Category: Finance

  • MIL-OSI: UPDATE – BTQ Technologies Corp. to Present at the OTCQX Best 50 Virtual Investor Conference April 24th

    Source: GlobeNewswire (MIL-OSI)

    VANCOUVER, British Columbia, April 23, 2025 (GLOBE NEWSWIRE) — BTQ Technologies Corp. (OTCQX: BTQQF) (CBOE CA: BTQ) (FSE: NG3), a global quantum technology company focused on securing mission-critical networks, today announced that Nicolas Roussy Newton, Co-Founder and COO will present live at the AI & Technology Virtual Investor Conference hosted by VirtualInvestorConferences.com, on April 24th, 2025. 

    This live presentation, led by COO Nicolas Roussy Newton, will cover BTQ’s strategic growth plan, outline its global research initiatives currently underway and detail recent acquisitions and partnerships aimed at accelerating the commercialization of its advanced post quantum solutions.

    DATE: Thursday April 24, 2025
    TIME: 1:00 pm EST
    LINK: CLICK HERE TO REGISTER

    This will be a live, interactive online event where investors are invited to ask the company questions in real-time. If attendees are not able to join the event live on the day of the conference, an archived webcast will also be made available after the event.

    It is recommended that online investors pre-register and run the online system check to expedite participation and receive event updates.

    Learn more about the event at www.virtualinvestorconferences.com.

    Recent BTQ Highlights:

    About BTQ
    BTQ was founded by a group of post-quantum cryptographers with an interest in addressing the urgent security threat posed by large-scale universal quantum computers. With the support of leading research institutes and universities, BTQ is combining software and hardware to safeguard critical networks using unique post-quantum services and solutions.

    Connect with BTQ: Website | LinkedIn

    About Virtual Investor Conferences®
    Virtual Investor Conferences (VIC) is the leading proprietary investor conference series that provides an interactive forum for publicly traded companies to seamlessly present directly to investors.

    Providing a real-time investor engagement solution, VIC is specifically designed to offer companies more efficient investor access. Replicating the components of an on-site investor conference, VIC offers companies enhanced capabilities to connect with investors, schedule targeted one-on-one meetings and enhance their presentations with dynamic video content. Accelerating the next level of investor engagement, Virtual Investor Conferences delivers leading investor communications to a global network of retail and institutional investors.

    CONTACTS:
    BTQ Technologies Corp.
    Bill Mitoulas
    Investor Relations
    +1.416.479.9547
    bill@btq.com

    Virtual Investor Conferences
    John M. Viglotti
    SVP Corporate Services, Investor Access
    OTC Markets Group
    (212) 220-2221
    johnv@otcmarkets.com

    Neither CBOE Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

    The MIL Network

  • 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 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 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 USA: MEDIA ADVISORY: DHS and Country Star John Rich Team Up for Urgent Livestream about Protecting Kids from Online Predators

    Source: US Federal Emergency Management Agency

    Headline: MEDIA ADVISORY: DHS and Country Star John Rich Team Up for Urgent Livestream about Protecting Kids from Online Predators

    strong>WASHINGTON — Wednesday night, Know2Protect — the national campaign dedicated to combating child exploitation and online threats — will host a high-impact livestream event featuring Department of Homeland Security Special Agent Dennis Fetting and country music star John Rich

    Together, they will discuss how families and communities can better protect children from online predators—and what steps we can all take to stay informed and proactive

    EVENT DETAILS
    WHAT: Livestream: Protecting Kids Online – A Conversation with John Rich & HSI 
    WHEN: Tuesday, April 23, 2025, 7:00 pm CT / 8:00 pm ET 
    WHERE: Watch on X @Know2Protect and @JohnRich 
    WHO: Hosted by Know2Protect with guests:

    Special Agent Dennis Fetting, DHS Homeland Security Investigations
    John Rich, Award-Winning Country Musician 

    MEDIA INVITATION
    Media are encouraged to:

    Tune in and share the livestream with their audiences
    Schedule post-event interviews with DHS and HSI leadership to dive deeper into the realities of online child exploitation and what law enforcement is doing to stop it

    To request interviews or additional information, please contact: Tanya Roman at 202-963-9738

    Join the conversation

    Share the message

    Let’s unite to protect children from online predators

    Together we can stop online child exploitation

    Follow the countdown and event updates: @Know2Protect
     
    ###

    MIL OSI USA News

  • MIL-OSI Asia-Pac: Agrinnovate India Limited Pays Dividend of Rs.1.42 crore for FY 2023–24

    Source: Government of India

    Agrinnovate India Limited Pays Dividend of Rs.1.42 crore for FY 2023–24

    Dividend cheque formally presented to Union Agriculture Minister Shri Shivraj Singh Chouhan

    Posted On: 23 APR 2025 5:18PM by PIB Delhi

    Agrinnovate India Limited (AgIn), a Government of India enterprise under the Department of Agricultural Research and Education (DARE), Ministry of Agriculture and Farmers Welfare, has declared a dividend of Rs.1,42,23,513 for the financial year 2023–24. The dividend distribution complies with guidelines issued by the Department of Investment and Public Asset Management (DIPAM). This is the first time the AgIn has paid the dividend since its inception.

    The dividend cheque was formally presented to Union Minister for Agriculture and Farmers’ Welfare  Shri Shivraj Singh Chouhan in New Delhi today. The event was also graced by the presence of Shri. M.L. Jat, Director General, Indian Council of Agricultural Research (ICAR).  This announcement reflects AgIn’s continued financial strength and strategic vision, under the leadership of Dr. Praveen Malik, Chief Executive Officer, Agrinnovate India Ltd. 

    Established in 2011, Agrinnovate India Ltd. serves as the commercial arm of ICAR, bridging agricultural research and practical implementation. AgIn plays a pivotal role in transferring, valorizing, and scaling agri-technologies across India to benefit farmers and entrepreneurs. The dividend declaration underscores AgIn’s commitment to financial sustainability, institutional accountability, and its broader mission of advancing India’s agricultural innovation ecosystem.

    ****

    PSF/KSR/AR

    (Release ID: 2123857) Visitor Counter : 144

    Read this release in: Hindi

    MIL OSI Asia Pacific News

  • MIL-OSI Asia-Pac: PM to visit Bihar on 24th April

    Source: Government of India

    PM to visit Bihar on 24th April

    PM to participate in programme marking National Panchayati Raj Day in Madhubani, Bihar

    PM to inaugurate, lay the foundation stone and dedicate to the nation multiple development projects worth over Rs 13,480 crore in Bihar

    PM to flag off Amrit Bharat express and Namo Bharat Rapid rail in Bihar

    Posted On: 23 APR 2025 6:30PM by PIB Delhi

    Prime Minister Shri Narendra Modi will visit Bihar on 24th April. He will travel to Madhubani and at around 11:45 AM, he will participate in a programme marking National Panchayati Raj Day. He will also inaugurate, lay the foundation stone and dedicate to the nation multiple development projects worth over Rs 13,480 crore, and address the gathering on the occasion.

    Prime Minister will participate in the National Panchayati Raj Day programme in Madhubani, Bihar. He will also present National Panchayat Awards, recognizing and incentivizing best-performing Panchayats on the occasion. 

    Prime Minister will lay the foundation stone of an LPG bottling plant with rail unloading facility at Hathua in Gopalganj District of Bihar worth around Rs 340 crore. This will help in streamlining the supply chain and improving efficiency of bulk LPG transportation.

    Boosting power infrastructure in the region, Prime Minister will lay the foundation stone for projects worth over Rs 1,170 crore and also inaugurate multiple projects worth over Rs 5,030 crore in the power sector in Bihar under the Revamped Distribution Sector Scheme. 

    In line with his commitment to boost rail connectivity across the nation, Prime Minister will flag off Amrit Bharat express between Saharsa and Mumbai, Namo Bharat Rapid rail between Jaynagar and Patna and trains between Pipra and Saharsa and Saharsa and Samastipur. He will also inaugurate the Supaul Pipra rail line, Hasanpur Bithan Rail line and two 2-lane Rail over bridges at Chapra and Bagaha. He will dedicate to the nation the Khagaria-Alauli Rail line. These projects will improve connectivity and lead to overall socio-economic development of the region.

    Prime Minister will distribute benefits of around Rs 930 crore under Community Investment Fund to over 2 lakh SHGs from Bihar under Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY- NRLM).

    Prime Minister will also hand over sanction letters to 15 lakh new beneficiaries of PMAY-Gramin and release instalments to 10 lakh PMAY-G beneficiaries from across the country. He will hand over keys to some beneficiaries marking the Grih Pravesh of 1 lakh PMAY-G and 54,000 PMAY-U houses in Bihar.

    ***

    MJPS/VJ

    (Release ID: 2123904) Visitor Counter : 44

    MIL OSI Asia Pacific News

  • MIL-OSI Europe: Answer to a written question – Clean Industrial Deal – E-000279/2025(ASW)

    Source: European Parliament

    Europe’s industrial base is essential for competitiveness and prosperity. Yet, rising geopolitical tensions, slow economic growth and technological competition pose important challenges.

    The high cost of energy, which weighs on European citizens and penalises European industry in global competition, sheds light on the urgency to reduce the EU’s dependency on fossil fuels and to accelerate the transition towards clean energy and technologies.

    The Clean Industrial Deal[1] brings forward concrete initiatives to strengthen the business case for competitiveness and decarbonisation in Europe.

    It includes actions to improve access to affordable energy, lead markets, materials and circularity, funding and skills, as well as to a level international playing field, thus answering to the call of European industry[2].

    For instance, it announces counter-guarantees to facilitate the take up of corporate power purchase agreements, simplification of permitting to access energy infrastructure and more funding through the Industrial Decarbonisation Bank and the revision of InvestEU[3].

    The implementation of these actions will tackle challenges that European industries face and will thus have a positive impact on the EU’s competitiveness.

    Most of the actions announced by the Clean Industrial Deal will be implemented or, in the case of legislative proposals, presented by the Commission in 2025.

    The measures will not impose burdens on individual companies. Instead, they will support industry, in particular energy intensive and clean tech industries, and workers involved in the industrial transition.

    • [1] https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex:52025DC0085
    • [2] https://antwerp-declaration.eu/
    • [3] https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32021R0523

    MIL OSI Europe News

  • MIL-OSI Europe: REPORT on the control of the financial activities of the European Investment Bank – annual report 2023 – A10-0068/2025

    Source: European Parliament

    MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

    on the control of the financial activities of the European Investment Bank – annual report 2023

    (2024/2052(INI))

    The European Parliament,

     having regard to the European Investment Bank Group (‘EIB Group’) 2023 activity report of 1 February 2024 entitled ‘A Blueprint for Sustainable Living’, and to the EIB Group document of 2 February 2023 entitled ‘EIB Group Operational Plan 2023-2025’,–  having regard to the European Investment Bank (‘EIB’, ‘the Bank’) Investment Report 2023/2024 entitled ‘Transforming for competitiveness’, published on 7 February 2024,

     having regard to the EIB document of 8 May 2023 entitled ‘Mid-term review of the EIB Energy Lending Policy’,

     having regard to the EIB Group report on the implementation of the EIB Group Transparency Policy in 2023, published on 1 July 2024,

     having regard to the EIB Group document of 27 November 2023 entitled ‘The EIB Group PATH Framework – Version 1.2 of November 2023 – Supporting counterparties on their pathways to align with the Paris Agreement’,

     having regard to the EIB Group and EIB documents of 21 June 2024 entitled ‘EIB Group 2024-2027 Strategic Roadmap’ and of 29 November 2023 entitled ‘EIB Global Strategic Roadmap’,

     having regard to the EIB Group Sustainability Report 2023, published on 25 July 2024,

     having regard to the EIB information note of 6 February 2023 entitled ‘The European Investment Bank’s approach to human rights’,

     having regard to the EIB Group Complaints Mechanism Report 2023, published on 10 June 2024,

     having regard to the EIB Group document of 14 October 2024 entitled ‘Diversity, Equity and Inclusion at the EIB Group’,

     having regard to the EIB publication of 23 September 2024 entitled ‘EIB Audit Committee Annual Reports for the year 2023’,

     having regard to the EIB Group report of 15 July 2024 entitled ‘EIB Group activities in EU cohesion regions 2023’,–  having regard to the EIB report of 19 October 2023 entitled ‘EIB Investment Survey 2023 – European Union overview’,

      having regard to the EIB Group report of 26 June 2024 entitled ‘EIB Group support for EU businesses: Evidence of impact in addressing market failures’,

     having regard to the joint communication from the Commission and the High Representative of the Union for Foreign Affairs and Security Policy of 5 March 2024 entitled ‘A new European Defence Industrial Strategy: Achieving EU readiness through a responsive and resilient European Defence Industry’ (JOIN(2024)0010),

     having regard to European Court of Auditors Special Report 22/2024 entitled ‘Double funding from the EU budget’,

     having regard to the EIB Group report of 29 December 2023 entitled ‘European Investment Bank Group Risk Management Disclosure Report – June 2023’,

     having regard to the joint communication of 19 March 2025 from the Commission and the High Representative of the Union for Foreign Affairs and Security Policy entitled ‘Joint White Paper for European Defence Readiness 2030’ (JOIN(2025)0120),

     having regard to Rule 55 of its Rules of Procedure,

     having regard to the report of the Committee on Budgetary Control (A10-0068/2025),

    A. whereas the EIB Group includes the EIB and the European Investment Fund (EIF); whereas the EIB stands as the world’s largest multilateral development bank; whereas the EIB is treaty-bound to contribute to EU integration; whereas the EIB’s key priorities include providing funding for projects to foster European integration and social cohesion; whereas the EIF acts as a dedicated body for supporting the European Union’s policy objectives in the areas of entrepreneurship, job creation and economic cohesion;

    B. whereas, as a bank owned by the EU Member States, the EIB is governed by a Board of Governors, a Board of Directors and a Management Committee, and it maintains robust internal mechanisms for accountability, governance and audit; whereas the EIF is owned by the EIB (60 %), the EU (30 %) and financial institutions (10 %) from the Member States, the UK and Türkiye, and is managed by the General Meeting of EIF shareholders, the Board of Directors and the Chief Executive, with independent internal mechanisms for accountability, governance and audit, some of which are shared at the Group level;

    C. whereas both the EIB and the EIF operate within a competitive market but are held to high standards of transparency and stakeholder engagement as EU bodies;

    D. whereas the EIB Group promotes EU policies both within and outside the EU and collaborates closely with other EU and national institutions, aligning its financing with the EU’s political priorities; whereas the EIB Group outlined eight strategic priorities in its Strategic Roadmap for 2024-2027: climate action, digital transformation, defence, cohesion, agriculture, social infrastructure, external financing and promoting the Capital Markets Union;

    E. whereas the EIB is also tasked with securing resources through borrowing activities, which are crucial for implementing the EU’s policies;

    F. whereas the European Council’s strategic agenda for 2024-2029 envisages an enhanced role for the EIB Group as a driver of EU defence and security, and emphasises the need to boost EU competitiveness and improve citizens’ economic and social well-being through significant collective investment efforts, leveraging both public and private funding;

    G. whereas the Draghi report on the future of European competitiveness[1] proposed numerous ways to expand the EIB’s role in financing EU policies and to enable the EIB to assume more risk;

    H. whereas the EIB Group’s core mission is to bolster Europe’s potential for job creation and economic growth; whereas its investments should tackle inequalities by improving access to jobs, training opportunities, housing and education in order to address poverty and unemployment; whereas it is crucial to overcome barriers to financing for small and medium-sized enterprises (SMEs) and mid-caps; whereas public lending and guarantee schemes serve as vital countercyclical policy tools, especially during economic downturns, and help mitigate structural market failures;

    I. whereas the EIB is a cornerstone of the European financial architecture for development and the largest multilateral lender in the EU’s neighbouring regions, including the Eastern Neighbourhood countries, the Western Balkans, the Middle East, and North Africa; whereas the EIB is expected to help close the gap in productive investment between Europe and its main competitors by increasing investment in innovation, communication technology and intellectual property;

    J. whereas the success of the EU’s policy objectives and their effective implementation increasingly depend on the EIB Group; whereas the depth and quality of Parliament’s oversight of the EIB’s financial operations should therefore be in line with the intensity of EIB-Commission cooperation, which has become very significant;

    K. whereas the EIB’s business model requires the highest standards of integrity, accountability and transparency, and robust measures must be implemented and regularly updated to combat financial fraud, corruption, money laundering, terrorism, organised crime and both tax evasion and avoidance; whereas the EIB Group has a control framework aimed at preventing and mitigating sanctions risks;

    L. whereas the EIB Group adheres to the Basel Committee on Banking Supervision’s definition of compliance risk, with the aim of preventing the risk of legal or regulatory sanctions, material financial loss, or damage to reputation; whereas the Bank takes appropriate measures to mitigate such risks by ensuring strict compliance with legal and regulatory frameworks, both at EU and international level;

