds by national authorities remains under the Commission’s responsibility, as mentioned in the Mission Letter to the Commissioner for Budget, Anti-Fraud and Public Administration, while the EPPO does not hold a mandate to follow up on the recovery process; calls on the Member States to strengthen cooperation and inform both the Commission and the EPPO of final confiscations; urges a revision of the relevant Regulations to clarify the EPPO’s role in the recovery process; and urges the EPPO and the Commission to adopt an agreed upon form of reporting to Parliament; understands that this could require appropriate development of the EPPO’s CMS, and asks the Commission to prioritise the allocation of resources to the EPPO to meet that need;

    89. Welcomes the strengthened cooperation with Europol; observes that the ODIN (Operational Digital Infrastructure Network) programme would enable the full exploitation of the amount of data collected by the EPPO in its investigations (more than 1000 terabytes and growing); notes that, in that framework, the EPPO has identified possible crimes outside its competences, including organised crime, drug trafficking, illicit cigarette production, investment fraud, illegal gambling and prostitution (non-PIF offences), and others which have resulted in the transmission of several files as key evidence to ongoing national investigations and that 28 new cases have been initiated by national prosecution offices to further investigate those non-PIF offences, which are outside the EPPO’s remit; understands that for this and other analyses, however, cooperation with Europol suffers from limitations stemming from national procedural criminal law and accessibility of the EPPO data owned; underlines that the EPPO’s existing competence to investigate organised crime and money laundering linked to fraud affecting the Union’s financial interests should be supported through adequate resources and efficient cooperation with Europol; considers that while cooperation with Europol needs to be even further enhanced, it cannot fully substitute the development of the EPPO’s internal analytical platform, which remains vital to a fast interpretation of the data collected during its investigations and the setting of operational strategies in cross-border cases requiring access to the EPPO’s entire CMS; recalls that, in its upcoming evaluation report, the Commission should carefully analyse to which categories of crimes the EPPO’s mandate needs to be extended, in order to take full advantage of its potential; welcomes the EPPO’s call for enhanced cooperation with Union institutions;

    90. Is concerned about the increasing number of cases concerning the RRF; appreciates the timely information provided to the Commission and to the relevant Parliament Committees on this matter; believes that the large number of active cases involving RRF funds justifies an intensification of the exchanges held with, in particular, the Recovery and Resilience Task Force, with the aim of identifying possible oversight or control gaps or fraud patterns and to allow the Commission to keep up to date its performance monitoring mechanisms and to enforce the reduction and recovery measures recently designed; reiterates that RRF funds are Union and not national funds and are under the jurisdiction of the EPPO and encourages the Commission and other Union’s bodies and authorities to increase the detection efforts and report to the EPPO every relevant situation;

    91. Welcomes that the EPPO signed Working Arrangement with Parliament in November 2024, establishing clear modalities of cooperation for the purpose of protecting the Union’s financial interests;

    92. Notes that, in 2023, the EPPO continued to rely on inter-institutional contracts and bilateral agreements (SLAs) to purchase goods and services at a lower cost; observes that, at the end of 2023, the EPPO had 80 active membership in inter-institutional framework contracts and 22 service-level agreement or other bilateral agreements with other Union’s entities with the aim of maximising budgetary savings from the contractual instruments in place, in line with the principles of sound financial management;

    93. Strongly welcomes the participation of Poland and Sweden in the EPPO; is aware that this will have an impact on the EPPO’s budgetary needs, and supports the EPPO’s request which aims to equip the EPPO with the necessary resources to take advantage of the participation of Poland and Sweden to its operational activities; notes that while Ireland and Denmark continue to exercise their opt-out from the EPPO under Protocols No 21 and 22 TFEU, Hungary is the sole remaining Member State that has not yet joined the EPPO; calls on the Hungarian government to join the EPPO without further delay; recalls the collection of 680 000 signatures in favour of joining the EPPO, underscoring a strong societal demand for enhanced legal safeguards against fraud and corruption affecting the Union’s financial interests;

    94. Observes that, in 2023, no major improvement towards participation into the EPPO has occurred with the Irish authorities; reminds that their refusal to cooperate with the EPPO in executing several requests for mutual legal assistance sent by the EDPs had resulted in the EPPO reporting the situation to the Commission in accordance with Regulation (EU, Euratom) 2020/2092[17]; appreciated the following decision of the Irish authorities to amend their domestic legislation providing the legal framework for mutual legal assistance to the EPPO and underlines that from 1 November 2023 it provides mutual legal assistance to the EPPO based on this unilateral recognition; notes that no exchanges occurred with the Irish inter-agency working group established to examine Ireland’s potential future participation in the EPPO; urges the Commission, the EPPO and the Irish authorities to engage in a constructive dialogue to find an effective way of cooperation;

    95. Maintains that any lack of cooperation with the EPPO by any of the Member States, whether they are participating in the enhanced cooperation that established the EPPO, creates niches of immunity and privilege that make the defence of the financial interests of the Union uneven and inefficient at best; reiterates its call on the Commission and the Member States concerned to make any possible effort to integrate the current scenario with the few but still very important missing components, promoting the extension of the participation in the EPPO by the other still non-participating Member States in such a way that strengthens the effectiveness of the protection of the Union and national budgets; calls on the Commission to closely monitor Member States’ level of cooperation with the EPPO and urges the Commission to initiate infringement proceedings against any Member State that systematically obstructs EPPO-led investigations; takes the view that membership of the EPPO should be a precondition for receiving Union funds;

    96. Condemns the recently reported systematic espionage organized by the Hungarian government against OLAF staff during an investigative mission into the potential misuse of Union funds by ELIOS, a company linked to the Hungarian Prime Minister’s son-in-law; emphasizes that OLAF and the EPPO, as cornerstone institutions of the Union’s anti-fraud architecture, are regrettably exposed to such threats not only from third countries but also within EU Member States; stresses that such actions gravely undermine the rule of law and the integrity of Union institutions; calls for the swift establishment of robust protection measures to safeguard Union’s institutional staff on mission in Member States and to prevent such unacceptable violations in the future;

    Communication

    97. Observes that the EPPO engages in continuous efforts to enhance internal and external communication; appreciates the actions carried out via social network platforms and encourages the EPPO to maintain its proactive and transparent approach;

    98. Believes that explanations about the EPPO’s interventions and operations and about their background, when reported in the media and posted on social networks, would contribute to reinforcing the reputation of the institutions amongst citizens and raise awareness in taxpayers about the complexity of the protection of the Union’s financial interests;

    99. Maintains that proper and accurate communication from the EPPO would also increase the involvement of civil society and increase submission of potential investigative input; understands that the EPPO asks to have the reporting option included in every standard presentation for external audiences or at conferences and seminars, when possible and appropriate; notes that, in 2023, the EPPO’s corporate website underwent a complete redesign, with the primary focus on enhancing accessibility and user-friendliness, and that the option to report a crime is now prominently displayed at the top of every webpage together with a banner highlighting this feature in the homepage;

    100. Observes that the level of the EPPO’s resources that are devoted to communication are limited, and that, in view of the need to establish the EPPO’s digital autonomy, management of the EPPO website will have to be brought in-house, requiring additional resources, after DG Digital Services cease providing that service; underlines that the increasing volume and the sensitivity of EPPO investigations calls for attention in exchanges with the media, journalists, citizens and academia; reiterates its call on the EPPO to clearly strike the best possible balance between transparency and public interest on the one hand and confidentiality and proper conduct of the investigation on the other, and to ensure the neutrality of its communications about its activities;

    101. Recalls the importance of transparency in the EPPO’s interactions with external actors; calls for the establishment of a mandatory public register of all meetings between EPPO officials and representatives of third parties, including lobbyists and national government representatives, in order to prevent undue influence and reinforce public trust in the EPPO’s independence;

    Effect of Russia’s war of aggression against Ukraine

    102. Believes that the working arrangements with the Ukrainian competent authorities could effectively enhance the level of protection of the Union’s financial interests following the relevant commitments undertaken to support Ukraine and its population; is aware that transmission of evidence has occurred in execution of mutual legal assistance requests and welcomes the perspective of activating a joint task force with the Ukrainian authorities to coordinate investigations; reminds the Commission and other Union institutions bodies, offices and agencies of the importance of detection and timely submission of investigative input to the EPPO.

     

    MIL OSI Europe News

  • MIL-OSI Europe: REPORT on discharge in respect of the implementation of the general budget of the European Union for the financial year 2023, Section V – Court of Auditors – A10-0047/2025

    Source: European Parliament

    2. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

    with observations forming an integral part of the decision on discharge in respect of the implementation of the general budget of the European Union for the financial year 2023, Section V – Court of Auditors

    (2024/2023(DEC))

    The European Parliament,

     having regard to its decision on discharge in respect of the implementation of the general budget of the European Union for the financial year 2023, Section V – Court of Auditors,

     having regard to Rule 102 of and Annex V to its Rules of Procedure,

     having regard to the report of the Committee on Budgetary Control (A10-0047/2025),

    A. whereas in the context of the discharge procedure, the discharge authority wishes to stress the particular importance of further strengthening the democratic legitimacy of Union institutions by improving transparency and accountability and by implementing the concept of performance-based budgeting and good governance of human resources;

    B. whereas the Court of Auditors (the ‘Court’) is the Union’s external auditor, entrusted, by way of independent, professional and impactful audit work, with assessing the economy, effectiveness, efficiency, legality and regularity of Union action to improve accountability, transparency and financial management, thereby enhancing citizens’ trust and responding effectively to current and future challenges facing the Union;

    C. whereas, without prejudice to Articles 287 and 319 of the Treaty on the Functioning of the European Union (TFEU), each year since the close of the 1987 financial year, the Court has had its revenue and expenditure accounts audited by an independent external auditor and, since the report on the 1992 financial year, the external auditor’s reports have been published in the Official Journal of the European Union;

    D. whereas management accountability to the budgetary authorities is provided via the annual activity report of the Secretary-General of the Court, the purpose of which, according to Article 74(9) of the Financial Regulation, is to provide information about the use made of resources, including systems, and about the efficiency and effectiveness of the Court’s internal control systems;

    E. whereas, by performing its tasks in a transparent and independent way, the Court contributes to democratic oversight, public debate and the sound financial management of the Union;

    F. whereas the Court has taken the position that, in order to assess the governance, accountability and transparency of the Union and the quality and reliability of the information and data reported on the implementation of Union policies, the best solution would be for the Court to be mandated to audit all Union institutions, bodies, offices and agencies set up by or under the Treaties and all the intergovernmental structures of key relevance to the functioning of the Union; whereas Parliament strongly supports the Court and would welcome initiatives that would strengthen the ability of the Court to deliver on its mandate;

    1. Notes that the budget of the Court falls under MFF heading 7, ‘European public administration’, which amounted to EUR 12,3 billion in 2023 (representing 6,4 % of the total Union budget); notes that the Court’s budget of approximately EUR 0,2 billion represents approximately 1,5 % of the total administrative expenditure of the Union and less than 0,1 % of total Union spending;

    2. Notes that the Court, in its annual report for the 2023 financial year examined a sample of 70 transactions under Administration, 10 more than were examined in 2022; further notes that the Court reported that administrative expenditure comprises expenditure on human resources, including expenditure on pensions, which in 2023 accounted for about 70 % of the total administrative expenditure, and expenditure on buildings, equipment, energy, communications and information technology, and that its work over many years indicates that, overall, that spending is low risk;

    3. Welcome the continuous increase in the number of transactions audited by the Court under the heading Administration; take note of an audit planned on the Union civil service, but recalls the importance of having a more in-depth investigation into the administrative expenditure and repeats its call to include in its work comprehensive data on all institutions in order to provide a coherent basis for a consistent discharge procedure;

    4. Notes that 21 (30 %) of the 70 transactions contained errors but that the Court, based on the 5 errors which were quantified, estimates the level of error to be below the materiality threshold;

    5. Notes that the financial statements of the Court are audited by an independent external auditor in order to ensure the same principles of transparency, accountability and independence as the Court applies to its auditees;

    Budgetary and financial management

    6. Notes that the overall budget of the Court for 2023 amounted to EUR 175 059 922, equivalent to an increase of 7,97 % from EUR 162 141 175 in 2022; notes that the increase was primarily due to salary adjustments and nine new temporary posts related to NextGenerationEU; notes that for 2023 88,5 % of appropriations were for its Members and staff, while 11,5 % were for buildings, equipment and miscellaneous expenditure;

    7. Notes that the implementation rate for commitments and payments was high, though slightly lower than in 2022; observes that the utilisation rate for appropriations stood at 97,92 %, and payments represented 94,45 % of total commitments, compared to 98,12 % and 95,26 %, respectively, in 2022;

    8. Notes that Russia’s illegal and unjustified war of aggression against Ukraine in various ways created budgetary pressures for the Court, including through rising inflation and salary adjustments, strongly increasing electricity and heating costs;

    9. Highlights that the budgetary execution for 2023 was impacted by two factors, which explain the slightly lower rate than in 2022:

    1. the higher-than-budgeted level of inflation and the resulting price indexations affecting new and existing contracts, which triggered additional budgetary needs to cover non-salary expenditure and, in particular, the energy and IT budget lines; those increases in appropriations were eventually made possible mainly as a result of an underutilisation of some appropriations in Chapter 10 (Members of the Institutions), in Chapter 12 (Officials and temporary staff) and in Title 2 on budget lines such as Publications, Limited consultations, studies and surveys and Interpretation costs;

    2. the higher turnover of contract staff and SNEs (some SNE contracts were not extended and a few SNEs passed an internal competition for temporary staff), delays and difficulties in recruitment procedures as for any European bodies located in Luxembourg;

    10. Notes that, in the course of 2023, the Court carried out 36 budgetary transfers totalling EUR 5 676 379, which were aimed at ensuring that the Court’s various departments operated smoothly and that any related needs were met;

    11. Notes that, in 2023, the Court purchased goods and services totalling EUR 23 426 750,05 (EUR 5 512 853 in 2022 and EUR 15 215 515 in 2021), of which purchases from local suppliers amounted to EUR 21 453 665,05 (EUR 4 848 701 in 2022 and EUR 10 144 812 in 2021);

    12. Notes with satisfaction that the external auditor declared that the resources allocated had been used for their intended purpose and that the control procedures put in place by the authorising officers provided for the necessary guarantees to ensure that financial operations were in compliance with the applicable rules and regulations;

    13. Welcomes that the overall mission budget of the Court (Members and staff) initially set at EUR 2 722 500 has declined by 4,4 % to EUR 2 602 500 given changes in the Court’s working methods following the pandemic;

    14. Calls on the Court to conduct a comprehensive review of travel and meeting allowances, ensuring that expenditures are cost-effective, justified, and environmentally sustainable, including an increased reliance on hybrid meetings to reduce unnecessary spending and carbon emissions;

    Internal management, performance and internal control

    15. Welcomes the fact that, in 2023, the Court significantly increased its on-the-spot visits compared to the previous three years, when COVID-related travel and public health restrictions were still partly in place; notes that the Court spent a total of 4 897 days in Member States and outside the Union compared to 2 984 days in 2022, 1 156 days in 2021, 1 190 days in 2020 and 3 605 days in 2019;

    16. Notes that, in the course of 2023, the Court presented 2 annual reports, 4 specific annual reports, 29 special reports, 4 opinions and 6 reviews, totalling 45 items;

    17. Notes that of the 29 strategic measures of the Court’s 2021-2025 strategy, 1 has been cancelled and the other 28 fully implemented;

    18. Appreciates that the Court measures the implementation of its recommendations based on the follow-up carried out by its auditors; notes that, in 2023, the Court analysed the recommendations addressed to the Commission and other institutions in its 2019 reports; appreciates that the analysis showed that of the recommendations that have been followed up, 100 % of the 15 recommendations made in the Court’s 2019 annual report and 85 % of the 208 recommendations in the Court’s 2019 special reports had been implemented either in full or in some or most respects;

    19. Welcomes the readiness of the Court to respond to Parliament’s request to focus its audit work on the most pressing challenges, as well as to improve cooperation with Parliament’s CCC; stresses that the Court should have full access to fraud risk assessment tools, including Commission and Member State databases regarding fraud cases related to Union funding, to enhance early warning systems against fraudulent activities; regrets deeply that the Court’s access to FENIX, the new reporting tool on the Recovery and Resilience Facility (RRF), remains an open issue due to the fact the Commission only grants the Court access to some of the FENIX modules, and the information contained therein is not updated in a timely manner; urges the Commission to grant the Court full and immediate access to all FENIX modules without delay; notes that the Commission’s Directorate-General for Economic and Financial Affairs has endeavoured to grant the Court access to FENIX files within 2 weeks of approving a payment request; is alarmed, however, that in practice, that deadline is not being met in many cases and that delays of up to 2,5 months have been encountered in some instances, significantly slowing down the delivery of Court findings; recalls that the Commissioner for Budget in the CONT meeting on 10 October 2024 openly stated that the Court has a full mandate on the RRF which indicates the need for a speedy improvement of the Court’s access to all tools to deliver on its mandate;

    20. Calls on the Court to expand its audit scope to include European Investment Bank (EIB) operations financed with the EIB’s own funds, given the EIB’s growing role in EU economic,financial, and industrial policy; urges the Commission and Member States to grant ECA the legal mandate required for this expansion;

    21. Commends the timely and pertinent special reports on the implementation of the RRF, which enable the discharge authority to effectively exercise its prerogatives and provide recommendations to the Commission for enhancing the functioning of this instrument; urges the Court to strengthen its role in combating fraud in the Union budget by identifying weaknesses, engaging in anti-fraud discussions, intensifying audits, cooperating with fraud detection bodies, and providing relevant feedback to the discharge authority;

    22.  Notes that the Court, at the end of 2023, had 969 members of staff; notes that in 2023, women constitute 53 % of the staff and men 47 %, unchanged from the previous year, 2022; regrets that women represent only 30 % of senior management, a significant decline from 36,4 % in 2022; highlights that the overall proportion of women in management positions has decreased in 2023; calls on the Court to continue its efforts to promote gender balance for the middle and senior management;

    Human resources, equality and staff well-being

    23. Is alarmed that the recruitment process required additional effort, as around 50 % of candidates turned down the job offers from the Court, in part due to the limited attractiveness of Luxembourg as a place of employment and the high cost of living; notes, however, that the big audit firms present in Luxembourg are also facing challenges and are now turning to Asian markets to recruit auditors; stresses that such an approach cannot be applied by the Court due to security and eligibility concerns; acknowledges the Court’s efforts and encourages it to collaborate with other Luxembourg-based institutions within the High Level Interinstitutional Group to enhance Luxembourg’s appeal to prospective staff through identified measures, such as higher relocation allowances, housing allowances to mitigate high rental costs for lower-grade staff and reasonably priced temporary housing for short stays to make employment in Luxembourg more attractive;

    24. Recalls the Treaty on the European Union, that the EU and its institutions, shall promote solidarity and equality between women and men;

    25. Shares the Court’s concern that, in general, the audit profession is facing recruitment issues due to a lack of interest in audit and control jobs among young workers; calls for proactive solutions and immediate systematic inter-institutional cooperation to address this issue;

    26. Shares the Court’s observations that EPSO competitions do not always achieve the objective of attracting and selecting relevant profiles of candidates from the private sector; highlights the several issues with EPSO competitions, for example technical problems with remote testing leading to the cancellation of one competition and putting all others on hold; acknowledges the concerns related to the recruitment and the selection procedures of new staff; encourages the Court to continue its effort to address this situation in order to safeguard the continuity of the Court’s activity; notes with appreciation that the Court has engaged in cooperation with EPSO in order to organise audit competitions at regular intervals; suggests possible cooperation with other relevant Union bodies in order to optimise hiring processes;

    27. Appreciates the fact that the Court has organised flexible and varied selection procedures as provided for in the Staff Regulations and the Conditions of Employment of Other Servants of the European Union and has put in place procedures to retain talented staff;

    28. Notes the teleworking regime (up to 10 days per month) offered by the Court in order to mitigate the recruitment challenges; welcomes the measures taken by the Court in 2023 in order to ensure the physical and mental well-being of staff;

    29. Notes that the vacancy rate in December 2023 was 2,27 % and the staff turnover rate (number of staff leaving as a proportion of all staff) was 6,6 %;

    30. Appreciates the Court’s effort to keep the vacancy rate low in 2023; however, fully shares the concern about the lack of geographical balance among new recruits, making the Court’s staff as a whole even less geographically representative; notes that, according to the Court, there is a risk that within the space of five years several Nordic Member States will not be covered by the audit given a potential absence of auditors from those Member States;

    31. Welcomes the fact that the Court took various steps to tackle the issue of geographical balance, such as increasing publicity for the Court’s competition and vacancy notices in significantly underrepresented Member States, cooperating with Members of the Court to disseminate its notices and reaching out to potential candidates by attending career fairs in certain Member States; encourages further steps being taken into consideration, such as early engagement strategies, attracting young talent from the countries with low representation; notes with a certain regret that there is still some way to go to reach gender balance in middle and senior management;

    32. Welcomes the fact that, at the end of 2023, all 29 additional posts required for the RRF audit of EUR 723,8 billion were filled; however, underscores that the materiality, complexity, large amounts and rapid disbursements from the RRF continue to pose challenges and that not all aspects of the RRF can be covered with the resources available, which allow the Court to assess the satisfactory fulfilment of milestones and targets and therefore the legality and regularity of RRF payments, but they are not sufficient to systematically cover compliance of RRF expenditure with Union and national laws; highlights the importance of ensuring that the Court is consistently provided with adequate staffing levels to fulfil both its mandate and additional responsibilities stemming from new financing instruments such as the RRF; commends the efforts done by the Court to carry out its duties regarding the RRF so far despite the lack of availability of fully adequate resources;

    33. Is aware that the Court has no role in the selection process for Members under Article 286(2) TFEU; points out, however, that there is still an important gender imbalance among the Members of the Court, with only 10 women out of 27 members; regrets that 12 Member States have never nominated a woman to the Court; calls on the Court to evaluate its overall composition and provide this analysis to the Council and the Member States, in order to ensure that gender balance is appropriately considered in future nomination processes; reiterates its call for Member States to propose candidates of different genders, aiming for a more balanced and representative composition of the Court;

    34. Regrets that over the years the Council repeatedly proceeds to nominate members of the Court despite those nominees being rejected by Parliament; underlines that Parliament should have a binding role in assessing the suitability of candidates for the Court;

    35. Expresses regret that the Council has repeatedly nominated members of the Court despite their rejection by Parliament; emphasizes that Parliament should hold a binding role in evaluating the suitability of candidates for the Court;

    36. Notes that, in 2023, the average absence due to illness was 10 days per staff member, compared to 12,2 days in 2022; notes furthermore that, in 2023, 4 staff members (compared to 8 in 2022) were absent due to prolonged illness, defined as lasting more than 200 days in a year;

    37. Notes with concern that 7 cases of burnout were reported in 2023, reflecting the same troubling number as in 2022; welcomes the fact that the Court took several steps to reduce the risk of burnout by introducing a full wellbeing programme, offering a resilience training, publishing and implementing guidelines on returning to work after long-term sick leave, continuing to offer mental health first aid, and providing financial support to staff by covering the cost of 10 sessions with a psychologist of their choice;

    38. Notes with appreciation that in 2023 the Court again exceeded the professional training target of five days of non-language training per years for auditors (6.7 days), in line with the International Federation of Accountants’ recommendations; notes in particular the training of the Court’s staff on the NGEU and the RRF;

    39. Welcomes the adoption of a new policy in December 2022 to ensure a respectful and harassment-free workplace, focusing on prevention, awareness-raising, and early detection; highlights measures such as a presentation to all staff in January 2023 to enhance understanding of the policy, the rollout of a harmonized reporting form, and the publication of the first aggregated annual report on policy implementation;

    40. Welcomes the Court’s Diversity and Inclusion Action Plan 2021-2025; notes with satisfaction the organisation of the third Disabilities Awareness Week and interinstitutional initiatives to foster inclusivity; emphasizes the ECA’s efforts, including its survey on workplace accessibility, participation in the Ombudsman Award for Good Administration, and the external audit on building accessibility in compliance with Luxembourg’s 2023 accessibility legislation;

    41. Emphasises the critical role of the Court as the Union’s independent external auditor and guardian of its finances, which requires the Court to uphold the highest standards of integrity, professionalism, and accountability, serving as a model institution to inspire confidence and credibility; recalls that, in accordance with Article 285 TFEU, the members of the Court must exercise complete independence and adhere to the highest ethical principles, demonstrating integrity, objectivity, professional conduct, dignity, commitment, and loyalty;

    Ethical framework and transparency

    42. Welcomes the fact that the internal rules on reporting serious irregularities (whistleblowing) were updated in order to make them clearer and more detailed and to provide more information to staff; notes that there were no whistleblowing cases at the Court in 2023; notes furthermore that, in 2023, the Court also launched the process of updating the Court’s rules on conducting administrative investigations and disciplinary procedures, which was finalised in early 2024;

    43. Notes that, in 2023, the Court organised 3 training events specifically dedicated to ethics, which attracted 60 participants; takes into account the fact that the Court’s ethics-related courses were open to all staff, including managers, and that the standard courses are compulsory for newcomers and cover public ethics and the Court’s anti-harassment policy; regrets that the ethics-related courses were not compulsory to all staff on a regular basis;

    44. Appreciates the fact that the Court has organised 6 training courses on fraud, including fraud in procurement, VAT fraud, and fraud in relation to the RRF; welcomes the fact that, in June 2023, the European Anti-Fraud Office (OLAF) provided training on interviewing in cases of suspected fraud and corruption; notes that, in November 2023, the Court joined the European Public Prosecutor’s Office (EPPO) and OLAF in organising a 2-day course on public procurement fraud in the Union;

    45. Is concerned by media’s report that an EPPO investigation on misuse of funds by the former President of the Court is currently blocked by the decision of the Court not to lift his immunity; requests the Court to fully cooperate with EPPO on any investigations they may activate and to report on the reasons for the decision not to lift the immunity;

    46. Calls on the Court to ensure that all Members and senior staff publish their financial interests, gifts, and hospitality declarations in a public online database, in line with best practices in EU transparency rules;

    47. Regrets that the Court has failed to fully cooperate with EPPO by refusing to lift the immunity of its former President and by denying EPPO access to conduct a search within its premises in relation to a probe into possible wrongdoing, which could be considered an interference with the proper conduct of an investigation, according to the EPPO; recalls that, as the Union’s external auditor, the Court is bound by the principles of accountability, integrity, and transparency, as well as the principle of mutual sincere cooperation between EU’s institutions; calls on the Court to ensure that immunity is not invoked to hinder legitimate judicial proceedings and to take all necessary measures to ensure full compliance with interinstitutional cooperation in the prevention and investigation of fraud;

    48. Notes with concern that, according to media reports, the European Public Prosecutor’s Office (EPPO) has requested the lifting of immunity of several ECA staff members in 2023 and that, to date, the Court has refused to grant this request; stresses that while immunity serves to protect the independence of EU institutions, it should not be misused to shield individuals from legitimate judicial scrutiny; considers that requests for the lifting of immunity should only be refused in exceptional circumstances; calls on the Court to provide a detailed justification to the discharge authority for its decision in this case, outlining the specific legal and procedural concerns that led to the refusal, if any; further urges the Court to maintain a high level of transparency and accountability in its cooperation with EPPO and other EU bodies responsible for combating fraud and misconduct;

    49. Notes that, in 2023, neither OLAF nor the European Ombudsman initiated any investigations involving the Court;

    50. Welcomes that, in 2024, the Court, jointly with the Court of Justice, invited the Commission to participate in an interinstitutional dialogue with a view to agreeing on common rules regarding the use of official cars, which is in line with the remark included in Parliament’s resolutions of 11 April 2022 on discharge in respect of the implementation of the budgets of the Court of Auditors and of the Court of Justice; emphasises the call on all Union institutions to agree on a single system to be applied horizontally, which would reduce confusion and increase transparency and efficiency in the use of public money; notes that a working group will be created in the framework of the interinstitutional Preparatory Committee for Matters relating to the Staff Regulations; appreciates the Court’s readiness to align the rules with the applicable rules of the Commission, but reiterates the criticism already expressed on previous discharge resolutions on the new decision from 2022 concerning members’ travel, missions and use of drivers and cars, which is against the general principle that the use of the car fleet outside of the strict performance of the duties of the members of the Court should not take place under any circumstance;

    51. Notes that, in 2023, the Court’s Internal Audit Service (IAS) made 16 audit recommendations with regard to ethics, the transparency portal, conflicts of interest for staff, the Ethics Committee and Members of the Court; notes that out of 16 recommendations, 5 recommendations were completed by 30 July 2024, 8 recommendations will be completed by the end of 2024, and the completion of 3 recommendations has been delayed;

    52. Welcomes the extension of scope of information published on Members’ mission, but recalls Parliament’s request to provide information about missions for the whole mandate of the Members; welcomes the revision of the Code of Conduct of members which forbid Members from holding any honorary position in political organisation, implementing Parliament’s request for Members not to have formalised political links; takes note that conclusions of the internal audit report on ethics was to be communicated to the EP President and the Chair of the Budgetary Control Committee in the third quarter of 2024, and invites the Court to share this with the Committee of Budgetary Control in its entirety; invites the Court to publish refusal decisions in cases where Members or staff declare conflicts of interest, ensuring greater transparency in the audit process;

    53. Notes that all the Members of the Court have their primary residence in Luxembourg, as required by Article 10 of the Code of Conduct for the Members and former Members of the Court of Auditors;

    54. Welcomes the fact that the Court has revised the policy on public access to documents, reflecting the evolution of European case law, and simplified the procedure for dealing with requests to access documents and with confirmatory requests; recalls the fact that application of the Scandinavian principle of public access to official records in the Union was a prerequisite for some Member States to join the Union and underlines the fact that non-delivery would be detrimental to the reputation of the Union as a community based on the rule of law;

    55. Regrets that an annual list of contracts above Directive threshold (>EUR 140 000 for services/supplies; >EUR 5 382 000 for works) concluded in 2023 is not available on the website of the Court; calls on the Court to publish that list as a separate document without undue delay and ensure user-friendly access to it;

    56. Appreciates and awaits with eagerness the Court’s consolidation of all internal anti-fraud strategy rules into one joint document;

    57. Continues to reject the rationale of the Court for its decision not to join the Transparency Register, as it does not have a vested interest in influencing decision making, beyond providing facts and objective feedback about Union programmes; notes that all of the Court’s reports are publicly available and subject to a rigorous clearing procedure with the auditees; reiterate its strong call for the Court to join the EU Transparency Register in order to adhere to basic principles of transparency while at the same time not creating any obstacles to the full independence of the Court;

    58. Strongly encourages the Court to reconsider its position regarding the EU Transparency Register, established by the interinstitutional agreement of 20 May 2021 between the European Parliament, the Council of the European Union, and the European Commission on a mandatory transparency register1a;

    59. Welcomes the significant progress made in 2023 towards establishing the Document Management Ecosystem (DOME), namely the delivery and implementation by means of concrete document approval processes of both the new electronic signature and the core approval module for PASS (Process to Approve, Sign and Send documents); encourages the Court to further pursue its objectives of digitalizing the review and approval workflows and improving their efficiency;

    60. Notes that the Court continued being actively involved in the Emerging technology group of the Interinstitutional Committee for Digital Transformation; notes that the DATA Team (Data and Technology for Audit), established in 2021, continued working on the implementation of the development plan for better use of technology in support of the Court’s audit objectives; notes in particular the preparation of an analysis of AI opportunities and challenges for the Court and for its audit work; recalls the importance of improving the digitalisation of the audit work; welcomes all the efforts in this direction that the Court continues to make, whereas digitalisation combined with the increased number of on-the-spot visits, can define a system of efficient and accurate audit work;

    Digitalisation, cybersecurity and data protection

    61. Commends the Court for good progress in implementing its 2022-2024 cybersecurity plan over the past two years; notes that seven of the high-priority tasks have been completed, six are underway and one is on hold; notes that two of the medium-priority tasks have been completed, four are ongoing and three have not yet been started;

    62. Appreciates the fact that the following tasks are among those completed:

    1. the deployment of an EDR solution on the endpoints and adoption of a cloud-based XDR solution that correlates the telemetry sent by the EDR agents with threat intelligence data from varied sources to detect indicators of compromise;

    2. a revamp of the architecture and configuration of the SIEM platform, which has improved the system‘s performance and reliability, coupled with additional sources of logs that have been added to enhance the security monitoring of the IT environment;

    3. the replacement of the VPN appliances for remote access with a zero-trust cloud-based SASE service, which reduces the attack surface and allows granular remote access to applications;

    4. the reinforcement of the protection against email threats by enabling new features on email security filters that allow improved detection of both spam and malicious attachments;

    5. the execution of pen tests of Court departments exposed to the internet;

    6. the deployment of a software tool to protect the confidentiality of sensitive information transmitted in file shares;

    63. Urges the Court to develop a cybersecurity audit framework for EU institutions and agencies, ensuring harmonized security standards and resilience measures against cyber threats;

    64. Notes with appreciation that the Court conducts at least three simulated phishing exercises per year to raise users’ awareness of that cyber threat; notes furthermore that the Court conducts a comprehensive cybersecurity risk assessment every three years; Suggests to the Court to organise on a regular basis compulsory training for al staff on cyber threat including good practices for a safe use of AI;

    65. Notes with relief that there was no trace of data exfiltration or lateral movement of the intruder to other Court IT systems during the July 2023 cyber-incident, during which one of the perimeter security gateways was compromised by the exploitation of a software vulnerability; notes that the software vulnerability had been disclosed by the vendor just two days before the incident;

    66. Commends the work of the Cybersecurity Service for the Union institutions, bodies, offices and agencies (CERT-EU), which notified the Court of the incident, helped to investigate its scope and performed the forensic analysis; notes that, in the aftermath of the incident, the Court has restored a clean backup of the system and applied the software update that remediated the vulnerabilities exploited by the attacker; notes furthermore that in the following weeks the Court gradually applied a few additional preventive measures recommended by CERT-EU to the appliances to ensure that any possible undetected trace of the malware was eradicated;

    67. Notes with appreciation that the Court reviewed and updated its Cybersecurity Incident Response Plan in 2023 and created a form for recording such incidents in the IT service management tool; highlights the fact that the form took account of the lessons learned from the July 2023 incident in that it was geared towards collecting all information that could be useful in handling a cybersecurity incident;

    Buildings

    68. Notes that, in 2023, the work to upgrade the technical installations on all floors of the K2 building and optimise the use of its common spaces was completed; notes that the Court has committed EUR 6 445 635,82 from a total budget of EUR 6 902 185,54; commends the Court for not exceeding the estimated budget; calls on other Union institutions to follow the exemplary budgetary management of the Court;

    69. Appreciates that, in February 2023, the results of an accessibility audit of all Court buildings to meet the needs of people with reduced mobility or other disabilities conducted by an external consultant were delivered; notes that the audit covered all three buildings, the common spaces, car parks and other spaces; is aware that the actions proposed are being reviewed and would normally be the subject of a specific project, but that their implementation will depend largely on budget availability;

    Environment and sustainability

    70. Notes that, in 2023, the Court invested a lot of its environmental impact reduction effort in energy-saving measures such as the replacement of traditional light bulbs with LEDs, the reduction of the number of hours of ventilation and the overhaul of certain technical systems in its buildings; notes furthermore that the Court introduced special energy-saving measures in the summer of 2023, which reduced electricity consumption by 12 % compared to the summer of 2022, generating savings of EUR 26 976;

    71. Notes that, in 2023, the Court signed an agreement with the Luxembourgish authorities to establish a mobility plan; looks forward to updates about that initiative;

    Interinstitutional cooperation

    72. Highlights the fact that, in 2023, the Court’s auditors spent 1 370 days at Union institutions, bodies, offices and agencies and at various international organisations and private audit firms, compared to 945 days in 2022;

    73. Calls for the formalization of an annual interinstitutional dialogue between the ECA, European Parliament, Council, and Commission on budgetary control, ensuring systematic follow-up on audit findings and improved oversight of EU expenditure;

    74. Recalls once again that effective cooperation between the Court and the Commission will remain limited unless the Commission adopts the Court’s methodology for assessing error rates, which is based on an independent and comprehensive evaluation of all rule breaches, in contrast to the Commission’s focus on recoverable errors;

    75. Welcomes the fact that the Court cooperates closely with both OLAF and the EPPO, including by organising workshops and awareness-raising events and by exchanging knowledge and experience; furthermore notes that the Court, in 2023, forwarded 20 cases of suspected fraud to OLAF and 17 such cases to the EPPO; emphasizes its position that all suspicions of fraud should be promptly referred to OLAF and EPPO for thorough investigation;

    76. Calls on the Court to establish a structured fraud-detection collaboration mechanism with OLAF and EPPO, including real-time data-sharing agreements and a joint audit approach for high-risk EU funding areas;

    77. Is convinced that a single integrated IT system for data-mining and risk scoring could be a valuable source of data, which would allow the Court, OLAF and the EPPO to strengthen their audit and control efforts; stresses that unlimited access should be provided to such a system and the data contained therein, that no unjustified restrictions should be placed on that access and that the exploration and use of further digital tools and emerging technologies should immediately be allowed as part of the Court’s audits;

    78. Regrets that, despite improved access to European Investment Bank (EIB) documents and information, the Court lacks a mandate to audit operations financed with the EIB’s own funds; calls for that mandate to be granted to the Court, given the EIB’s mission to pursue Union objectives and its growing role in the Union’s economic and political landscape, which extends beyond utilising the Union budget to guarantee its operations; highlights Special Report 05/2023 of the Court entitled ‘The EU’s financial landscape – a patchwork construction requiring further simplification and accountability’ in which the Court stated that a public audit mandate should be established for all types of financing for Union policies;

    79. Notes that, in 2023, the Court presented 29 special reports, 1 review and 1 opinion to 22 different Council committees and working parties; further notes that the same year Court representatives participated in 23 meetings focused on the discharge of the Union budget for the 2021 and 2022 financial years;

    80. Notes with appreciation that the Members and management of the Court demonstrated active engagement in 2023, presenting their work at 120 meetings with national governments and governmental bodies across 25 Member States, the majority of which involved ministers or ministries of finance; further notes that in the same year, Members and staff of the Court presented their work at 91 meetings with national or regional parliaments in 19 Member States, primarily through committees focused on budgetary, financial, audit or EU affairs; urges the Court to intensify its engagement with the governments of countries where error rates are highest, fostering greater dialogue and collaboration in order to address those issues effectively;

    Communication

    81. Notes that, in 2023, the budget allocated for the Court’s communication and promotional activities amounted to EUR 225 000 with a utilisation rate of 81,13 % (EUR 182 549,84); notes that most of the budget was spent on both media monitoring services (EUR 81 650) and press actions (EUR 12 348), followed by expenditure on stakeholder relations, which mainly comprised the cost of a policy intelligence platform (EUR 57 891), communication activities (EUR 28 002,88), social media (EUR 1 486,52) and publications (EUR 1 171,44);

    82. Strongly supports the Court’s growing media strategy, which resulted in a record of more than 22 000 online press articles related to its audit reports, other publications or the Court in general, thus confirming the upward trend in coverage observed over the recent years (2022: 20 000; 2021: 18 000); highlights the fact that nearly 54 000 posts on social media shows the continuation of an organic growth, with numbers for 2022 being an outlier (2022: 110 000; 2021: 49 000);

    83. Welcomes the fact that, in 2023, the Court issued 45 press releases in 24 Union languages, as well as various information notes, media advisories and ready-to-use audio-statements in certain languages; notes furthermore that the Court held 21 online press briefings and 6 additional country-specific press briefings for the annual report; highlights the fact that, altogether, the Court’s briefings have attracted 590 journalists, most representing major national media outlets in the Member States;

    84. Notes with appreciation that, in 2023, the Court launched a new website, receiving over one and half million visits, with around 700 000 unique visitors, which represents an increase of more than 14 % compared to 2022; welcomes the fact that, by the end of 2023, the Court’s three main social media accounts (X (ex-Twitter), LinkedIn and Facebook) had attracted over 48 000 followers, up from 45 000 in 2022 and 39 000 in 2021;

    85. Highly appreciates that the Court assesses the likely impact and usefulness of its work, as perceived by the readers of its reports at Parliament, the Council, the Commission, Union agencies, Member States’ permanent representations, Member States’ agencies and SAIs, NGOs, academia, the media and other parties; in that regard, notes that, since 2018, the Court has carried out anonymised electronic surveys to ask its readers to provide qualitative feedback on selected reports and make general suggestions for its work; stresses that, in 2023, 85 % of around 1 060 respondents considered the Court’s reports useful for their work, and 78 % felt that they had an impact.

    MIL OSI Europe News

  • MIL-OSI Europe: REPORT on discharge in respect of the implementation of the general budget of the European Union for the financial year 2023, Section VI – European Economic and Social Committee – A10-0054/2025

    Source: European Parliament

    2. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

    with observations forming an integral part of the decision on discharge in respect of the implementation of the general budget of the European Union for the financial year 2023, Section VI – European Economic and Social Committee

    (2024/2025(DEC))

    The European Parliament,

     having regard to its decision on discharge in respect of the implementation of the general budget of the European Union for the financial year 2023, Section VI – European Economic and Social Committee,

     having regard to Rule 102 of and Annex V to its Rules of Procedure,

     having regard to the report of the Committee on Budgetary Control (A10-0054/2025),

    A. whereas in the context of the discharge procedure, the discharge authority wishes to stress the particular importance of further strengthening the democratic legitimacy of the Union institutions by improving transparency and accountability, and by implementing the concept of performance-based budgeting and good governance of human resources;

    B. whereas the European Economic and Social Committee (the ‘Committee’) is an advisory body of the Union providing a forum for consultation, dialogue and consensus among representatives of the various economic, social and civil components of organised civil society from the Member States;

    C. whereas the Committee contributes to the Union decision-making process and, by ensuring links between Union policies and economic, social and civic circumstances, it pursues its missions of better law making, participatory democracy from the bottom up and the promotion of European values;

    D. whereas the consultation of the Committee by the Commission or the Council is mandatory in certain cases, and the Committee may also adopt opinions on its own initiative while enjoying a wide area for referral as defined by the Single European Act, the Maastricht Treaty and the Amsterdam Treaty, allowing it to be consulted by Parliament;

    E. whereas the Committee’s commission for financial and budgetary affairs (CAF) is the Committee’s supervisory body for all budgetary procedures and, in particular, the establishment of the budget estimates, the budget implementation, the annual activity report, the discharge and the follow up to the annual report of the Court of Auditors (the ‘Court’);

    F. whereas in the last years the Committee has taken initiatives to attract and retain skilled staff, optimise its organisational structure and working methods and promote a respectful working environment, in the context of a limited budget;

    1. Notes that the budget of the Committee falls under MFF heading 7 ’European public administration’, which amounted to a total of EUR 12,3 billion, i.e. 6,4 % of Union budget spending, in 2023; notes that, in 2023, the budget of the Committee represented 1,29 % of MFF heading 7 appropriations;

    2. Notes that the Court o, in its Annual Report  for the financial year 2023 (the ‘Court’s report’), examined a sample of 70 transactions under Heading 7, of which 21 (30 %) contained errors; further notes that for five of those errors, which were quantified by the Court, the Court estimated a level of error below the materiality threshold;

    3. Notes from the Court’s report that administrative expenditure includes expenditure on human resources including pensions, which in 2023 accounted for about 70 % of the total administrative expenditure, and on buildings, equipment, energy, communications and information technology; welcomes the fact that the Court concluded, as it did in previous years, that, overall, administrative spending is low risk; notes that the Court did not identify any specific issue concerning the Committee in 2023;

    Budgetary and financial management

    4. Notes that the final adopted budget for the Committee was EUR 158 767 970 in 2023, representing an overall increase of 4,1 % compared to 2022; notes from the Committee’s replies to the questionnaire submitted by the Committee on Budgetary Control for the 2023 budgetary discharge (the ‘Questionnaire’) and the Committee’s annual activity report for 2023 (the ‘Annual report’) that the remuneration and allowances budget line (expenses with Committee’s staff and Members) increased by 8,4 % between 2022 and 2023 due to the inflation; notes from the Questionnaire that the budget for outside assistance for the operation, development and maintenance of software systems increased by 33,70 % from 2022 to 2023 due to the Committee having made the implementation of its digital strategy for 2024-2026 a priority in 2023; notes that, otherwise, the distribution of appropriations across other budget lines in the Committee’s 2023 budget remained comparable to previous years’ distribution;

    5. Notes with satisfaction that the rate of the Committee’s budget implementation of current year commitment appropriations increased further from 96,12 % in 2022 to 98,70 % in 2023, leaving behind the lower budgetary implementation in previous years due to the COVID-19 pandemic and the related travel restrictions; notes further that the current year payment appropriations execution rate increased from 88,12 % in 2022 to 90,67 % in 2023; notes that the average payment time in 2023 was 20,14 days, higher than in 2022 (i.e. 18,34 days);

    6. Notes that the carry-over of appropriations from 2023 to 2024 amounted to EUR 13 827 713 (i.e. approx. 8,70 % of the Committee’s budget for 2023), which represents a decrease from the previous year’s level of EUR 20 162 518 (i.e. approx. 13 % of the Committee’s budget for 2022); notes further with appreciation that the rate of implementation of the appropriations carried over from 2022 to 2023 was 86,76 % in 2023, compared to 76,91 % in 2022; encourages the Committee to continue the efficient use of the provided funds;

    7. Notes that the Committee’s own services launched 12 negotiated procedures below EUR 60 000 in 2022, mainly for case studies, studies and logistical support; notes that the Committee also launched six procurement procedures with the joint services shared with the European Committee of the Regions (the ‘CoR’) mainly in the field of logistics and maintenance;

    8. Notes that, in 2023, the Committee continued to improve the cost-effectiveness of its activities, including through hybrid work, increased teleworking, full dematerialisation of financial circuits and reduced energy consumption; notes from the Questionnaire that the Committee achieved financial savings of EUR 65 000 in 2023 due to a reduction in energy consumption; commends the Committee for having signed a new framework contract for medical checks that provides for lower prices, increased flexibility and better service overall than the previous contract; acknowledges the significant budgetary and administrative savings achieved by the Committee through interinstitutional cooperation, notably the joint services with the CoR and the outsourcing (Service level agreements) of specific services to the Commission in the handling of HR and the use of financial and HR management IT tools, as well as the participation in interinstitutional procurement procedures led by other institutions; notes from the Questionnaire that the total cost incurred by the Committee for the outsourcing of specific services to the Commission increased from EUR 743 600 in 2022 to EUR 793 000 in 2023;

    9. Recalls that the Council decision of 25 May 2023 set the allowance for remote attendance of members of the Committee at non-statutory meetings at EUR 145 per remote meeting per day, which represents 50 % of the daily allowance for physical participation in 2023; considers that despite remote attendance being an important instrument for modern institutions given that, inter alia, it reduces the costs of meetings and allows broader participation, the allocation of an allowance for remote attendance of meetings, even if reduced and intended only for some types of events, is difficult to understand for the public, even more so when taking into consideration the difference paid to the members of the Committee and members of the CoR for remote attendance; notes with satisfaction from the Committee’s follow-up report to Parliament’s resolution on the implementation of the Committee’s budget for 2022 (the ‘Follow-up report’) that the application of that decision has already produced budgetary savings of EUR 1 677 000 due to lower travel costs and allowances paid, as well as environmental savings of some 553,66 tons of CO2, due to less travel in 2023; notes from the Annual report that the number of reimbursed meetings days attended remotely was 2006 (6 259 in 2022), with an average duration of 3 hours per meeting for a total cost of EUR 294 930 in 2023 (EUR 922 925 in 2022); welcomes multiple checks carried out by the Committee to prove the remote attendance of members prior to the payment of the allowance;

    10. Notes that the impact of Russia’s war of aggression against Ukraine continued to put pressure on the Committee’s budget in 2023, through rising inflation and salary adjustments, challenges in building projects due to delays and higher raw material prices, the indexation of rental contracts (+10,3 % in 2023 compared to 2022), as well as indexation of maintenance and security service contracts (+13,50 % in 2023 compared to 2021); notes in particular that the energy costs increased from EUR 726 000 to EUR 3 125 000 between 2021 and 2022, before decreasing to EUR 1 923 391 in 2023; acknowledges the 2 % cap for non-salary-related expenses; commends in this context the Committee for its initiative in addressing challenges at budgetary level by e.g. implementing energy-saving strategies through short-term, as well as medium- and long-term measures, thus not needing an amending budget in 2023;

    11. Notes a decrease in the current year appropriations for budget line 1004 (expenditure for Member’s travel, including subsistence and meetings allowances) from EUR 19,790 million in 2022 (of which EU 15,895 million were paid) to EUR 19,761 million in 2023 (of which EU 18,344 million were paid); notes with satisfaction an improvement in the implementation rate of those appropriations from 80,31 % in 2022 to 92,83 % in 2023; notes that the Committee President participated in 35 missions totalling EUR 71 926 in 2023 against 26 missions totalling EUR 38 042 in 2022;

    12. Notes from the Questionnaire that the Joint Directorate for Innovation and Information Technology of the Committee and the CoR allocates some 3 % of its IT budget to cybersecurity which is far from the 10 % target provided for in the relevant legislation; calls on the co-legislators and the Commission to take this into account in the framework of the annual budgetary procedure;

    Internal management, performance and internal control

    13. Notes from the Annual report that, as part of its annual work programme for 2023, the Committee had a total of 31 objectives designed for all entities of its administration and, as part of the general secretariat’s strategy for 2021-2025, the Committee has five core values and five key strategic objectives; notes from the Questionnaire that the number of opinions produced and participations in high-level meetings are key indicators for measures the Committee’s performance; takes note from the Questionnaire that the Committee has performance indicators in various areas, such as IT, HR, translation and communication; asks the Committee to include in its future reporting a list of all key performance indicators and objectives, per activity, as well as the target ( %) set for achieving them and the level ( %) of their achievement;

    14. Notes that the Committee pursues its mission through opinions, which refer to legislative proposals made by the Commission (referrals), own-initiative opinions, which call on the Union institutions to take action, and exploratory opinions, which feed into the Commission’s work on its planned initiatives, and that the Committee’s positions can be highlighted in resolutions or included in evaluation and information reports; commends the Committee for its performance in assisting Parliament, the Council and the Commission in the legislative cycle in 2023; notes in that context that, in 2023, the Committee adopted 213 opinions and reports, an increase from 202 in 2022 and organised 146 hearings and 23 conferences, compared to 116 and 29 in 2022, respectively; notes that Committee’s members participated in 429 high-level meetings, summits and conferences in 2023 compared to 345 in 2022;

    15. Appreciates that the Committee has taken action in 2023 to improve the visibility and impact of its work in connection with the format of its opinions, the methodology for follow-up opinions, cooperation with Parliament and the Commission and other projects of transversal nature, as well as innovative initiatives such as the EU Youth test, the enlargement candidate member initiative and the European Circular Economy Stakeholder Platform, among other;

    16. Commends the initiatives undertaken by the Committee aimed at fostering the active engagement of youth in the policy-making process;

    17. Welcomes the pilot project implemented between September 2022 and April 2023 with the aim of strengthening the follow-up of selected opinions in respect of all institutions, whereas 19 opinions were selected for reinforced follow-up under that project; notes from the Questionnaire the overall positive results of that pilot project, such as improving the Committee’s capacity to undertake follow-up actions, improved prioritisation of Committee’s work and increased outreach and impact of the opinions selected;

    18. Highlights that the efficient management of limited resources remained a key challenge throughout 2023 due to staffing constraints, compounded by increased activities under a continuous stable staffing policy; notes the Committee’s plan to introduce a new approach to strategic workforce planning and staff allocation, leveraging data collection on staff skills, active listening across the organisation, and reflections on strategic priorities by the Committee’s political bodies; invites the Committee to keep the Parliament informed of the outcome of this new plan, as this it could inspire other institutions who face similar, recurrent challenges resources wise;

    19. Notes with regard to internal control standards (ICS), that the 2023 compliance exercise showed improvements compared to 2022; notes in that context that compliance, namely the extent to which the requirements of the 16 ICS are implemented, increased from 80,30 % in 2022 to 87,40 % in 2023, while effectiveness, namely the extent to which the implementation of those requirements works as intended, increased from 74 % in 2022 to 78,10 % in 2023; notes further that the 2023 annual risk assessment exercise showed that the application of internal controls decreased inherent risks (in category ‘critical’ and ‘very important’) by 53 %, from 40 to 19, in 2023;