    Financial operations and performance

    1. Acknowledges that the EIB has operated effectively and efficiently in a landscape marked by significant global challenges, including geopolitical tensions, climate change impacts and other factors influencing the global economy; suggests exploring both the EIB’s effectiveness and efficiency through thoughtful analysis, particularly focusing on the impact on competitiveness and growth;

    2. Recognises that EIB financing is becoming increasingly crucial in the context of high interest rates and constrained public finances; expects the EIB, in the context of a challenging economic outlook and increased global competition, to address constraints to EU competitiveness, such as volatile energy prices, skills shortages in key sectors and insufficient investments in innovation and new technologies;

    3. Notes that the EIB Group achieved strong consolidated results amounting to EUR 2.272 billion in 2023 under the International Financial Reporting Standards (IFRS), compared to EUR 2.327 billion in 2022, reflecting a year-on-year decrease of 2.4 %; calls for a detailed analysis of the factors contributing to this decrease, especially since the period was marked by steady economic growth; observes that EIB reserves reached over EUR 56 billion in 2023, up from EUR 53.9 billion in 2022 and EUR 36 billion in 2014;

    4. Notes that the EIB’s total liquidity ratio remained well within internal limits to the end of 2023 and that the EIB’s Common Equity Tier 1 (CET1) ratio stood at 33.1 % in 2023, significantly higher than the average ratio of significant institutions supervised by the European Central Bank (ECB) at that time; emphasises that maintaining the EIB’s AAA rating with a ‘stable’ outlook is crucial for securing favourable market financing at preferential rates and should be preserved; underlines that the EIB’s high credit standing is key to its successful business model;

    5. Calls on the EIB to maintain its strong capital position and consistently high profits, but notes that the Bank has potential to absorb potential fluctuations in returns without compromising shareholder capital or its credit rating, has the capacity to take on more risk in strategic investments and is well-equipped to invest more in higher-risk innovative projects where private capital remains hesitant;

    6. Highlights that the EIB’s total disbursements reached EUR 54.4 billion in 2023, with EUR 53.4 billion from its own resources, compared to EUR 54.3 billion (EUR 53.3 billion from its own resources) in 2022; observes that the EIF’s disbursements on private equity investments amounted to EUR 139.7 million in 2023, compared to EUR 113.7 million in 2022; notes that, according to an economic model developed jointly by the EIB’s Economics Department and the Commission’s Joint Research Centre, the EIB Group’s overall investment within the EU in 2023 is expected to create around 1 460 000 new jobs in the EU-27 by 2027 and boost the EU’s GDP by 1.03 percentage points; calls on the EIB Group to ensure a more balanced geographical distribution of investments to maximise their impact across all EU regions, promoting cohesive and inclusive growth throughout the Union, with particular attention to under-represented and less developed areas;

    7. Recalls that the EIB’s Statute mandates geographical balance among its staff and that the selection of staff members must be based on merit, while also considering fair representation of nationals from all Member States; encourages the Bank to continuously monitor geographical balance among its staff and to adjust the recruitment process accordingly, if needed;

    8. Welcomes the fact that the EIB Group upholds a rigorous policy against tax fraud, tax evasion, tax avoidance, money laundering and terrorism financing;

    InvestEU, the simplification of the multiannual financial framework, and the Recovery and Resilience Facility

    9. Welcomes the adoption, on 13 December 2023, of the EIB Group Operational Plan 2024-2026, which outlines the priorities and activities for implementing the EIB Group’s strategy over the next three years; calls for adjustments to new market conditions, including simplification and a reduction of bureaucracy to remove barriers to financing for SMEs, which must be significantly increased; acknowledges that increasing higher-risk activities and mandates is crucial for providing effective support to high value-added and innovative sectors;

    10. Recalls that the EIB Group has been allocated 75 % (EUR 19.6 billion) of the EU budgetary guarantee under the InvestEU Regulation[2]; highlights that, in 2023 alone, the EIB approved 30 operations under InvestEU totalling EUR 9.1 billion; believes that in order to stay competitive, significant investments are needed, primarily from the private sector; believes that focusing on innovative projects, start-ups and scale-ups would enhance European competitiveness and growth; notes that this requires mobilising private investments; calls, therefore, on the EIB to play a more significant role in strategic de-risking through guarantees, thereby encouraging private capital investment;

    11. Stresses that, within the current 2021-2027 multiannual financial framework, the EIB manages 87 mandates from the Commission, increasing to about 130 if those relating to shared management and assigned by local governments and the Member States are included, and notes that the EIB produces no fewer than 457 reports a year for these; points out that de-bureaucratisation and simplification are deemed necessary to enable better use of resources;

    12. Emphasises that the EIB is managing six Recovery and Resilience Facility (RRF) mandates in four Member States, signed in 2021 (Greece and Italy), 2022 (Romania) and 2024 (Spain), totalling EUR 8.7 billion; acknowledges that the adoption of ‘financing not linked to costs’ instruments, which have significantly expanded with the RRF, inherently raises the risk of errors and double funding; expresses its concern about the transparency, auditing and monitoring of the implementation of the RRF; calls on the EIB to cooperate with Member States to address government capacity constraints and the lack of technical skills so as to ensure that RRF resources are managed as effectively as possible, in alignment with national structures and complying with all RRF reporting requirements, especially in the implementation of investment projects and reforms; urges the Commission and the EIB, in its advisory role, to refrain from proposing new financing mechanisms based on the RRF model without taking corrective measures, including in the upcoming post-2027 multiannual financial framework; stresses that, while the EIB seeks simplification, it must not compromise the soundness of EU resource management or the ability to maintain oversight and accountability, as mandated by the Treaties;

    Energy security

    13. Notes the EIB’s continued support for security of supply, which mainly takes the form of reinforcing electricity grids and cross-border infrastructure, of reducing energy demand through energy efficiency projects and of fostering low-carbon power generation; commends the fact that the EIB has supported new dimensions of energy security, such as demand response and energy storage, and has promoted the development of a sustainable supply of critical raw materials (CRM) needed for the energy transition; calls for an urgent analysis of the real impact of these projects implemented to date, especially of their impact on the availability and cost of energy and thus on the general competitiveness of European companies;

    14. Reiterates the need to address energy poverty and emphasises the need for a fair and inclusive energy transition; recalls that the energy crisis is exacerbating inflation, increasing food insecurity and straining household budgets; encourages the EIB to leverage the Just Transition Mechanism and the Modernisation Fund to support regions and populations most affected by the energy transition; stresses the importance of using the Just Transition Mechanism to support workers and regions affected by the phase out of fossil fuels, ensuring access to retraining and quality jobs; recognises that numerous sectors are grappling with challenges stemming from the combined effects of adaption to European Green Deal objectives and the repercussions of the energy crisis and inflation; stresses that accelerating the deployment of innovative low-carbon technologies requires bringing their costs to a level that is competitive with fossil fuels and adjusting to the ongoing reform of the green policies;

    15. Acknowledges that the REPowerEU plan is a crucial new element in the EU policy response to the energy crisis; notes that, in July 2023, the EIB Group increased the financing targets of the October 2022 commitment from EUR 30.0 billion until 2027 to EUR 45.0 billion (REPowerEU+), in order to scale up its efforts to support the EU’s energy security; calls for a clear overview of potential double funding of energy projects;

    16. Underlines that in 2023, the EIB provided approximately EUR 21.4 billion in financing for energy-related projects, of which around EUR 19.8 billion in the EU and EUR 1.6 billion outside the EU; considers it necessary to increase not only the volume of financing for energy-related projects, but also the efficiency of the investments; underlines, in this regard, the importance of the EIB’s combined offer of competent technical assistance and innovative financial support, and encourages the Bank to expand the range of innovative financing products offered to economic operators, going beyond the standard market offer;

    17. Believes that hydrogen and its derivatives, particularly when sourced from renewable energy, can significantly contribute to the EU’s decarbonisation goals and reduce dependence on fossil fuels; urges the EIB to take a leading role in mobilising private investments, which are essential for scaling up hydrogen production across the EU, while ensuring technological neutrality and supporting a diverse range of innovative solutions for decarbonisation, including further scientific research aimed at enhancing and stabilising the efficiency of hydrogen technology; encourages the Bank to consider the cost-effectiveness of such projects from the perspective of their total life cycle;

    Defence and security policy

    18. Welcomes the significant role that the EIB Group plays in supporting the EU’s defence and security policy by providing funding and leveraging private investment to enhance the Union’s strategic autonomy and resilience; stresses the importance of the EIB’s investment capabilities, supporting initiatives that contribute to strengthening the EU’s defence industry, advancing cybersecurity infrastructure and promoting innovation in critical defence technologies;

    19. Appreciates that security and defence is set as one of the Bank’s core priorities in its Strategic Roadmap for 2024-2027; highlights that in May 2024, the EIB’s Board of Directors approved the EIB Group Security and Defence Industry Action Plan, which follows the EIB Group 2022 Strategic European Security Initiative aimed at supporting innovation in dual-use technology, in order to enhance support for the EU’s security and defence industry; notes, with satisfaction, that EIB Group support is provided to SMEs and innovative start-ups within the security and defence sector under the ‘dual-use’ principle, upholding the ‘credible civil use’ criterion, but waiving the revenue test; welcomes the decision of the EIB Board of Directors of 21 March 2025 to expand the Bank’s eligibilities for financing Europe’s security and defence industry and infrastructure, by ensuring that excluded activities are as limited as possible in scope;

    20. Welcomes the EIB’s targeted investments in both defence and civilian infrastructure and emphasises the need for strategic investment in technologies that serve both civilian and defence purposes, in line with the EU’s broader goals of promoting innovation and enhancing the Union’s security; calls on the EIB Group to conduct a review of the impact of the extension of its new dual-use goods policy;

    21. Stresses the importance of SMEs, start-ups and mid-caps in the security and defence industry and in developing a common European market for defence; believes that smaller actors play a crucial role in strengthening the Union’s capacity and autonomy to develop innovative defence products; encourages the EIB to further support cross-border research and development (R&D) cooperation, particularly by paving the way for smaller actors to take part in the defence supply chains; stresses that greater EIB investment in the defence sector can encourage investment by commercial banks in the same area and considers it necessary to increase the flexibility of lending to SMEs in this regard;

    22. Notes that the resources allocated to support the defence and security sector mainly come from the European Defence Fund (EDF) (EUR 8 billion), the EIB Strategic European Security Initiative (SESI) (EUR 8 billion) and the European Defence Industry Programme (EDIP) (EUR 1.5 billion); calls for a dedicated capital allocation on defence and the further adjustment of the scope of eligible investments in order to meet the ambitious role of contributing to Europe’s peace and security set by the White Paper on European Defence Readiness 2030 for the EIB Group; welcomes the integration of the EIB’s existing EUR 8 billion SESI into a cross-cutting and permanent public policy goal and the removal of a predefined ceiling for financing in this area; believes that these measures will allow the Bank to respond to the investment needs in security and defence, while safeguarding its operations and strong financial position; believes that the decision by the Board of Governors in June 2024 to increase the gearing ratio of the Bank will enable increased investments in areas of strategic importance, including in security and defence;

    23. Underlines the added value of the innovative measures that the EIB has adopted to accelerate investments in security and defence, and of the ‘one-stop shop’ that acts as the single point of entry for clients and external stakeholders, to whom it offers expert assistance to streamline access and speed up deployment of financing available under the SESI; encourages the EIB to continue developing and implementing agreed upon measures that simplify client procedures and further accelerate investment processes, while ensuring that the AAA rating is preserved;

    24. Notes, with appreciation, that in June 2023, the EIB approved an increase in SESI for security investments in the EU from EUR 6.0 billion to EUR 8.0 billion for the period from 2022 to 2027, also including the space and cybersecurity sectors; encourages the EIB to strengthen institutional partnerships with the EU Agency for the Space Programme and other potentially relevant partners, in accordance with EU competition rules;

    25. Commends the EIB’s cooperation with all relevant stakeholders, including Member State governments, the European Defence Agency (EDA) and the NATO Innovation Fund; appreciates, in particular, the EIB Group’s cooperation with the EDA and welcomes the signing of an update to the memorandum of understanding between the two bodies on 3 October 2024, which will allow them to strengthen strategic partnerships and jointly identify financing needs to better support research, development and innovation (RDI) in the area of security and defence in the Union;

    26. Invites the EIB to further strengthen such collaboration with key stakeholders with a view to increasing impact, synergies and complementarity with EU defence programmes, ensuring that its investments complement broader EU defence policy goals and contribute to achieving economies of scale in European defence capabilities; asks the EIB to enhance regional security and resilience, particularly in Eastern Europe and the Mediterranean through the creation of infrastructure that supports regional security and fosters greater cooperation between EU Member States on defence matters; stresses, furthermore, the importance of exploring cooperation with the NATO Innovation Fund in order to improve access to financing for technology start-ups, in parallel to the deployment of the EIF Defence Equity Facility;

    Social infrastructure and housing

    27. Asks the EIB to increase risk-taking for projects providing essential services with long-term clear and measurable benefits; welcomes, in this vein, the EIB Group’s actions and measures in the area of housing and social infrastructure that contribute to affordable housing, social inclusion and regional development, while also supporting sustainability and innovation; calls on the EIB to prioritise its investments towards these goals in order to achieve better economic growth, social inclusion and regional cohesion, while also supporting the EU’s sustainability objectives; invites the Bank to focus on sustainable urban development and inclusive growth by ensuring that the EU’s housing and infrastructure needs are met for a stronger, more cohesive and prosperous Europe;

    28. Emphasises that housing purchase and rental costs have surged significantly in recent years, reducing the affordability of many metropolitan areas in the EU and limiting access to housing; stresses that the EIB must play a stronger role in addressing the housing crisis; welcomes the inclusion of support for social infrastructure in the EIB Group’s eight strategic priorities for 2024-2027 and agrees that investments in energy-efficient, sustainable and accessible housing, and education within easy reach are crucial for boosting productivity and fostering strong and resilient societies; encourages the EIB to prioritise investments in housing cooperatives, energy-efficient social housing and renovation projects targeting low-income households; believes that addressing the EU’s major housing investment gaps requires overcoming both financial and non-financial investment barriers and the large-scale mobilisation of resources and capacities;

    29. Welcomes that the EIB, in collaboration with the Commission, has initiated a pan-European investment platform aimed at promoting affordable and sustainable housing, combining advisory services and financing, and encourages the participants to continue this initiative;

    30. Welcomes the EIB’s commitment to easing the pressure on housing markets in Europe; stresses that housing purchase and rental prices have increased significantly in recent years, reducing the affordability of many metropolitan areas in the EU and compromising access to these; emphasises that EIB analysis shows that the EU needs about 1.5 million new housing units per year to cope with demand, and that about 75 % of the EU’s building stock needs to be renovated, representing an additional 5 million units per year; welcomes the fact that the EIB supports the reconstruction of existing housing and the construction of new social and affordable accommodation; encourages the EIB to mobilise more funding for affordable housing projects among the Member States;

    31. Calls for the strengthening of technical assistance and financial expertise in support of local and regional authorities, especially in areas with low investment capacity, in order to improve access to EIB funding; believes that cooperation with local authorities, local governments and civil society representatives should foster the development of social housing suitable for all, and especially for the most vulnerable citizens of the concerned Member State; is aware that the effectiveness of the EIB’s action in the housing and social infrastructure sector also depends on the removal of policy and regulatory hurdles;

    32. Notes that, in 2023, the EIB signed EUR 8.3 billion in financial support for energy efficiency operations, of which 65 % was for energy efficiency in buildings; invites the EIB to prioritise long-term affordable and accessible solutions, and sustainable investments, such as energy-efficient renovations and the reuse of vacant buildings;

    33. Believes that the related investments should ensure sufficient durability before any change of destination or use is authorised;

    34. Invites the EIB to build on its long-standing experience as an accelerator of European investments and to also deploy its potential in the education and training and healthcare sectors, including through advisory services; calls on the Bank to strengthen support for healthcare capacities, both within and outside the EU, thus  ensuring a stronger role for Europe in the world;

    Support for SMEs, mid-caps, start-ups, scale-ups and businesses in rural and remote areas, the Capital Markets Union and the role of the EIF

    35. Highlights that SMEs, start-ups and scale-ups are vital for the EU’s economy; notes that these businesses encounter significant hurdles in accessing financing, markets and talent, which constrains their growth; asserts that business growth, dynamism and public investment are essential for fostering innovation, competitiveness and productivity; encourages the EIB Group to continue addressing these challenges, notably in the current geopolitical context, through customised financial programmes, risk-sharing mechanisms and targeted financial instruments, while ensuring the additionality of public resources for these purposes and avoiding the crowding out of private capital; notes that different instruments to support lending to businesses can be combined depending on the context, and that different EIB Group instruments target different market failures and firm types; stresses the need to provide technical assistance to SMEs before project approval, in order to improve access to EIB funding;

    36. Notes that the development of a well-functioning securitisation market can be a key first step towards establishing a strong Capital Markets Union (CMU); believes that the CMU will benefit consumers and SMEs by offering high-yield investment opportunities in the real economy and will eventually boost the venture capital market by improving access to diversified funding sources; believes that financing European scale-ups with European capital should be a priority, as exemplified by the European Tech Champions Initiative, which was launched in February 2023 to finance promising European tech companies and prevent the sale of businesses to foreign investors because of the lack of European investment; encourages the EIF to explore establishing the second generation of this initiative; observes that the European Tech Champions Initiative is complemented by the European Scale-up Initiative, which aims to provide crucial financing for Europe’s high-tech companies in their late-stage development; notes that these investments should be in line with policy actions at EU and national level; is aware of the comparative weaknesses of the European venture capital market in respect of other competitors’ markets, and that European start-ups and scale-ups are often obliged to relocate or search for foreign buyers or rely on sources of financing other than venture capital, hence less suited to high-growth;

    37. Acknowledges the mission of the EIF to support access to financing for European micro, small and medium-sized enterprises; believes that the EIF should significantly step up its activities for the development of the European venture capital ecosystem, while maintaining a geographical balance; calls for the EIF’s activities to be strengthened, enabling increased investment in high-growth sectors, enhancing risk-sharing between public and private investors, and promoting innovation throughout Europe; considers it necessary to monitor the rate of increase in support for micro, small and medium-sized enterprises;

    38. Encourages the EIF to further develop its monitoring tools to better track the long-term performance of venture capital funds and SME financing operations, especially in terms of job creation, innovation diffusion and regional impact; stresses also the critical role of large European companies in Europe’s economic structure, particularly those operating in essential sectors such as energy, defence and infrastructure; calls for a balanced approach that ensures the EIB continues to support large European companies in securing investment capital for major projects and research and development initiatives, thereby enhancing Europe’s global competitiveness;

    39. Praises the support provided by the EIB Group to about 400 000 SMEs and mid-caps in 2023 alone, with EUR 31.1 billion in financing, including loans and guarantees for businesses (of which EUR 14.9 billion was deployed by the EIF), resulting in the mobilisation of over EUR 134 billion, and notes that it teamed up with almost 300 partner institutions across Europe to this end; encourages the EIB to continue its role in improving access to financing for SMEs, which often face barriers to funding from traditional financial institutions, providing targeted financing to ensure sufficient resources to grow and thrive; welcomes and calls for the constant expansion of the number of partner institutions to reach a wide geographical and sectoral coverage;

    40. Recalls that the deployment of the European Guarantee Fund ended in 2023 and that its disbursements to help SMEs to recover from the adverse impact of the pandemic reached approximately 200 000 SMEs across the EU; recalls the concerns expressed in previous resolutions about the transparency of the decision-making processes and information about final recipients;

    41. Welcomes that EIF measures on anti-money-laundering, countering the financing of terrorism and tax avoidance encompass risk assessments for products and transactions, thorough due diligence on counterparties and screening the ownership structures and key individuals against sanctions and adverse media; welcomes the introduction of mandatory staff training and the conclusion of an agreement with the Financial Intelligence Unit of Luxembourg on the reporting of and follow-up on any suspicious transactions detected;

    Key policy areas of cohesion, climate action and environmental sustainability, and digitalisation

    42. Appreciates that in its 2021-2027 Cohesion Orientation, the EIB committed to dedicating at least 40 % of its total financing in the EU between 2022 and 2024 to projects in cohesion regions; notes that, in 2023, such financing amounted to EUR 29.8 billion, equivalent to 45 % of the Bank’s total signatures in the EU; underlines that the share of EIB financing allocated to less developed regions increased from 24 % in 2022 to 26 % in 2023, totalling EUR 17.2 billion, well above the 21 % target set in the EIB Cohesion Orientation for 2023; reiterates the call for the EIB to continue monitoring, analysing and addressing the shortcomings that prevent certain regions or countries from fully benefiting from the EIB’s financial support and assistance;

    43. Acknowledges the role played by the EIF in contributing to economic and social cohesion in the Union through a wide range of financial instruments; notes that EIF commitments to credit guarantees, venture capital and private equity investments for cohesion regions in 2023 stood at EUR 6.8 billion, representing 48 % of total EIF commitments in the EU; notes that in 2023, the EIF was especially active in Central and Eastern Europe;

    44. Notes that the EIB Environmental and Social Sustainability Framework includes revised environmental and social policy and standards promoting an integrated approach to impact and risk assessment and management;

    45. Acknowledges that over the past 15 years, EIB Advisory has supported over 1 000 projects in cohesion regions; calls on the Bank to actively promote financing opportunities in less developed and transition regions, including by boosting the presence of advisory services in EIB local offices; considers it necessary to also take into account the geographical distribution of EIB support for increasing social cohesion;

    46. Highlights the EIB’s initiatives in cohesion regions to support the healthcare sector, including the HERA Invest programme, a EUR 100 million guarantee established with the Commission to support research and development in addressing pressing cross-border health threats; encourages the EIB to promote targeted investments in key systemic enablers such as healthcare, education, social housing, digital connectivity and local financing for cities and regions, ensuring a better geographical balance, either through direct lending or financial instruments, and to leverage synergies between EU grants and EIB loans to enhance cross-border rail connectivity, which is crucial for better integration within the EU single market;

    47. Acknowledges the EIB’s strategic orientation since 2019 to be the EU Climate Bank; emphasises that in 2023 alone, the EIB signed EUR 41.8 billion in financing for climate action and EUR 25.1 billion for environmental sustainability (EUR 35.1 billion and EUR 15.9 billion respectively in 2022); notes that EIB financing for climate change adaptation totalled EUR 2.7 billion in 2023, corresponding to 6.4 % of its total climate action (compared to EUR 1.9 billion, or 5.4 %, in 2022); welcomes that climate action and environmental sustainability financing, as a whole, accounted for 60 % of EIB financing in 2023; calls for maintaining technological neutrality in its investment strategy in climate and sustainable financing;

    48. Recalls that the EIB Energy Lending Policy (ELP), adopted in 2019, established a ‘phase out support to energy projects reliant on unabated fossil fuels’ and introduced a transition period during which the Bank could continue to approve projects already under appraisal, but the Board of Directors did not approve any such project after the end of 2021; remarks that, in 2022, the EIB Group introduced a temporary and exceptional extension of the exemptions to the Paris Alignment for Counterparties Framework (so-called PATH) in support of REPowerEU, to cover projects with high innovative content and renewable energy projects and electric vehicle charging infrastructure in the EU; observes that, in 2023, the EIB Group decided to apply the same temporary and exceptional extension also for projects in the spirit of REPowerEU outside the EU; notes that such temporary and exceptional extensions are expected to run until 2027, subject to a Climate Bank roadmap review expected in 2025; recalls its previous resolution[3] and maintains that PATH offers the appropriate framework for supporting counterparties on their pathways to align with the Paris Agreement objectives; emphasises that the EIB is expected to intensify its engagement with all of its clients to foster the development of their decarbonisation plans;

    49. Notes the EIB Group Climate Bank Roadmap mid-term review, approved in 2023, which includes a simplified Paris Alignment framework for microenterprises, the revision of the PATH framework’s disclosure requirements for financial intermediaries and a temporary extension of the list of countries in which the EIB can act as a sole financier of climate adaptation projects due to their particular vulnerability to climate change;

    50. Welcomes the EIB Group’s inclusion of agriculture and bioeconomy among its key priorities, but notes that agriculture, fisheries and forestry received only 1.1 % of the EIB’s lending stock in 2023; considers it important for the EIB to programme significant amounts for financing the agricultural sector and through simplified procedures;

    51. Underlines that agriculture is a key driver of growth and development in rural areas; acknowledges the increasing challenges faced by the agricultural sector and the need for EU farmers to adapt to the European Green Deal objectives, cope with the energy crisis and manage rising inflation; calls on the EIB Group to enhance support and foster innovation for this vital sector, which plays a significant role in ensuring food security, leveraging the EU’s One Health approach by integrating human, animal, plant and environmental health to create sustainable, resilient and productive agri-food systems; highlights the financial challenges faced by farmers, particularly young and small operators, noting that farmers and the enterprises in this sector experience lower success rates when applying for financing;

    52. Stresses that EIB support should have a just transition approach in order to achieve sustainable agriculture that protects the environment, human health and animal welfare, while improving farmers’ livelihoods, in particular for small and medium-sized farms; maintains that supporting rural areas is essential for promoting balanced and inclusive development, generational renewal and equal access to financial opportunities for women and men; reiterates its call on the EIB Group to increase its involvement in the agricultural sector by improving access to funding;

    53. Appreciates that the EIB Group is one of the key supporters of digitalisation in the EU, particularly in financing digital infrastructure and supporting innovative digital start-ups; encourages the EIB to enhance its support for digital networks strengthening the EU’s technological autonomy and innovation in key technologies;

    54. Believes that reducing digital inequality and preventing social exclusion requires significant public investment in telecommunications infrastructure, particularly in rural areas; encourages the EIB to support European citizens in acquiring adequate digital literacy to fully participate in society, with a special focus on the elderly and those with disabilities;

    55. Recognises the critical role of the cybersecurity sector in protecting businesses and governments from advanced digital threats and foreign influence; welcomes the increase in security investments from EUR 6 billion to EUR 8 billion, financed through the SESI to address security challenges, including those in the New Space industry;

    56. Welcomes the EIB’s focus on gender equality and women’s economic empowerment, resulting in a total of EUR 5.8 billion in investment in this field in 2023 (compared to EUR 5.1 billion in 2022); believes that the EIB could further increase microfinance loans to women-led businesses, which still face discrimination in access to financing;

    57. Highlights that the security of supply of critical raw materials is crucial for both the green and digital transitions, as well as for the defence sector and the EU industrial base in general; calls on the EIB to increase investments in the CRM sector to help diversify the supply of both primary and secondary raw materials and to develop circular economy solutions, in particular R&D for alternative materials, such as bio-based materials; welcomes, in this regard, the adoption on 21 March 2025 of a new CRM strategic initiative, with an expected EUR 2 billion in financing for CRM investment in 2025, a new CRM Task Force and a dedicated one-stop shop to build and manage a pipeline of CRM operations and advisory activities and increased technical expertise and partnerships;

    The EIB’s activities outside the EU

    58. Underlines that in EIB Global’s second year of existence, it provided financing amounting to EUR 8.4 billion (compared to EUR 9.1 billion in 2022); notes that, as EIB Global financing is limited to 50 % of the total cost of a project, investment co-financing with development finance institutions and multilateral development banks is recurring; calls on the EIB and the Commission to invest in internal audit and independent control functions to guarantee the integrity and soundness of all operations;

    59. Recalls that EIB Global is among the key implementing actors of the European Global Gateway and, as such, is expected to apply the highest standards of transparency and accountability;

    60. Notes the adoption by the EIB Board of Directors of the EIB Global Strategic Roadmap and its commitment to respect and promote human rights and the rule of law in the projects it supports;

    61. Highlights the importance of ensuring that the EIB Group’s interventions in Ukraine are guided by the priorities for the country’s reconstruction agreed with the EU, and are consistent with the methods and frameworks laid out in the Ukraine Plan and with the provisions of the EU Treaties; notes that the EIB is further enhancing its efforts to address fraud and corruption in relation to the EIB Group projects implemented in Ukraine; calls for the continued application of appropriate conditionality on the financial assistance provided to Ukraine, with a focus on ensuring effective oversight mechanisms, such as access to information and premises, and the monitoring of visits, and calls for conditionality to be extended to all non-EU countries for which it provides financing;

    62. Urges the strengthening of the administrative and audit capacity of Ukrainian authorities responsible for implementing, monitoring, controlling and supervising funded actions, in particular for the prevention of fraud, corruption, conflicts of interest and irregularities; reiterates that the EIB should have clear and unrestricted oversight at all times;

    63. Believes that a greater role for the EIB will bring added value for both the reconstruction of Ukraine and the enlargement process and for prospective partnerships under the EU’s Global Gateway agenda and neighbourhood policy and in support of the Sustainable Development Goals; encourages the Commission to maximise cooperation with the EIB to leverage the EU’s strategic autonomy, particularly on energy and raw materials;

    64. Welcomes the adoption, in 2024, of the Ukraine Facility, which follows the EIB’s EU for Ukraine (EU4U) initiative and establishes a support mechanism based on EU budget resources; encourages the Member States to ensure that solid support continues to be provided to the country, in line with its needs;

    65. Stresses that, in order to support Ukraine, the EIB has built up a loan portfolio of over EUR 7 billion since the beginning of the conflict with Russia in 2014; underlines that, as of 31 December 2023, the EIB’s exposure (disbursed and not yet disbursed) amounted to EUR 5.750 billion, predominantly covered by EU guarantees under the External Lending Mandate; notes that, in addition, the Bank also granted financial guarantees on exposures to counterparties located in Ukraine, fully covered by EU Comprehensive Guarantees, for a signed amount of EUR 388.7 million at the end of 2023 (compared to EUR 478.8 million at the end of 2022);

    66. Notes the growing financial engagement of the EIB in Ukraine; calls on the Bank to provide regular, detailed updates to the budgetary authority and relevant audit bodies regarding the disbursement and implementation of funds covered by EU guarantees;

    67. Underlines the disproportionate impact of the Russian war of aggression against Ukraine on eastern EU regions bordering Russia and Belarus; draws attention to the costs borne by these regions and Member States as a result of their shared border with hostile neighbouring countries, notably their need to increasingly redirect public funds towards security, defence and preparedness, while dealing with severely reduced resources due to a disruption in economic activities, cross-border trade and other exchanges, and in cohesion programmes; calls on the EIB to take this into account in its financing decisions;

    68. Welcomes the significant investments made in Moldova to support economic resilience, improving energy security, enhancing infrastructure and aiding the country’s progress towards EU integration; acknowledges that in the Western Balkans, EIB Global invested EUR 1.2 billion in 2023, plus an additional EUR 700 million to enhance road safety and improve railway networks; welcomes the adoption of the Reform and Growth Facility for the Western Balkans in 2024 and the Reform and Growth Facility for Moldova approved by the European Parliament;

    69. Recognises the role played by the EIB in supporting the Western Balkans on their path to Union membership, in line with the EU’s enlargement policy; observes that EIB Global invested EUR 1.2 billion in the Western Balkans in 2023, mobilising a total of over EUR 6 billion in investments; notes that the majority of the financing was allocated to sustainable connectivity, followed by credit lines for SMEs, infrastructure projects in the healthcare, education and skills sectors, and water supply and sanitation;

    70. Asks the EIB to collaborate with other bilateral and multilateral institutions to develop and apply common methodologies for development impact analysis, with a view to ensuring added value and long-term, positive impacts;

    EIB accountability architecture

    71. Recalls that internal oversight at the EIB is headed by the Inspectorate General (IG), which comprises three accountability-related divisions – operations evaluation, the complaints mechanism and fraud investigation – that hold complementary roles, contributing to the consistent handling of allegations and complaints;

    72. Observes that the EIB Complaints Mechanism (EIB-CM) handled a total of 104 cases in 2023 (97 in 2022); notes that 60 new complaints were received in 2023 (54 in 2022), of which 44 were considered admissible and 29 were related to EIB-financed projects, of which 27 were located outside Europe;

    73. Notes that the EIB Procurement Complaints Committee is the independent EIB committee handling complaints about project procurement procedures relating to EIB-financed projects outside the EU;

    74. Welcomes the efforts of the Investigative Division (IG/IN) to cooperate and coordinate efforts with the other components of the EU’s anti-fraud architecture, in particular the European Anti-Fraud Office (OLAF) and the European Public Prosecutor’s Office (EPPO), which received 37 % of the referrals made for investigations in 2023 (27 cases out of 74); encourages the IG/IN to strengthen its cooperation with all components of the EU’s anti-fraud architecture;

    75. Notes that the IG/IN carries out proactive fraud detection activities using the Fraud and Integrity Risk Scoring Tool and the Corruption Risk In Procurement robot and that, in 2023, 24 reviews identified targets for three full and in-depth proactive integrity reviews; invites the Bank to assess how these digital tools could be further enhanced to support transparency and financial accountability;

    76. Regrets the fact that, despite repeated calls by Parliament, the IG/IN annual report does not provide adequate information about the financial magnitude of the cases it handles, the funds or mandates affected, the kinds of projects concerned, the mitigating measures adopted, the role of the EIB services and of the intermediaries or partners in the cases, or even the Member States concerned; invites the representatives of the IG/IN to increase the level of engagement, interactions and transparency with Parliament, especially regarding the control of the financial activities; reiterates its call to the IG/IN to go beyond providing a mere narrative description of a few case studies, and to periodically report valuable insights into the extent to which financial interests are safeguarded; suggests that the IG/IN adopt a reporting model similar to those used by other investigative bodies, such as EPPO and OLAF, where a proper balance between transparency and duty of confidentiality or of professional secrecy is pursued;