    20. Notes that a restructuration of the Internal Audit Service (IAS) took place in 2023, strengthening its compliance with international audit standards and streamlining and documenting all its process;

    21 Notes that, in the area of financial transactions, the Committee’s internal audit service (IAS) adopted a new decision on the assessment of risks for the implementation of a simplified procedure in the beginning of 2023; notes further that the Committee’s Bureau adopted a new internal audit charter and an audit committee charter including procedural rules in 2023;

    22. Notes from the Annual report and the Questionnaire that in 2023, the IAS launched four audits, namely on meeting authorisations, selecting the consultative commission on Industrial change, strategic cycle and duration and distance allowances for Committee’s members; calls on the Committee to keep the discharge authority informed on the outcome of those audits and implement all open recommendations resulted from previous audits (on institutional deadlines, interpreting, verification, ethics and integrity, statutory rights and payment times);

    Human resources, equality and staff well-being

    23. Notes that, at the end of 2023, the Committee was employing 707 staff members, compared to 706 in 2022; notes further that 49 contract agents and 130 temporary agents (of which 52 recruited in 2023) were employed in 2023 (compared to 50 contract agents and 128 temporary agents in 2022); notes, in addition, that the Committee was employing 12 interim agents and 10 external staff working intra muros, excluding external services providers in the fields of logistics and IT; takes note that the occupation rate was 95,50 % in 2023 compared to 95,10 % in 2022 and the staff turnover rate was 7 % in 2023;

    24. Welcomes the ongoing efforts of the Committee to improve its HR framework with a view to becoming an attractive employer and a workplace, where every individual is valued and can fully develop their potential; notes that as part of implementing its HR strategy for 2023-2025, the Committee delivered on several key milestones in 2023, with new decisions being adopted on working conditions (hybrid working, overtime, special leave), diversity and inclusion strategy and action plan for 2023-2027, staff mobility and the methodology on sensitive posts, as well as on staff appraisal and promotions system, among other; notes with satisfaction the positive results of the staff satisfaction survey published in May 2023, whereby both staff and managers expressed high levels of satisfaction with various HR related, matters in particular on working arrangements, a topic on which it appears the Committee has found the perfect balance;

    25. Notes that the Committee became a net importer of talent (from other institutions) for the second consecutive year as a result of implementing a targeted attractiveness and retention plan; acknowledges nevertheless persistent challenges due to reliance on temporary agents amid a shortfall of EPSO reserve lists, posing risks to expertise retention; underlines the importance of permanent staff in maintaining skills, continuity and productive working environment; recommends the Committee to implement initiatives to respond to those challenges by, for example, organising internal competitions;

    26. Notes that with a view to better distributing its scarce resources, an external HR mapping audit, commissioned by the Committee, was finalised in 2023; notes with concern that the results of that audit confirmed the heavy workload in many different services across the Committee, thus putting at risk the fulfilment of the Committee’s mission and obligations; calls on the Committee to implement that audit’s recommendations, including revising the appraisal and performance system by 2025, adopting the new working conditions decision, and conducting regular staff engagement monitoring; stresses the importance of strategic workforce planning to optimize resource allocation, ensure alignment with the high-level priorities set by political authorities and continue its cost-efficiency efforts;

    27. Notes that in 2023 the positive trends initiated in 2022 in relation to recruitment of staff continued; commends the Committee for the actions taken in this area such as the alignment of publication of vacancy posts with the publication of new EPSO reserve lists or the publication of job opportunities on the Committee’s website and Linkedin, among other; asks the Committee to keep Parliament informed of the outcome of its pilot project on employer branding activities; underlines that the on-boarding of newcomers constitutes an important factor of strategic alignment by ensuring that staff are informed of the rules and strategies in place in an institution; commends the Committee for having strengthened the on-boarding of new staff members in 2023 through an updated welcome booklet and on-boarding letter, a welcome pack with eco-friendly goodies, a feedback loop on the on-boarding experience, improved welcome session timing, a revamped Newcomers’ Corner, and on-boarding tips for managers;

    28. Recalls that the Committee adopted Decision 282/23A, effective 1 January 2024, establishing a flexible, trust-based hybrid working policy while offering staff an improved work-life balance and enhancing adaptability and efficiency; asks the Committee to inform the discharge authority about the developments in this regard in timely manner;

    29. Welcomes the appointment of a female Secretary-General in January 2024 as a positive development towards achieving gender balance; regrets however that the percentage of women in senior management remained low in 2023, with  only two out of seven senior management positions currently being held by women; welcomes nevertheless that the Committee considers the gender balance of its staff and in particular in the senior management as an important factor and invites the Committee to swiftly improve the situation at the highest levels of the Committee, by ensuring a balanced representation in line with the Committee’s commitments to diversity and inclusion;

    30. Regrets that the Committee was unable to provide data on cases of burnout in 2023 and rejects the Committee’s position expressed in its follow-up report whereby burnout as such is not a recognised medical diagnosis and the reasons for burnout may be manifold; recalls the importance of statistical data on burnout with the aim ofhelping to take decisions on staff well-being, which should be also based on lessons learned from past very unfortunate experiences, and on external evaluations of the current framework; acknowledges data protection constraints but stresses the value of anonymised statistical data to support informed managerial decisions; notes with concern the findings highlighting heavy workloads in several services due to limited human resources; welcomes the adoption of new working arrangements as a positive step, but encourages the Committee to take further steps to ensure the publication of anonymised data on burnout cases;

    31. Notes that, in 2023, the Committee was employing staff members from all Member States, with some of them being overrepresented (e.g. Belgium, Italy.); notes that in 2023 24 % of managers employed by the Committee were from the 13 Member States that joined the Union after 2004, which represents a slight increase compared to 21 % in 2022 and 19 % in 2021; reiterates its encouragement to the Committee to continue to take action to reach a proper geographical distribution within its staff, with a particular focus on management level;

    32. Welcomes the Committee’s efforts to create a healthy work environment for its staff members; commends particularly the emphasis placed by the Committee on mental and physical health of staff, and the efforts made with regard to awareness-raising about health-related issues; notes the Committee’s measures on the management of sick leave, such as medical part-time and extended remote working, to ensure that staff on long-term sickness related absence return to work in a timely fashion, as well as an increase in the percentage of staff with no absences from 27 % in 2022 to 30 % in 2023; observes with satisfaction that the Committee arranged a free of charge skin cancer screening campaign on the Committee’s premises where 104 staff members over four days were consulted by external dermatologists in 2023;

    Ethical framework and transparency

    33. Welcomes the adoption of the new diversity and inclusion strategy, effective until 2027; commends the specific awareness-raising actions on disability undertaken in early 2024; notes with satisfaction that diversity and inclusion training remains mandatory for managers and recommended for staff; acknowledges the Committee’s strong commitment to fostering a fully inclusive workplace; encourages the Committee to take further steps to monitor the representation of employees with disabilities and ensure the publication of anonymised data in this regard;

    34. Notes that the Committee continued its internal reform process with the adoption of a decision on the general implementing provisions on administrative investigations and implementing rules for disciplinary proceedings in 2023; commends the Committee for having taken this last step necessary to fully implement the measures for a reinforced ethical framework of the Committee; notes from the Follow-up report that the Committee and the internal auditor have agreed on an action plan relating to the audit of the Committee’s ethics and integrity, with eight recommendations implemented and closed and two recommendations still open to be implemented by March 2025; asks the Committee to keep the discharge authority informed on the progress made in this matter;

    35. Notes that the Committee continued to train staff and raise awareness about topics related to whistleblowing, conflicts of interest and other ethical issues in 2023: notes in this context with satisfaction the results of the staff engagement survey carried out in 2023 showing a high awareness rate among staff, with regard to the Committee’s ethical framework, in particular on the networks of confidential counsellors (93 %) and ethics counsellors (83 %); observes that the Committee organised 12 training sessions on those topics with a total participation of 79 staff members in 2023; commends the Committee for organising compulsory training on respect and dignity at work for all staff, including managers;

    36. Notes that one harassment complaint was reported in 2023 and closed the same year, as a result of investigation and mediation by the Committee, without sanctions being imposed; recalls that the Committee is a civil party in the ongoing legal proceedings initiated by Belgian national authorities against a former member accused of misconduct that is currently before the Belgian courts; asks the Committee to inform Parliament about developments in that case; believes that fostering a culture of respect and dignity, supported by a zero-tolerance policy on harassment, is crucial to prevent future allegations and to ensure a safe and inclusive working environment within the Committee;

    37. Reiterates that a zero-tolerance policy against harassment is needed to protect the wellbeing of staff and is a duty of any employer; reminds that in addressing harassment claims a lesson learned approach should be put in place in order to avoid any possible wrongdoing; still considers that an external and independent investigation into the case currently under legal proceeding would be beneficial to improve the Committee’s reaction to similar cases;

    38. Appreciates the Committee’s readiness to cooperate with the Union’s investigative bodies, namely the European Anti-Fraud Office (OLAF) and the European Public Prosecutor’s Office (EPPO) and the Ombudsman; notes that two OLAF cases were opened in 2023, both of which were dismissed in the same year: one for lack of sufficient evidence and the other referred to the Committee for follow-up; asks the Committee to keep the discharge authority informed of the progress made in the second case; notes further that the Ombudsman opened an enquiry in 2023 in relation to the management of a case involving allegations of harassment; asks the Committee to inform the discharge authority of the outcome of that enquiry;

    39. Notes with satisfaction the Committee’s work towards more transparency in its activities in 2023; notes in that context the adoption of a decision broadening the range of documents available online via the Transparency Register, such as the Committee’s meeting minutes and attendance lists, as well as a decision requesting the Committee’s members to meet only registered stakeholders, publish their list of meetings and attach their “legislative footprint” to their opinions; appreciates that the Committee publishes online information on its annual budget, performance indicators, expenditure or public procurement; calls for the publication of all meetings held by EESC members with third parties;

    40. Noes with satisfaction that the Committee has put solid rules and procedures in place to prevent conflicts of interests and avoid revolving doors with regard to staff who engage in outside activities or members who take on jobs after no longer being a Committee member; notes in this context that the Committee has introduced a new “Declaration of financial interests form” in 2023; notes that the form is to be declared by members, delegates, alternates and advisors for both their remunerated and non-remunerated posts or activities outside the Committee; commends further the Committee for its involvement in 2023 in the political negotiations to create the Inter-institutional Ethics Body tasked with setting ethical standards to strengthen transparency and integrity;

    41. Notes that the Committee Bureau, on 21 March 2023, adopted several transparency measures in accordance with the principles laid down with respect to the EU Transparency Register, such as a recommendation for office-holding members to only meet with registered stakeholders, the obligation for office holding members to publish their lists of meetings and a voluntary ‘legislative footprint’ for rapporteurs; notes that several actions were taken to implement the Bureau decision, including the issuing of a service note laying down practical modalities for the implementation of the decision, an awareness training campaign, and the provisions of template messages to be included in correspondence between Committee members and external stakeholders encouraging to join the EU Transparency Register (if applicable);

    42. Urges the EESC to implement real-time tracking of declared conflicts of interest, requiring all members and senior staff to publicly disclose financial interests, assets, and external affiliations annually, to prevent undue influence on decision-making;

    43. Notes an absence of cases in areas of fraud, conflicts of interest and whistleblowing in 2023; notes that the effectiveness of the Committee’s anti-fraud measures was reviewed in order to develop an anti-fraud strategy which is still missing despite several requests from Parliament in its discharge resolutions to take action to improve the overall anti-fraud system; recalls the importance of a comprehensive anti-fraud strategy and calls on the Committee to keep the discharge authority informed of the outcome of that exercise that should have culminated with the adoption of an anti-fraud strategy in 2024;

    Digitalisation, cybersecurity and data protection

    44. Notes that the combined IT budget of both the Committee and the CoR was EUR 12 700 000 in 2023, compared to EUR 11 712 000 in 2022, i.e. an increase of 8,4 %, whereas EUR 350 000 of that budget (or 3 % thereof) was paid for cybersecurity in 2023; notes further that 6,24 % of the Committee’s total budget for 2023 represented expenditure for actions implementing the new ‘Digital Strategy 2024-2026’ (DS2026) prepared by the Joint Directorate for Innovation and Information Technology (DIIT) in 2023;

    45. Notes that DS2026 envisions a future where technology integrates with the Committee’s core mission, focusing on efficiency, speed, and continuous digital evolution, putting both administration and members at the centre of digital transformation and aiming to improve service delivery, empowerment, and adaptability; notes that DS2026 is structured around eight objectives, eight key principles and four major projects such as the adoption of Ares and EdiT which are expected to be rolled out in 2026 and 2025, respectively; notes with satisfaction from the Questionnaire the progress made by DIIT in implementing DS2026 in 2023, with actions taken such as the adoption of staff guidelines on artificial intelligence, integration of amendment flows with translation tools and establishment of a project management office, among many other;

    46. Notes from the Annual report the Committee’s actions in the area of protection of personal data and its processing; notes that in 2023 the Committee created a new online version of its register of records and a new joint register of records with the CoR, whereas the former had 121 records and the latter had 25 records at the end of 2023; notes further that the Committee adopted a new procedure for handling data breaches, published a data protection guide and implemented several awareness-raising initiatives for its staff and members in 2023; notes lastly that the EDPS launched one enquiry in 2023 related to the management of an external audit, and continued an older enquiry on the use of cloud services under the Cloud II contracts by Union institutions, whereas for both enquiries the conclusions are still pending; asks the Committee to keep the discharge authority informed on the follow-up on these matters;

    47. Notes that the Committee finalised in 2023 its project for the equipment of all its meetings rooms, whereas an additional 14 such rooms were equipped with technologies that make them fully operational in hybrid mode; appreciates that the Committee conducted all procurement procedures for high value contracts in a fully digitalised way, used the Qualified electronic signature for any type of contractual agreements and provided trainings to staff on the transition to the Public Procurement Management Tool system and the Funding and Tenders Portal in 2023;

    48. Commends the Committee for its concrete actions to ensure its staff acquire the necessary digital skills in an increasingly digitalised workplace in 2023; notes in this context the activities, such as “mini-hackatons”, organised in the framework of a peer-to-peer network established with the CoR to foster better use and understanding of collaborative digital tools, as well as peer-to-peer coaching and experience exchanges; notes that the outcome of those activities was integrated into the Committee’s training offer;

    49. Notes that in October 2023 guidelines for staff members on the use of Artificial Intelligence (AI) were adopted, that an information session was provided for all staff members, highlighting opportunities and challenges, and that further communication to staff members was provided through knowledge-based articles on the Committee’s intranet to raise awareness; 

    50. Notes that the work continued adopting and applying the NIST Cybersecurity Framework within both the Committee and the CoR in 2023, whereas the actions taken that year focused on some of that framework’s principles, i.e. protect and detect principles; notes that mitigation strategies are implemented using the “Essential Eight” Cybersecurity Framework; notes further that the Committee did not encounter any cyber-attacks in 2023, but it did encounter brief Denial of Service (DoS) attacks against the Committee’s externally hosted corporate websites at the end of 2022 and the start of 2024;

    51. Urges the EESC to increase its cybersecurity budget to at least 10% of its total IT expenditures in line with EU cybersecurity directives, ensuring enhanced protection against cyber threats, especially for sensitive data related to policy and budgetary matters;

    Buildings

    52. Acknowledges receipt of the Committee’s report of 3 June 2024 informing the discharge authority about the Committee’s building policy, in compliance with Article 266(1) of the Union’s Financial Regulation; notes with satisfaction from that report that the Committee, with the CoR, achieved one of the major priorities of their 2017 Building Strategy, i.e. “geographical concentration of the buildings”; notes further that this achievement already brought savings due to the lower cost of renting the entire VMA compared to the three buildings previously rented; understands that those savings are approx. EUR 1,8 million, which,- according to that report, is equivalent to the rent paid for the B100 building; notes that the Committee is currently working on the update of its 2017 long-term building strategy, and that this work should be finished by the end of 2025; calls on the Committee to keep the discharge authority informed on the outcome of this exercise;

    53. Welcomes the finalisation of renovations (i.e. fitting-out works) of the newly acquired VMA building, which included the installation of smart energy saving technologies; supports the Committee’s plan to carry out technical and environmental audits of all its buildings, whereas the outcome of those audits should allow for the identification of all technical installations and building components that need to be fully or partially renovated or kept as they are, thereby aligning with the European Green Deal objectives; invites the Committee to update the discharge authority on the outcome of those audits and their follow-up;

    54. Notes that the task force on “new ways of working”, established in 2022, issued a first prospective report in 2023, focusing on the available office spaces and possible optimisation options; notes the Committee’s plan to continue that exercise with a participatory process with staff members to co-design the future workspaces; invites the Committee to keep the discharge authority informed on the progress made on this matter;

    55. Welcomes the commitment of the Committee and the CoR to systematically apply the “design for all” principle to their infrastructure, ensuring accessibility of their building by design; notes that the two committees took a range of different measures to ensure accessibility of their buildings to people with various kinds of disabilities in 2023, including upon modernisation of its elevators in the JDE building;

    Environment and sustainability

    56. Welcomes the Committee’s green practices and commends the further reduction of gas, electricity and water consumption and carbon emissions and an increase in the recycling rate in connection with the Committee’s activities in 2023 compared to 2019; notes a slight deterioration, compared to 2019 levels, of the rate of waste volume, from -66 % in 2022 to -56 % in 2023 due to higher office presence;

    57. Notes that the energy efficiencies and emissions reductions have been achieved through investments in innovative energy-efficient building installations, including through smart energy saving technologies installed in the VMA building, the purchase of 100 % green electricity, the introduction of (customised) environmental criteria in all tender procedures with value of EUR 60 000 or more, the use of paperless workflows and other measures such as reducing the operating hours for lighting, reducing the winter reference temperature in all buildings to 19 degrees or closing buildings in periods of low staff presence, among many other measures; notes that the reduction in the Committee’s energy consumption corresponds to a 3,4 % rate and a financial gain of EUR 65 395;

    58. Notes from the Follow-up report that the smart energy saving technologies installed in the recently renovated VMA building contributed to a reduction in the Committee’s energy consumption (gas and electricity) of 20 % to 30 % in 2023; reiterates however its call on the Committee to provide the Parliament with an update on the return on investments of those technological installations;

    59. Welcomes that the Committee adopted an energy-saving strategy, with short-, medium- and long-term measures; notes in this context that the Committee started an environmental audit of all its buildings in order to identify, among other, the level of the energy performance of the current structures and pieces of equipment, as well as estimate the environmental return of the necessary investments compared to the overall costs (maintenance, consumption etc.) over a 30-year period; notes further that studies on energy efficiency measures are planned for 2024 and 2025; calls on the Committee to keep the discharge authority informed on the progress made on those matters;

    60. Recalls that in 2022, the electricity produced by Committee’s solar panels was 15,5 MWH or 0,25 % of the Committee’s yearly consumption, whereas in 2023 the same figure decreased to 5,75 MWh; notes with satisfaction from the Questionnaire that the Committee is leading by example with regard to measures and actions taken in favour of sustainable mobility;

    Interinstitutional cooperation

    61. Commends the close cooperation established by the Committee with the CoR at administrative level, through the new cooperation agreement signed in 2022, whereby the two committees share premises and joint services in the areas of translation, infrastructure, logistics, security, procurement, financial management and IT, while maintaining full institutional autonomy; welcomes the positive development in 2023 when the two committee further agreed on the development and funding of a shared communication area with joint-audio visual facilities in the JDE building; asks the Committee to identify and inform the Parliament on the budgetary savings made during the first year of implementing that agreement in the audio-visual area; reiterates its call on the Committee to pursue and expand that cooperation in other areas with a view to avoiding duplication and further rationalising the operating costs of services available in the premises shared by the Committee and the CoR; invites the Committee and the CoR to explore the possibility of setting up a single administration for their joint services, keeping separate directorates or units for the services dealing with matters related to their specific and independent mandates; encourages the Committee and the CoR to continue their efforts to develop further cooperation and synergies;

    62. Observes that budgetary savings and efficiency gains continued to be realised through active cooperation between the Committee and other Union institutions in 2023, including by organising the Committee’s plenary sessions on Commission and Parliament premises, where the venues and associated services are provided either free of charge or at rates below external market prices;

    63. Notes with satisfaction that the Committee and Parliament re-negotiated in 2023 and signed in 2024 their inter-institutional agreement, whereas the agreement aims to provide more relevant and timely contributions throughout the legislative cycle and to reinforce bilateral cooperation; welcomes that the new Protocol of Cooperation of the Committee with the Commission, signed in 2022, already brought improvements to the Committee’s impact for example at pre-legislation phase through exploratory opinions; encourages the further reinforcement of political, legislative, and communication synergies between the Committee and Parliament, particularly in the context of the European Citizens’ Initiative and the European Semester;

    64. Reiterates its appreciation for the outsourcing (Service level agreements) of specific services to the Commission in the handling of HR and the use of financial and HR management IT tools, as well as for the Committee’s participation in inter-institutional procurement procedures led by other institutions, whereby the Committee continued to benefit from synergies in the area of IT, corporate travel, insurance, transportation, translation and audio-visual equipment in 2023;

    65. Notes the Committee’s role in reinforcing the links with and between the national economic and social councils (NESCs) of the Member  States; notes from the Questionnaire the measures that the Committee has taken to reinforce the network of and the online community with the NESCs, such as the establishment of joint working groups and exchange programmes, working on collaborative IT platform, and participation in common events, among others; calls for continued cooperation on topics of common interest and the exchange of good practices, emphasisiziing the vital role of civil society in addressing the Union’s current challenges;

    Communication

    66. Notes that the Committee’s overall budget for communication in 2023 was EUR 2,15 million, an increase compared to EUR 1,5 million in 2022; notes that this budget was primarily allocated to the four flagship events organised in 2023 (European Citizens’ initiative, Your Europe, Your Say! The organic food awards and the 14th Civil Society Prize), the improvement and/or revamping of the Committee’s social media, external website and audio-visual production, as well as for media and press publications; commends the Committee for its communication activities delivering on this communication priorities for 2023, such as the Blue Deal initiative, COP28, the resolution on democracy, and the Committee’s 65th anniversary, among others;

    67. Commends the Committee for its efforts in connection with its strategic communication in 2023; notes that the Committee adopted a new communication strategy aimed at strengthening its image and outreach; notes that, as part of that strategy, the Committee web-streamed its main events, mostly in all Union languages, introduced new communication tools such as the ‘Reporting from the plenary’ video series focused its communication resources on the Committee’s flagship events for 2023 and deployed special efforts to increase its outreach on social media;

    68. Calls on the EESC to strengthen its monitoring and reporting on labour rights, social inclusion, and human rights violations within EU-funded programs, ensuring greater accountability in its advisory functions and policy recommendations;

    69. Notes that the number of the social media followers on the Committee’s corporate platforms increased substantially by 25,000 in 2023; notes that by the end of 2023, the Committee reached 61 416 followers on X, which is an increase of 5 % compared to 2022, 61 761 followers on LinkedIn, which is an increase of 30 % compared to 2022, 46 868 followers on Facebook, which is an increase of 5.3 % compared to 2022 and 17 428 followers on Instagram, which is an increase of 45 % compared to 2022;

    70. Welcomes the Committee’s positive approach towards the use of open-source solutions for its online communication; notes that in July 2023, the Committee opened its first account on the EU Voice Mastodon platform, a decentralised, free and open-source social media network that connects users in a privacy-oriented and advertising-free environment; observes throughout the second half of 2023, that the Committee actively communicated on the Mastodon account, feeding it every working day with posts on its activities and priorities and raising awareness about the Union; takes note of the Committee’s decision to discontinue its presence on that platform as of 2024.