    77. Is aware that the EIB Exclusion Policy provides for an autonomous exclusion process that is not fully equivalent to the Commission’s Early Detection and Exclusion System in terms of decision-making standards, results and remedies; reiterates its call on the EIB Group and the Commission to cooperate in identifying the potential gaps and proposing remedies, including an expedited procedure to enforce EIB exclusion decisions via the Early Detection and Exclusion System; observes that in 2023, exclusion proceedings based on IG/IN findings excluded five companies from participating in any EIB-financed activity for a period of five years;

    78. Welcomes the approval, in 2023, of the EIB Group’s Internal Control Framework Policy; acknowledges the results of the group alignment process between the EIB and the EIF insofar as they reflect the different business models and governance structures of the two entities; refers, in particular, to the Audit Committee’s remarks that both internal audit and the internal control framework should evolve to become group functions;

    79. Notes that the EIB’s independent external auditor is the third line of defence; points out that the regular rotation of auditors and assignments allows fresh perspectives, and therefore observes that the EIB external auditor should be rotated periodically, yet its mandate was extended until 2027 and it has been the auditor of the EIB Group since 2009;

    80. Appreciates that the EIB Group Risk Management Framework and EIB Group’s semi-annual Risk Management Disclosure Reports are effective and are aligned with the requirements and technical standards of the European Banking Authority;

    81. Stresses that, in 2023, despite difficult market conditions, the EIB’s portfolio continued to exhibit very low levels of non-performing exposures (NPEs); takes the view that even if a significant portion of the Bank’s loan portfolio benefits from credit enhancements or from EU Member State guarantees, the high quality of the EIB’s portfolio results from the diligent implementation of very effective EIB lending policies;

    82. Highlights that the EIB does not fall within the scope of application of the EU’s legislation applicable to credit institutions, in particular the Capital Requirements Regulation[4] and Directive[5] (CRR, CRD), thus the Bank is entitled to determine its capital and liquidity requirements in a manner that is adequate and appropriate to its activities, its mission and the market conditions; points out that the EIB Group is committed to conform to the best banking and market practices and can determine their applicability in line with the proportionality principle; stresses that the implementation of these norms should not create unwarranted burden; welcomes the fact that the EIB Group voluntarily performed the Review and Evaluation Process; points out that this should be in line with the EIB’s governance structure and mission;

    83. Understands that, in line with the EU’s evolving needs, the EU institutions approved, in 2024, the change in statute proposed by the EIB Board of Governors by amending the statutory limit on its gearing ratio[6] and raising it from 250 % to 290 %, to enable the EIB to invest more without increasing its equity base;

    84. Notes that the amended gearing ratio paves the way for increased risk-taking; acknowledges that investments in renewable energy, sustainable infrastructure and innovative technologies are crucial for the EU’s competitiveness, but often carry greater risk because of the uncertainty of returns; points out that increased risk-taking may increase the volatility of the EIB’s returns, but observes that the EIB maintains capital buffers that would support expanded risk activities;

    85. Is alarmed by the situation of Northvolt AB, a battery manufacturer considered pivotal in the green transition; stresses that Northvolt has benefited from a substantial EIB lending package of slightly over EUR 942.6 million as part of the debt financing to expand a gigafactory site; notes that Northvolt filed for bankruptcy in March 2025; calls on the EIB to provide details about the evaluation and decision-making process to fund Northvolt AB and the causes that led to the failure of the project;

    86. Stresses that the expansion of the gigafactory site was expected to increase the annual output capacity for battery production and was of strategic importance for global competitiveness and was consistent with the EU’s strategies in the sector;

    87. Calls on the Commission and the EIB Board of Directors to launch an in-depth internal review without undue delay to verify the financial damage, the reasons for and the background to the failure of this flagship project and to learn from this experience in order to prevent the recurrence of a similar situation or enable the early detection thereof;

    88. Maintains that the greatest added value of EU support lies in fostering higher-risk investments in innovative projects, scaling up EU strategic goals and enabling long-term transition projects that cannot get funding from the private sector; believes that to effectively pursue its targets in innovation and competitiveness, the InvestEU programme should focus on financing higher-risk and more scale-up investment and that the EIB Group should take on more and larger high-risk projects, which should involve primarily and preferentially European investors, combining a more risk-absorption-oriented deployment of InvestEU resources with an equivalent orientation in the use of the EIB Group’s own financial resources; urges the EIB to introduce stricter conditions to prevent EU public financing from being used to subsidise companies relocating production outside Europe, ensuring that all EIB-funded projects contribute to long-term European industrial resilience;

    89. Is aware that members of the EIB’s Management Committee are often civil servants in their countries of origin before beginning their terms at the EIB, which typically last for two to six years, and that they are therefore entitled to pursue professional development opportunities subject to certain conditions during the cooling-off period (which has been extended to a period of 24 months after the end of their term at the EIB); notes that Management Committee members are asked to inform the Ethics and Compliance Committee and seek approval as soon as possible for any negotiations regarding prospective employment;

    90. Strongly echoes Parliament’s repeated calls to strengthen the mechanism to prevent conflicts of interest within the EIB and to improve the handling of such cases, and to better define the terms under which EIB vice-presidents can participate in decisions about operations in their countries of origin, and insists that these matters be addressed in a future revision of the Management Committee code of conduct;

    91. Highlights that on 31 October 2023, the European Ombudsman ruled in Case 611/2022/KR that a former vice-president had participated in approving financing agreements between the EIB and a national promotional bank[7] in his country of origin just weeks before becoming the Chief Executive Officer of that national promotional bank, despite the EIB’s Chief Compliance Officer advising against such actions during the appointment process; understands that this case predates the entry into force of the current Management Committee code of conduct, which now includes specific provisions regarding the prospective employment of its members; notes that, in the future review of the rules applicable to its Ethics and Compliance Committee, the EIB has committed to consider the European Ombudsman recommendation to make public the Committee’s decisions;

    92. Observes that mitigating measures, such as ring-fencing and cooling-off periods, are the most common precautionary clauses to be used when handling a revolving-doors case and understands that such measures are implemented and are complied with by the members of the Management Committee, including those recently reported on in the media;

    93. Shares the view of the European Ombudsman that the role of the EIB Ethics and Compliance Committee should be strengthened when it comes to overseeing the intended new jobs of Management Committee members and that it should be able to impose and enforce risk-mitigating measures; understands that the role of the Ethics and Compliance Committee has become more prominent in recent years and that internal discussions are ongoing on how to enhance its efficiency;

    94. Invites the Bank to boost the participation of European companies in procurement processes launched for projects financed by the EIB; encourages the Bank to advise borrowers to prioritise eligibility for European companies in order to strengthen European competitiveness;

    95. Reiterates its call on the EIB to ensure proper geographical representation, including at middle and senior management levels, and calls on it to publish an annual breakdown of the gender and nationality for middle and senior management positions;

    Scrutiny, transparency and oversight

    96.  Strongly regrets the fact that the European Court of Auditors (ECA) still lacks full access to all data relating to EIB operations; acknowledges that not all the activities of the EIB are directly financed by the EU and, therefore, not all activities are automatically accessible to the ECA; insists that the ECA should have access to the necessary information to comprehensively and exhaustively assess all EIB operations involving EU funds, including those conducted through financial intermediaries, designed to implement EU policies; calls on the ECA to fully scrutinise, to the best of its abilities, all operations involving the EU budget to any degree;

    97. Observes that the main relevant audit tasks are entrusted to the EIB Audit Committee, which is a fully independent body; believes that the participation of qualified external representatives in specific Audit Committee tasks could enhance the objectivity of the Audit Committee’s analyses;

    98. Notes that the EIB’s Transparency Policy strikes a compromise between the principle of openness and the need to safeguard sensitive information; observes that the policy indicates what information should be published proactively and when – stipulating, for instance, that project summaries should be published at least three weeks before the project’s financing is considered for approval by the EIB Board of Directors – and sets out the relevant derogations; calls for these summaries to provide meaningful information to stakeholders;

    99. Notes that in 2023, 449 projects were approved by the EIB Board of Directors and that almost all (94 %) of the project summaries were published, in the majority (57 %) of cases before approval; observes that all EIB operations conducted through financial intermediaries are published on the EIB’s website and that the EIB provides details on request;

    100. Recalls that all EIB documents are accessible to the public in line with the presumption in favour of disclosure; emphasises that all applicants should be informed in advance about public access to documents, and any refusals should be based solely on specified exceptions; stresses that the EIB should consider publishing, in a timely manner, information regarding the rationale and context for projects and the explanation of their alignment with and contribution to EU policy goals; calls on the EIB to systematically publish audit results of its largest financial operations, ensuring independent scrutiny of its risk management and impact assessments; expects the EIB to limit non-disclosure to the applicable exceptions listed in Regulation (EC) No 1049/2001[8] and Regulation (EC) No 1367/2006[9]; calls for the full implementation of the Ombudsman’s recommendations issued following its inquiries into EIB disclosure policy and related requests for access to documents;

    101. Recalls that all recipients of EU funding have a general obligation to acknowledge its origin and ensure the visibility of any EU funding received; calls on the EIB Group to ensure that final recipients comply with the visibility criteria of the EU’s financial support;

    102. Highlights that the Bank is working to reduce the time needed to bring a product from conception to market availability (time to market) by fully digitising its project cycles; calls for the Bank to intensify its efforts in the digitalisation of its operations;

    103 Reiterates its call on the EIB to strengthen and fully implement its policy on tax fraud, evasion and avoidance, including by refraining from funding beneficiaries or financial intermediaries which have been found to be, or are at high risk of being, involved in such practices;

    104. Reiterates that more structured dialogue between Parliament and the EIB would be enhanced by the adoption of a memorandum of cooperation; praises, in this connection, the EIB’s unprecedented cooperation with Parliament for the preparation of this resolution, noting that it is a tangible expression of openness and transparency;

    Follow-up on Parliament’s recommendations

    105. Urges the EIB to continue reporting on the status of previous recommendations issued by Parliament, particularly regarding the outcomes achieved and the impact of the actions taken to implement its priorities and the EU’s policies, especially as regards:

    (a) impact (economic, environmental and social) of its investment strategy and results achieved in contributing to the balanced and steady development of the internal market in the interests of the Union;

    (b) actions adopted to enhance the prevention and countering of conflicts of interest, fraud, corruption and other potential forms of misconduct;

    (c) new measures to strengthen transparency;

    (d) measures to strengthen support for SMEs and eligible economic operators during the implementation of EU policies;

    (e) follow-up on the calls and requests adopted via the present resolution;

    °

    ° °

    106. Instructs its President to forward this resolution to the Council and the Commission, and asks that the Council and the EIB Board of Directors hold a debate on Parliament’s positions presented herein.

    MIL OSI Europe News

  • MIL-OSI Europe: REPORT on Banking Union – annual report 2024 – A10-0044/2025

    Source: European Parliament

    MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

    on Banking Union – annual report 2024

    (2024/2055(INI))

    The European Parliament,

     having regard to its resolution of 16 January 2024 on Banking Union – annual report 2023[1],

     having regard to the Commission’s follow-up to Parliament’s resolution of 16 January 2024 on Banking Union – annual report 2023,

     having regard to document published by the European Central Bank (ECB) on 25 March 2024, entitled ‘Feedback on the input provided by the European Parliament as part of its resolution on Banking Union 2023’,

     having regard to the ECB’s 2023 Annual Report on supervisory activities, published in March 2024,

     having regard to the 2023 Annual Report of the Single Resolution Board (SRB), published on 28 June 2024,

     having regard to the adoption of the Anti-Money Laundering Directive (AMLD)[2] and the Anti-Money Laundering Regulation (AMLR)[3], and to the establishment of the Anti-Money Laundering Authority (AMLA)[4],

     having regard to the implementation of the Basel III standards, namely to the adoption of amendments to the Capital Requirements Directive[5] and to the Capital Requirements Regulation[6],

     having regard to the adoption of Commission Delegated Regulation (EU) 2024/2795 of 24 July 2024 amending Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to the date of application of the own funds requirements for market risk[7],

     having regard to its position at first reading of 24 April 2024 on the proposal for a Regulation of the European Parliament and of the Council amending Regulation (EU) No 806/2014 as regards early intervention measures, conditions for resolution and funding of resolution action[8],

     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 2014/59/EU as regards early intervention measures, conditions for resolution and financing of resolution action[9],

     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 2014/49/EU as regards the scope of deposit protection, use of deposit guarantee schemes funds, cross-border cooperation, and transparency[10],

     having regard to the report of its Committee on Economic and Monetary Affairs of 23 April 2024 on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 806/2014 in order to establish a European Deposit Insurance Scheme,

     having regard to the Commission proposal of 14 March 2018 for a directive of the European Parliament and of the Council on credit servicers, credit purchasers and the recovery of collateral (COM(2018)0135),

     having regard to the Five Presidents’ Report of 22 June 2015 entitled ‘Completing Europe’s Economic and Monetary Union’,

     having regard to Enrico Letta’s report of 10 April 2024 entitled ‘Much more than a market – Speed, security, solidarity: empowering the Single Market to deliver a sustainable future and prosperity for all EU Citizens’,

     having regard to Mario Draghi’s report of 9 September 2024 entitled ‘The future of European competitiveness’,

     having regard to the Eurogroup statement of 11 March 2024 on the future of Capital Markets Union, and to the Eurogroup statement of 16 June 2022 on the future of the Banking Union and the Eurogroup follow-up thereto of 28 April 2023,

     having regard to the Basel Committee on Banking Supervision’s disclosure framework for banks’ cryptoasset exposures and to the targeted amendments to its prudential standard on banks’ exposures to cryptoassets, both published on 17 July 2024,

     having regard to the Basel Committee on Banking Supervision’s core principles for effective banking supervision, published on 25 April 2024,

     having regard to the ECB’s Financial Stability Review of May 2024,

     having regard to the ECB Occasional Paper No 328 of 2023 entitled ‘The Road to Paris: stress testing the transition towards a net-zero economy’,

     having regard to the Financial Stability Board publication of 9 November 2015 entitled ‘Principles on Loss-absorbing and Recapitalisation Capacity of G-SIBs in Resolution’,

     having regard to the Financial Stability Board report of 10 October 2023 entitled ‘2023 Bank Failures – Preliminary lessons learnt for resolution’,

     having regard to Peterson Institute for International Economics Working Paper No 24-15 of 25 June 2024 entitled ‘Europe’s banking union at ten: unfinished yet transformative’[11],

     having regard to the Single Supervisory Mechanism supervisory priorities for 2024-2026, published in December 2023,

     having regard to the SRB’s biannual reporting note to the Eurogroup of 13 May 2024,

     having regard to the outcome of the 2023 EU-wide transparency exercise of the European Banking Authority, published on 28 July 2023,

     having regard to Special Report 12/2023 of the European Court of Auditors of 12 May 2023 entitled ‘EU supervision of banks’ credit risk – The ECB stepped up its efforts but more is needed to increase assurance that credit risk is properly managed and covered’,

     having regard to the statements by Claudia Buch, Chair of the Supervisory Board of the ECB, at the hearings conducted by Parliament’s Committee on Economic and Monetary Affairs on 21 March 2024 and 2 September 2024,

     having regard to the statements by Dominique Laboureix, Chair of the SRB, at the hearings conducted by Parliament’s Committee on Economic and Monetary Affairs on 21 March 2024 and 23 September 2024,

     having regard to the European Banking Authority’s risk assessment reports of July 2024 and December 2024,

     having regard to its resolution of 14 March 2019 on gender balance in EU economic and monetary affairs nominations[12],

     having regard to its resolution of 25 March 2021 on strengthening the international role of the euro[13],

     having regard to Rule 55 of its Rules of Procedure,

     having regard to the report of the Committee on Economic and Monetary Affairs (A10-0044/2025),

    A. whereas the Banking Union (BU) encompasses the Single Supervisory Mechanism, the Single Resolution Mechanism and a European deposit insurance that is still missing;

    B.  whereas the main objective of the BU is to safeguard the stability of the banking sector in Europe and prevent the need to bail out banks at risk of failure with taxpayers’ money;

    C. whereas a completed BU would be a positive development for citizens and the EU economy, as it would improve the competitiveness and stability of the banking sector, reduce systemic risk, improve supply and consumer choice and offer increased opportunities for cross-border banking that enhances access to financing for households and businesses, thereby reducing costs for banks’ customers, while ensuring that public funds are not used to bail out the banking sector; whereas the ‘too big to fail’ risk has not yet been fully addressed;

    D.  whereas concluding the reform of the EU frameworks for bank crisis management and deposit insurance, focusing particularly on small and medium-sized banks, is fundamental in order to provide Europe’s banking sector with security, stability and resilience; whereas a complete BU with a true European deposit insurance scheme is a basic condition for ensuring that citizens trust European banks;

    E. whereas fragmentation and the lack of cross-border consolidation of the EU banking sector is affecting its global competitiveness; whereas the profitability gap between EU and US banks has widened;

    F. whereas a strong and diversified banking sector is key to delivering economic growth, increasing the possibility of home ownership, fostering investment and job creation, financing small and medium-sized enterprises (SMEs) and start-ups and ensuring the transition to a green and digital economy;

    G. whereas around 80 % of external financing for EU companies comes from banks, while only 20 % comes from the capital markets; whereas only 30 % of credit for US firms comes from banks, while 70 % is funded via capital markets, including corporate bond holdings and shares;

    H. whereas the EUR 356.1 billion in non-performing loans recorded at the 110 supervised institutions in 2024, compared with EUR 988.9 billion in non-performing loans recorded at the 102 supervised institutions in the second quarter of 2015, reflects a significant downward trajectory, leaving the total non-performing loan stock at 36 % of its 2015 level; whereas further efforts are required;

    I. whereas in April 2024, it adopted its position on the review of the crisis management and deposit insurance framework;

    J. whereas in April 2024, its Committee on Economic and Monetary Affairs adopted a report on the Commission’s proposal to establish a European deposit insurance scheme;

    K. whereas financial institutions rely increasingly on the use of information and communications technology (ICT); whereas the digitalisation of finance provides key opportunities for the banking sector and has brought about significant technological advances in the EU banking sector through increased efficiency in the provision of banking services and a greater appetite for innovation; whereas it also poses challenges, including with regard to data protection, reputational risks, anti-money laundering and consumer protection concerns; whereas the EU banking sector must increase its cyber resilience to ensure that ICT systems can withstand various types of cyber security threats; whereas the ECB is currently studying the establishment of a digital euro;

    L. whereas EU banks have withstood the impact of Russian aggression; whereas they play a pivotal role in ensuring the ongoing implementation of and compliance with the sanctions imposed by the EU against Russia in response to the invasion; whereas further coordination is needed to avoid circumvention of sanctions;

    M.  whereas climate change, environmental degradation and the transition to a low-carbon economy are factors to be taken into account when assessing the risks on banks’ balance sheets, as a source of risk potentially impacting investments across regions and sectors;

    General considerations

    1. Acknowledges the progress made over the last 10 years through the establishment of the Single Supervisory Mechanism (SSM) and Single Resolution Mechanism (SRM); notes that the BU will not be completed without the establishment of its third pillar, the European deposit insurance scheme;

    2. Asks the Commission to ensure that the completion of the BU and the Capital Markets Union remains a key priority; highlights that these projects offer households and SMEs access to broader funding, reduce the high reliance on bank credit to foster investments and job creation, increase financial stability, reduce the impact of economic downturns, support competitiveness, give additional investment opportunities, fund the transition to a green and digital economy and unlock the EU’s growth potential; notes that the Commission is requested to take into consideration the specificities of the different banking models, while preserving a level playing field;

    3. Notes the need to be prepared for episodes of banking stress that could potentially lead to bank runs such as those witnessed in some jurisdictions outside the EU in March 2023, and the need to ensure the stability of deposits;

    4. Points out that cyber resilience is a key element for the competitiveness of the EU banking sector, in particular taking into account the geopolitical situation and the need to preserve financial stability;

    5. Notes that a more integrated BU would help to make the EU banking sector more resilient, improve access to credit and reduce costs; notes that better cross-border integration of banking business would increase the potential for private risk sharing and ensure diversification in the EU banking market; points out that a more integrated BU is not necessarily the same as a more consolidated banking market and that there are benefits for competition in a diversified banking market; stresses that a fully developed BU would allow EU banks to grow and put them in a better position to compete in the international arena;

    6. Regrets that EU banks’ ability to finance major investments is constrained by lower profitability that is not sufficient to ensure their competitiveness; notes that the profitability gap as compared with other jurisdictions is due to both structural and regulatory factors and calls for a review to streamline the regulatory framework; notes that the specific character of the EU banking system, with its large number of smaller banks, calls for proportionate solutions that take this into account and are tailored to its characteristics, without undermining financial stability; remains mindful of the ‘too big to fail’ risk;

    7. Calls on the Commission to assess the need to develop targeted frameworks within the BU to enhance access to finance for SMEs and start-ups, recognising their role as the backbone of the EU economy;

    8. Regrets that EU banks’ cross-border activity is still rather limited, particularly with regard to granting loans; takes the view, therefore, that it is important to complete the BU in order to uphold the free movement of capital in a fully integrated internal market;

    9. Calls on the EU banks still operating in Russia to exit the Russian market as soon as possible; calls on supervisory institutions to ensure that those banks push ahead with exiting the Russian market swiftly;

    10. Invites the Commission to further explore whether the creation of a separate jurisdiction for EU banks with substantial cross-border operations[14] could help to complete the BU or whether this would increase banking sector fragmentation;

    11. Notes that a review of the securitisation framework to strengthen European markets and the introduction of European Secured Notes as a dual-recourse funding instrument for SMEs for long-term financing could be explored, taking due account of financial stability risks;

    12. Underlines that financial literacy is essential in modern economies, contributing to the resilience of the banking systems across Member States and encouraging cross-border financial activity;

    13. Underlines that a high level of consumer protection will make the BU more resilient;

    14. Takes the view that the Commission should focus on aspects that contribute to achieving the goals of digitalisation, modernisation, simplification, streamlining and increased competitiveness; maintains that legal certainty, security, predictability and stability are essential for EU banks to be able to operate under favourable conditions;

    15. Notes that, in addition to traditional loans, diverse sources of financing can be beneficial for EU growth and EU competitiveness, and recognises the low-risk nature of asset-backed financing solutions;

    16. Notes the ECB’s progress on the digital euro and the parliamentary dialogue being held with the ECB on the topic; understands existing reservations, such as with regard to its offline functionality, given that offline transactions reduce visibility and impair financial crime prevention; recalls that the digital euro should complement, not replace, cash; considers that the decision on whether or not to introduce a digital euro is ultimately a political decision that has to be taken by the EU’s co-legislators, given the profound potential impact of this decision on a wide range of EU domains, including privacy, consumer protection, financial stability, financial policy and other areas that go beyond the strict remit of monetary policy;

    17. Regrets the failure of some financial institutions to ensure gender balance, especially in their management bodies; stresses that gender balance on boards and in the workforce brings both societal and economic returns; calls on financial institutions to regularly update their diversity and inclusion policies and help to foster healthy working cultures that prioritise inclusivity; calls on private and public entities to address the lack of diversity and gender balance in the management bodies of financial institutions;

    Supervision

    18. Welcomes the adoption by the co-legislators of the new banking package implementing Basel III standards in the EU; notes the current lack of clarity concerning the implementation of the Basel III standards in some other jurisdictions and the potential risk for an international level playing field; stresses that the Commission should evaluate whether targeted changes could help to maintain the international competitiveness of EU banks without weakening their resilience; recalls that the delegated act on the date of application of the own funds requirements for market risk postponed the date of application of the new market risk framework by one year to 1 January 2026; calls on the Commission to assess whether the equivalence decisions taken with the jurisdictions not implementing the Basel III standards need to be reviewed in order to preserve the financial stability of the EU financial sector;

    19. Recalls that the Banking Package contains a high number of mandates to the European Banking Authority; calls on the European Banking Authority to respect these mandates;

    20. Notes that even within the existing regulatory framework the banking sector has shown its resilience during the market events of recent years, and that the average Common Equity Tier 1 ratio has remained at high levels, at 15.81 %;

    21. Notes that the non-performing loans ratio has remained stable at 2.30 % and the liquidity coverage ratio at 159.39 %;

    22. Notes the varying levels of exposure to non-performing loans and recalls that there are Member States which have exposure levels in the order of 1 % or even lower, while other Member States have exposure levels exceeding 4 %; considers that efforts to reduce European banks’ exposure to this type of loan should continue as good risk management practice;

    23. Highlights the fact that adverse macroeconomic conditions, geopolitical headwinds and the rapid development of deferred payment services may lead to a deterioration in asset quality and affect the level of non-performing loans in the future; highlights, therefore, the importance of prudent risk management and appropriate provisioning;

    24. Notes that the current levels of banking sector profitability may provide an opportunity for an increase in macroprudential buffers and help to preserve banking sector resilience; invites the Commission to further explore this option and carefully evaluate how to revise the macroprudential framework, taking into consideration the potential impact on capital requirements and bearing in mind a level playing field with other jurisdictions;

    25. Notes that the banking sector plays a role in supporting the transition to a digitalised and carbon neutral economy, in channelling funds to renewable energy sources and in supporting the achievement of the objectives of the EU Green Deal and the EU Climate Law;

    26. Notes that the ECB takes account of climate- and nature-related financial risks in its supervisory practices and monitors growing physical and transition risks closely;

    27. Welcomes the idea of increasing venture capital and unlocking capital to finance fast-growing companies in the EU; notes Commission President Ursula von der Leyen’s commitment to put forward risk-absorbing measures to make it easier for commercial banks, investors and venture capital to finance fast-growing companies[15]; notes that this must be done in a way that does not pose a systemic risk or moral hazard;

    28. Welcomes the creation of the new Authority for Anti-Money Laundering and Countering the Financing of Terrorism, which will allow more effective ways to combat money laundering and terrorist financing via direct supervision of certain financial entities and better cooperation, a better flow of information between national authorities and better coordination among sanctions enforcement authorities in Members States to help close gaps in the implementation of targeted sanctions;

    29. Stresses the need to enhance the resilience of non-bank financial intermediaries, including by designing specific regulatory and supervisory tools; points out that such measures must guarantee the security of the financial system and be in the best interests of the customer; welcomes the Commission consultation on macroprudential policies for non-bank financial intermediaries; supports the Eurosystem’s recommendation to introduce system-wide stress tests to identify and quantify risks to the resilience of core markets; invites the Commission to investigate whether there are any gaps in the supervisory toolkit, including in relation to potential liquidity crunches and implications for systemic risk;

    30. Notes that crypto-assets create new challenges and opportunities for the financial system but also pose risks to it, and that these require attention from the national supervisors, the SSM and the European Systemic Risk Board;

    Resolution

    31. Recalls that the position adopted by Parliament in April 2024 on the crisis management and deposit insurance framework ensures a more consistent approach across all Member States to the application of resolution tools and deposit protection to enhance financial stability, taxpayer protection and depositor confidence; notes that small banks have some specificities that may warrant a proportionate approach; stresses that European and national competent authorities should have at their disposal appropriate and sufficient tools to respond effectively to bank failures and safeguard financial stability, and that banks need to operate in an effective regulatory environment that fosters their development;

    32. Highlights the importance of preserving shareholders’ and creditors’ primary responsibility for bearing losses in the event of a bank’s failure; stresses that resorting to using taxpayers’ money must be avoided, which is still a key lesson learned from the global financial crisis; stresses that the bail-in of shareholders and creditors must remain the main source for resolution financing before any recourse is made to industry-funded sources;

    33. Recalls that a sufficient minimum requirement for own funds and eligible liabilities (MREL) is crucial for a credible resolution framework and for ensuring that resolution authorities have sufficient flexibility to effectively apply the resolution strategies needed in a specific crisis situation; underlines that this minimum requirement should be sufficient to effectively implement any of the resolution strategies included in a bank’s resolution plan; recalls that the resolution framework should avoid undue increases in MREL calibration and disproportionate contributions to the Single Resolution Fund;

    34. Stresses that if a bank’s eligible liabilities are issued to non-EU investors, the write-down or conversion of these liabilities should be enforceable with full certainty to safeguard the effective application of resolution tools;

    35. Notes that any reliance on taxpayer money for the resolution of banks, including for liquidity support, should be avoided, in keeping with the principles of fiscal and social responsibility and market discipline;

    36. Recalls that banks need to continue to meet their obligations and perform their key functions after the implementation of a resolution decision;

    37. Recalls the importance of clarifying the role of the ECB as liquidity provider in resolution, paying due attention to appropriate guarantees and the ECB’s mandate;

    38. Underlines the SRB’s announcement that it will enhance its capabilities for launching enforcement action to remove substantive impediments to resolvability; calls for the publication, at the end of each resolution planning cycle, of an anonymised list of identified impediments to resolvability and the actions adopted to address them;

    39. Welcomes the ‘SRM Vision 2028’ strategic review initiated by the SRB to set its long-term goals, address new challenges and further strengthen collaboration with the national resolution authorities and other stakeholders; notes, in particular, the SRB’s intention to identify areas where sustainability can be embedded further in its daily operations and core business; highlights the need to ensure efficiency and cost-effectiveness in the implementation of the new strategy;

    40. Welcomes the SRB plan to streamline the annual resolution planning cycle to ensure that it is increasingly efficient and has a greater focus on testing banks’ resolvability and the operationalisation of resolution strategies;

    41. Welcomes the fact that the Single Resolution Fund has now been built up; calls for the full ratification of the Amending Agreement to the ESM Treaty by all Member States, including the establishment of a common backstop to the Single Resolution Fund;

    42. Highlights the need for additional efforts to ensure full resolvability for all banks falling under the scope of resolution; recalls that achieving resolvability cannot be considered a ‘moving target’ and therefore calls for more standardisation and harmonisation of the resolvability assessment; recalls, nonetheless, the important role played by national resolution authorities in the assessment of resolvability;

    Deposit insurance

    43. Underlines the fact that the Commission’s proposal to establish a European deposit insurance scheme was published back in 2015 and that the landscape has changed significantly since then;

    44. Recalls that the position of its Committee on Economic and Monetary Affairs on a European deposit insurance scheme was adopted in April 2024; notes that that position deviates from the Commission’s 2015 proposal and adopts a new approach; is waiting for, and encourages the Council to move forward with, the negotiations on a European deposit insurance scheme;

    45. Notes that national deposit guarantee schemes were introduced successfully and have proved their functionality in a number of cases; underlines the need to take specific national characteristics into account and to preserve the well-functioning systems for smaller banks that are already in place in some Member States, such as institutional protection schemes, in a way that ensures a level playing field across the BU;

    °

    ° °

    46. Instructs its President to forward this resolution to the Council, the Commission, the European Central Bank, the Single Resolution Board and the European Banking Authority.

    EXPLANATORY STATEMENT

    While the Banking Union – annual reports 2022 and 2023 focused on the war in Ukraine and the ongoing Russian aggression against Ukraine, this report focuses more on the challenges for the EU and for the European Parliament, as mirrored in the new mandate of the Commission, namely the EU priorities to foster competitiveness, to strengthen the European single market and to boost economic growth.

    The Union is currently at a turning point, which will determine the economic future in the upcoming decades. The 2024 reports of Enrico Letta and Mario Draghi underline that the EU needs a major turnaround to be able to compete with the US or China. Against this background, the Banking Union is a major cornerstone of competitiveness. A strengthened Banking Union will enable the EU to generate the necessary capital to make the European economy fit for the future.

    EU banks play a key role in financing the required investments since bank loans are still the most important source of external financing for companies. However, EU banks suffer from a lower profitability compared to their US counterparts caused by too many regulatory hurdles and by an incomplete Banking Union. A robust and competitive banking sector is necessary to finalise the BU. In the last year, while co-legislators made much progress on crucial legislation for the Banking Union, the EU still has to monitor closely if the EU economy, EU citizens and EU banks benefit from those adopted proposals. This report provides realistic and achievable recommendations, which could help to strengthen further the Banking Union.

    However, not only EU businesses need better access to capital. EU citizens are currently struggling to afford housing or to finance investments in sustainable renovations. It is therefore crucial to boost the profitability of EU banks, since this would in turn allow them to provide private households with better and easier access to affordable loans.