    MIL OSI Europe News

  • MIL-OSI Europe: REPORT on the 2023 and 2024 Commission Reports on Kosovo – A10-0075/2025

    Source: European Parliament

    MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

    on the 2023 and 2024 Commission Reports on Kosovo

    (2025/2019(INI))

    The European Parliament,

     having regard to the Stabilisation and Association Agreement between the European Union and the European Atomic Energy Community, of the one part, and Kosovo, of the other part[1], which entered into force on 1 April 2016,

     having regard to Kosovo’s application for membership of the European Union of 15 December 2022,

     having regard to Kosovo’s application for membership of the Council of Europe of 12 May 2022,

     having regard to the framework agreement between the European Union and Kosovo on the general principles for the participation of Kosovo in Union programmes[2], in force since 1 August 2017,

     having regard to Regulation (EU) 2021/1529 of the European Parliament and of the Council of 15 September 2021 establishing the Instrument for Pre-Accession assistance (IPA III)[3],

     having regard to Regulation (EU) 2024/1449 of the European Parliament and of the Council of 14 May 2024 on establishing the Reform and Growth Facility for the Western Balkans[4],

     having regard to the Presidency conclusions of the Thessaloniki European Council meeting of 19 and 20 June 2003,

     having regard to the declarations of the EU-Western Balkans Summits of 17 May 2018 in Sofia, of 6 May 2020 in Zagreb, of 6 October 2021 in Brdo pri Kranju, of 6 December 2022 in Tirana, of 13 December 2023 in Brussels, and of 18 December 2024 in Brussels,

     having regard to the Berlin Process launched on 28 August 2014,

     having regard to the Commission communication of 5 February 2020 entitled ‘Enhancing the accession process – A credible EU perspective for the Western Balkans’ (COM(2020)0057),

     having regard to the Commission communication of 6 October2020 entitled ‘An Economic and Investment Plan for the Western Balkans’ (COM(2020)0641),

     having regard to the Commission communication of 8 November 2023 entitled ‘2023 Communication on EU Enlargement Policy’ (COM(2023)0690), accompanied by the Commission staff working document entitled ‘Kosovo 2023 Report’ (SWD(2023)0692),

     having regard to the Commission communication of 8 November 2023 entitled ‘New growth plan for the Western Balkans’ (COM(2023)0691),

     having regard to the Commission communication of 20 March 2024 on pre-enlargement reforms and policy reviews (COM(2024)0146),

     having regard to the Commission communication of 30 October 2024 entitled ‘2024 Communication on EU enlargement policy’ (COM(2024)0690), accompanied by the Commission staff working document entitled ‘Kosovo 2024 Report’ (SWD(2024)0692),

     having regard to the general summary and the country assessments by the Commission, dated 31 May 2023 and 13 June 2024, on Kosovo’s economic reform programme,

     having regard to the joint conclusions of the Economic and Financial Dialogue between the EU and the Western Balkans and Türkiye, adopted by the Council on 16 May 2023 and to the joint conclusions of the Economic and Financial Dialogue between the EU and the Western Balkans Partners, Türkiye, Georgia, Republic of Moldova and Ukraine, adopted by the Council on 14 May 2024,

     having regard to UN Security Council Resolution 1244 of 10 June 1999, to the International Court of Justice (ICJ) advisory opinion of 22 July 2010 on the accordance with international law of the unilateral declaration of independence in respect of Kosovo, and to UN General Assembly Resolution 64/298 of 9 September 2010, which acknowledged the content of the ICJ opinion and welcomed the EU’s readiness to facilitate dialogue between Serbia and Kosovo,

     having regard to the first agreement on principles governing the normalisation of relations between Serbia and Kosovo of 19 April 2013, to the agreements of 25 August 2015, and to the ongoing EU-facilitated dialogue for the normalisation of relations,

     having regard to the Brussels Agreement of 27 February 2023 and the Ohrid Agreement of 18 March 2023 and to the implementation annex thereto,

     having regard to Council Decision (CFSP) 2023/1095 of 5 June 2023 amending Joint Action 2008/124/CFSP on the European Union Rule of Law Mission in Kosovo (EULEX Kosovo)[5], which extended the mission’s mandate until 14 June 2025,

     having regard to Regulation (EU) 2023/850 of the European Parliament and of the Council of 19 April 2023 amending Regulation (EU) 2018/1806 listing the third countries whose nationals must be in possession of visas when crossing the external borders and those whose nationals are exempt from that requirement (Kosovo)[6],

     having regard to the final report of the European Union Election Observation Mission on the 2021 municipal elections in Kosovo,

     having regard to the preliminary report of the European Union Election Observation Mission on the 2025 parliamentary elections in Kosovo,

     having regard to the fourth meeting of the Stabilisation and Association Council between the European Union and Kosovo held in Brussels on 7 December 2021,

     having regard to its previous resolutions on Kosovo,

     having regard to the joint recommendations adopted at the 12th meeting of the EU-Kosovo Stabilisation and Association Parliamentary Committee, held on 9 December 2024,

     having regard to the 2024 Corruption Perceptions Index by Transparency International,

     having regard to the 2024 World Press Freedom Index by Reporters Without Borders,

     having regard to the Democracy Report 2024 of March 2024 by the Varieties of Democracy (V-Dem) Institute,

     having regard to Rule 55 of its Rules of Procedure,

     having regard to the report of the Committee on Foreign Affairs (A10-0075/2025),

    A. whereas enlargement policy is one of the most effective EU foreign policy instruments and one of the most successful policies to incentivise and encourage fundamental reforms, and is a strategic geopolitical investment in long-term peace, stability and security throughout the continent;

    B. whereas democracy, human rights and the rule of law are the fundamental values on which the EU is founded;

    C. whereas the EU enlargement process is a strategic tool for strengthening stability, democracy and economic development in Europe, and each enlargement country is judged on its own merits and whereas it is the implementation of the necessary reforms and compliance with the set of criteria and common European values that determines the timetable and progress of accession; whereas Kosovo’s path towards EU membership also depends on the normalisation of relations with Serbia;

    D. whereas the EU is the largest provider of financial support to Kosovo;

    E. whereas Kosovo has been subjected to foreign interference and disinformation campaigns, particularly from Russia, especially through Serbian nationalist outlets, and China, through soft power, aiming to destabilise its democratic institutions, jeopardise societal cohesion, and incite ethnic violence; whereas the Banjska/Banjskë attack in September 2023 was followed by a massive spread of disinformation that further exacerbated tensions; whereas Kosovo authorities adopted the Law on the Independent Media Commission (IMC) in July 2024; whereas, in May 2024, the Council of Europe published a legal opinion on the draft law on the IMC expressing concerns related to certain aspects of the at-that-time draft law, and providing recommendations on how to address these concerns; whereas the final text of the Law on the IMC did not reflect most of the recommendations made;

    F. whereas the European Union Rule of Law Mission in Kosovo, also known as EULEX, is the largest civilian mission ever launched under the common security and defence policy of the European Union;

    G. whereas in 2018 and 2023, petitions were signed by over 500 people who historically self-identify as Bulgarian;

    Commitment to EU accession

    1. Commends Kosovo’s commitment to EU accession, which reflects a clear strategic geopolitical choice, and the continued strong support of its citizens for Kosovo’s European path; reiterates that Kosovo has been consistent in its efforts to integrate into the European Union;

    2. Reiterates its firm belief that Kosovo’s future lies in the EU and that all efforts to bring Kosovo out of the ‘grey zone’ are in the interest of the people of both Kosovo and the EU, especially in the context of the current geopolitical dynamics in the region, rapid major shifts in world politics and growing competition with authoritarian regimes;

    3. Supports Kosovo’s application for EU membership, which reflects the overwhelming cross-party consensus on EU integration and a clear geopolitical strategic choice; reiterates its call on the Member States in the Council to mandate the Commission to present its questionnaire and to submit its opinion on the merits of the country’s application; calls on the five non-recognising Member States that have not yet recognised Kosovo’s independence to do so without delay and thus allow Kosovo to progress on its EU path on an equal footing with the other candidate countries;  recalls the advisory opinion of the ICJ dated 22 July 2010, which states that Kosovo’s unilateral declaration of independence does not violate general international law;

    4. Recalls that membership of the European Union is based on a merit-based process, conditional on the rigorous implementation of reforms aligned with the highest European standards, in particular compliance with the Copenhagen criteria and the rule of law, and ensures the effective application of laws in practice; encourages Kosovo to continue its efforts in this regard, by further strengthening its commitment to the values ​​and standards of the Union; stresses that enlargement also implies thorough preparation of potential new members, while respecting the economic stability of the internal market, social and environmental standards and the proper functioning of the European institutions;

    5. Welcomes the visa liberalisation, adopted in April 2023 and in place since 1 January 2024, as a tangible result of Kosovo’s ever-closer relations with the EU and as evidence of Kosovo’s efforts on the path of European integration; welcomes Kosovo’s decision to unilaterally abolish visa requirements for citizens of Bosnia and Herzegovina; welcomes the decision of Spain to recognise ordinary passports issued by Kosovo as valid travel documents as of January 2024;

    6. Notes the tangible progress in the areas of justice, freedom and security, the fight against organised crime and a functioning market economy; regrets the limited progress and calls for an acceleration of reforms in the area of rule of law; welcomes Kosovo’s ambition to advance the implementation of reforms, which remains the country’s priority; regrets the lack of a decision-making quorum in the Kosovo National Assembly, caused by the boycott of the Assembly work by political parties ahead of parliamentary elections;

    7. Regrets the politicisation of institutions such as the Central Election Commission and the IMC;

    8. Commends Kosovo’s ongoing alignment with the EU’s foreign and security policy, in particular its firm condemnation of Russia’s war of aggression against Ukraine, and its implementation of the EU’s restrictive measures against Russia and Belarus, aligning with the Union’s foreign policy, and its support through humanitarian aid and military assistance packages to Ukraine, which confirm that Kosovo is a reliable and valuable partner committed to EU integration and confirms its clear geopolitical orientation, firmly anchored in the European and transatlantic alliance;

    9. Calls for the immediate lifting of the EU measures against Kosovo, which are no longer justified as Kosovo has fulfilled the EU requirements and as the measures also stand in gross contradiction to Kosovo’s demonstrated commitment to European values and alignment with EU policies, limiting the impact of the EU’s partnership with Kosovo and hindering the resumption of the Belgrade-Pristina dialogue in good faith;

    10. Reiterates its full support for Kosovo’s application for membership of the Council of Europe and for the country’s strategic orientation plan to join the NATO Partnership for Peace programme and its bids to join other international organisations; calls on the relevant organisations and the Member States to proactively support Kosovo’s respective bids; calls on the Commission and the EU Office in Kosovo to step up their efforts in enhancing visibility and promoting the role, efforts and benefits of the closer partnership between the EU and Kosovo;

    11. Welcomes the fact that Kosovo reduced administrative burden by simplifying procedures through the implementation of the related program for 2022-2027; notes that the strategic framework for public administration is in place, but not efficiently implemented; regrets the fact that delays in public administration reform have left EU funding management weak and that accountability in the public sector is insufficient; calls on Kosovo to improve public administration and the merit-based civil service system by amending and adopting the Law on public officials and the Law on the independent oversight board of civil service;

    12. Regrets that the Kosovo Constitutional Court ruling on the Law on salaries, which unifies the current system of remuneration for public officials, is not yet functional; calls on the Kosovo Government to revise its legislation on public financial management to meet international standards and to incorporate the public investment methodology into the revised legislation;

    Democracy and the rule of law

    13. Welcomes the important and positive progress on addressing many of the EU Election Observation Mission’s (EU EOM) long-standing recommendations and on presenting a consensual law on general elections; notes that this provides an adequate basis for the conduct of democratic elections, in line with international and regional standards; notes that in response to an invitation by the president of Kosovo, the European Union deployed an EU EOM, including an observer delegation of Members of the European Parliament, to observe the parliamentary elections in Kosovo on 9 February 2025; welcomes the conclusions of the EU EOM confirming the conduct of peaceful, free and fair elections on 9 February 2025 with the participation of all communities in Kosovo; regrets the harsh rhetoric of the political parties during the campaign; takes note of the technical problems encountered during the counting process and encourages the Kosovo authorities to increase their efforts to improve the organisation of the next elections; notes the lack of genuine political pluralism within the Kosovo Serb community at the parliamentary elections, despite multiple Kosovo Serb electoral lists; is concerned by reports of continuous pressure on voters from the Serbian community exercised by Belgrade; condemns the repeated interference in the electoral campaign by US Special Envoy Richard Grenell;

    14. Notes with concern that the Law on Local Elections and the Law on General Elections are still not implemented and harmonised with the Law on Gender Equality, which mandates 50 % equal representation of women and men; regrets that women continue to be underrepresented;

    15. Welcomes the adoption of the law on the Special Prosecution Office and the progress in adjudicating corruption cases; commends the active work of the Special Prosecution Office for solving seven war crime cases; calls for further clarification of the division of jurisdiction between the Special Prosecution Office and the Basic Prosecution in handling investigations and prosecutions; calls on Kosovo to continue strengthening the Special Prosecution Office by enhancing its capacity to investigate and prosecute high-profile organised crime cases; calls on the police and Special Prosecution Office to work closely together to develop strategies for conducting investigations more effectively, with a clear division of responsibility;

    16. Takes note of the progress in Kosovo’s ranking in the Corruption Perceptions Index, as it has moved upward 10 places since last year, considering it to be a positive development while acknowledging that this is attributable both to decreases in other countries’ scores and, more significantly, to the adoption of qualitative legislation, but that it still remains largely unsatisfactory; emphasises that gaining people’s trust requires not only legislative reforms but also visible results in investigating, prosecuting and convicting cases of corruption at all levels; regrets that Kosovo has lacked an anti-corruption strategy since 2019 and urges for more efforts to finalise it as a matter of priority; reiterates that strong political commitment is necessary to establish a solid track record in fighting high-level corruption; reiterates that strong political commitment is necessary to establish a solid track record in fighting high-level corruption;

    17. Expresses serious concern about systemic vulnerabilities in Kosovo’s judiciary, particularly regarding the independence of the justice system and respect for separation of powers; reiterates its concern about delays to trials and continued criticism by government officials of judicial decisions in individual cases; notes with concern that despite EU advice, the government failed to consult the Venice Commission on judicial reforms, negatively affecting their quality and alignment with European standards; calls on Kosovo to ensure that legislation governing the integrity and accountability of the judiciary is consistent with European standards and Venice Commission recommendations; calls on the Government of Kosovo to allocate adequate budget for the judicial system; welcomes the establishment of the Commercial Court, progress in the recruitment of new judges and prosecutors in a merit-based and transparent process, and an overall increase of transparency;

    18. Welcomes the participation of Kosovo Serbs in the parliamentary elections and encourages their elected representatives to play an active role within the Kosovo legislative framework, in support of Kosovo’s European future; regrets, however, the boycott of parties representing Kosovo Serbs during the local elections in April 2023 and the withdrawal of Kosovo Serbs from Kosovo institutions; expresses concern over Serbia’s interference in the parliamentary elections through Srpska Lista (SL);

    19. Welcomes the implementation of the 2016 judgement of the Constitutional Court on the Visoki Dečani/Deçani Monastery land ownership by registering the monastery as the owner, in March 2024;

    20. Welcomes the steady increase in organised crime sentences and the fact that the legal framework on the fight against organised crime is aligned with the EU acquis; emphasises the need for prosecution services and police to strengthen their joint action against criminal groups and networks; expresses concern about the security challenges in the north of Kosovo, particularly following the Banjska/Banjskë attack in September 2023, which demanded significant police resources; emphasises the need to deepen cooperation in the field of combating drug trafficking; calls for further alignment regarding the fight against terrorism;

    21. Welcomes the adoption of the strategy and action plan on control of small arms light weapons and explosives, as well as the high level of compliance with the rules of the UN Firearms Protocol;

    22. Remains concerned over the slow implementation of the rule of law strategy and action plan;

    23. Reaffirms its commitment to maintaining and strengthening its cooperation with the Kosovo Assembly and its members in support of democratic processes related to Kosovo’s European path by using Parliament’s existing democracy support tools and initiatives; believes that this partnership can be revitalised and further reinforced following the democratic elections held on 9 February 2025; encourages the active involvement and collaboration of all elected members of the newly formed Kosovo Assembly;

    24. Condemns the serious security incidents in the north of Kosovo in late November 2024, the gravest act occurring near the village of Vragë in Zubin Potok, where explosive devices damaged critical infrastructure by targeting the main channel of the Ibër Lepenc system; expresses its support for Kosovo’s institutions in conducting a full investigation of these criminal actions so that the perpetrators will be brought to justice;

    25. Commends the work of EULEX, which has been assisting Kosovo authorities in establishing sustainable and independent rule of law institutions;

    Fundamental freedoms and human rights

    26. Notes that Kosovo has the necessary institutional set-up for the promotion and protection of human rights; welcomes the adoption of the strategy for the protection and promotion of the rights of communities; emphasises, however, that human rights protection remains weak owing to the lack of legislative implementation, political will and limited human and financial resources and calls for strengthened enforcement and accountability mechanisms;

    27. Acknowledges that Kosovo’s constitution is very progressive in terms of protection of minority rights; notes with regret that the petition signed by nearly 500 people who have historically self-identified as Bulgarian, which was registered at the Assembly of Kosovo in January 2023, has still not been considered and recommends that those rights be enshrined in law and ensured in practice; calls on Kosovo to ensure that all minorities recognised under the Law on protection of minority rights and members of their communities, are fully incorporated into the country’s constitution; calls on the Kosovo authorities to step up efforts to protect the rights of all minorities, including national communities, in particular vulnerable national communities, and to provide them equal opportunities and adequate representation in political and cultural life, public media, the administration and the judiciary, as well as prevent their assimilation and promote their integration into Kosovo’s society and strengthen activities to eliminate social and economic challenges of these national minorities;

    28. Welcomes the increase in funding to shelters for victims of domestic violence and trafficking; notes that domestic violence remains the most common form of gender-based violence; expresses concerns that the system continues to fail in ensuring the effective prevention of domestic violence;

    29. Regrets that the adoption of the draft Civil Code of Kosovo remains pending; highlights that the draft Civil Code addresses several important issues related to gender equality as a fundamental EU value, including enabling an equal share of joint marital property among women and men spouses; stresses the importance of ensuring rights for all people in Kosovo in the Civil Code to safeguard respect for constitutional rights and opportunities for the LGBTIQ community; expresses concern that women remain under-represented in senior political positions, specifically related to security and the dialogue, and emphasises the urgent need for their involvement in peacemaking and reconciliation processes, in line with United Nations Security Council Resolution 1325 on Women, Peace and Security; calls for more efforts to be made to improve the place of women in society;

    30. Notes that the prison system broadly follows UN Standard Minimum Rules and calls for the better protection of the rights of prisoners, particularly female, minority and mentally ill prisoners; remains concerned that discriminatory language against women and LGBTIQ people persists, and calls on the authorities to create and implement a national gender strategy for research fields, such as science, technology, engineering, and mathematics; commends the participation of women in high-quality business and management training programmes, as well as in ICT related domains, facilitated by the instrument for pre-accession assistance funds; regrets that women from minority groups, particularly the Roma, Ashkali and Egyptian communities, face numerous forms of discrimination, particularly in education, employment and access to healthcare; expresses concerns that the central administration does not adequately represent minority communities, and the number of women in senior positions is low;

    31. Regrets that the UN Convention on the Rights of Persons with Disabilities has not yet been adopted; expresses concerns that there is insufficient alignment between Kosovo’s legislation and the EU acquis on the rights of people with disabilities, who face discrimination and barriers to accessing social services;

    32. Welcomes Kosovo’s consistent improvement in its position in the 2024 Liberal Democracy Index and Electoral Democracy Index, as prepared by the Varieties of Democracy Institute, which measures the rule of law, checks and balances, civil liberties, and free and fair elections;

    33. Takes note of Kosovo’s pluralistic media environment while awaiting the decision of the Constitutional Court on the main media law and underlines the role of the IMC, whose independence in decision-making needs to be strictly ensured and full functioning restored; regrets, however, the decline in Kosovo’s media freedom, as evidenced by its drop from the 56th to the 75th place in the 2024 World Press Freedom Index; reaffirms that media pluralism and transparency are prerequisites for EU accession; calls for greater transparency on media ownership and financing with a view to enhancing media independence and pluralism; emphasises the need for robust measures to protect journalists from harassment and intimidation, and to ensure the independence of media regulatory bodies; notes the concerns raised by civil society about the allegedly politically motivated election of the Chair of the IMC; urges the Kosovo authorities to further revise the Law on the IMC in order to include the recommendations made by the Council of Europe, thus aligning the national law with EU standards and practices; recommends increased support for independent media outlets and fact-checking organisations in Kosovo, recognising their crucial role in countering disinformation and providing accurate information to the public; encourages the EU to provide technical and financial assistance to these entities; encourages the Kosovo authorities to request tailor-made Technical Assistance and Information Exchange expert missions bodies; calls for the adoption of the law on Radio Television of Kosovo and the law on the protection of journalists’ sources;

    34. Expresses concern over the recent cyberattack targeting Kosovo’s digital infrastructure; urges the Kosovo Government to reinforce its capacities to combat foreign interference and disinformation, particularly those originating from Serbian nationalist outlets and Russia, aimed at destabilising the region and undermining the European integration of the Western Balkans, by developing comprehensive strategies that include public awareness campaigns also combating disinformation undermining women’s participation in public life, strengthening cybersecurity and related infrastructure, fostering collaboration with international partners, most notably the European Union, to protect its digital economy, public services and national security, and addressing disinformation campaigns and hybrid threats that aim to destabilise the country and undermine its European perspective; encourages the integration of media literacy programs into Kosovo’s educational curriculum to equip citizens with the skills necessary to identify and counteract disinformation;

    35. Commends the fact that Kosovo provided shelter and asylum to journalists from Ukraine and Afghanistan;

    36. Expresses serious concern about the significant increase in attacks against journalists and strategic lawsuits against public participation (SLAPP cases), including by government officials; calls on the authorities to advance their work on anti-SLAPP legislation in line with the new EU Directive 2024/1069[7]; calls on Kosovo to work actively to secure the ability of journalists to carry out their work and to ensure full freedom for the media to operate independently; underlines the need to stop all forms of violence;

    37. Welcomes Kosovo’s vibrant and constructive civil society, which plays a very crucial and positive role in the reform process; encourages the Kosovo Government to enhance its cooperation with civil society, in particular with women’s rights organisations, on decision-making and to make more use of the Government Council for Cooperation with Civil Society for building collaborative relationships and genuinely implicating civil society in a transparent legislative process from an early stage onwards; stresses the importance of increasing accountability and transparency in relation to public funding for civil society organisations; underlines that civil society is vital in fostering democracy and pluralism and promoting good governance and social progress;

    38. Regrets the lack of a clear plan for engaging Kosovo Serbs in the north and that initiatives to involve the Serb community in Kosovo’s political, social and economic structures remain very limited; reiterates its call to improve the internal dialogue and genuinely and directly engage with the independent civil society organisations of Kosovo Serbs, in particular in the north, with the aim of building trust, facilitating the daily life of Kosovo Serbs and successfully integrating them;

    Reconciliation and good neighbourly relations

    39. Commends Kosovo’s engagement in a number of regional cooperation initiatives and encourages it to enhance its reconciliation efforts and seek solutions to past disputes; commends Kosovo on its constructive approach and active engagement in regional cooperation and trade facilitation that led to the unblocking of the Central European Free Trade Agreement;

    40. Calls on Serbia to open all wartime archives and grant access to the former Yugoslav Secret Service (UDBA) and Yugoslav People’s Army Secret Service (KOS) files, ensuring their return to respective governments upon request; emphasises the need to open these archives region-wide to investigate communist-era crimes and strengthen democracy, accountability and institutions in the Western Balkans;

    41. Reiterates its full support for the EU-facilitated dialogue and welcomes the appointment of Peter Sørensen as the EU Special Representative for the Belgrade-Pristina Dialogue;

    42. Reiterates the importance of constructive engagement on the part of the authorities of both Kosovo and Serbia in order to achieve a comprehensive legally binding normalisation agreement, based on mutual recognition and in accordance with international law; calls on both Kosovo and Serbia to implement the Brussels and Ohrid Agreements, including the establishment of the Association/Community of Serb-Majority Municipalities, and the lifting of Serbia’s opposition of Kosovo’s membership in regional and international organisations, and to avoid unilateral actions that could undermine the dialogue process;

    43. Expects Kosovo and Serbia to fully cooperate and take all the necessary measures to apprehend and swiftly bring to justice the perpetrators of the 2023 terrorist attack in Banjska; deplores the fact that Serbia still has not prosecuted the culprits, most notably Milan Radoičić, the Vice-President of Srpska Lista; reiterates that the perpetrators of the terrorist attack in Zubin Potok must also be held accountable and must face justice without delay;

    44. Calls on the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy and on the Commission to take a more proactive role in leading the dialogue process; calls for an enhanced role for the European Parliament in facilitating the dialogue through regular joint parliamentary assembly meetings;

    45. Condemns all actions that endanger stability and jeopardise the reconciliation process, including the tensions in the north of Kosovo and provocations by Serbian state-sponsored groups and illegal armed formations, and urges the European Union to take a stronger stance against external interference in Kosovo’s internal affairs; emphasises that both sides must fully implement all agreements reached and avoid unilateral actions that could escalate tensions; calls on the Kosovo police to ensure that they fully abide by all rule of law and human rights requirements, and to guarantee that a multi-ethnic and inclusive police force, fully in line with legal requirements, is deployed in the north of Kosovo; recalls the shared responsibility of all political representatives and all communities in Kosovo for upholding peace, security and the rule of law;

    46. Welcomes the establishment of the Joint Commission on Missing Persons in December 2024 and calls for swift progress in implementing the May 2023 Political Declaration on Missing Persons; calls on both Kosovo and Serbia to refrain from politicising this humanitarian issue and to step up their efforts in implementing the declaration as part of the Belgrade-Pristina Dialogue and to establish cooperation between Kosovo and Serbia;

    47. Welcomes the recent agreements in the framework of the Berlin Process;

    48. Welcomes Kosovo’s decision to remove restrictions on the entry of Serbian finished products at the Merdare border crossing;

    49. Welcomes the presence of the Kosovo Force and its role in building and maintaining a safe and secure environment and in developing a stable and peaceful Kosovo on the path towards Euro-Atlantic integration; recalls the importance of the mission for the ongoing development of the Kosovo Security Force through the provision of advice, training and capacity building;

    Socio-economic reforms

    50. Welcomes Kosovo’s active engagement in the implementation of the new growth plan for the Western Balkans, which aims to deepen EU-related reforms and reduce the socio-economic gap between EU Member States and the Western Balkan countries; welcomes the adoption of Kosovo’s Reform Agenda and recalls that Kosovo (as well as Serbia) needs to show improved commitment to the EU-facilitated Dialogue in order to access the resources;

    51. Welcomes the progress achieved by Kosovo in developing a functioning market economy and encourages Kosovo to implement the necessary structural reforms to address fiscal challenges, while ensuring adequate labour protection, fair wages, and improved working conditions in line with EU legislation;

    52. Reiterates its calls on the Commission to develop a regional strategy to address the persistent youth unemployment and brain drain by tackling the skills mismatch between the education system and the labour market, improving the quality of teaching, and ensuring adequate funding for active labour market measures and vocational training schemes, along with adequate childcare and pre-school education facilities;

    53. Welcomes the fact that Kosovo’s cybercrime legislation is broadly aligned with the EU acquis; notes Kosovo’s limited progress in the digital transformation of public services; emphasises the need for it to align with EU digital legislation as well as with the needs of its people, specifically with the European Electronic Communications Code, the EU Network and Information Security Directive (NIS2)[8], the EU toolbox for 5G security, and the Digital Services Act[9] and the Digital Markets Act[10]; notes that Kosovo’s economy remains highly dependent on imports and stresses the need for economic diversification to enhance competitiveness and sustainability, particularly in the context of deeper integration into EU markets;

    54. Regrets that the draft law on textbooks, presented in 2022, is still pending final adoption in the Kosovo Assembly; calls on Kosovo to finalise the implementation of the new curricular framework for basic education, complete the revision of current textbooks, provide sustainable training to teachers, and systematically apply quality assurance mechanisms at all education levels;

    55. Urges Kosovo to ensure better access to quality healthcare services; notes that healthcare expenditure remains the second lowest in the region, and calls for a comprehensive healthcare reform to address the needs of all citizens, especially in rural and underserved areas;

    56. Notes with concern that access to social services, particularly for vulnerable groups, worsened with the government’s closure of the Ministry of Labour and Social Welfare, which was done without transparent consultation with civil society and other stakeholders and contributed to significant confusion; calls for better, evidence-based budgeting to improve social services, particularly for survivors of gender-based violence in accordance with the new legal framework;

    57. Calls on Kosovo to provide equal and non-discriminatory state education in minority languages;

    58. Reiterates the need to reach out to young people from the Serb majority municipalities and to integrate them in the socio-economic structures of the country;

    Energy, environment, sustainable development and connectivity

    59. Notes that Kosovo has made some progress on the security of energy supply but remains heavily reliant on outdated, highly polluting power plants, posing serious health and environmental risks; notes that Kosovo needs to ensure the time-efficient implementation of its energy programme for 2022-2025 to meet its ambitious targets and reduce its dependence on fossil fuels; calls for the EU to step up and prioritise its efforts to help Kosovo overcome its air pollution problems; notes that Kosovo’s new energy strategy does not promote the construction of hydropower plants due to their harmful environmental impact, in particular because of the water scarcity in the country;

    60. Highlights the need for comprehensive infrastructure development in Kosovo to facilitate the reduction of emissions from public transport and the expansion of electrified transport; stresses that improving accessibility and ensuring compatibility with the EU transport network must remain a priority;

    61. Welcomes the agreement at the Tirana Summit on reduced roaming costs; calls, in this respect, on the authorities, private actors and all stakeholders to facilitate reaching the agreed targets to achieve a substantial reduction of data roaming charges and further reductions leading to prices close to domestic prices between the Western Balkans and the EU by 2027; welcomes the entrance into force of the first phase of implementation of the roadmap for roaming between the Western Balkans and the EU;

    62. Urges Kosovo to enhance compliance with emission ceilings, improve the integration of environmental considerations into sectoral policies and adopt necessary measures for pollution, soil and water contamination control and waste management, in line with EU and international standards and commitments; urges Kosovo to improve comprehensive environmental impact assessments and to integrate sustainability measures into infrastructure planning; calls on Kosovo to increase the protected areas in the country and to improve instruments and measures for their protection with a view to safeguarding biodiversity, including key habitats of the critically endangered Balkan lynx; encourages Kosovo to intensify and speed up collaborative efforts with its neighbouring countries to designate transboundary protected areas and establish coherent transboundary management plans;

    °

    ° °

    63. Instructs its President to forward this resolution to the President of the European Council, the Commission, the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy, the governments and parliaments of the Member States and the President, Government and National Assembly of Kosovo.