    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 IX – European Data Protection Supervisor – A10-0053/2025

    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 IX – European Data Protection Supervisor

    (2024/2028(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 IX – European Data Protection Supervisor,

     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 (A10-0053/2025),

    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 (HR);

    B. whereas data protection is a fundamental right, protected by Union law and enshrined in Article 8 of the Charter of Fundamental Rights of the European Union;

    C. whereas Article 16 of the Treaty on the Functioning of the European Union provides that compliance with the rules relating to the protection of individuals, with regard to the processing of personal data concerning them, is to be subject to control by an independent authority;

    D. whereas Regulation (EU) 2018/1725 provides for the establishment of an independent authority, the European Data Protection Supervisor (the ‘EDPS’), responsible for protecting and guaranteeing the right to data protection and privacy, and tasked with ensuring that the institutions and bodies, offices and agencies of the Union embrace a strong data protection culture;

    E. whereas the EDPS carries out its functions in close cooperation with fellow Data Protection Authorities (DPAs) as part of the European Data Protection Board (EDPB), and it serves the public interest while being guided by principles of impartiality, integrity, transparency, pragmatism and respects Union legislation;

    1. Notes that the budget of the EDPS 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 the budget of the EDPS represented 0,18 % 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 MFF 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 HR 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 Court’s renewed opinion that, overall, administrative spending is low risk;

    4. Notes from the Court’s report that in 2023 it audited a salary payment of an official who had last made a declaration concerning rights to family and child allowance in 2020; echoes the Court’s concern that delays in receiving and verifying such declarations increase the risk of ineligible payments;

    Budgetary and financial management

    5. Notes that the final adopted budget for the EDPS was EUR 22 711 559 in 2023, which represents an increase of 12,06 % compared to 2022; notes that the budget of the EDPS also covers the work of the independent Secretariat of the EDPB; notes from the Annual report of the EDPS for 2023 (the ‘Annual Report’) that the adopted budget of the EDPB was EUR 7,67 million in 2023, including EUR 300 000 granted by means of an amending budget which was needed due to an increase in litigation activities in 2023;

    6. Acknowledges that the budget monitoring and planning efforts of the EDPS in the financial year 2023 resulted in a budget implementation rate of current year commitment appropriations of 96 % in 2023 (slightly lower than in 2022 when that rate was 98 %); further notes from the report on the EDPS annual accounts for 2023 that the current year payment appropriations execution rate was 84 % (lower than 88 % in 2022); notes in addition, from EDPS replies to the questionnaire submitted by the Committee on Budgetary Control for the 2023 budgetary discharge (the ‘Questionnaire’), that the execution rate of payment appropriations overall was 91,33 % in 2023 (lower than 94,09 % in 2022);

    7. Notes further that the amount of carry-overs (C8) from 2023 to 2024 was EUR 2 517 942,67 or 11,08 % of the total budget for 2023, compared to EUR 1 827 354,23 or 9,01 % of the total budget for 2022; notes that the execution rate of the C8 budget in 2023 was 76,65 % (higher than 73,77 % in 2022);

    8. Welcomes an improvement in the average time to pay from 25 days in 2022 to 19 days in 2023, with 97,50 % of payments processed on time; notes that that improvement is also due to the EDPS having solved an old bug with the electronic payment system for invoices linked to mission costs; notes further a significant increase in the number of payments from 799 in 2022 to 1335 in 2023; observes in that context that the number of transactions is still lower than pre-pandemic levels due to changes in the way of working (such as hybrid meetings or virtual events for experts);

    9. Notes that the effects of illegal Russia’s war of aggression against Ukraine continued to create budgetary pressure on the EDPS in 2023, including through rising inflation and the consequent increase in energy costs, with the most affected budget lines being staff salaries, building security and rental costs, mission costs and services provided by external staff; commends in that context the EDPS for having re-adjusted its priorities and having implemented internal reallocation within budget chapters; understands that budgetary optimisation was necessary in order to successfully manage the indexation of staff salaries and rental costs, as well as an increase in the costs of external lawyer support services due to an increased number of EDPS binding decisions which led to a bigger number of cases to be defended before the Court of Justice of the European Union (CJEU) with the help of external legal assistance; regrets in that context that the EDPS had to postpone some of its activities, such as a feasibility study on artificial intelligence; calls on the EDPS to abide to the competences of its mandate with a collaborative approach with the Union institutions and agencies and to avoid initiating any legal action, especially those which are manifestly inadmissible, in order to avoid negative repercussions on the management of resources, which do not allow the EDPS to carry out its activities as an Institution;

    10. Expresses concern about the significant increase in EDPS staff mission costs, from EUR 28 789 in 2021 and EUR 176 903 in 2022, to EUR 284 580 in 2023; calls on the EDPS to assess whether the resources spent on missions are being used appropriately and effectively; notes that the EDPS ceased making public the number of missions funded by organisers, as well as information on which unit or sector participated in each mission, thus reducing transparency regarding mission expenses; calls on the EDPS to reinstate this practice; encourages the EDPS to promote the use of video-conferencing tools where suitable, as this could contribute to lowering the number of missions and reducing costs; calls on the EDPS to assess whether the resources spent on missions are being used appropriately and effectively.

    Internal management, performance and internal control

    11. Notes that the EPDS used nine key performance indicators (KPIs) to monitor its performance in 2023, in alignment with the main objectives of the EDPS Strategy 2020-2024 which is implemented through the Annual Management Plan; notes from the Annual Report that the EDPS over-delivered in almost all areas, as indicated by the results of KPIs for 2023, except for one KPI (the number of EDPS followers on some social media accounts); notes with concern that the EDPS encountered considerable challenges due to a growing workload and intricate data protection issues arising from the rapidly evolving digital landscape, as well as due to the extension of the EDPS mandate to supervisory activities (such as audits and investigations) and replies to consultations and prior consultations, all in the context of a limited budget; notes from the EDPS’ follow-up report to Parliament’s resolution on the implementation of the EDPS’ budget for 2022 (the ‘Follow-up Report’) that several legislative developments in the last two years have impacted the work and resources of the EDPS, due to the extension of Eurojust’s mandate, new information to be received by Europol under the Digital Services Act, the roll out of the new Union’s large-scale databases and interoperability framework in the justice and home affairs field and the entry into force of the Artificial Intelligence Act (the “AI Act”); calls on the Commission and on the budgetary authority to take those matters into consideration during the annual budgetary procedure;

    12. Welcomes the fact that, in 2023, the EDPS strengthened its ability to assess and prepare for emerging technological trends and their potential impact on privacy and data protection; notes that this was achieved through a foresight-based approach, with a focus on monitoring developments in areas such as large language models, digital identity wallets, the internet of behaviours, extended reality, and deep fake detection; welcomes in that context the publication by the EDPS of its third TechSonar initiative on emerging technologies; congratulates moreover the EDPS for having been awarded the GPA Global Privacy and Data Protection Awards 2023 in the category of innovation;

    13. Notes that 2023 was marked by several organisational changes or updates that were needed in order to respond and adapt to the evolving data protection challenges; welcomes in this context the appointment of a Secretary-General from 1 July 2023; notes in addition the transition of two sectors into units such as ‘Information and Communication’ and ‘Governance and Internal Control’ and the creation of three new specialised sectors under the ‘Technology and Privacy’ (T&P) unit: ‘Systems Oversight and Audit’, ‘Technology Monitoring and Foresight’ and ‘Digital Transformation’;

    14. Emphasises the role of the EDPS in supervising the processing of personal data by Union institutions, bodies, offices and agencies; notes with concern the length of proceedings before the EDPS, as the EDPS did not close a single investigation in 2023, but in comparison to the previous year, in 2023, the number of notifications beyond the 72 hours significantly decreased;

    15. Notes that the EDPS received 420 complaints, i.e. 53 more than in 2022, out of which 73 were admissible and 347 inadmissible in 2023; notes that the EDPS issued a final decision, opinion or reply in 31 out of 73 complaint cases received in 2023 within 44 days on average and responded to all 347 inadmissible complaints received; notes that, out of all admissible complaints (ongoing and received in 2023), 55 cases were finalised in 2023, which represents an increase of 17 % compared to 2022; acknowledges the efforts made by the EDPS to reduce the high number of complaints by developing a dynamic tool on the EPDS’ website, although the volume of complaints remained challenging due to limited resources in 2023; notes with satisfaction that the EDPS developed various procedural tools and policies to enhance its investigatory processes in 2023; commends in that context the EDPS for having amended its Rules of Procedure, whereby the “review procedure” is replaced by a “preliminary assessment” in order to safeguard the right to be heard of all the involved parties, thus contributing to a fair and timely handling of complaints and investigations;

    16. Underlines the important role of consultation and advice of EDPS in the legislative process; notes that, pursuant to Article 42(1) of Regulation (EU) 2018/1725, the EDPS responded to 80 formal legislative consultations and its advice took the form of 54 opinions (27 in 2022), 26 formal comments (49 in 2022) and 34 informal comments (30 in 2022) to the Commission and to the co-legislators in response to legislative consultation requests in 2023; commends the EDPS for its input with regard to the AI Act, in particular EDPS’ own-initiative opinion on the AI Act and advice on the AI liability rules, as well as for EDPS’ input to the GPA resolution on generative AI systems; acknowledges a significant increase (+93 %) of consultation requests over the last five years;

    17. Notes that, in 2023, the EDPS carried out eight investigations and five pre-investigations, marking a significant increase compared to previous years; notes that in 2023 the EDPS was actively involved in a total of 13 investigations and seven pre-investigations, either launched in 2023 or carried over from prior years; notes that the EPDS continued two complex and resource-intensive formal investigations from 2021 into the use by European Union Institutions, Bodies and Agencies (EUIBAs) of cloud services from non-EU/EEA entities, including a focus on the Commission’s use of Microsoft 365; urges the finalisation of those investigations on time because of their significant impact on the working of institutions; notes further that the EDPS also launched five investigations based on complaints about EUIBAs’ websites, focusing in a broad way on privacy and data protection issues, with preliminary assessments expected in 2024;

    18. Urges the EDPS to prioritise and enhance procedures for handling the personal data of minors under 15, particularly in the context of Europol’s systems, where such individuals may be marked as suspects; recognises the heightened vulnerability of that group and the need for robust safeguards;

    19. Notes that the EDPS investigated the Commission’s alleged use of micro-targeting on platform X and continued two pre-investigations: one case concerning EUIBAs’ use of Trello cloud service, which was closed in 2023 and another one on EUIBAs’ use of profiling, which was carried out in 2024; notes that a total of six investigations and four pre-investigations (one pre-investigation in 2022) were launched in the Area of Freedom, Security, and Justice (FSJ), reflecting a significant increase from 2022; notes the EDPS’ concerns with regard to the challenges that may arise in the case of investigations where joint action between national authorities and EUIBA’s is needed; notes in addition that, as part of its audit plan for 2023, the EDPS audited the following bodies: the European Personnel Selection Office, the European Investment Bank, the European Central Bank, the European Centre for Disease Prevention and Control and the European Medicines Agency;

    20. Recalls that in 2022 the EDPS brought an action for annulment of two provisions of the amended Europol Regulation before the General Court, which was later rejected; notes that meanwhile the EDPS decided to appeal the order of the General Court in case T-578/22[8], believing the issues raised should be addressed at the highest level; regrets that the EDPS did not realise the manifest inadmissibility of its appeal, even if the institution did not intend to challenge an act by Europol, but a retroactive change in the legal framework aimed at neutralising the effects of the EDPS’ enforcement actions; calls on the institution to cooperate with Union institutions and agencies, before initiating legal proceedings that prevent the fulfilment of its mandate and the use of its resources for purposes for which they were intended; notes further that the EDPS also followed up on the implementation of its Order of 3 January 2022, including checks on Europol’s reporting; regrets that the final report on that matter was communicated by the EDPS only on 22 July 2024;

    21. Notes that, after the pilot implementation of the new risk management framework at the EDPS in late 2022, an anonymous satisfaction survey was conducted in May 2023 to assess its effectiveness and gather additional suggestions; notes further that the survey results were positive, leading to the formal adoption of the framework on 26 June 2023;

    22. Notes that the internal audit service (IAS) carried out an audit on the methodology for the planning of EDPS audits in the EDPS in 2023; notes that the audit was concluded with two recommendations for which the EDPS submitted an action plan to the IAS; calls on the EDPS to keep the discharge authority informed on a regular basis on the progress made in that matter;

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

    HR, equality and staff well-being

    24. Notes that, at the end of 2023, the EDPS had 129 members of staff, compared to 127 in 2022; notes that the EDPS employed 50 contract staff (CA) under Article 3(b) of the Staff Regulations of Officials and the Conditions of Employment of Other Servants (52 CA in 2022), 7 temporary agents (TA) under Article 2(b) and 2(c) (6 TA in 2022) and used the services of 12 external services providers (EXT) working intra-muros in 2023 (8 EXT in 2022); encourages the EDPS to continue its efforts towards a more balanced geographical representation among all Member States specifically at managerial level; welcomes the increased diversity of nationalities represented, but notes with regret the continued underrepresentation of women in senior management positions; calls for the adoption of a gender parity roadmap, including proactive recruitment measures and leadership training programs for female staff members;

    25. Notes that the EDPS had 23 nationalities (from the Member States) represented among its staff in 2023, which is an improvement in comparison with 22 nationalities in 2022; notes with dissatisfaction the over-representation of five nationalities and an underrepresentation of other nationalities; urges the EDPS to continue its efforts to achieve a balanced geographical distribution of nationals from all Member States within its staff, by improving communication, fostering visibility, and enhancing job conditions to attract underrepresented nationalities;

    26. Observes that, in 2023, the EDPS maintained a workforce comprising 65 % women and 35 % men, consistent with trends from previous years; regrets the absence of women in senior management roles, despite achieving gender parity among the six middle management positions; urges the EDPS to intensify its efforts to ensure gender-balanced representation across all staff levels, and invites the EDPS to promote the application of women also with a view to the next election of the Supervisor by Parliament;

    27. Notes a high occupancy rate of the establishment plan of 95,65 % but also a high turnover rate of 13 % in 2023; notes that most of the unfilled positions were a result of candidates being unsuitable, given the EDPS’ need for highly specialised profiles and the small pool of eligible candidates; welcomes the addressing of those challenges through republication with a wider or more targeted dissemination of the vacancy or by redrafting the requirements; welcomes the steps taken by the EDPS regarding the hiring process; calls on the EDPS to continue to address the challenges in finding suitable candidates and to keep the discharge authority informed about improvements on staff recruitment and turnover;

    28. Notes that, in the second half of 2023, the EDPS’ HR team launched a pilot for a new on-boarding process for newcomers, with sessions that cover, inter alia, presentations of core units’ work, ethics, procurement procedures and information security, whereas three on-boarding sessions were offered in 2023; invites the EDPS to continue offering to newcomers “on-boarding” and to all members of staff mandatory sessions that remind the importance of principles such as ethics, conflicts of interest, transparency, internal control and anti-fraud, as they have become the standard in the Union institutions; notes moreover that 12 individual sessions were offered for EDPS and EDPB staff, six sessions of group coaching in which participants (manager level) learned from each other, as well as a one-year team coaching with a designer for leadership development at the European School of Administration in 2023;

    29. Notes, from the Questionnaire, that the EDPS offers flexible and hybrid working arrangements, that are well-received by members of staff who can benefit, inter alia, from parental leave, time credits, part-time work or working from abroad for a limited number of days per year; notes that, in 2023, the majority of staff made use of those working conditions, whereas 86,30 % of staff made use of teleworking arrangements in 2023; considers that the building infrastructure should be optimised to reflect that high rate of teleworking, which could contribute to reducing operational costs and ensuring more efficient use of office space; welcomes the EDPS’ continued efforts to actively improve physical and mental well-being of its staff;

    30. Commends the EDPS for carrying out several awareness-raising actions during the year 2023 with information sharing on elimination of racial discrimination, International Women’s Day, EU diversity month and learning about neurodiversity; notes that currently the EDPS does not employ staff with disabilities but has an equal opportunities clause included in all EDPS vacancy notices and actively encourages applications from candidates with disabilities;

    31. Notes from the Questionnaire that the EDPS considers confidential any information on burnout cases, including the number thereof; disagrees with that opinion and calls the EDPS to provide the discharge authority with the number of burnout cases on a yearly basis; notes with satisfaction that, in 2023, there were no harassment cases reported at the EDPS; welcomes the fact that, in 2023, the EDPS continued to provide an anti-harassment presentation delivered by one of the EDPS’ confidential counsellors, as part of the induction training called the ‘EDPS Welcome Day’; commends the publication of the decision on anti-harassment and the role of the confidential counsellors on the EDPS’ intranet;

    Ethical framework and transparency

    32. Notes that, in 2023, the EDPS focused its efforts on increasing staff awareness of the EDPS/EDPB ethical framework by organising mandatory dedicated training sessions for all staff and induction trainings for EDPS/EDPB newcomers, appointing a new ethics officer and participating in the ‘Comité Paritaire des Questions Statuaries’ working group on ethics; welcomes the establishment of a mailbox by the EPDS, where members of staff can submit their requests regarding any ethics related inquiries, as well as the use of Commission’s Ethics module in Sysper; encourages the EDPS to continue raising awareness and organising surveys to assess the level of staff awareness of the EDPS/EDPB ethical framework;

    33. Welcomes the overall high level of transparency achieved by the EDPS concerning its activities, in particular as regards the publication of the agenda and the declaration of interests of the Supervisor and of the Head of EDPS Administration, in line with the Supervisor’s code of conduct of 2019; notes from the Follow-up Report that the EDPS has adopted two codes of conduct, whereas one of them applies to the Supervisor and the other one applies to the EDPS staff; understands that in cases when the Secretary-General is called to replace the Supervisor, the latter’s code of conduct also applies to the Secretary-General;

    34. Notes with satisfaction that the EDPS has never been involved in any investigations by the European Anti-Fraud Office (OLAF) since its establishment;

    35. Notes that, out of five inquiries opened by the Ombudsman in 2023 concerning the EDPS, four were closed without any further inquiry; notes that, for one enquiry, the decision was still pending and expected for Q4 2024; calls on the EDPS to keep the discharge authority informed as to the outcome of this enquiry;

    36. Regrets that the EDPS has still not formally joined the Union’s Transparency Register (TR); nevertheless notes from the Follow-up Report that, with a view to formally joining the TR, the EDPS has launched an internal assessment on transparency measures, whereas, in 2023, exploratory meetings and exchanges of the EDPS with secretariat of the TR took place; calls on the EDPS to inform the discharge authority of the outcome of that assessment exercise; reiterates its call on the EDPS to join and use the TR, including for the proactive disclosure of meetings with any third parties, to ensure transparency in EDPS’ regulatory and advisory functions;

    37. Notes with satisfaction that, in 2023, the EPDS established internal rules applicable to the hearing of persons that could be affected by an EDPS final decision adopted in own-initiative investigations and inquiries in order to ensure the proper exercise of their fundamental right to be heard in such proceedings; commends the EPDS for publishing a new factsheet on EDPS Investigations and a new EDPS Investigation Policy as well as for ensuring that all financial reports, including annual budgets, accounting and audit reports, are made publicly accessible through a Union institution website and other official channels, as the EPDS takes a leading role in enhancing the cybersecurity preparedness of the Union institutions;

    38. Notes with satisfaction from the Questionnaire that no cases of conflicts of interest, whistleblowing or fraud were reported in the EDPS in 2023; notes that the EDPS has set up a framework to prevent conflicts of interest at the level of senior management and staff through codes of conduct, awareness raising and declarations of absence of conflicts of interest and confidentiality; notes that, in addition to the mandatory introduction to the ethical framework of the EDPS for all new members of staff, new members of staff are also introduced to the EDPS’ anti-fraud strategy;

    39. Notes from the Questionnaire that the EDPS has internal rules on whistleblowing, which define safe routes and channels through which staff may raise concerns about fraud, corruption or any other serious wrongdoing, without prejudice to the confidentiality of the identity of the whistleblower and of the information reported; notes that, so far, there has never been a whistleblowing case reported to the EDPS;

    40. Urges the EDPS to publicly disclose any recusals due to conflicts of interest in its enforcement decisions, ensuring full transparency in regulatory oversight and decision-making;

    Digitalisation, cybersecurity and data protection

    41. Notes from the Questionnaire that the 2023 budget for IT equipment and projects was 9,5 % lower compared to 2022; notes that that decrease was primarily because no new IT feasibility studies were being commissioned in 2023, as opposed to 2022 where such studies represented a substantial portion of the IT budget; notes further that other cost elements remain relatively stable between the two years, including general IT services and maintenance;

    42. Notes from the Follow-up Report and the Questionnaire the conclusions of the IT feasibility study carried out in 2022, whereby there are gaps between what the IT tools and services provided by the Commission and Parliament can offer and the specific needs of the EDPS; notes that those gaps should be addressed by developing in-house capabilities and applications for which a minimum of five IT staff and partial outsourcing EDPS was deemed necessary; regrets that, due to budgetary constraints, implementation of the recommendations of the study remained on hold; calls on the EDPS to consider a step-by-step approach by starting with those recommendations and projects that would require fewer resources;

    43. Commends the progress made in 2023 by the EDPS in digitalising its workflows and processes, with the introduction of ARES, the qualified digital signature (e-IDAS) and a collaborative platform (Nextcloud) for drafting documents and video-conferencing, as well as updates to the tool (Website Evidence Collector) that automates the collection of personal data processing on websites of data controllers and processors, the adoption of the acceptance environment of EU Send Web, a service/channel to exchange sensitive non-classified information with other EUIBAs and further progress made towards implementing services that cannot be outsourced, such as the form and the electronic workflow to manage data breach notifications; notes nevertheless issues with regard to the use and maintenance of the e-procurement system;

    44. Welcomes the EDPS’s focus on ensuring that external contractors meet the necessary moral and ethical standards expected of all Union institutions, bodies, offices and agencies, particularly in light of the previous use of external companies by EDPS that, according to Yale University’s ranking, continue to operate in Russia;

    45. Acknowledges that the EDPS successfully relies on many of the administrative systems used by the Commission, particularly in the field of HR and business administration processes, as well as on some of Parliament’s services, including the provision of laptops, network infrastructure and video-conferencing; commends the fact that the project to improve the quality and performance of the computers provided to EDPS staff, in collaboration with Parliament, with a view to the generalisation of hybrid work, has been completed;

    46. Acknowledges the leading role of EDPS in enhancing the cybersecurity preparedness of the Union institutions, while working closely with bodies such as European Union Agency for Cybersecurity (ENISA) and cybersecurity hubs such as CERT-EU; urges it to develop a structured audit framework for cybersecurity risks within Union bodies; notes that, in 2023, the EDPS continued to improve its readiness to protect personal data and sensitive information against cyber-attacks in view of the rapidly changing cybersecurity threat landscape; commends in that context the EDPS for reviewing its security policies and methodologies in preparation for the impact of the Cybersecurity Regulation (Regulation (EU, Euratom) 2023/2841); notes from the Questionnaire that the EDPS introduced a request for two additional full-time equivalents to cover cybersecurity infrastructure in connection with EDPS’s obligations under that Regulation as well as the EDPS’ role as a member of the Interinstitutional Cybersecurity Board (IICB); notes further with appreciation that the EPDS upgraded its Information Security Policy and the EDPS Acceptable Use Policy to address specific cybersecurity threats in relation to teleworking, use of personal mobile devices and banning of dangerous applications (TikTok); notes that the EDPS did not encounter any cyber-attacks in 2023; calls for annual public reporting on detected threats, response measures, and institutional cyber resilience;

    47. Commends the EDPS for updating cybersecurity training for all staff and revamping the security training model for newcomers; appreciates that the EPDS has been proactive in raising awareness about cyber security risks, for instance by preparing fact sheets, conducting surveys with EUIBAs and running awareness campaigns; encourages the EDPS to ensure that staff receives compulsory training on the safe and ethical use of AI tools to enhance their understanding and mitigate potential risks;

    Buildings

    48. Notes that in 2023, as in 2022, the EDPS and EDPB were the sole tenants of Parliament’s building where they were located, following the move of the Ombudsman at the end of 2021 and that by renting their premises from the Parliament rather than the private market the EDPS intends to keep the rental and maintenance costs at a reasonable level; notes that the EDPS had to request an additional EUR 81 856,84 for paying rental costs to Parliament, given that the indexation rate was 8,82 % and thus higher than the 2 % ceiling for administrative expenditures;

    49. Notes that, in terms of accessibility of its building, the EDPS relies on the decisions taken and implemented by Parliament, as part of their building policy; notes from the Follow-up Report that the EDPS employs staff with physical impairments due to serious illness; welcomes the commitment of the EDPS to explore the possibilities of hiring trainees with reduced mobility or disabilities;

    Environment and sustainability

    50. Notes that the EDPS has not joined the Eco-Management and Audit Scheme (EMAS) but has implemented several measures to reduce its environmental footprint, such as regulating the temperature automatically and centrally, turning lights off automatically when there is no movement in the room, purchasing eco-friendly products and services and automating the workflows with the introduction of ARES; notes from the Follow-up Report that according to the information received by Parliament’s Directorate-General for Infrastructure and Logistics, responsible for the management of the building rented by the EDPS, solar panels are installed on that building; asks the EDPS to inform the discharge authority to report on the share (%) of the solar-panel produced electricity in the EDPS’ total energy consumption needs per year; calls further on the EDPS to inform the discharge authority of any new developments regarding the EMAS certification process;

    51. Notes that the EPDS has not assessed its carbon footprint in 2023; welcomes, however, that the EDPS continues to apply measures that reduce the carbon footprint by reducing the travel of journey to the office through teleworking possibilities, reimbursing 50 % of staff’s monthly/annual subscriptions for the use of public transport, encouraging the staff to favour videoconferencing and train travel for short distances, managing the cycle for invoices electronically and achieving an entirely paperless selection procedure and appraisal exercise as regards HR;

    52. Urges the EDPS to adopt the EMAS to systematically monitor and improve its environmental footprint, particularly in terms of energy consumption, waste reduction, and sustainable office policies;

    53. Notes that the EDPS addresses sustainability-related risks (such as environmental, social and governance risks) in a comprehensive way through an annual risk assessment exercise; welcomes in that context that the EDPS adopted its new risk management process in 2023, which should help the EDPS to target and better analyse those risks and consequently better calibrate mitigating actions;

    Interinstitutional cooperation

    54. Welcomes the budgetary and administrative savings achieved by the EDPS through inter-institutional cooperation, particularly the conclusion of service-level agreements with Parliament for the rental of its premises and the use of IT system applications, hardware supplies and maintenance and with the Commission for HR and business administration processes, as well as through participation in large interinstitutional framework contracts in areas such as IT consultancy, interim services and office supplies; commends in addition the EDPS for maintaining a structured cooperation with the Ombudsman, the Agency for Fundamental Rights and CERT-EU through memorandums of understanding;

    55. Notes that the EDPS participates in meetings of various interinstitutional bodies; welcomes in this context the participation of the EPDS in meetings of the Heads of Administration and the Interinstitutional Online Communication Committee, led by Parliament’s Directorate-General for Communication; acknowledges that interinstitutional cooperation with EDPS, in his supervisory role, is of key importance for the other Union institutions to enhance their level of compliance with the data protection legal framework;

    56. Calls for closer cooperation between the EDPS, the Court of Auditors, OLAF, and the European Public Prosecutor’s Office (EPPO) to develop common protocols for fraud detection in digital data and financial transactions within EU institutions; stresses the need for joint audits on AI-based fraud risks;

    57. Welcomes the pivotal role played by the EDPS in 2023 in the coordination of the Data Protection Authorities of the Member States (DPAs) to promote consistent data protection across the Union; notes that the EDPS joined 26 DPAs in a coordinated enforcement action on the role and tasks of data protection officers (DPOs), assessing their compliance with Regulation (EU) 2018/1725; notes the continued active involvement of the EPDS in the Coordinated Supervision Committee (CSC) within the area of FSJ addressing issues such as handling complaints against Europol and enhancing cooperation processes; appreciates furthermore all the other steps taken to improve cooperation between the EDPS and the DPAs such as the conduction of a joint Europol inspection with national authorities (Poland and Lithuania) and the participation in the coordinated supervisory action on processing minors’ data in Europol systems, the participation in an operational visit to the European Delegated Prosecutor’s office in Lisbon under a Working Arrangement with Portugal’s DPA and the coordination of an onsite inspection in Lesvos with Greece’s DPA to verify data collection practices during Joint Operations by Frontex; acknowledges that those interinstitutional engagements help the EDPS align with best practices of Union institutions and benefit from the exchange of information with peer departments;

    Communication

    58. Notes that the budget for public communication and promotional activities in 2023 amounted to EUR 468 000, which represented an increase of 54 % compared to 2022;

    59. Notes with satisfaction that the EDPS organised several communication events online as well as in person in 2023, aimed at raising awareness of EDPS’ role and mission among a wider public and the importance of respecting Union data protection rules, such as Data Protection Day, the EDPS Trainees’ conference (twice a year), the EDPS Seminar on the essence of the fundamental rights to privacy and data protection, and other international events;

    60. Notes that the EDPS communicates online via its website and its social media accounts on X (ex-twitter) (29 400 followers), LinkedIn (71 000 followers), YouTube (2 900 followers), EU-Voice (5 900 followers) and EU-Video (750 followers);

    61. Notes that the pilot project of the platforms EU Voice and EU Video (free and open-source social media networks, privacy-oriented and based on Mastodon and PeerTube software) continued in 2023; welcomes in that context the EDPS’ contribution to the Union’s strategy on data and digital sovereignty in order to promote the Union’s independence in the digital world and compliance with the data protection legal framework.

    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 VIII – European Ombudsman – A10-0055/2025

    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 VIII – European Ombudsman

    (2024/2027(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 VIII – European Ombudsman,

     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 (A10-0055/2025),

    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 Article 228 of the Treaty on the functioning of the European Union provides for the election of a European Ombudsman (the ‘Ombudsman’) by the European Parliament who shall be empowered to receive complaints from any citizen of the Union or any natural or legal person residing or having its registered office in a Member State concerning instances of maladministration in the activities of the Union institutions, bodies, offices or agencies, with the exception of the Court of Justice of the European Union acting in its judicial role, and to examine such complaints and report on them;

    C. whereas Regulation (EU, Euratom) 2021/1163 of the European Parliament of 24 June 2021[7] lays down the regulations and general conditions governing the performance of the Ombudsman’s duties (Statute of the European Ombudsman);

    D. whereas, following the adoption of Regulation (EU, Euratom) 2021/1163, the Ombudsman adopted its revised implementing provisions[8] on 21 June 2023;

    1. Notes that the budget of the Ombudsman 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 the budget of the Ombudsman represented 0,11 % of MFF heading 7 appropriations;

    2. Notes that the Court of Auditors (the ‘Court’), in its Annual Report for the financial year 2023 (the ‘Court’s report’), examined a sample of 70 transactions under the heading ‘European public administration’, 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; notes with satisfaction from the Court’s report that for 2023 the Court did not identify any significant issues concerning the Ombudsman;

    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 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;

    Budgetary and financial management

    4. Notes that the budget of the Ombudsman amounted to EUR 13 212 447 in 2023, which represents an increase of EUR 990 339 (i.e. +8,1 %) compared to 2022; takes note, from the Ombudsman’s replies to the questionnaire submitted by the Committee on Budgetary Control for the 2023 budgetary discharge (the ‘Questionnaire’), that this increase is mainly due to salary adjustments and two additional posts that were needed to reinforce the Ombudsman’s core activities;

    5. Notes that the budget monitoring efforts during the financial year 2023 resulted in a budget implementation rate of 95,39 %, representing a decrease of 1,58 % compared to 2022; notes that the current year payment appropriations execution rate was 97,58 %, representing an increase of 1,31 % compared to 2022, which led to a decrease in automatic carry-overs from 3,73 % (or 442 209) in 2002 to 2,42 % (or 304 550 EUR) in 2023; regrets, nevertheless, the lower execution rate of the automatic carry-overs of appropriations from the previous year, which in 2023 was 73,27 % compared to 92,59 % in 2022; calls for an improvement in this regard;

    6. Notes that in the course of 2023, the Ombudsman made nine budgetary transfers pursuant to Article 29 of the Financial Regulation, representing a total of EUR 241 150 or 1,8 % of the appropriations for that financial year, compared to 2,8 % in 2022; notes that those transfers were needed for the reinforcement of various budget lines on, for example, furniture, security and surveillance buildings, digitalisation of archives or informatics; observes in this context that the IT expenditure has increased by 41 %, from EUR 159 714 in 2022 to EUR 224 698 in 2023;

    7. Notes a further increase, for the third consecutive year, of the average time for executing payments; acknowledges that, despite increasing the time for payments from 11,35 days in 2021 to 13,50 days in 2023, the average time for payments continues to be relatively short and below the regulatory maximum payment time (30 days); welcomes in this context the fact that the Ombudsman has meanwhile fully implemented an electronic invoicing system which should further improve the efficiency of the payment process as of 2024;

    8. Notes that, for 2023, the European Parliament had not passed onto the Ombudsman any significant increase with regard to the rent and the lump-sum building charges, which has allowed the Ombudsman to reduce its budget line for rent by 8,06 % in order to reinforce other budget lines in 2023; takes note, however, that for 2024 the Ombudsman expects an increase of building related expenses by 170 % (or EUR 122 260);

    9. Welcomes the fact that the budget for staff missions decreased from EUR 120 000 in 2022 to EUR 100 000 in 2023 thanks to an extensive use of videoconference facilities in both places of work; commends, in this context, the Ombudsman for the reduction in its staff missions’ budget for the fourth consecutive year; notes that the missions and travel budget for the Ombudsman remained the same in 2023 as in the previous years (2021 and 2022), i.e. EUR 35 000;

    Internal management, performance and internal control

    10. Notes that the Ombudsman has linked to the high level objectives of its strategy ‘Towards 2024’ nine Key Performance Indicators (KPIs) consisting of 19 components, as set out in the Ombudsman’s Annual Management Plan for 2023; observes that 14 of those KPI components have been reached or exceeded in 2023;

    11. Observes an overall increase in the Ombudsman’s workload compared to the previous year, whereas in 2023 the Ombudsman handled 2 392 new complaints (2 223 in 2022), opened 398 inquiries (348 in 2022), including 56 inquiries of public importance (60 in 2022), closed 372 inquiries (330 in 2022) and dealt with a record number of public access complaints which has increased from 117 in 2022 to a record number of 167 in 2023, 118 of which were followed up with inquiries; commends, in this context, the Ombudsman for the efficiency gains made in 2023 to lower the number of complaints by simplifying the handling of the ‘failure to reply’ inquiries, and streamlining the processing of the ‘out of mandate complaints’ and information requests; calls on the Ombudsman to work on more targeted communication to address this issue in the future; welcomes its efforts to continue  streamlining and process simplification for the following years;