     

    MIL OSI Europe News

  • MIL-OSI Europe: REPORT on the European Water Resilience Strategy – A10-0073/2025

    Source: European Parliament

    MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

    on the European Water Resilience Strategy

    (2024/2104(INI))

    The European Parliament,

     having regard to the Treaty of the Functioning of the European Union (TFEU), in particular Article 191 thereof,

     having regard to the Agreement adopted at the 21st Conference of the Parties to the UNFCCC (COP21) in Paris on 12 December 2015 (the Paris Agreement),

     having regard to the United Nations 2030 Agenda for Sustainable Development and the Sustainable Development Goals (SDGs), with particular emphasis on the SDG 6 onclean water and sanitation,

     having regard to the Kunming-Montreal Global Biodiversity Framework, adopted in December 2022,

     having regard to the Stockholm Convention on Persistent Organic Pollutants of 22 May 2021,

     having regard to the precautionary principle and the principles that preventive action should be taken, that environmental damage should, as a priority, be rectified at source and that the polluter should pay, as enshrined in Article 191(2) TFEU,

     having regard to Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (European Climate Law)[1],

     having regard to Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000 establishing a framework for Community action in the field of water policy[2] (Water Framework Directive),

     having regard to Directive 2006/118/EC of the European Parliament and of the Council of 12 December 2006 on the protection of groundwater against pollution and deterioration[3] (Groundwater Directive),

     having regard to Directive 2008/105/EC of the European Parliament and of the Council of 16 December 2008 on environmental quality standards in the field of water policy, amending and subsequently repealing Council Directives 82/176/EEC, 83/513/EEC, 84/156/EEC, 84/491/EEC, 86/280/EEC and amending Directive 2000/60/EC of the European Parliament and of the Council[4] (Environmental Quality Standards Directive),

     having regard to Directive 2007/60/EC of the European Parliament and of the Council of 23 October 2007 on the assessment and management of flood risks[5],

     having regard to Directive (EU) 2020/2184 of the European Parliament and of the Council of 16 December 2020 on the quality of water intended for human consumption[6] (Drinking Water Directive),

     having regard to Regulation (EU) 2020/741 of the European Parliament and of the Council of 25 May 2020 on minimum requirements for water reuse[7] (Water Reuse Regulation),

     having regard to Directive 2008/56/EC of the European Parliament and of the Council of 17 June 2008 establishing a framework for community action in the field of marine environmental policy (Marine Strategy Framework Directive)[8],

     having regard to Directive (EU) 2024/3019 of the European Parliament and of the Council of 27 November 2024 concerning urban wastewater treatment[9] (revised Urban Wastewater Treatment Directive),

     having regard to Directive (EU) 2024/1785 of the European Parliament and of the Council of 24 April 2024 amending Directive 2010/75/EU on industrial emissions (integrated pollution prevention and control) and Council Directive 1999/31/EC on the landfill of waste[10],

     having regard to Council Directive 91/676/EEC of 12 December 1991 concerning the protection of waters against pollution caused by nitrates from agricultural sources[11],

     having regard to Regulation (EU) 2024/1991 of the European Parliament and of the Council of 24 June 2024 on nature restoration and amending Regulation (EU) 2022/869[12],

     having regard to Directive (EU) 2022/2557 of the European Parliament and of the Council of 14 December 2022 on the resilience of critical entities and repealing Council Directive 2008/114/EC[13] (Critical Entities Resilience Directive),

     having regard to Directive (EU) 2022/2555 of the European Parliament and of the Council on 14 December 2022 on measures for a high common level of cybersecurity across the Union, amending Regulation (EU) No 910/2014 and Directive (EU) 2018/1972, and repealing Directive (EU) 2016/1148 (NIS 2 Directive)[14],

     having regard to Directive 2009/128/EC of the European Parliament and of the Council of 21 October 2009 establishing a framework for Community action to achieve the sustainable use of pesticides[15],

     having regard to Regulation (EU) 2021/2115 of the European Parliament and of the Council of 2 December 2021 establishing rules on support for strategic plans to be drawn up by Member States under the common agricultural policy (CAP Strategic Plans) and financed by the European Agricultural Guarantee Fund (EAGF) and by the European Agricultural Fund for Rural Development (EAFRD) and repealing Regulations (EU) No 1305/2013 and (EU) No 1307/2013[16],

     having regard to Commission Regulation (EU) 2024/3190 of 19 December 2024 on the use of bisphenol A (BPA) and other bisphenols and bisphenol derivatives with harmonised classification for specific hazardous properties in certain materials and articles intended to come into contact with food, amending Regulation (EU) No 10/2011 and repealing Regulation (EU) 2018/213[17],

     having regard to the Commission communication of 19 February 2021 entitled ‘A Vision for Agriculture and Food’ (COM(2025)0075),

     having regard to the Commission communication of 11 December 2019 on the European Green Deal (COM(2019)0640),

     having regard to the Commission communication of 29 January 2025 entitled ‘A Competitiveness Compass for the EU’ (COM(2025)0030),

     having regard to the Commission communication of 12 May 2021 entitled ‘Pathway to a Healthy Planet for All – EU Action Plan: ‘Towards Zero Pollution for Air, Water and Soil’’ (COM(2021)0400),

     having regard to the Commission communication of 24 February 2021 entitled ‘Forging a climate-resilient Europe – the new EU Strategy on Adaptation to Climate Change’ (COM(2021)0082),

     having regard to the Commission communication of 18 July 2007 on addressing the challenge of water scarcity and droughts in the European Union (COM(2007)0414),

     having regard to the Commission communication of 11 March 2020 entitled ‘A new Circular Economy Action Plan: For a cleaner and more competitive Europe’ (COM(2020)0098),

     having regard to the Commission communication of 14 November 2012 entitled ‘A Blueprint to Safeguard Europe’s Water Resources’ (COM(2012)0673),

     having regard to the EU biodiversity strategy for 2030,

     having regard to the COP29 Declaration on Water for Climate Action, endorsed by the European Union,

     having regard to the European Oceans Pact announced by Commission President von der Leyen in her political guidelines for the next European Commission (2024-2029) on 18 July 2024,

     having regard to the European climate adaptation plan and the European water resilience strategy announced by Commission President von der Leyen in her political guidelines for the next European Commission (2024-2029) on 18 July 2024,

     having regard to the EU’s 8th environment action programme,

     having regards to its resolution of 5 October 2022 entitled ‘Access to water as a human right – the external dimension’[18],

     having regard to its resolution of 19 September 2024 on the devastating floods in central and eastern Europe, the loss of lives and the EU’s preparedness to act on such disasters exacerbated by climate change[19],

     having regard to its resolution of 6 October 2022 on momentum for the ocean: strengthening ocean governance and biodiversity[20],

     having regard to its resolution of 28 November 2019 on the climate and environment emergency[21],

     having regard to its resolution of 14 November 2024 on the UN climate change conference in Baku, Azerbaijan (COP29)[22],

     having regard to the Commission report  of 4February 2025 on the implementation of the Water Framework Directive (2000/60/EC) and the Floods Directive (2007/60/EC) entitled ‘Third river basin management plans – Second flood risk management plans’ (COM(2025)0002),

     having regard to the European Court of Auditors special report 15/2024 of 16 October 2024 entitled ‘Climate adaptation in the EU – action not keeping up with ambition’,

     having regard to former Finnish President Sauli Niinistö’s report of 30 October 2024 entitled ‘Safer Together – Strengthening Europe’s civil and military preparedness and readiness’,

     having regard to Enrico Letta’s report of April 2024 entitled ‘Much more than a market’,

     having regard to its resolution of 17 December 2020 on the implementation of the EU water legislation[23],

     having regard to the European Court of Auditors special report 33/2018 of 18 December 2018 entitled ‘Combating desertification in the EU: a growing threat in need of more action,

     having regard to the European citizens’ initiative (ECI) on the right to water,

     having regard to its resolution of 8 September 2015 on the follow-up to the European Citizens’ Initiative Right2Water[24],

     having regard to UN General Assembly Resolution 64/292 of 28 July 2010, which recognises the human right to water and sanitation,

     having regard to the Strategic Dialogue on the future of EU agriculture,

     having regard to the European Court of Auditors special report 20/2024 of 30 September 2024 entitled ‘Common Agricultural Policy Plans – Greener, but not matching the EU’s ambitions for the climate and the environment’,

     having regard to European Environment Agency report 07/2024 of 15 October 2024 entitled ‘Europe’s state of water 2024: the need for improved water resilience’ (EEA Report 07/2024),

     having regard to the Environment Council conclusions of 17 June 2024 on the 8th environment action programme,

     having regard to European Court of Auditors special report 20/2021 of 28 September 2021 entitled ‘Sustainable water use in agriculture: CAP funds more likely to promote greater rather than more efficient water use’,

     having regard to the European Economic and Social Committee declaration of 26 October 2023 for an EU Blue Deal,

     having regard to the Commission proposal of 5 July 2023 for a directive of the European Parliament and of the Council on Soil Monitoring and Resilience (Soil Monitoring Law) (COM(2023)0416),

     having regard to its position  at first reading of 24 April 2024 on the proposal for a directive of the European Parliament and of the Council amending Directive 2000/60/EC establishing a framework for Community action in the field of water policy, Directive 2006/118/EC on the protection of groundwater against pollution and deterioration and Directive 2008/105/EC on environmental quality standards in the field of water policy[25],

     having regard to Rule 55 of its Rules of Procedure,

     having regard to the opinion of the Committee on Agriculture and Rural Development,

     having regard to the report of the Committee on the Environment, Climate and Food Safety (A10-0073/2025),

    A. whereas water is essential for life and humanity; whereas the EU has to manage current and future water resources efficiently and respond effectively to the current water challenges, as they directly affect human health, the environment and its ecosystems, strategic socio-economic activities such as energy production, agriculture and food security, and the EU’s competitiveness;

    B. whereas water is a scarce and limited resource and, while 70 % of the earth’s surface is water-covered, available and usable fresh water accounts for only 0.5 % of water on earth[26]; whereas mountains are real water towers and important freshwater reservoirs in Europe, the Alps alone providing 40 % of Europe’s fresh water[27];

    C. whereas groundwater supplies two thirds of the EU’s drinking water and supports many ecosystems[28]; whereas the services provided by freshwater ecosystems are worth over EUR 11 trillion in Europe, and provide considerable health and recreational benefits, such as from angling[29];

    D. whereas water stress is already occurring in Europe, affecting approximately 20 % of Europe’s territory and 30 % of the population on average every year, figures that are likely to increase in the future on account of climate change[30], despite the fact that total water abstraction at the EU-27 level appeared to decrease by 15 % between 2000 and 2019; whereas the increase in the number and recurrence of extreme weather events such as droughts and floods, and the fact that they are expected to become yet more frequent in the near future, poses a risk to human life and the EU’s food sovereignty and could lead to regions in Europe becoming uninhabitable;

    E. whereas 78 % of Europeans consider that the EU should propose additional measures to address water-related issues in Europe and 21 % of Europeans consider pollution to be the main threat linked to water in their country[31];

    F. whereas the human right to water and sanitation was recognised as a human right in a resolution adopted by the UN General Assembly on 28 July 2010;

    G. whereas the European Citizens’ Initiative Right2Water was the first ever to gather the required number of signatories, calling for the EU to ensure the right to water for all;

    H. whereas the provisions of Article 14 TFEU and Protocol No 26 thereto on Services of General Interest are key elements to be prominently taken into account in all aspects of the design and implementation of the European water resilience strategy (EWRS), thus safeguarding the status of Europe’s water services as essential public services, and ensuring accessibility, equity, affordability and the maintenance of high quality standards;

    I. whereas the Member States should follow up on the recommendations of the Commission report of November 2023[32] in order to improve water balances as the knowledge basis for making decisions about water allocation;

    J. whereas substantive corporate value may be at risk owing to worsening water insecurity, with a decrease in the capacity of production or its complete halt as a consequence; whereas assets in water-stressed regions could become stranded, temporarily or permanently, if assumptions made about water availability and access prove inaccurate, if regulatory responses are unanticipated or if risk mitigation and stewardship plans are not put in place[33];

    K. whereas the deadline set by the Water Framework Directive (WFD) for European rivers, lakes, transitional waters, coastal waters and groundwaters to achieve ‘good’ status was 2015, with a possible postponement to 2027 under certain conditions; whereas the objective of achieving good chemical status for all EU water bodies by 2027 remains far from being achieved, primarily due to substances such as mercury, brominated flame retardants and polycyclic aromatic hydrocarbons[34];

    L. whereas the 2025 report on the implementation of the WFD shows that delays in meeting the WFD’s targets are not due to a deficiency in the legislation but to a lack of funding, slow implementation and insufficient integration of environmental objectives into sectoral policies; whereas analysis has shown that the Member States are not meeting the annual investment needs, which are estimated to be EUR 77 billion, with a financing gap currently estimated at around EUR 25 billion a year; whereas the report also shows the clear need for the Member States to increase their level of ambition and accelerate action to reduce the compliance gap as much as possible before 2027, to increase investment and ensure adequate financing, including via EU funds, to achieve the objectives of their programmes of measures, as well as to put in place additional measures to reduce current persistent environmental challenges to and improve transboundary cooperation;

    M. whereas the water legislation has been evaluated as fit for purpose; whereas it establishes a framework for the protection of inland surface waters, transitional waters, coastal waters and groundwater; whereas, at the same time, it allows for less stringent environmental objectives to be achieved if socio-economic needs served by such human activity cannot be achieved by other means and it allows for a failure to achieve the objectives for water bodies if the reason for the failure is overriding public interest; whereas the legislation is proportionate and mandates the authorities of the Member States, in line with the principle of subsidiarity, to decide on the overriding public interest; whereas in some cases this may be the protection of the environment and in others a socio-economic activity;

    N. whereas industry accounts for approximately 40 % of total water abstraction in Europe; whereas the largest categories of the annual water abstraction in the EU-27, according to the statistical classification of economic activities in the European Community (NACE), are abstraction for cooling in electricity generation (34 %), followed by abstraction for agriculture (29 %), public water supply (21 %) and manufacturing (15 %)[35]; whereas data on water abstraction and use in the EU is historical and poor[36];

    O. whereas electricity production is the largest water-abstracting sector, but most of the water is returned to the environment after cooling or turbine propulsion; whereas overall, agriculture is the highest net water-consuming sector at the EU level, as most of the water is consumed by the crop or evaporates; whereas other uses, such as industry and water utilities, abstract and consume comparatively less water, but they can represent significant pressures at a local level, especially on groundwater[37];

    P. whereas all industrial activity requires water to produce its end products or to support production activities; whereas businesses depend on water for their daily operations, and as water scarcity increases, it can disrupt operations, raise costs and create regulatory and reputational risks;

    Q. whereas the energy sector relies heavily on water resources; whereas this dependency poses a serious risk as water scarcity can impact energy production processes and supply security, especially where water is used as feedstock or for cooling; whereas the transition to renewable energy, particularly wind and solar energy, offers sustainable and water-efficient decarbonisation pathways and the opportunity to halt or reverse the trend of increasing water consumption;

    R. whereas water is an essential resource for agriculture in the production of high-quality food, feed and renewable raw materials; whereas agriculture depends on water availability and irrigation helps to shield farmers from irregular rainfall and to increase the viability, yield and quality of the crops, but is a significant drain on water resources; whereas in view of climate change, changing weather patterns and increased frequency of floods and droughts, the importance of water as a resource for the production of high-quality agricultural products and of the need for water to be used efficiently will therefore be fundamental to the security of food supply and to the solutions to address water scarcity; whereas reducing pressure on surface water and groundwater from agriculture must go hand in hand with investment aimed at the use of reclaimed water and innovative desalination technologies, thereby achieving a better water balance as well as promoting clean alternative energies such as green hydrogen;

    S. whereas reliable data on water accounting, that is, the systematic study of the current status and trends in water supply, demand, accessibility and use in domains that have been specified[38], is crucial for an assessment of the current situation in the EU and for European competitiveness;

    T. whereas the potential of wastewater as an alternative water supply is underestimated, given that 60-70 % of the potential value of wastewater across the EU is currently unexploited[39] and less than 3 % of treated wastewater is reused in the EU[40]; whereas there is significant potential for circular approaches to water in households, as only a small amount of the water in households is used for drinking and eating and therefore requires the highest quality standards;

    U. whereas a very large quantity of water is lost due to obsolete or ageing water networks and the lack of necessary maintenance; whereas investment in the maintenance, improvement and development of resilient innovative irrigation infrastructures is essential for reducing and improving the efficiency of water consumption in agriculture; whereas such improvements in efficiency enable the water saved to be used for other purposes or enable the natural flow rates of watercourses to be maintained;

    V. whereas clean and sufficient water is an essential element in implementing and achieving a real sustainable circular economy in the EU;

    W. whereas water leakage is an underestimated global issue, which significantly exacerbates water scarcity, with an average of 23 % of treated water lost during distribution in the EU due to leaky pipes, outdated treatment facilities and insufficient reservoirs[41]; whereas the revised Drinking Water Directive included measures to reduce water leakages, as well as risk assessment and management of the catchment areas for drinking water abstraction;

    X. whereas in 2021, 91 % of Europe’s groundwater bodies were reported as having achieved ‘good quantitative status’, while 77 % were reported as having ‘good chemical status’[42];

    Y. whereas in 2021, only 37 % of Europe’s surface water bodies were reported as being in ‘good’ or ‘high’ ecological status, while 29 % achieved ‘good chemical status’[43];

    Z. whereas the European Environment Agency emphasises that the proportion of surface waters failing to achieve good ecological status is uneven across Europe, and that these are more prevalent in parts of central and western Europe, and stresses that differences in water status between the Member States may be caused by different pressures, but that those differences may also result from varying approaches to monitoring and assessment[44];

    AA. whereas the quality of surface waters across the continent reflects continuing and combined pressures, in particular diffuse pollution and the degradation of their natural flow and physical features; whereas pollution by nutrients and persistent priority substances, as well as by substances newly emerging as pollutants, continues; whereas groundwaters are affected by diffuse pollution and also suffer from intensive abstraction[45];

    AB. whereas groundwater supplies 65 % of water for drinking and 25 % of water for agricultural irrigation in the EU[46]; whereas it is a finite resource that needs to be protected from pollution and over-exploitation[47];

    AC. whereas monitoring data from the European Environment Agency indicates widespread pollution by per- and polyfluoralkyl substances (PFAS), commonly referred to as ‘forever chemicals’, in European waters, posing significant risks to aquatic ecosystems and human health; whereas short-chain PFAS trifluoroacetic acid (TFA) has been detected in drinking water all over Europe; whereas PFAS persist in the environment, bioaccumulate in living organisms and cause adverse (eco)toxicological effects; whereas from a group of 6 000 to 10 000 individual substances, only a few have been extensively studied and their impact on human health and environment is known; whereas 99 % of PFAS remain undetected in the environment as a result of limits in monitoring;

    AD. whereas the lack of EU-wide quality standards for PFAS in groundwater and insufficient monitoring of less-studied PFAS compounds exacerbate the challenge of achieving good chemical status for EU waters in line with the WFD and pose a substantial technical and financial burden on health systems and on water service providers while jeopardising applications of water and sewage sludge reuse;

    AE. whereas hazardous chemicals, including heavy metals and other pollutants, released into water bodies by industrial activities, significantly impact water quality and aquatic ecosystems[48];

    AF. whereas pharmaceutical substances are increasingly identified in surface water and groundwater; whereas pollution caused by pharmaceutical residues necessitates advanced water treatment technologies, including membrane filtration, activated carbon treatment, advanced oxidation processes and other innovative purification techniques;

    AG. whereas Directive 2010/75/EU[49] mandates that the potential aggravation of the impact of industrial discharges on the state of water bodies due to variations of water flow dynamics should be explicitly taken into account in the granting and reviewing of permits; whereas the best available techniques will newly incorporate notions of environmental performance levels related to water and permits, which translate the use of these techniques into environmental performance limit values; whereas this is a welcome change with a potential improvement to the industry’s resilience, as EU installations may already face a lower production capacity seasonally due to water scarcity;

    AH. whereas urban wastewater is one of the main sources of water pollution, if not properly collected and treated; whereas the objectives of the Urban Wastewater Treatment Directive should not be lowered, and its scope should be extended to other sectors and substances that contribute to water pollution;

    AI. whereas nutrient pollution in EU water bodies leads to eutrophication, loss of biodiversity, and degradation of aquatic ecosystems[50]; whereas pesticide run-off contaminates surface water and groundwater, threatening water quality and human health;

    AJ. whereas research indicates that exposure in Europe to the synthetic chemical bisphenol A (BPA), which is used in products ranging from plastic and metal food containers to reusable water bottles, is well above acceptable health safety levels[51];

    AK. whereas soil and nutrient management lies at the basis of improving water quality and availability; whereas the EWRS should focus on improving nutrient management, with the aim of closing nutrient loops to reduce nutrient emissions to waterways; whereas the safe use of sewage sludge in agriculture will also reduce the EU’s very high dependency on the import of phosphorus mineral fertiliser, for example, from Russia; whereas the safe use of sludge should therefore also be considered as contributing to European resilience and strategic autonomy;

    AL. whereas climate change represents a major threat to water resources and aquatic ecosystems; whereas many impacts of climate change are felt through water, such as more intense and frequent droughts, more extreme flooding and more erratic seasonal rainfall; whereas floods and water scarcity compromise food and water security, and the health of the general population, ultimately affecting social cohesion, economic prosperity and stability, as well as jeopardising the long-term availability of this valuable resource;

    AM. whereas the European climate risk assessment recognised that Europe’s policies and adaptation actions are not keeping pace with the rapidly growing risks that threaten ecosystems, infrastructure, food and water supply and people’s health, as well as the economy and finance[52];

    AN. whereas assessments by the Intergovernmental Panel on Climate Change show that the sea level rise due to climate change is leading to an increase in the salinity of soils and freshwaters, compromising ecosystem health and water quality, as well as affecting 80 million Europeans living in low elevation coastal zones and flood plains; whereas freshwater and marine ecosystems are interconnected as riverine pollution, disruption to sediment flows and water shortages all have a very strong impact on the health of marine ecosystems, particularly the coastal ones, as well as on the viability of social and economic activities that depend on them, such as transport, fisheries, agriculture, aquaculture and tourism;

    AO. whereas prolonged drought, extreme heat and large-scale flooding events, caused by changing weather patterns, will intensify and become more frequent throughout the continent, damaging ecosystems and human health and leading to major disruption to economic activities and decreasing the overall quantity and quality of available water; whereas preserving water resources and the natural functions of rivers, while supplying sufficient water of good quality, is becoming a major challenge that will require increased climate change mitigation and adaptation efforts, effective management and innovative measures to increase water availability; whereas managing water scarcity and flood risks affordably and sustainably will increasingly become important across the EU;

    AP. whereas in 2022, Europe experienced its hottest summer and the second warmest year on record, leading to drought impacting over 15 % of EU territory; whereas the average annual economic loss caused by droughts in the EU between1981 and 2010 was estimated at around EUR 9 billion per year; whereas with no adaptation measures, it is estimated that annual drought losses in Europe and the UK could increase to EUR 45 billion per year up to 2100 with warming of 3°C[53]; whereas in the period of 1998-2020, floods comprised 43 % of all disaster events in Europe; whereas climate change impacts and socio-economic developments are leading to more frequent flooding, affecting an increasing number of people and causing increasing damage; whereas 12 % of Europe’s population lives in floodplains[54];

    AQ. whereas the cost of inaction in addressing water-related challenges is extremely high, given that 90 % of disasters are related to water[55]; whereas without policy action, the cost of economic losses from coastal floods alone could exceed EUR 1 trillion per year by the end of the century in the EU[56] and the economic cost of droughts in Europe could exceed EUR 65 billion a year by 2100[57];

    AR. whereas significant differences exist between the Member States in water availability, management strategies and usage patterns, and vulnerability to climate change impacts can vary considerably; whereas a tailored approach is required to enhance water resilience and ensure sustainable water management;

    AS. whereas droughts constitute one of the chief catastrophic consequences of climate change; whereas around 23 % of the EU’s territory is moderately susceptible to desertification and 8 % is highly susceptible to it; whereas Hungary, Bulgaria, Spain and Italy are among the countries most affected, and 74 % of Spain’s surface area is at risk of desertification; whereas the EWRS should look beyond prolonged droughts, but rather address the reality that the semi-arid line is moving north, resulting in increasing areas in the EU that will face chronic long-term unavailability of sufficient freshwater resources;

    AT. whereas policies related to desertification, water consumption and climate change are closely interconnected; whereas as part of the United Nations Convention to Combat Desertification, the EU reaffirmed in 2015 and later re-confirmed in 2024[58] its commitment to achieving land degradation neutrality by 2030, which, according to the European Court of Auditors special report on desertification, is unlikely to be achieved;

    AU. whereas water infrastructure can help maintain a constant and predictable flow and supply of water; whereas in 2022, the annual average river discharge across Europe was the second lowest since records began in 1991[59];

    AV. whereas downstream areas are particularly dependent on upstream water management and abstraction; whereas the Member States should refrain from implementing measures that significantly increase flood risks upstream or downstream of other countries in the same river basin, in accordance with the WFD;

    AW. whereas nature-based solutions are pertinent interventions that, when tailored to specific ecosystems and needs, can increase resilience in the water cycle and provide multiple benefits in terms of biodiversity protection, carbon sequestration, improved water quality, nutrient retention, supply of drinking water, wildfire prevention and flood risk mitigation; whereas nature-based solutions can enhance the effectiveness and the operable life of water infrastructure, therefore ensuring, in many cases, complementarity of both solutions;

    AX. whereas natural water retention measures are nature-based solutions that aim to store water in natural, agricultural, forested and urban landscapes;

    AY. whereas water is not a commercial product like any other but, rather, a heritage which must be protected, defended and treated as such; whereas, under Directive (EU) 2024/1203 on the protection of the environment through criminal law[60], abstraction of surface water or groundwater within the meaning of the WFD constitutes a criminal offence where such conduct is unlawful and intentional, and causes, or is likely to cause, substantial damage to the ecological status or the ecological potential of surface water bodies or to the quantitative status of groundwater bodies;

    AZ. whereas soil biodiversity and soil organic carbon affect water retention capacity; whereas soil erosion, compaction and certain soil management practices that cause soil degradation lead to a steady decrease in the water retention capacity of soil, which as a consequence exacerbates drought and flood events with a direct negative impact on farming; whereas healthy soil is therefore one of the drivers of water resilience, which itself should be approached and managed at river basin level; whereas better land management is key to preventing disasters;

    BA. whereas the current multiannual financial framework (MFF) includes an ambitious but non-binding target of dedicating at least 7.5 % of annual EU spending to the biodiversity objectives in 2024 and 10 % in both 2026 and 2027; whereas the new financial framework should incorporate a water perspective with a view to allocating sufficient resources to the future EWRS in order to ensure resilient water ecosystems and infrastructure, and security of water supply, and to facilitate investments in innovative solutions;

    BB. whereas cohesion funding has played a crucial role in improving water and sanitation services across the Member States; whereas continued support is required to ensure their long-term resilience and compliance with increasingly stringent quality standards;

    BC. whereas pricing policies can improve the efficiency of water use; whereas such policies are a national competence and account for the regional differences in water availability and the source of water supply; whereas pricing can play a significant role in prompting households and other economic sectors to optimise consumption, as well as in ensuring that water users effectively participate in recovering the costs of water services; whereas pricing policies should also consider affordability for households and small businesses;

    BD. whereas digitalisation and innovation can effectively assist the Member States, regional bodies and the Commission in collecting data on and monitoring water management; whereas the EU is at the forefront of new technological developments in the water sector, accounting for 40 % of all international patent families in this sector between 1992 and 2021[61], a position that needs to be fostered and nurtured, and the potential of the internal market fully exploited; whereas hurdles for the introduction and scaling-up of new water technologies need to be examined and a just European level playing field guaranteed; whereas continued support for research in water technology innovation is needed to secure and to create jobs and boost European competitiveness;

    BE. whereas innovation is a crucial tool to help the water sector meet the challenges of the United Nation’s SDGs, adapt to climate change and become more water-efficient;

    BF. whereas deployment of monitoring and modelling technologies is still lagging behind in many Member States, and the digitalisation of the sector is too slow; whereas provisions on the river basin management plans in the WFD do not explicitly include concrete measures to digitise the water sector; whereas common shortcomings for the current policies harnessing the potential digital solutions are related to the lack of technology guidance, monitoring standards, policy integration, standardisation and public involvement;

    BG. whereas the water sector is vulnerable to various threats, including physical attacks, cyberattacks and contamination with harmful agents; whereas such incidents could result in widespread illness, casualties and service disruptions, significantly impacting public health, the environment and economic stability; whereas the digitalisation of  water management might introduce further security risks in a context of increasing hostile attacks on critical infrastructure; whereas the implementation of the NIS2 Directive and Critical Entities Resilience Directive can contribute to mitigating security risks to vital (drinking) water systems and (drinking) water infrastructure, arising from geopolitical tensions;

    BH. whereas advances in sensor technology, computing, artificial intelligence (AI) and big data management can help monitor water quantity and quality and inform the operational decisions of the policymakers and water management companies; whereas innovations in nature-based systems to manage water are available and can contribute to resilient water management;

    BI. whereas water is a vital component in the life cycle of AI, both in the operation of data centres and the manufacture of hardware; whereas the rapid expansion of AI could result in an exponential increase in water demand; whereas that dependency on an increasingly scarce resource poses significant challenges in terms of sustainability; whereas strategic technologies, such as semiconductors, hydrogen, electric vehicle batteries and data centres, play a key role in achieving a competitive and autonomous EU;

    BJ. whereas chiller and cooling tower systems, based on innovative cooling technologies such as evaporative and closed-loop cooling, are already available and can contribute to reducing water consumption in industrial, heating, ventilation and air conditioning systems applications;

    BK. whereas research must be promoted with a view to producing alternative active ingredients to combat pests, to ensure greater plant health and reduce the use of inputs and phytosanitary products;

    BL. whereas water resilience is crucial in education and teaching, and in raising awareness and giving information about the functioning of the water cycle;

    BM. whereas limited access to water and related infrastructure has a negative impact, especially on women, as it undermines the realisation of other human rights, such as self-determination, economic independence and education;

    BN. whereas 60 % of European river basin districts are transnational, which makes effective transboundary cooperation crucial; whereas 20 European countries depend on other countries for more than 10 % of their water resources, with five countries relying on more than 75 % of their resources coming from abroad via rivers[62]; whereas this cooperation should be strengthened to account for current and future climate challenges such as droughts and floods;

    BO. whereas United Nations Secretary-General António Guterres appointed a Special Envoy on Water, aiming to enhance international cooperation and synergies among international water processes;

    BP. whereas clean water access and sustainable and resilient sanitation infrastructure are key components of the One Health approach, recognising the interconnection between the health of humans and water pollution;

    BQ. whereas water cooperation across borders and sectors generates many benefits, including enhancing food security, sustaining healthy livelihoods and ecosystems, helping address resilience to climate change, contributing to disaster risk reduction, providing renewable energy, supporting cities and industry, and fostering regional integration and peace;

    BR. whereas geopolitical developments demonstrate that the EU should be ready to withstand the challenges that go beyond the environmental sphere; whereas non-environmental threats, such as recent accidents related to the damaged cable in the Baltic Sea, send the EU a strong message that strengthening transboundary cooperation is key in addressing both the environmental and security-related objectives;

    BS. whereas about 41 000 kilometres of inland waterways flow through 25 of the Member States; whereas inland waterways, which rely on the availability of water resources, perform a crucial role in optimising water supply and mitigating the impact of droughts and floods, as well as supporting the economic activities and the development of regions;

    BT. whereas the increasing water scarcity, inequalities in access to water, and external shocks to the water sector have heightened interdependencies, increasing competition for water and leading to complex economic repercussions;

    General remarks

    1. Welcomes and supports President von der Leyen’s announcement in the political guidelines for the next European Commission (2024-2029) on putting forward a European Water Resilience Strategy (EWRS) addressing water efficiency, scarcity, pollution and water-related risks, as well as the recognition that water is an indispensable resource that is increasingly under stress from climate change and increasing demands;

    2. Believes that while implementing legislation, economic competitiveness should be taken into account in line with the Competitiveness Compass; calls for the implementation of EU environmental legislation in order to build a resilient and competitive Europe, mitigate and adapt to climate change, halt biodiversity loss, prevent pollution, ensure food security, limit resource use and waste, and strive towards efficient use of resources, including water, while taking into account the precautionary principle, the control-at-source principle and the polluter-pays principle; highlights the fact that water availability impacts the quantity, quality, variety and seasonal availability of foods that can be produced;

    3. Calls for the EU to integrate its commitments to the COP29 Baku Dialogue on Water for Climate Action and the UN 2023 Water Conference into the international dimension of the strategy;

    4. Stresses the urgent need to enhance water resilience and management to ensure sustainable freshwater supplies for people, the economy and the environment; emphasises that the EWRS should be developed in coordination with the European Oceans Pact, ensuring a cohesive and integrated approach to managing freshwater and ocean resources, addressing interconnected challenges, enhancing competitiveness and promoting sustainable water management across inland and marine environments, while ensuring a holistic ‘source-to-sea’ approach;

    5. Insists on the need for a comprehensive and holistic EWRS that integrates water quality, quantity, security, infrastructure, technology and management aspects and includes the restoration of the water cycle as a key element, as it underpins economic activities, ensures resource availability and contributes to climate regulation;

    6. Stresses the importance of water supply, in particular drinking water, as well as water security of supply; points out that all environmental restoration projects should take into account the water security aspects, prioritising solutions that not only provide environmental benefits, but also guarantee the supply and efficient management of water; emphasises, furthermore, that ecological restoration measures should be carried out in synergy with the development of the EU’s renewable energy potential and not impact the overall energy resilience;

    7. Recommends that lakes and other freshwater-dependent habitats be included in the strategy, alongside rivers, transitional waters and groundwater, as essential components of the EU’s water resilience efforts;

    8. Stresses the urgent need to improve crisis-warning systems with regard to heavy water incidents, as well as to improve preventive measures;

    9. Calls on the Commission to present a European climate adaptation plan, including concrete legislative proposals and actions, particularly regarding infrastructure resilience, water management and nature-based solutions, while prioritising the protection of vulnerable communities, to make the EU more resilient and to lead by example;

    10. Reiterates that access to clean and safe drinking water and sanitation is a human right; emphasises that this right must be unequivocally ensured, with everyone having access to affordable and good quality water services, including the inhabitants of islands and outermost regions;

    11. Notes that industrial activities and agricultural production require water to produce their end products or to support production activities, with the amount of water used varying depending on the type of activity; highlights the fact that ensuring Europe’s competitiveness and strategic autonomy requires a water-smart society where technology and data enhance a circular economy, fostering sustainable and water-efficient practices; calls on all relevant actors to accelerate the transition towards water-efficient, circular industry and agriculture by promoting and investing in innovative solutions, including digital tools and technologies, resource recovery, water reuse, renewable energy production, infrastructure, nature-based solutions and inclusive governance mechanisms;

    12. Urges the Commission to integrate and mainstream the water dimension into internal and external EU policies through a cross-sectoral approach in order to ensure that water resilience, sustainability and security is woven into the fabric of European policies; calls on the Commission, in particular, to carry out a water-related assessment of any regulatory measure, including related to energy, as part of the socio-economic and environmental impact assessment; emphasises that assessing how each EU policy, and EU-funded projects and infrastructure, can impact water resources in terms of quantity, quality and accessibility would ensure that water resilience is a cornerstone of policy formulation and implementation, thus shifting the paradigm from treating water as an infinite resource to recognising its intrinsic value for humanity and for the EU’s ecological and socio-economic landscape and its competitiveness;

    Water efficiency

    13. Stresses that efficient water use is essential for preserving the EU’s water resources and that water efficiency should be a key objective of the EU; calls, in this regard, for a consequential reduction in water demand, including by addressing excessive leakage levels, investing in research and innovative solutions, modernising industrial and production processes, upgrading water infrastructure, managing water resources and peak demands sustainably, prioritising uses and ensuring that higher water efficiency results in a reduction in overall freshwater consumption as well as in an increase in water availability in water-stressed areas at the local and regional levels; believes that areas affected by prolonged drought and desertification should be given priority;

    14. Calls for a legislative framework setting sectoral water efficiency and water abstraction targets at basin level, based on up-to-date assessments of water availability and climate risks, including a water valuation approach that accounts for ecosystem services and long-term sustainability, and covering all water uses, including industry, energy, agriculture, public institutions and households; underlines the fact that these targets should be ambitious yet adaptable, taking into account the specific circumstances and progress already achieved by each Member State to ensure continued efforts towards efficiency gains across all regions; stresses the importance of efficient and uniform data collection practices across the Member States and all sectors, including through the use of innovative technologies, as well as real-time data collection points for more transparency on water consumption; emphasises the need to carry out an appropriate assessment of the environmental and socio-economic impacts of water use;

    15. Reiterates the need to develop a common EU methodology for setting water efficiency and water abstraction targets to ensure the sustainable use of available renewable water resources within an integrated water resources management framework which gives due consideration to linkages beyond the water sector through the water-energy-food-ecosystems nexus, thus enabling decision-makers and economic actors to plan the necessary investment to ensure water supply security in an increasingly sustainable manner, while giving due consideration to the characteristics of the water bodies concerned;

    16. Calls for close collaboration on integrated energy and water resource planning and related technologies across all sectors at national, regional and local levels, including between all stakeholders, in order to establish mechanisms for ensuring coherence across water and energy policies;

    17. Calls on the Commission to put forward a comprehensive policy on sustainable water management for industry based on reducing, recovering, reusing and recycling, including a focus on the use of water-efficient and circular technologies, water recycling, pollutant reduction strategies and the promotion of closed-loop systems;

    18. Recalls that the growing threat of water scarcity is jeopardising industries and projects that are key to Europe’s competitiveness drive, including semiconductors, data centres, renewable hydrogen and electric vehicle battery production; notes that these industries will increasingly face pressure to reduce their environmental impact and improve water resource efficiency, including both direct and indirect water usage; calls on the Member States to support water-intensive industries in setting up water-efficiency plans aimed at saving, reusing and recycling water, preventing water pollution and implementing water-efficient technologies; calls on the Commission to incorporate comprehensive water management strategies into relevant EU industrial policies and sector-specific transition pathways, with a particular focus on strategic water-intensive sectors;

    19. Stresses that knowledge, data, research and technology are key for efficient water use; calls for adequate financial and technical support to be given to the Member States to implement efficient water management measures, including by means of innovative and modern technologies;

    20. Welcomes the recommendations of the final report of the Strategic Dialogue on the future of EU agriculture underlining that sustainable farming practices and new business models need to be scaled up to promote more efficient use of natural resources, especially water;

    21. Calls for the transition to a more sustainable and competitive farming model, assisted by the implementation of sustainable practices and innovative solutions that promote biodiversity, reduce chemical inputs and enable water resources to be managed efficiently, including nature-based solutions, regenerative management, smart precision irrigation technologies, digital monitoring systems, advanced treatment methods and smart water distribution networks, optimising consumption and preventing water resource depletion, and that help ensure continued productivity while enabling agriculture to reduce pollution, use pesticides and fertilisers efficiently, improve the hydrological cycle, enhance groundwater recharge and adapt to lower water use; considers that technological solutions can also include measures that can increase water absorption, infiltration and retention in agricultural systems, which are important amid increasing occurrences of both drought and heavy rains;

    22. Points out that innovative irrigation solutions and practices can enhance water efficiency in agriculture, gaining an economic advantage while also reducing environmental burdens; notes that farmers generally lack sufficient means and incentives to know about water use by crops, actual irrigation applications, the yield responses of crops to different water management practices, and thus current on-farm water-efficiency levels; calls on the Commission and the Member States to incentivise the uptake and support the maintenance of innovative irrigation solutions such as drip irrigation to allow for an active management of water levels and efficient use of water resources, as well as to promote continuous knowledge exchange, so that all relevant stakeholders can share greater responsibility across the entire water supply chain;

    23. Recommends better consideration of the nutrient cycle in agricultural production and the exploitation of the value in urban wastewater; calls for more research into the effective use of nutrients and the development of nutrient recovery technologies, in order to decrease the Union’s dependence on imported raw materials; recognises the high potential for nutrient recovery from water and calls on the Member States to support the agricultural sector to optimise their nutrient consumption including by using resources (nitrate and phosphorus) recovered from wastewater treatment plants; calls on the Commission to propose an integrated nutrient management action plan to effectively address loss of valuable agricultural inputs, recycling of nutrients, nutrient pollution and inefficiencies in the nutrient cycle;

    24. Emphasises, in line with the final report of the Strategic Dialogue on the future of EU agriculture, the need to support the transition to regionally adapted crop and seed varieties and the switch to different crops, with reduced water requirements and greater drought resistance, as well as the need to support the adoption of appropriate soil management practices; considers the need for stronger support for scientific research and technological development related to the breeding of new species, to enable the production and supply of foodstuffs to be diversified and their quality enhanced, while raising the level of protection for human health and the environment; notes the potential of plant varieties that are more resistant to water stress and pests and could play a role in reducing water use and could reduce the environmental footprint of crops;

    25. Calls for financial and technical support for farmers and rural communities, particularly in water-stressed areas, to help them adopt sustainable land management practices that improve soil and water quality, contribute to biodiversity and mitigate climate change; emphasises the need for special attention to be given to regions that are particularly vulnerable to soil degradation and water scarcity;

    26. Points to the success of the agricultural  European Innovation Partnership EIP‑AGRI and calls for the continuation of knowledge exchange, expertise and peer-to-peer learning via the EU’s Common Agricultural Policy (CAP) Network;

    27. Notes the links between carbon sinking and water availability, and calls for coherence between the water resilience strategy and carbon farming schemes;

    28. Reiterates that the Water Reuse Regulation aims at reducing the pressure on water bodies by setting out provisions on reusing water after appropriate treatment extends its life cycle, thereby preserving water resources; emphasises, however, that regulatory, financial and technological barriers, including the economic competitiveness of reclaimed wastewater, risk management planning and the sharing of responsibilities, contribute to the slow uptake of reuse of reclaimed water for agriculture; calls, therefore, on the Commission and the Member States to adopt supportive policies, at both the EU and the local level, that incentivise water reuse practices, taking into account the importance of adapting wastewater treatment and quality requirements to the intended water use; notes that treated wastewater also finds valuable applications in various industrial processes and urban contexts, contributing to reducing the pressure on freshwater resources and the conservation of drinking water; calls therefore on the Commission to assess a possible extension of the scope of the Water Reuse Regulation in order to establish, at EU level, minimum water quality standards for safe water reuse for industrial and urban purposes;

    29. Calls on the Commission and the Member States to specify systems of regulatory and financial incentives for the reuse of treated wastewater in water-intensive sectors and to provide specific funding for the construction of infrastructure connecting wastewater treatment plants and refined water distribution networks; urges a streamlined approach in EU legislation to remove administrative barriers and promote safe and efficient water recycling across the Member States; calls on the Member States to set up national water reuse and saving plans to incentivise cross-sectoral cooperation in water management;

    30. Reiterates that reused water could alleviate abstraction from rivers, lakes and groundwater for irrigated agriculture; underlines the fact that reused water can contribute to maintaining base flows and minimum water levels during dry periods;

    31. Highlights the potential of the building sector to save water, for example, with the help of smart sub-metering systems, efficient greywater systems, reuse of domestic wastewater or rainwater harvesting; stresses that the energy performance of buildings can be enhanced by water efficiency, reducing greenhouse gas emissions; calls on the Member States and local authorities to incentivise water-saving features in new buildings; stresses, in this regard, that water-efficient practices should be factored into urban planning; highlights the fact that harvesting rain water as well as using and reusing water efficiently can improve climate adaptation in cities;

    32. Calls for the transition, in industry and in the energy and digital sectors, to optimised cooling efficiency and alternative cooling methods that are less water-dependent, in order to ensure significant water savings in these sectors;

    33. Points out that, while households represent 10 % of the overall water consumption in the EU, action on improving domestic water efficiency is also necessary; notes that water-saving technological solutions are readily available and can reduce water consumption in households without compromising comfort or requiring high investment; calls on the Member States to support consumers in transitioning towards such technologies and to strengthen consumer awareness of water consumption and potential efficiency gains by anchoring domestic water efficiency in water, building and consumer policies across the EU;

    34. Notes that the leakage rates from pipes are high in some Member States, which increases the total share of domestic water consumption; welcomes the provisions of the new Drinking Water Directive on leakage rates and the ongoing work of the Commission to evaluate those rates and set threshold values that will trigger action in the Member States concerned; calls on the Member States to urgently tackle leakage in water supply networks and to fully implement the monitoring and reporting requirements of the Drinking Water Directive, so that the Commission can set a threshold value for leakage by January 2028; emphasises the need for sustainable urban irrigation networks to be modernised, to curb leakages and reduce their water footprint; calls on the Member States to regularly inform the public about the efficiency and effectiveness of their water supplies;

    35. Points out that public sector organisations provide significant untapped potential for saving water by virtue of their size or their nature as public organisations; believes that the public sector should act as a role model for other sectors;

    36. Calls on the Commission and the Member States to promote easily accessible and free information, training, advisory programmes and information campaigns aimed at raising public awareness of sustainable water resource management;

    37. Recommends that water-efficiency aspects, such as reductions in water loss and reuse of water, be integrated in the upcoming revision of the public procurement framework;

    Water pollution

    38. Underlines the fact that the existing EU water policy framework is designed to address the effective management of water resources and the protection and restoration of freshwater and marine ecosystems, but that its poor implementation and enforcement, insufficient funding and lack of proper cost-benefit analyses of the implementation measures undermine its effectiveness;

    39. Calls on the Commission and the Member States to implement and enforce the current legislation, in particular the WFD and its ‘daughter’ directives (the Groundwater Directive and the Environmental Quality Standards Directive), with a particular focus on strengthening the monitoring and reporting mechanisms to ensure that all Member States consistently implement the required water protection measures; recalls the need for sufficient funding to implement these acts;

    40. Stresses that the chemical pollution of surface water and groundwater poses a threat to the aquatic environment, with effects such as acute and chronic toxicity in aquatic organisms, accumulation of pollutants in the ecosystem and loss of habitats and biodiversity, as well as to human health;

    41. Calls for the establishment of a comprehensive EU-wide quality standard for PFAS totals in groundwater and surface water; stresses that respective updates of the relevant directives are essential for safeguarding water quality and achieving good chemical status for water bodies as mandated under the WFD;

    42. Insists that essential uses of PFAS, for example for medical devices, pharmaceuticals and products necessary for the transition to climate neutrality, are not endangered; calls on the Commission to propose to phase out forever chemicals (PFAS) in consumer goods with proven concerns for human health and the environment, and only where there are safe alternatives;

    43. Calls on the Commission to propose updated limits on PFAS in drinking water, taking into account the latest scientific knowledge;

    44. Emphasises the urgency of addressing, primarily at the source, and effectively monitoring pollution from pharmaceuticals, bisphenols, antimicrobial resistance genes, persistent organic pollutants and other existing and emerging pollutants, to align with the EU’s zero pollution ambition and the goal of achieving good chemical status for all water bodies;

    45. Calls on the Commission to close the gaps with enhanced funding and the enforcement of current laws, and the integration of circular economy principles to mitigate pollution at its source and safeguard water ecosystems for future generations; underscores the fact that antibiotic-resistant bacteria and certain emerging pollutants remain insufficiently addressed, necessitating further innovation and investment; emphasises the need for all sectors to apply sustainable production processes and circular practices, proactively preventing pollutants from entering water systems;

    46. Recalls that microplastics may enter drinking water sources in a number of ways: from surface run-off (for example, after a rain event) to wastewater effluent (both treated and untreated), combined sewer overflows, industrial effluent, degraded plastic waste and atmospheric deposition; calls on the Commission to put forward, in line with the requirements of the Drinking Water Directive, a full risk assessment of microplastics in drinking water, while continuously working on reliable and robust sampling and analytical methods in order to appropriately address the potential threat of this emerging pollutant to sources of water intended for human consumption;

    47. Emphasises the need to improve the monitoring and regulation of plastic pollution in freshwater and marine environments, with particular attention to microplastics and single-use plastics; encourages the Commission to assess current enforcement mechanisms and consider further measures to protect water quality;

    48. Calls on the stakeholders to develop safe water contact materials, to substitute BPA and other bisphenols and ensure compliance with Regulation (EU) 1935/2004 on materials and articles intended to come into contact with food[63] and the recently adopted provisions as regards the use of BPA and other bisphenols and bisphenol derivatives (Commission Regulation (EU) 2024/3190);

    49. Recalls that the revised Urban Wastewater Treatment Directive, in effect since 1 January 2025, imposes new obligations regarding water purification, requiring pharmaceutical and cosmetic producers to cover at least 80 % of the costs of removing micropollutants from wastewater, with the aim of reducing harmful substances in the environment;

    50. Calls for increased EU support for local authorities for the modernisation of wastewater treatment plants and the promotion of water reuse, to align with the EU’s zero pollution ambition, ensuring that municipal wastewater management contributes effectively to good chemical and ecological water status;

    51. Calls for increased monitoring of pesticide residues in water bodies and enforcement of pesticide application regulations to mitigate their impact on water quality; stresses the need for increased funding to support farmers in the adoption of low-input and organic farming practices that reduce reliance on chemical pesticides and fertilisers, as well as to provide appropriate training and independent advisory services to farmers and other operators on the use, effectiveness and toxicity of pesticides, as well as best practice;

    52. Insists on the integration of circular economy principles to reduce hazardous chemical use in industrial processes; stresses the need for additional funding to support industries in transitioning to clean technologies that minimise water pollution[64];

    53. Recognises the role of treated sludge as a local and circular source of fertiliser, contributing to soil health, nutrient recycling and reduced dependency on synthetic fertilisers; emphasises the importance of preventing PFAS, heavy metals, microplastics and other harmful substances from entering sewer networks in order to enable the safe and sustainable use of high-quality sewage sludge in agriculture;

    54. Calls on the Commission to include an overview of measures in an annex to the EWRS, with a timeline for achieving the objectives in question;

    Adaptation to climate change: floods, droughts, stress areas, disaster preparedness

    55. Calls for the climate adaptation proofing of all new EU legislative and non-legislative acts in order to ensure the integration of climate adaptation into sectoral plans and policy measures affecting water and land use; highlights, in this regard, the need for increased climate ambition as part of the fight against climate change, while urging the Member States to ensure that all climate adaptation measures affecting water use contribute to long-term, improved water resilience; calls on the Commission to take fully into account the geographical and environmental conditions in the Member States, as well as the specific situation of islands, outermost regions and other areas of high vulnerability, such as areas affected by desertification, when adopting new legislative and non-legislative proposals; asks the Commission to present a roadmap for current and ongoing legislative and non-legislative policy measures, including targets and monitoring requirements affecting water and land use;

    56. Emphasises the need for tailored climate adaptation measures for the Mediterranean region, which faces unique challenges such as prolonged droughts and saline intrusion into freshwater resources;

    57. Stresses the specific challenges faced by island areas due to the scarcity of drinking water and calls for targeted measures to protect island water resources, including improving rainwater collection and storage infrastructure, and implementing alternative water sources, while enhancing water resource monitoring and management systems; calls, further, on the Member States to take better account of mountainous regions in national adaptation plans in order to meet the specific challenges of water management in mountainous areas;

    58. Reiterates that climate change mitigation and adaptation solutions should not come at the cost of ecosystem degradation, and should avoid increasing the demand for water- and energy-intensive activities, and should instead prioritise energy- and water-efficient innovation and technologies as part of moving towards a more resource-efficient economy, without undermining its productivity, while ensuring equitable access to water for all; points out that, in order to be effective, climate change mitigation and adaptation solutions should be tailored to national circumstances, while enhancing competitiveness and productivity in the short and long term; points out the possibilities of synergies, in this regard, with innovative energy production such as photovoltaics and biogas, as it can also contribute to an increase in agricultural income;

    59. Recognises the importance of reserving water for nature and the need to maintain healthy freshwater ecosystems, for the good functioning of the water cycle, for human activities and for mitigating the impacts of droughts and water scarcity; underlines, in the context of restoring freshwater ecosystems and the natural functions of rivers, the importance of removing ‘obsolete barriers’, namely artificial barriers that no longer fulfil their original purpose or are no longer needed, wherever such opportunities exist, on the basis of current knowledge and experience; calls for the establishment of specific programmes for the cleaning and conservation of river channels, ensuring minimum flow and reducing the accumulation of debris and sediment that can affect water storage and distribution capacity;

    60. Insists that, with climate change impact becoming more persistent, flood and drought management must fully integrate the arising risks, including changing weather patterns, such as increased rain patterns leading to excess of water; is convinced that a combination of monitoring and data collection, preparedness, emergency and recovery responses taking into account the principle of ‘building back better’[65]on the one hand, and adapting societal and economic activities on the other, is essential to reduce vulnerability and increase resilience, especially in the light of the quantitative aspect of water becoming more prominent; stresses, in this regard, the need for climate-resilient nature-based solutions and infrastructure that take into account the impact of extreme climate events in their development to ensure their viability in the face of extreme climate events;

    61. Recalls that in 2007, the WFD was supplemented by Directive 2007/60/EC on the assessment and management of flood risks, which aims to establish a framework to reduce the adverse consequences of flooding on human health, the environment, cultural heritage and economic activity; notes that making the two directives mutually compatible is achieved through risk management plans and river basin flood management plans as the components of an integrated water management system in which coordination is crucial; recalls that flood prevention is closely connected to urban green spaces, soil protection strategies and investment in drainage networks;

    62. Stresses that preparedness for water scarcity and drought can be significantly improved in the EU, considering that no drought management plans are in place in several Member States[66]; calls on the Member States and, where applicable, competent regional and local authorities, to develop drought management plans, particularly with a view to ensuring the provision of drinking water, ensuring food production and integrating digitalised monitoring, control and early warning systems in order to support effective and data-based decisions on protection, response and communication measures with clearly defined areas of responsibility; points out the need to introduce EU-level provisions as regards drought management plans, similar to the ones on flood management plans;

    63. Insists, in view of the numerous climatic events, such as floods, droughts and cyclones, which have affected Europe, on the importance of the EU having a robust mechanism for responding to such crises, including systems for warning and providing assistance to the civilian population; points out that digital monitoring, adequate public display of relevant data and early warning systems are key to developing effective drought and flood management plans at the level of the Member States; emphasises, further, the importance of fully using the available EU tools, such as the flood forecasts of the European Flood Awareness System and the Global Flood Awareness System, and the Global Flood Monitoring tool, as part of the Copernicus Emergency Management Service;

    64. Stresses the importance of the Union Civil Protection Mechanism (UCPM) in helping countries hit by water-related disasters such as flood and droughts; calls for increased funding to provide the UCPM with sufficient and upgraded resources in order to increase preparedness and improve capacity building;

    65. Calls on the Commission and the Member States to enhance citizen preparedness in the event of water-related disasters or crisis; stresses the importance of information campaigns and demonstration exercises in education facilities, public administration and businesses in order to build a ‘preparedness culture’ for citizens;

    66. Calls on the Member States to systematically renew and upgrade their water infrastructure, including drinking water and sanitation infrastructure, as well as infrastructure regulating river flows, and to invest in innovative solutions based on good practice, making water systems more resilient to climate change, ensuring stable drinking water supply, enabling the early detection of losses and reducing water leakages and waste, while optimising water transport and storage systems; highlights the fact that funding for innovative water infrastructure is insufficient compared to the investment needs across the EU; calls, in this regard, for dedicated funding, on national, regional or EU level, to ensure adequate financing for the development, maintenance and modernisation of water-resilient infrastructure, to foster innovative solutions and technologies and ensure long-term sustainability of that water infrastructure;

    67. Regrets that, despite the threat that desertification poses to water quality and availability, soil fertility and food production, and despite the fact that 13 Member States have declared themselves to be affected by desertification in the context of the United Nations Convention to Combat Desertification, the Commission is not addressing desertification effectively and efficiently; urges the Commission, therefore, in line with the Council conclusions of 14 October 2024 on desertification, land degradation and drought, to present an integrated EU-wide action plan to combat desertification, land degradation and drought, aiming at building resilience to drought and achieving land degradation neutrality in the EU by 2030, based on a full impact assessment;

    68. Calls on the Member States to create natural water reserves based on up-to-date assessments of climate risks to protect critical water supplies and their catchments, and taking into consideration the environmental and socio-economic impact of developing such reserves; points out that such natural water reserves would complement the WFD’s requirement for Member States to identify water bodies used for drinking water abstraction, making sure they meet the objectives set out in Article 4 WFD and in the Drinking Water Directive, and would ensure their necessary protection; notes that such natural water reserves already exist under different forms in various Member States; stresses that assistance should be given to Member States or local and regional governments to help them develop natural water reserves;

    69. Notes the potential of retention infrastructure as an example of water generation systems created using the best available, cost-effective techniques that have the lowest environmental impact, including by means of wastewater reuse or rainwater collection, in order to reduce the risks of droughts and floods, increase water security and foster circularity, water reclamation and reuse; believes that water retention facilities may be useful tools provided that they are authorised by local or national authorities under clear conditions, including the capacity of local groundwater to sustain such activities and the need for farmers accessing the water resource to adapt their practices to more sustainable practices, in particular in terms of water needs and water quality; calls on the Commission to use its available tools, including financial support, to streamline this approach among the Member States;

    70. Deplores the unlawful or intentional abstraction of water, which is likely to cause substantial damage to water bodies; calls for strong dissuasive measures to be applied, including through the criminal law, to protect the ecological status or the ecological potential of surface water bodies or of the quantitative status of groundwater bodies; notes that additional support for training and knowledge transfer for national enforcement capacities is needed;

    71. Notes the important cross-cutting role of nature-based solutions in addressing the challenges of the triple planetary crisis and restoring the natural water cycle; calls on the Commission and the Member States to prioritise, taking into account the environmental and socio-economic impacts, the deployment of nature-based solutions for water resilience in their policy actions and recommendations, such as the re-wetting of wetlands and peatlands to increase ground water availability and surrounding soil moisture, the restoration and protection of floodplains, natural water retention measures, revegetation as a barrier against floods, and rainwater conservation, in order to strengthen water availability, mitigate climate change risks and support long-term resilience for communities, businesses and food production; underlines that, in addition to nature-based solutions, complementary investment in engineering solutions remains necessary to ensure successful climate adaptation and water resilience in the long term;

    Funding and pricing

    72. Notes that nature-based solutions and natural water retention measures have the potential to restore groundwater levels and support ecological flows while reducing water-related risks from water scarcity, floods and droughts; notes that in flood management, nature-based solutions cannot usually replace existing solutions and may not be effective for the most extreme events; points out, however, that nature-based solutions can enhance the effectiveness and operable life of grey infrastructure by increasing water absorption capacity, reducing water velocity and regulating peak flows; reiterates, in this regard, that the effectiveness of nature-based solutions is context-specific and must be adapted to the local situation; emphasises in this regard that a ‘one solution that fits all’ does not exist;

    73. Stresses the need to provide financial support for sustainable innovative methods and solutions, while having due regard to public-private partnerships;

    74. Stresses, in the context of climate adaptation, the importance of healthy soils in ensuring water security and circularity; emphasises that the natural water retention of soils must be improved through measures to enhance soil health, minimising carbon losses, as well as actions at the level of the water body, such as the stabilisation of riverbanks, including through re-naturalisation, and the restoration of the retention capacities of aquifers;

    75. Notes that thoroughly designed forest management measures can improve watershed health, regulate water flow and reduce drought and flood stress, given the essential role of trees and forests in water cycle regulation, through their ability to purify water, increase the availability of water resources and improve soil moisture retention; proposes that this be duly considered when the Commission, in cooperation with the Member States, develops Union disaster resilience goals and that it be considered in the development and refinement of disaster risk management and contingency planning; highlights the need, in this regard, for more research, data collection, innovation and funding to support land managers in preventing the impact of environmental stressors such as drought floods and diminishing watershed function;

    76. Recognises that urban areas are increasingly vulnerable to water-related climate risks such as flooding, water shortages and heat stress; calls for the integration of urban water resilience planning into climate adaptation strategies, including investment in green roofs, permeable infrastructure, rainwater harvesting and storm water retention systems, as well as measures aimed at increasing green and blue spaces in urban areas, in order to mitigate extreme weather impacts and to reduce the risks to human life and property; calls further for the maintenance of, and regained access to, urban waterways in cities;

    77. Emphasises that the EWRS should ensure adequate funding from public and private sources in order to support the modernisation, upgrading, adaptation and maintenance of resilient water infrastructure, sustainable water management, data collection, research, effective monitoring, digitalisation, upskilling, nature-based solutions, the development and the uptake of innovative water-efficient technologies, as well as to ensure environmental and socio-economic sustainability in line with the goals set by the new European Competitiveness Compass;

    78. Calls on the Commission to create a separate and dedicated fund for water resilience within the upcoming MFF; believes that specific financial mechanisms should also be established within the European Regional Development Fund and the Cohesion Fund to support water-smart technologies and water investment; strongly believes that, in the interim, water should be prioritised in existing funding frameworks, including the Cohesion Fund; stresses that EU funding mechanisms must incorporate considerations of social equity and affordability, in particular in the context of providing water services to the population, ensuring support for Member States and citizens with greater financial constraints and specific realities, while meeting water management obligations; highlights the importance of adjusting existing funding, subsidies and financing streams related to water management and other related land uses, moving away from outdated engineering solutions to innovative ones, as well as nature-based solutions or a combination thereof;

    79. Calls for targeted funding, via Horizon Europe and the EIP-AGRI, for field trials on the water relations of different cropping systems; calls for the recognition of the role of women in water policies and for specific funding to be identified to promote their access to agriculture;

    80. Recalls that the lack of dedicated funding for water or binding funding targets within the current MFF limits the EU’s capacity to direct targeted investment towards essential water resilience measures, including infrastructure modernisation, innovation, climate adaptation measures and the implementation of nature-based solutions, and thus its competitive capacity, as the absence of a water balance creates an additional burden for the economy of the regions; notes that outermost and mountainous regions and islands in the EU are particularly struggling to access funding or public-private partnerships to support local and regional investment in water management and infrastructure;

    81. Stresses the important role of the European Investment Bank (EIB) in water financing; highlights the fact that the EIB is actively investing in and supporting the water sector; stresses that the EU should collaborate with the EIB to share best practice and calls, further, on the EIB and other financial institutions to strengthen their role in the funding of innovative and resilient water infrastructure, improved sanitation and drinking water infrastructure, digitalisation, as well as to support projects aimed at flood risk reduction, erosion prevention and the revitalization of watercourses, by facilitating favourable conditions for water investment;

    82. Urges the Commission to explore and promote innovative financing mechanisms, including payments for ecosystem services and green bonds, while ensuring regulatory clarity and safeguards to prevent market distortions; calls on the EIB and other financial institutions to prioritise low-interest loans and credits for Member States and regional and local authorities undertaking large-scale restoration projects, with specific provisions to support economically disadvantaged regions;

    83. Highlights the importance of public-private partnerships as a source of funding for water investment; calls on the Commission to incentivise private investment in the water sector by creating a supportive regulatory framework that may include co-financing opportunities and public-private partnerships in order to drive innovation, improve infrastructure and ensure sustainable water management solutions across the Member States; underlines, nevertheless, that the involvement of private investment in the EU water sector must not undermine the status of water as a public good and a public service, and that the long-term resilience of the sector, as well as the principles of accessibility, affordability and sustainability must be ensured;

    84. Calls on the Member States to adopt governance frameworks that clearly define the roles and responsibilities of stakeholders in planning, financing and implementing nature-based solutions; believes that these frameworks should integrate funding from diverse sources, including philanthropic contributions and private-sector partnerships, while ensuring equitable access to resources for small-scale projects, particularly managed at local or regional levels;

    85. Urges the Commission and the Member States to address water aspects in their budgets and to improve governance within the regions in the use of EU funds;

    86. Underlines the need to provide targeted financial and technical assistance to municipalities to facilitate compliance with water-related legislation;

    87. Encourages the Member States to accelerate the granting of authorisations for sustainable and innovative resilient water infrastructure projects to enable their rapid implementation in the face of the urgent challenges;

    88. Notes that the application of the cost recovery principle on water services, which provides that all water users effectively and proportionately participate financially in the recovery of the costs of water services, remains low to non-existent in several Member States; calls on the Member States and their regional authorities to implement adequate water pricing policies and apply the cost recovery principle for both environmental and resource costs in line with the WFD; calls on the Member States to take into account the long investment cycles when implementing the cost recovery principle and to ensure sufficient funding is available for needed (re)investment;

    89. Stresses the importance of ensuring that water pricing supports long-term water security by reflecting the economic, environmental and resource costs of water use; encourages the Member States and competent regional and local authorities to ensure that water pricing is economically sustainable, socially fair and promotes efficient water use, and that it reflects the availability of water across different Member States and regions, particularly in water-stressed regions, while safeguarding affordability for households and small businesses; calls on the Member States and competent regional and local authorities to insure transparent water prices and to raise awareness of the value of water services;

    90. Points out that competent national water authorities will play a central role in implementing new water management and conservation plans at the level of the Member States; calls, therefore, on the Members States to financially and technically increase the capacity of those competent authorities to play a more significant enabling and advisory role in sustainable and future-proof water management and storage infrastructure; believes that EU funds, such as the Just Transition Fund, should be used to further assist Member States and water agencies in implementation;

    Digitalisation, security and technological innovation

    91. Stresses the potential and the necessity for digitalisation and AI in improving the management and monitoring of bodies of water and water infrastructure, as well as in reporting and ensuring the comparability of data reflecting different geographical flow conditions;

    92. Calls on the Commission, the Member States and water providers to mainstream transparency and digitalisation as fundamental principles in water management and to enhance the use of management and metering data, with the aim of strengthening  monitoring, assessment, accountability and decision-making, while optimising and simplifying reporting obligations; calls for digitally enabled water technologies to facilitate real-time, sample-based and distance monitoring and reporting on water quality, leakages, usage and resources; calls for improved efficiency in the use of public funds and public spending in this area; recognises that widespread deployment of innovative digital technologies needs to be accompanied by digital skills training;

    93. Emphasises the need to promote digitalisation and data-centric solutions in building a water-smart society; stresses the need to develop digital solutions for monitoring water consumption and optimising the use of water resources across all sectors; calls on the Commission, in cooperation with the Member States, to provide financial support for the implementation of smart water management systems, focusing on the needs of small and medium-sized enterprises (SMEs);

    94. Points out that water systems, including water treatment and distribution systems, are considered one of the nation’s critical infrastructures and security pillars, and hence key for the EU’s strategic autonomy, and require increased protection and the ability of utilities to detect, respond to, and recover from physical and cyberthreats and cyberattacks; notes that a higher level of digitalisation comes with new vulnerabilities; points out that, in the event of a threat or an attack, water system operators can lose their ability to control the flow and quality of the water or lose the ability to track the true status of the water system; insists that vulnerability assessments and an emergency response plan should be an integral part of the water management system in every Member State; encourages the promotion of information sharing about threats to cybersecurity and procedures to exchange best practice among operators, as well as to establish a cybersecurity culture through technical security measures, competence building and awareness creation and communication; draws attention to the measures and provisions in the NIS2 Directive and the Critical Entities Resilience Directive which could help mitigate the arising security risks; calls on the Commission to take the lead in reinforcing the EU-level coordination formats and to propose effective tools in the upcoming Preparedness Union Strategy with the aim of ensuring timely preparedness to tackle environmental and non-environmental risks to the water bodies that are threatening the EU’s overall security;

    95. Calls on the Commission and the Member States to increase the involvement of women in decisions regarding water resilience; calls for the adoption of a methodological approach that effectively considers gender-related needs in the implementation of water supply projects, by implementing monitoring, reporting and tracking that use tools and indicators disaggregated by gender;

    96. Notes that better data and data analysis are key to evidence-based decision-making and the swift identification of small changes in water quality that could present a threat to bodies of water, together with the evaluation of best practice and identification of the most cost-effective and impactful measures;

    97. Stresses that improved, reliable and interoperable data on water supply, demand, distribution, accessibility and use are needed and that data points need to be established; urges the Commission and the Member States to enhance data collection and improve data interoperability across all levels to support the implementation of current water legislation, as well as to facilitate circular economy and water-smart industrial symbiosis strategies; highlights the fact that data and AI could be used in modelling water and energy consumption as well as reuse and recycling capacities;

    98. Calls on the Commission to better recognise the fundamental role of the water sector in bolstering EU competiveness by fostering research and innovation and promoting entrepreneurship and talent; emphasises, in this regard, the importance of ramping up innovation in the water sector; points out that the European Innovation Centre for Industrial Transformation and Emissions, created as part of Directive 2010/75/EU, could play a role in this regard, as it evaluates the environmental performance of industrial technologies and gathers information on innovative industrial environmental techniques; points, further, to existing partnerships like the Water4All Partnership, a funding programme for scientific research;

    99. Believes that there is a need to build and nurture multi-stakeholder platforms to promote innovation uptake at all levels, local and national; recommends that these platforms involve a wide range of participants – the public and private sectors, and civil society associations – to build a coalition of partners to bring about change; supports the promotion of knowledge sharing on how digital water technologies can support the implementation of existing EU water legislation, as well as capacity building at local, regional and national levels; calls on the Commission and the Members States to expand digital skills, and research and development (R&D) programmes targeting water, including through collaboration with universities, research centres and SMEs;

    100. Acknowledges the critical role of data centres in the digital economy; notes with concern that the rapid expansion of the technology could lead to a substantial increase in AI’s demand for water resources associated with their operations, which could undermine the environmental benefits that AI promises to deliver, such as resource optimisation and carbon emission reductions, and stresses the need to integrate water efficiency measures in their design and operation; urges the Commission to address the use of water resources by information and communications technologies (ICT) and, in particular, by AI and data centres in its EWRS, in particular by encouraging data centres to reuse treated water and to promote the design of more efficient chips and components to reduce the need for cooling; recommends that the Member States prioritise water resilience strategies that address the specific challenges posed by data centres to ensure the sustainability of both the digital and the environmental agendas;

    101. Recalls that seawater desalination is the process of removing salt from sea or brackish water to make it useable for a range of ‘fit for use’ purposes, including drinking, and that it is thus an important technological solution for people’s livelihoods; notes that, at the same time, desalination is an energy-intensive process and should ideally be done using renewable energy, whenever possible, in order to minimise environmental impacts; reiterates that desalination produces a by-product, brine (a concentrated salt solution), that must be properly disposed of to avoid adverse impacts on the marine environment; considers, therefore, that desalination based on reverse osmosis or thermal technologies should be applied, if other more environmentally sustainable options are not available or cannot be implemented, particularly in remote areas and islands; highlights, in this regard, the ongoing work on new technological solutions, such as microbial desalination cells, offering an environmentally sustainable and innovative alternative to traditional desalination methods, particularly to provide clean water and wastewater treatment to small, isolated locations without electricity;

    102. Stresses the need for increased funding and R&D into technologies such as innovative desalination techniques in order to increase the efficiency, sustainability and the scaling up of such technologies; calls for research into the possibilities of using such technologies in agriculture to diversify the water supply points and therefore decrease the vulnerability of the sector to water stress;

    103. Notes that in the last decade, there have been many scientific breakthroughs for making water treatment smarter and more circular, with these solutions offering opportunities for using digital solutions, AI and remote sensing to use water more efficiently and by reusing treated wastewater for irrigation and recovering energy and nutrients from wastewater;

    104. Calls on the Commission and the Member States to address the regulatory obstacles within the single market to facilitate the development, scaling-up, and placing on the market of innovative biotechnology and biomanufacturing solutions and the promotion of cleaner manufacturing and circularity;

    105. Calls for the funding, development and authorisation of innovative solutions for crop protection and fertilisation, including biological control agents and active substances with lower impact on the environment, which are needed for a just transition to more sustainable agricultural systems;

    106. Calls for specific programmes to be established for the cleaning and conservation of river channels, ensuring adequate flow and reducing the accumulation of debris and sediment that can affect water storage and distribution capacity;

    Cross-border and international cooperation

    107. Stresses the need for a comprehensive EWRS that fosters cross-border cooperation, more uniform data collection and reporting, sharing best practice between local, regional and national actors, ensuring sustainable water management and equitable resource distribution among the Member States, preventing water challenges such as scarcity and flood risk from being passed on to other Member States;

    108. Emphasises that climate change represents a major threat to water resources and aquatic ecosystems; notes that floods and water scarcity compromise food and water security and the health of the general population, ultimately affecting social cohesion and stability; recognises that water resilience is crucial for preventing and addressing current and future health, food, energy and security crises; emphasises that water resilience promotes transboundary water cooperation, serving as a catalyst for peace and security, as countries are interconnected through shared rivers and groundwater resources;

    109. Calls for increased cross-border cooperation between the Member States in the management of shared river basins and groundwater aquifers and in the effective collection and sharing of data on water quality, pollution levels and water levels; recommends the establishment of regional cooperation centres to coordinate the implementation of joint water resilience strategies, taking into account the climate, social and economic challenges of each territory;

    110. Calls for enhanced international cooperation, including at the level of river basins, to address the growing water crisis, ensure clean and high-quality water, promote sustainable water management and implement various innovative water technologies, including nature-based solutions; calls for the anchoring of cooperation across borders at operational, tactical and strategic levels;

    111. Calls for the establishment of cross-border projects under Interreg and other EU funds to improve regional cooperation in the management of water resources, with a particular focus on ensuring the fair distribution of water between sectors and Member States;

    112. Stresses the need to strengthen EU monitoring capacities through digitalisation and modern technologies, including satellite surveillance and real-time pollution tracking, which are essential for preventing and combating cross-border pollution;

    113. Urges the Commission to implement a specific diplomatic role dedicated to resolving water-related conflicts, promoting water cooperation and protecting water sources and systems, particularly during armed conflicts and in transboundary contexts;

    114. Urges the EU to lead international efforts to protect and restore water ecosystems in line with the SDG 6 on clean water and sanitation;

    °

    ° °

    115. Instructs its President to forward this resolution to the Council and the Commission.

    MIL OSI Europe News

  • MIL-OSI Europe: REPORT on the proposal for a regulation of the European Parliament and of the Council suspending certain parts of Regulation (EU) 2015/478 as regards imports of Ukrainian products into the European Union – A10-0059/2025

    Source: European Parliament

    DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

    on the proposal for a regulation of the European Parliament and of the Council suspending certain parts of Regulation (EU) 2015/478 as regards imports of Ukrainian products into the European Union

    (COM(2025)0107 – C10‑0042/2025 – 2025/0056(COD))

    (Ordinary legislative procedure: first reading)

    The European Parliament,

     having regard to the Commission proposal to Parliament and the Council (COM(2025)0107),

     having regard to Article 294(2) and Article 207(2) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C10‑0042/2025),

     having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

     having regard to Rule 60 of its Rules of Procedure,

     having regard to the report of the Committee on International Trade (A10-0059/2025),

    1. Adopts its position at first reading hereinafter set out;

    2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

    3. Instructs its President to forward its position to the Council, the Commission and the national parliaments.

     

     

    Amendment  1

    Proposal for a regulation

    Recital 7

     

    Text proposed by the Commission

    Amendment

    (7) This Regulation should apply for three years and its application should be tacitly renewed for further three year periods unless and until either the European Parliament or the Council would oppose such an extension three months before the expiry date.

    (7) This Regulation should apply for three years.

    Amendment  2

    Proposal for a regulation

    Article 4 – paragraph 2

     

    Text proposed by the Commission

    Amendment

    It shall apply for an initial period of three years.

    It shall apply from 6 June 2025 until 5 June 2028.

    Amendment  3

    Proposal for a regulation

    Article 4 – paragraph 3

     

    Text proposed by the Commission

    Amendment

    Its application shall be tacitly extended for successive periods of three years unless the European Parliament or the Council opposes such an extension no later than three months before the end of each period.

    deleted

     

    ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

    Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur declares that she received input from the following entities or persons in the preparation of the report, prior to the adoption thereof in committee:

    Entity and/or person

    Mission of Ukraine to the European Union

    The list above is drawn up under the exclusive responsibility of the rapporteur.

    Where natural persons are identified in the list by their name, by their function or by both, the rapporteur declares that she has submitted to the concerned natural persons the European Parliament’s Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.

     

     

    PROCEDURE – COMMITTEE RESPONSIBLE

    Title

    Suspending certain parts of Regulation (EU) 2015/478 as regards imports of Ukrainian products into the European Union

    References

    COM(2025)0107 – C10-0042/2025 – 2025/0056(COD)

    Date submitted to Parliament

    7.3.2025

     

     

     

    Committee(s) responsible

    INTA

     

     

     

    Rapporteurs

     Date appointed

    Karin Karlsbro

    19.3.2025

     

     

     

    Discussed in committee

    19.3.2025

     

     

     

    Date adopted

    8.4.2025

     

     

     

    Result of final vote

    +:

    –:

    0:

    29

    8

    2

    Members present for the final vote

    Christophe Bay, Brando Benifei, Lynn Boylan, Daniel Caspary, Andi Cristea, Raphaël Glucksmann, Bart Groothuis, Enikő Győri, Svenja Hahn, Karin Karlsbro, Martine Kemp, Rudi Kennes, Rihards Kols, Sebastian Kruis, Bernd Lange, Ilia Lazarov, Miriam Lexmann, Jaak Madison, Thierry Mariani, Gabriel Mato, Javier Moreno Sánchez, Ştefan Muşoiu, Majdouline Sbai, Lukas Sieper, Dominik Tarczyński, Francesco Torselli, Inese Vaidere, Kathleen Van Brempt, Marie-Pierre Vedrenne, Jörgen Warborn, Iuliu Winkler, Bogdan Andrzej Zdrojewski, Juan Ignacio Zoido Álvarez

    Substitutes present for the final vote

    Dan Barna, Markus Buchheit, Branislav Ondruš, Jessika Van Leeuwen

    Members under Rule 216(7) present for the final vote

    Mélanie Disdier, Jens Geier

    Date tabled

    10.4.2025

     

    MIL OSI Europe News

  • MIL-OSI Europe: RECOMMENDATION FOR SECOND READING on the Council position at first reading with a view to the adoption of a regulation of the European Parliament and of the Council on a mechanism to resolve legal and administrative obstacles in a cross-border context – A10-0058/2025

    Source: European Parliament

    DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

    on the Council position at first reading with a view to the adoption of a regulation of the European Parliament and of the Council on a mechanism to resolve legal and administrative obstacles in a cross-border context

    (17102/1/2024 – C10‑0057/2025 – 2018/0198(COD))

    (Ordinary legislative procedure: second reading)

    The European Parliament,

     having regard to the Council position at first reading (17102/1/2024 – C10‑0057/2025),

     having regard to the opinions of the European Economic and Social Committee of 19 September 2018[1] and of 24 April 2024[2],

     having regard to the opinions of the Committee of the Regions of 5 December 2018[3] and of 17 April 2024[4],

     having regard to its position at first reading[5] on the Commission proposal to Parliament and the Council (COM(2018)03732018/0198(COD),

     having regard to the amended Commission proposal (COM(2023)0790),

     having regard to Article 294(7) of the Treaty on the Functioning of the European Union,

     having regard to the provisional agreement approved by the committee responsible under Rule 75(4) of its Rules of Procedure,

     having regard to Rule 68 of its Rules of Procedure,

     having regard to the recommendation for second reading of the Committee on Regional Development (A10-0058/2025),

    1. Approves the Council position at first reading;

    2. Notes that the act is adopted in accordance with the Council position;

    3. Instructs its President to sign the act with the President of the Council, in accordance with Article 297(1) of the Treaty on the Functioning of the European Union;

    4. Instructs its Secretary-General to sign the act, once it has been verified that all the procedures have been duly completed, and, in agreement with the Secretary-General of the Council, to arrange for its publication in the Official Journal of the European Union;

    5. Instructs its President to forward its position to the Council, the Commission and the national parliaments.

     

    SHORT JUSTIFICATION

    The Council position at first reading reflects the agreement reached between Parliament and the Council in interinstitutional negotiations at early second-reading stage, after legal-linguistic verification.

     

    Since the Committee on Regional Development (REGI), with its vote on 28 January 2025, already unanimously confirmed the outcome of those interinstitutional negotiations, as your rapporteur I propose that REGI recommends that the Plenary confirms the position of the Council at first reading, without amending it.

     

    ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

    The rapporteur declares under his exclusive responsibility that he did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

     

     

    PROCEDURE – COMMITTEE RESPONSIBLE

    Title

    Border Regions’ instrument for development and growth (BRIDGEforEU)

    References

    17102/1/2024 – C10-0057/2025 – 2018/0198(COD)

    Date of Parliament’s first reading – P number

    14.2.2019 T8-0118/2019

    Draft act considered at first reading

    COM(2018)0373 – C8-0228/2018

    Receipt of Council position at first reading announced in plenary

    3.4.2025

    Committee(s) responsible

    REGI

     

     

     

    Rapporteurs

     Date appointed

    Sandro Gozi

    9.9.2024

     

     

     

    Previous rapporteurs

    Matthijs van Miltenburg

    Discussed in committee

    3.12.2024

    27.1.2025

     

     

    Date adopted

    9.4.2025

     

     

     

    Result of final vote

    +:

    –:

    0:

    30

    0

    2

    Members present for the final vote

    Pascal Arimont, Fredis Beleris, Dragoş Benea, Gordan Bosanac, Andi Cristea, Klára Dobrev, Klara Dostalova, Kathleen Funchion, Raquel García Hermida-Van Der Walle, Gabriella Gerzsenyi, Sérgio Gonçalves, Krzysztof Hetman, Elsi Katainen, Isabelle Le Callennec, Nora Mebarek, Elena Nevado del Campo, Andrey Novakov, Valentina Palmisano, Sabrina Repp, Marcos Ros Sempere, Antonella Sberna, Mārtiņš Staķis, Francesco Ventola, Marta Wcisło

    Substitutes present for the final vote

    Nikolina Brnjac, Sandro Gozi, Julien Leonardelli, Alexandra Mehnert, Ana Miranda Paz, Denis Nesci, Jessika Van Leeuwen

    Members under Rule 216(7) present for the final vote

    Arno Bausemer

    Date tabled

    9.4.2025

     

    MIL OSI Europe News

  • MIL-OSI Europe: France, UK and Germany urge Israel to allow aid back into Gaza

    Source: France-Diplomatie – Ministry of Foreign Affairs and International Development

    Published on April 23, 2025

    Lire la version

    Joint statement by the foreign ministers of France, the United Kingdom and Germany (E3) (Paris, April 23, 2025)

    Israel has now fully blocked the entry of humanitarian aid into Gaza for over 50 days. Essential supplies are either no longer available or quickly running out. Palestinian civilians – including one million children – face an acute risk of starvation, epidemic disease and death. This must end. We urge Israel to immediately restart a rapid and unimpeded flow of humanitarian aid to Gaza in order to meet the needs of all civilians. During the last ceasefire, the UN and INGO system was able to deliver aid at scale. The Israeli decision to block aid from entering Gaza is intolerable. Minister Katz’s recent comments politicizing humanitarian aid and Israeli plans to remain in Gaza after the war are unacceptable – they harm prospects for peace. Humanitarian aid must never be used as a political tool and Palestinian territory must not be reduced nor subjected to any demographic change. Israel is bound under international law to allow the unhindered passage of humanitarian aid.

    Humanitarians must be able to deliver aid to those who need it most, independent of parties to the conflict and in accordance with their humanitarian principles. Israel must ensure unhindered access for the UN and humanitarian organizations to operate safely across Gaza. Hamas must not divert aid for their own financial gain or use civilian infrastructure for military purposes.

    We reiterate our outrage at recent strikes by Israeli forces on humanitarian personnel, infrastructure, premises and healthcare facilities. Israel must do much more to protect the civilian population, infrastructure and humanitarian workers. This includes restoring deconfliction systems, allowing humanitarian workers free movement within Gaza. And Israel must prevent harm to medical personnel and premises in the course of their military operations. They must allow the urgent healthcare needs of the population to be met, while allowing the sick and wounded to temporarily leave the Gaza Strip to receive treatment.

    Crucially, we urge all parties to return to a ceasefire. We continue to call on Hamas for the immediate release of all the remaining hostages, who are enduring terrible suffering. We must all work towards the implementation of a two-state solution, which is the only way to bring long-lasting peace and security to both Israelis and Palestinians and ensure long-term stability in the region./.

    MIL OSI Europe News

  • MIL-OSI USA: Sols 4518-4519: Thumbs up from Mars

    Source: NASA

    Written by Susanne Schwenzer, Planetary Geologist at The Open University
    Earth planning date: Monday, 21st April 2025
    It is Easter Monday, a bank holiday here in the United Kingdom. I am Science Operations Working Group Chair today, a role that is mainly focused on coordinating all the different planning activities on a given day, and ensuring all the numbers are communicated to everyone. And with that I mean making sure that everyone knows how much power we have and other housekeeping details. It’s a fun role, but on the more technical side of the mission, which means I don’t get to look at the rocks in the workspace as closely as my colleagues who are planning the activities of the instruments directly investigating the rocks. It’s a lot of fun to see how planning day after planning day things come together. But why am I doing this on a bank holiday, when I could well be on my sofa? I just was reminded in the hours before planning how much fun it actually is to spend a little more time looking at all the images  – and not the usual hectic rush coming out of an almost complete work day (we start at 8 am PDT, which is 4 pm here in the UK!). So, I enjoyed the views of Mars, and I think Mars gave me a thumbs up for it, or better to say a little pointy ‘rock up’ in the middle of a sandy area, as you can see in the image above!
    I am sure you noticed that our team has a lot to celebrate! Less than a month after the publication about alkanes made headlines in many news outlets, we have another big discovery from our rover, now 4518 sols on Mars: in three drill holes, the rover instruments detected the mineral siderite, a carbonate. That allowed a group of scientists from our team to piece together the carbon cycle of Mars. If you want to know more, the full story is here. I am looking forward to our next big discovery. Who knows that that is? Well, it would not be exploration, if we knew!
    But today’s workspace looks intriguing with all its little laminae (the very fine layers) and its weathering patterns that look like a layered cake that little fingers have picked the icing off! (Maybe I had too many treats of the season this weekend? That’s for you to decide!) But then Mars did what it did so many times lately: we did not pass our slip risk assessment and therefore had to keep the arm stowed. I think there is a direct link between geologists getting exciting about all the many rocks, and a wheel ending up on one of them, making it unsafe to unstow the arm. There was a collective sigh of disappointment – and then we moved on to what we actually can do.
    And that is a lot of imaging. As exciting as getting an APXS measurement and MAHLI images would be, Mastcam images, ChemCam chemistry and RMI images are exciting, too. The plan starts with three Mastcam activities to document the small troughs that form around some of the rocks. Those amount to 15 frames already, then we have a ten-frame mosaic on a target called “West Fork,” which is looking at rocks in the middle ground of the scenery and display interesting layering. Finally, a 84 frame mosaic will image Texoli, one of the large buttes in our neighbourhood, in all its beauty. It shows a series of interesting layers and structures, including some that might be akin to what we expect the boxwork structures to look like. Now, did you keep count? Yes, that’s 109 frames from Mastcam – and add the one for the documentation of the LIBS target, too, and Mastcam takes exactly 110 frames!
    ChemCam is busy with a target called “Lake Poway,” which represents the bedrock around us. Also in the ChemCam activities is a long distance RMI upwards Mt Sharp to the Yardang unit. After the drive – more of that later – ChemCam as an automated observation, we call it AEGIS, where ChemCam uses a clever algorithm to pick its own target.
    The drive will be very special today. As you may have seen, we are imaging our wheels in regular intervals to make sure that we are keeping track of the wear and tear that over 34 km of offroad driving on Mars have caused. For that, we need a very flat area and our rover drivers did locate one due West of the current rover positions. So, that’s where we will drive first, do the full MAHLI wheel imaging and then return to the originally planned path. That’s where we’ll do a MARDI image, post drive imaging to prepare the planning for the next sols, and the above mentioned AEGIS.
    In addition to all the geologic investigations, there is continuous environmental monitoring ongoing. Curiosity will look at opacity and dust devils, and REMS will switch on regularly to measure wind speeds, humidity, temperature, ultraviolet radiation and pressure throughout the plan. Let’s not forget DAN, which monitors water and chlorine in the subsurface as we are driving along. It’s so easy to forget the ones that sit quietly in the back – but in this case, they have important data to contribute!

    MIL OSI USA News

  • MIL-OSI Asia-Pac: Asia Cultural Co-operation Forum+ 2025 concludes on high note (with photos)

    Source: Hong Kong Government special administrative region

    Asia Cultural Co-operation Forum+ 2025 concludes on high note  
         At the panel yesterday (April 22), the Secretary for Culture, Sports and Tourism, Miss Rosanna Law, and the Vice Minister of Culture and Tourism, Mr Gao Zheng, shared their vision, policies and strategic directions with the participants on topics including the ways to promote development of arts, culture and creative industries, nurture talent for the industries, drive innovative collaborations as well as advocate cultural integrations.

         During the forum, Miss Law; the Permanent Secretary for Culture, Sports and Tourism, Ms Vivian Sum; and the Under Secretary for Culture, Sports and Tourism, Mr Raistlin Lau, held bilateral meetings to exchange views on cultural co-operations with representatives from participating countries respectively. The participating countries also proactively connect with one another through the forum. Over 20 bilateral meetings have been conducted in this forum. 
    The delegations went to the Hong Kong Palace Museum at the West Kowloon Cultural District (WKCD) this afternoon to gain first-hand knowledge of the latest development of the WKCD and visit the special exhibition “The Forbidden City and The Palace of Versailles: China-France Cultural Encounters in the Seventeenth and Eighteenth Centuries”. The exhibition presents nearly 150 spectacular treasures from the Palace Museum and the Palace of Versailles, illuminating the fascinating encounters and exchanges between China and France in science, artisanship, arts, culture, and philosophy during the 17th and 18th centuries. It is the best demonstration of a blend of Eastern and Western cultures.
    Issued at HKT 22:20

    NNNN

    MIL OSI Asia Pacific News

  • MIL-OSI Asia-Pac: Focused, 2-day capacity building programme for electoral field functionaries from Bihar begins

    Source: Government of India

    Focused, 2-day capacity building programme for electoral field functionaries from Bihar begins

    229 BLOs, 12 EROs and 2 DEOs take part in the training program at IIIDEM in the National Capital

    Specialized one-day training programme for State Police Nodal Officer (SPNO) and Police Officers from Bihar also begins

    Posted On: 23 APR 2025 4:54PM by PIB Delhi

    The Election Commission is organising a 2-day training and capacity building of Booth Level Officers (BLOs) at the India International Institute of Democracy & Election Management (IIIDEM), New Delhi. This is the third such batch of BLOs to be trained from the poll-bound state of Bihar. 229 BLOs, 12 EROs and 2 DEOs from the State are participating in the 2-day training programme. A specialized one-day training programme for the State Police Nodal Officer (SPNO) and Police Officers from Bihar also commenced today. The training programme was inaugurated by Chief Election Commissioner of India Shri Gyanesh Kumar in the presence of Election Commissioner Dr. Vivek Joshi at IIIDEM, New Delhi and was followed by an interaction with the participants.

    The training is planned to familiarise the BLOs with their roles and responsibilities as per statutory framework and equip them with to ensure error-free electoral rolls. They will also be trained in the IT applications designed to support their roles.

    This is the latest in the first phase of the ongoing physical training programmes at IIIDEM in which 555 BLOs from poll-bound states of Bihar, West Bengal and Assam and 279 Booth Level Agents (BLA-1s) of 10 recognised national and state political parties from Bihar have already been trained. These well-trained BLOs will form a corps of Assembly Level Master Trainers (ALMTs) to strengthen the entire network of BLOs nationwide.

    The training of SPNOs and Police Officers from Bihar aims to improve coordination between election authorities and the police for enhanced electoral management, especially in the areas of law and order, vulnerability assessment, Paramilitary forces (CAPF) deployment, and model code of conduct (MCC) enforcement.

    Till date over 3000 participants from 141 countries including large democracies such as Australia, United Kingdom, USA, Brazil, Egypt, France, Indonesia, Israel, Russia and South Africa have benefited from training programmes from India’s globally acclaimed election management practices at IIIDEM.

    ******

    PK/GDH/RP

    (Release ID: 2123840) Visitor Counter : 50

    MIL OSI Asia Pacific News

  • MIL-OSI Europe: Written question – Hungary and the Commission – E-001468/2025

    Source: European Parliament

    Question for written answer  E-001468/2025
    to the Commission
    Rule 144
    Moritz Körner (Renew)

    In her speech during Parliament’s plenary sitting on 9 October 2024, Commission President Ursula von der Leyen said that:

    – Hungary discriminates against European companies by taxing them more than others;

    – Hungary targets European businesses with arbitrary inspections and permit blocking;

    – public contracts in Hungary mostly go to a small group of beneficiaries.

    The Commission is asked to explain in detail, and separately for each of the above three criticisms, why – despite that particular criticism – it still pays EU funds to Hungary, and why it trusts that the indirect management of EU funds will not be misused by the Hungarian authorities?

    Submitted: 9.4.2025

    Last updated: 23 April 2025

    MIL OSI Europe News

  • MIL-OSI Europe: Written question – Increasing frequency and intensity of wildfires – E-001412/2025

    Source: European Parliament

    Question for written answer  E-001412/2025
    to the Commission
    Rule 144
    Gerben-Jan Gerbrandy (Renew), Grégory Allione (Renew)

    March 2025 was the driest month ever recorded in the Netherlands, leading to a record number of wildfires. France has already experienced nearly as many wildfires so far this year as in all of 2024. Climate change will exacerbate droughts and extend wildfire seasons. This trend is reflected by the increasing solicitation of the EU Civil Protection Mechanism. Between 2007 and 2024, nearly 20 % of all requests for assistance were in response to wildfires. Considering the increasing frequency and intensity of wildfires, we have the following questions:

    • 1.What is the Commission’s projection of the costs of wildfires in the EU in the coming 10 years, and will these costs be taken into account in the next multiannual financial framework and in the EU’s industrial strategy, in particular as regards the funding of the EU Civil Protection Mechanism, the development of European firefighting aircraft and the strengthening of the European aerial firefighting industry?
    • 2.How will the increasing frequency of wildfires impact insurance for citizens and entrepreneurs in high-risk areas, and what steps is the Commission taking to address this?
    • 3.What amount of the LIFE Programme subsidies is allocated to drought prevention and what other EU programmes are (partly) dedicated to this, and how much EU funding is allocated in total to drought prevention?

    Submitted: 7.4.2025

    Last updated: 23 April 2025

    MIL OSI Europe News

  • MIL-OSI Europe: Answer to a written question – Russian intelligence funding of a campaign against the Law and Justice Government and Russian lobbying in Brussels – E-000861/2025(ASW)

    Source: European Parliament

    Russian malign influence, interference and attempts to manipulate take many forms, including accusations against specific Member States, such as in the case of Poland, which has been the target of Moscow’s campaigns for many years, including with attempts to undermine political leaders, Polish policy and material support to Ukraine, as well as Poland’s role in the EU.

    The EU has been at the forefront of developing policies and tools to contribute to the Information Integrity and Countering Foreign Information Manipulation and Interference[1] (FIMI).

    Within the mandate of the European External Action Service (EEAS), Russian FIMI campaigns are monitored, analysed and exposed and findings are made public, including on the EUvsDisinfo[2] platform.

    The Commission reiterates its position of strong condemnation of Russia’s espionage, hybrid threats and disinformation campaigns.

    The Commission will further prepare a European Democracy Shield, which will include initiatives to help to counter foreign information manipulation and interference online.

    It should be noted, however, that reviews or similar kinds of investigations of lobbying activities alleged of falling under the scope of FIMI are within the competence of the Member States.

    The Commission nor EEAS does not comment on national criminal investigations and the administration of justice in the Member States.

    • [1] https://www.eeas.europa.eu/eeas/information-integrity-and-countering-foreign-information-manipulation-interference-fimi_en
    • [2] https://euvsdisinfo.eu/
    Last updated: 23 April 2025

    MIL OSI Europe News

  • MIL-OSI Europe: Answer to a written question – Exclusion of Modul University Vienna from the Erasmus+ programme – E-000866/2025(ASW)

    Source: European Parliament

    The exclusion of Modul University Vienna from EU funding granted through direct or indirect management is due to Council Implementing Decision 2022/2056 (CID)[1], which aims at protecting the EU budget against rule of law breaches in Hungary.

    In accordance with Article 2(2) of the CID, legal commitments cannot be entered into with any public interest trust or entities maintained by such trusts, if they are established under the provisions of the Hungarian Act IX of 2021.

    The evaluation of Modul University Vienna’s ownership structure, carried out by the Erasmus+ National Agency in Austria, concluded that since 12 May 2023 Modul University Vienna is to be considered as an entity maintained by the Mathias Corvinus Collegium, a public interest trust listed under the aforementioned Hungarian Act IX of 2021.

    The European Health and Digital Executive Agency (‘HADEA’) reached the same conclusion in August 2024 regarding another project. Modul University Vienna challenged it before the General Court of the European Union. The case is pending (Case T-570/24).

    The Commission respects the relevant legal framework, including the Treaty on the Functioning of the EU, Regulation (EU, Euratom) 2020/2092 on a general regime of conditionality for the protection of the EU budget, Regulation (EU) 2021/817[2] on Erasmus+, and Regulation (EU) 2021/695[3] on Horizon Europe.

    The legal framework ensures that the awarding of funds is guided by transparent and objective criteria, in full compliance with the principle of equal treatment , and includes mechanisms for recourse.

    The Commission is fully committed to support a diverse and pluralistic scientific and research community across Europe and applies the same objective criteria irrespective of political or ideological affiliations, ensuring that no unjust discrimination occurs against any entity.

    • [1] Council Implementing Decision (EU) 2022/2506 of 15 December 2022 on measures for the protection of the Union budget against breaches of the principles of the rule of law in Hungary, OJ L 325/94, 20.12.2022.
    • [2] Regulation (EU) 2021/817 of the European Parliament and of the Council of 20 May 2021 establishing Erasmus+: the Union Programme for education and training, youth and sport and repealing Regulation (EU) No 1288/2013, OJ L 189/1, 28.5.2021.
    • [3] Regulation (EU) 2021/695 of the European Parliament and of the Council of 28 April 2021 establishing Horizon Europe — the framework Programme for Research and Innovation, laying down its rules for participation and dissemination, and repealing Regulations (EU) No 1290/2013 and (EU) No 1291/2013, OJ L 170/1, 12.5.2021.

    MIL OSI Europe News

  • MIL-OSI Europe: Answer to a written question – Presence of British Bases in the Republic of Cyprus – E-000388/2025(ASW)

    Source: European Parliament

    The presence of the British troops in Cyprus is regulated by the 1960 Agreement[1] establishing the Republic of Cyprus concluded between the United Kingdom of Great Britain and Northern Ireland (UK), Greece, Türkiye of the one part and the Republic of Cyprus of the other part, and therefore not a subject of discussions between the EU and the UK.

    The EU works closely with the UK on many issues and regularly exchanges with British officials, including on the operation of the Sovereign Base Areas (SBAs).

    Following the UK’s withdrawal, the EU has been protecting the interests of Cypriot citizens living and working in the SBAs. In this context, the Commission is in charge of the implementation of the Protocol No 3 on the Sovereign Base Areas of the United Kingdom of Great Britain and Northern Ireland in Cyprus [2]. The aim of the Protocol is to ensure that EU law, in the areas stipulated in Protocol 3 to Cyprus’ Act of Accession to the EU, will continue to apply in the SBAs. The territory of the SBAs continues to be part of the customs territory of the EU.

    The EU is fully committed to a comprehensive settlement of the Cyprus problem, within the United Nations (UN) framework, in accordance with the relevant UN Security Council resolutions and in line with the principles on which the Union is founded and the EU acquis.

    • [1] https://peacemaker.un.org/sites/default/files/document/files/2024/05/cy20gr20tr600816treaty20of20guarantee.pdf
    • [2] https://eur-lex.europa.eu/eli/treaty/acc_2003/act_1/pro_3/sign/eng
    Last updated: 23 April 2025

    MIL OSI Europe News

  • MIL-OSI Europe: Written question – Compliance with the directive on the welfare of pigs – E-001516/2025

    Source: European Parliament

    Question for written answer  E-001516/2025
    to the Commission
    Rule 144
    Sebastian Everding (The Left), Anja Hazekamp (The Left), Tilly Metz (Verts/ALE), Thomas Waitz (Verts/ALE), Günther Sidl (S&D), David Cormand (Verts/ALE), Cristina Guarda (Verts/ALE), Anthony Smith (The Left), Maria Noichl (S&D), Niels Fuglsang (S&D), Sigrid Friis (Renew), Elisabeth Grossmann (S&D), Friedrich Pürner (NI), Gerben-Jan Gerbrandy (Renew)

    The routine tail-docking of pigs has been prohibited in the EU since 1994. The Commission recognised in 2021 that the ‘tail-docking of pigs is a routine practice in 26 out of 28 Member States and approximately 150 million pigs annually are subject to this practice. With the exception of a few Member States, such as Finland and Sweden, most EU Member States did not comply with the ban or with providing adequate enrichment materials’[1]. The Commission has previously asked the Member States to establish national action plans for the prevention of the routine tail-docking of pigs and provide quantifiable data to measure the progress made in this area.

    • 1.What effective steps does the Commission plan to take to ensure that Member States secure compliance with the ban on routine tail-docking?
    • 2.Will the Commission publish the assessments it has made of each Member State’s action plan?
    • 3.Is the Commission now prepared to launch infringement proceedings against Member States that are making no serious attempt to enforce this legislation?

    Submitted: 13.4.2025

    • [1] Commission Staff Working Document of 31 March 2021 entitled ‘Evaluation of the European Union Strategy for the Protection and Welfare of Animals 2012-2015’ (SWD(2021)0076).
    Last updated: 23 April 2025

    MIL OSI Europe News

  • MIL-OSI Europe: Written question – Support measures for people with coeliac disease – E-001496/2025

    Source: European Parliament

    Question for written answer  E-001496/2025
    to the Commission
    Rule 144
    Margarita de la Pisa Carrión (PfE)

    An estimated 1-3 % of people in the world have coeliac disease. The only possible treatment and diet for those people is a gluten-free diet. Gluten-free products entail considerable extra costs, however. The Spanish Federation of Coeliac Associations’ 2025 price report shows that those extra costs can be more than EUR 1 000 per family every year.

    Some Member States provide financial support or reimbursement to cover the cost of gluten-free food. Others, including Spain, however, provide little or no support, which makes it harder to acquire a basic necessity – food – and the treatment people with coeliac disease need.

    Given that the Commission has presented recommendations or guidelines in other areas of health:

    • 1.Is the Commission planning to study and compare support measures for people with coeliac disease in place in Member States?
    • 2.Does the Commission believe it appropriate to include the issue in its forthcoming programmes to encourage Member States to take measures so people with coeliac disease have access to the specific food they need?

    Submitted: 10.4.2025

    Last updated: 23 April 2025

    MIL OSI Europe News