    12. Commends the Ombudsman for having reduced the time needed to process files at different levels of the procedure, such as the time taken on admissibility (from 16 days in 2022 to 11 days in 2023) or the average time taken to close cases in the area of public access to documents (from 46 days in 2022 to 42 days in 2023); regrets however that the average time (165 days) for dealing with an inquiry remained high in 2023; understands, nevertheless, the Ombudsman’s explanation that this average was impacted by delayed closing of inquiries due to repeated exchanges with the institutions concerned;

    13. Notes further an improvement with regard to positive replies by the Union institutions to the Ombudsman’s proposals to improve their administration, with an overall acceptance rate of 81 % in 2023 (compared to 79 % in 2022); asks the Ombudsman to continue working towards generating greater compliance with its findings, recommendations and suggestions;

    14. Acknowledges the efforts made by the Ombudsman in 2023 to enhance awareness and understanding of the Ombudsman’s mandate; observes with satisfaction in this context an increase of 20 % in the number of complaints within the mandate from 740 in 2022 to 885 in 2023, as well as an increase in the share of that type of complaints, from 33 % in 2022 to 37 % in 2023;

    15. Recognises the efforts made by and the positive impact of the Ombudsman in the areas of ethics, transparency and accountability in 2023, especially as a result of inquiries on public access to documents and conflicts of interest concerning various Union institutions, agencies or the European Investment Bank; expresses its appreciation for the special report the Ombudsman issued in September 2023 on the Commission delays in dealing with access to documents requests;

    16. Takes note, from the Ombudsman’s report to the discharge authority entitled ‘Report on the follow-up to the discharge for the financial year 2022’, of the issues observed in the area of the Recovery and Resilience Facility (RRF), namely significant delays encountered by the European Commission in replying to requests for access to information, especially the delayed publication of the largest RRF recipients by Member States, undermining transparency, as well as with regard to the reasoning on the basis of which the Commission established the level for granting public access to documents in some cases; expresses concern with regard to the Commission’s decision not to accept all the suggestions and solution proposals that the Ombudsman made in that regard, recalling the importance of the good practice principles for governmental transparency in the use of recovery funds produced in cooperation with the OECD; regrets that significant divergences persist at the national level regarding the timeliness and completeness of information on final recipients; calls on the Commission to intensify its efforts to address these shortcomings as part of its ongoing monitoring and control functions; stresses the importance of consistent and complete reporting across all Member States to ensure transparency and accountability; calls on the Ombudsman to maintain its monitoring of the Commission’s efforts to ensure transparency and effective supervision of the RRF; calls further on the Ombudsman to continue informing the budgetary authority periodically about the difficulties encountered in its work on the transparency and accountability of the RRF;

    17. Highlights the fact that, in 2023, following an own-initiative inquiry that revealed that, when individuals seek a review of an access decision, known as a confirmatory request, the Commission misses the deadlines set out in the law in 85 % of cases, the Ombudsman urged the European Commission to promptly address systemic delays in processing access to documents requests; calls for the swift implementation of the Ombudsman’s urgent recommendation for a thorough reassessment to ensure compliance with the deadlines set out in Union law, such as Regulation (EC) No 1049/2001; commends the Ombudsman for its special report to the European Parliament, asking the institution for its formal support in getting the Commission to act on her recommendation; recalls that the Ombudsman discussed the report with Members of the European Parliament in the Committee for Civil Liberties, Justice and Home Affairs in November 2023[9];

    18. Notes with great concern that the Ombudsman receives many  complaints from citizens about extreme delays in gaining access to requested documents; supports the Ombudsman’s views that access delayed is effectively access denied and that administrative processes should be streamlined to ensure that citizens receive access to documents in a timely manner[10];

    19. Notes that the internal auditor carried out a review of the Ombudsman’s risk management framework; notes that the parties agreed on a nine-point action plan to be implemented by the end of 2024; calls on the Ombudsman to inform the discharge authority on progress made in implementing that plan;

    Human resources, equality and staff well-being

    20. Notes an increase of 11 % in the total number of the Ombudsman’s staff from 74 in 2022 to 82 in 2023, mainly due to an increase in the number of contract staff and temporary staff; notes further that, in 2023, 40 officials were employed by the Ombudsman, compared to 39 and 38 in 2022 and 2021 respectively, 33 temporary staff, compared to 28 and 30 in 2022 and 2021 respectively, and 9 contract agents, compared to 7 and 6 in 2022 and 2021 respectively; notes with satisfaction an increase in the share of staff working on the core-business of the Ombudsman (complaints and inquiries), from 40,54 % in 2022 to 42,68 % in 2023; notes with satisfaction that the staff occupation rate increased from 91,8 % in 2022 to 95 % in 2023 and the turnover rate decreased from 9,9 % in 2022 to 5,2 % in 2023;

    21. Regrets that the post of the Secretary-General of the Ombudsman has been vacant for more than two years, namely since 1 September 2022; notes from the Questionnaire that “as a courtesy to the new Ombudsman, who will be elected by the end of 2024, the current Ombudsman decided to leave the post vacant for her successor to decide on the appointment”; calls on the next Ombudsman to make sure that the periods of vacancy of management positions remain as short as possible and are not longer than the time necessary for recruitment of new staff in those positions;

    22. Commends the Ombudsman for its call for expressions of interest for jobs (inquiry officers) which was successfully concluded in 2023 with the establishment of a reserve list of 19 candidates, 6 of them having been recruited the same year; notes that this has allowed the Ombudsman to reduce the time needed for recruitment which has been an issue in the past; notes further that the Ombudsman organised, with the help of EPSO, three internal competitions in 2023, in order to retain in-house talent; acknowledges that such actions help to improve the institution’s efficiency;

    23. Notes that, despite being a small institution, the Ombudsman managed to have 19 nationalities represented in its staff in 2023, as a result of proactive communication and outreach activity, notably through social media and online platforms to advertise vacancies; notes with dissatisfaction, however, an overrepresentation of some nationalities (for example French and Irish) and an underrepresentation of other nationalities (for example Romanian and Spanish); urges the Ombudsman to continue its efforts to achieve a balanced geographical distribution of nationals from all Member States within its staff, in particular at management level, by improving communication, fostering visibility, and enhancing job conditions to attract underrepresented nationalities;

    24. Notes that, in terms of gender balance, the Ombudsman employs more women than men in all categories of staff, in particular at management level, with the women-to-men overall ratio in 2023 remaining the same as in 2022, i.e. 67 % women and 33 % men; encourages the Ombudsman to continue its efforts towards achieving a more balanced gender representation among its staff;

    25. Notes that the Ombudsman makes efforts to ensure the physical and mental well-being of its staff at work and focuses on reinforcing team-spirit; welcomes in this context the  result of the general staff survey conducted in 2023 showing an overall staff satisfaction rate of 87 %, with, in particular, 95 % of the survey participants having responded positively to the question regarding the Ombudsman caring for the wellbeing of its staff, 97 % were satisfied with the Ombudsman’s hybrid and flexible working arrangements and 90 % were satisfied with the equipment and material their employer supplied to them to work remotely; notes with satisfaction that in 2023 the Ombudsman decided to provide ergonomic chairs to all staff who request them;

    26. Acknowledges that the small size of the Ombudsman’s Office allows managers to closely monitor the staff workload and make necessary adjustments, enabling the early detection of potential burnouts; notes that the 2023 staff survey indicated no issues with workload distribution or work-related health problems, and that the European Parliament’s medical service reported no long-term illnesses related to burnout;

    27. Notes with satisfaction that no harassment cases were reported in 2023; acknowledges the efforts made by the Ombudsman to provide a working environment that is free from sexual and psychological harassment, in particular through awareness raising and training; notes with satisfaction that a survey carried out in 2023 in the context of an internal audit on the ethical framework showed that 90 % of staff were aware of the policy and guidelines regarding harassment of any type;

    28. Notes with satisfaction that the Ombudsman welcomed 18 paid trainees in 2023 (the same number as in 2022), one of which was selected following the Ombudsman’s first call aimed at candidates with disabilities; acknowledges that this initiative promotes inclusivity and equal opportunities by providing trainees with valuable experience in the EU institutions;

    Ethical framework and transparency

    29. Welcomes the Ombudsman’s continued efforts to strengthen and raise awareness about the ethical framework of the institution; notes with appreciation that in 2023 the Ombudsman revised the whistleblower policy to strengthen protections for potential whistleblowers, ensure better alignment with data protection standards, enhance confidentiality and support, and incorporate provisions on ethics correspondents; further welcomes the full deployment of the SYSPER ethics tool that allows staff to update declarations (on their conflicts of interest and on their spouses’/partners’ professional activities) and organised an interactive training course entitled ‘Respect and dignity at work and our roles as actors, recipients and bystanders’; welcomes the result of the general staff survey carried out in 2023 confirming high levels of staff awareness about ethical matters; calls for the publication of all high-level meetings of the Ombudsman’s office with external actors, including corporate entities, interest groups and EU agencies, to ensure transparency in decision-making and advocacy efforts;

    30. Notes that the internal audit (report 22/03) on the Ombudsman’s ethical framework was finalised in 2023 with six issued recommendations to be implemented by 31 December 2024; notes from the Questionnaire that four of those recommendations have been fully implemented; invites the Ombudsman to report to the discharge authority on the implementation status of the remaining two recommendations;

    31. Notes that the anti-fraud strategy of the Ombudsman is largely based on the ethical framework in place and the principle of the segregation of duties for financial functions; notes that in 2023 the Ombudsman reviewed and adopted the code of professional standards applicable to staff involved in the control of financial operations setting out the duties and responsibilities in the detection of fraudulent transactions, including the procedure to follow in cases of suspected fraud;

    32. Notes with satisfaction that no cases of conflicts of interest and no cases of whistleblowing were reported in 2023;

    33. Notes from the Questionnaire that the Ombudsman did not formally join the EU transparency register (set up 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 register) in order to ensure that she can also look into potential complaints concerning the secretariat of that transparency register; notes, however, that the Ombudsman has aligned its practices on the principles of the transparency register, checking that speakers or interlocutors in events or meetings organised by the Ombudsman are registered therein; welcomes the high degree of transparency achieved by the Ombudsman by the publication on its website of information on inquiries, missions, meetings and events in which the Ombudsman takes part;

    34. Calls on the Ombudsman to introduce a mandatory declaration of financial interests for senior staff, with real-time public access to information regarding potential conflicts of interest, external engagements, and financial assets;

    Buildings

    35. Welcomes the fact that the Ombudsman’s final (after transfers) budget for buildings and associated costs decreased by approx. 15 %, from EUR 1 622 200 in 2022 to EUR 1 373 000 in 2023; notes that the appropriations for rent decreased by 26 %, from EUR 1 177 700 in 2022 to EUR 866 100 in 2023, with a payment execution rate in both years of close to 100 %;

    36. Notes that, following the move of the Ombudsman Brussels’ Office to new facilities provided by the Parliament in 2021, the building was organised as a collaborative workspace with very few individual offices and flexible collaborative meeting facilities; notes with satisfaction that the Ombudsman does not practice hot-desking and that all members of staff have their own desk with ample storage; notes that no changes were made to the offices in 2023 and that a general staff survey conducted in 2023 showed that the majority of staff (56 %) replied positively regarding the physical arrangements in their offices in Brussels;

    37. Recalls that the Ombudsman does not own its own buildings but rents a building in Brussels and office space in Strasbourg; notes with satisfaction that the Havel building in Strasbourg is fully accessible to persons with reduced mobility or other disabilities and strongly regrets that accessibility to the building rented in Brussels needs improvement; calls on the Parliament to improve accessibility to the building rented to the Ombudsman in Brussels;

    Digitalisation, cybersecurity and data protection

    38. Acknowledges the  success of the Ombudsman’s long-standing approach of leveraging integrated systems and resources from other Union institutions, in particular the Parliament and the Commission, in order to optimise budget utilisation and enhance coordination, for example in the area of digitalisation; notes, in this context, the successful implementation of the Commission’s machine translation tools that have been integrated into the Ombudsman’s systems (e.g. the website) in 2023; notes with satisfaction from the Questionnaire that this project has led to a reduction in translation costs estimated at over 30 % per year, as well as to a reduced administrative burden;

    39. Welcomes the full implementation of the qualified electronic signature allowing staff to sign documents in a secure way, as well the use of the Commission’s QSign allowing staff to sign and manage documents, including procurement and contractual documents;

    40. Notes that, since 2023, the Ombudsman has been actively exploring the opportunities that the use of artificial intelligence (AI) could bring; welcomes in this context the Ombudsman’s partnership with the European Commission’s Joint Research Centre to experiment with large language models, and test and evaluate AI use cases; notes further that the Ombudsman purchased several AI tools which have successfully contributed to video content creation; welcomes the adoption by the Ombudsman of internal guidelines to ensure that external AI tools are used in a responsible and transparent manner; encourages the Ombudsman to ensure that staff receives compulsory training on the safe and ethical use of AI tools to enhance their understanding and mitigate potential risks; invites the Ombudsman to keep the discharge authority informed of the progress made in testing and using AI solutions;

    41. Notes that, in terms of IT, the Ombudsman relies on Parliament’s infrastructure and cybersecurity framework and cooperates closely with the Commission concerning the integration and maintenance of the Union’s corporate tools (SYSPER, ABAC, MiPS and ARES) and the use of IT framework contracts; notes that, given that its level of control over the data is limited, the Ombudsman concluded service-level agreements with the institutions concerned to ensure that the handling of personal data complies with the applicable legal framework; notes with satisfaction that the Ombudsman did not encounter any cyberattack in 2023;

    42. Encourages the Ombudsman to work in close cooperation with ENISA (the European Union Agency for Cybersecurity); suggests that regularly updated cybersecurity-related training programmes be offered to all staff within the Ombudsman;

    43. Notes, with regard to the Internal Audit Report 21/03 on the review of the Ombudsman’s Data Protection Framework, that one action remained open in the fourth quarter of 2023 and, with regard to the internal audit report 20/04 on the Ombudsman’s ICT security, that there were seven ongoing actions in 2023; invites the Ombudsman to keep the discharge authority updated as to the progress made in these matters;

    Environment and sustainability

    44. Welcomes the fact that, over the years, the Ombudsman has reduced its environmental footprint, in particular through the digitalisation of its processes, the removal of individual printers, the non-replacement of central processing units when they reach end of life, measures to make events more sustainable and the extensive use of videoconference systems to avoid missions; notes that, in terms of the environmental footprint of its buildings, the Ombudsman relies on the measures taken by the Parliament in its capacity as owner of the buildings; notes with satisfaction that both buildings where the Ombudsman has offices run on 100 % clean energy; welcomes the installation by the Parliament of solar panels, including on the Havel building in Strasbourg in 2024;

    45. Notes that the Ombudsman continued to encourage sustainable mobility in 2023; welcomes, in this sense, the fact that the Ombudsman adopted a new mobility policy that provides for the payment of a flat-rate contribution to staff up to grade AST8/AD8 who use sustainable modes of transport to get to work; notes further from the Questionnaire that the initiative whereby the Ombudsman provided bicycles for staff use during working hours was unsuccessful, as bicycles were hardly used during the trial period;

    Interinstitutional cooperation

    46. Welcomes the financial and administrative savings achieved through inter-institutional cooperation, in particular the wide-range of service-level agreements (SLAs) concluded with the Parliament and the Commission and the participation in interinstitutional procurement procedures; welcomes the formalisation of the collaboration between the Parliament and the Ombudsman in the field of cybersecurity through a revised inter-institutional agreement which provides a framework for the Parliament to continue providing solid cybersecurity support to the Ombudsman; notes further that in 2023 the Ombudsman signed a SLA with EPSO for the organisation of internal competitions;

    47. Commends the Ombudsman for its good collaboration with OLAF, ECA and EPPO which in 2023 took the form of meetings and exchanges of views on, for example, ways to improve the transparency and integrity of Union institutions or the Union’s oversight framework; recalls that the Ombudsman and OLAF have put in place a system to avoid duplication of investigations; notes from the Questionnaire that the Ombudsman and the EDPS cooperate mainly on an ad-hoc and informal basis aiming for a quick and efficient collaboration when needed; encourages the Ombudsman to work closely in cooperation with the other institutions and European Agencies;

    48. Calls on the Ombudsman to establish a formalized annual dialogue with the European Parliament’s CONT and LIBE Committees, ensuring systematic follow-up on institutional transparency, governance reforms and fundamental rights protection;

    49. Recognises the importance of maintaining a high level of exchanges and coordination with the European Network of Ombudsmen (ENO); welcomes the organisation of the ENO annual conference with sessions on topics such as migration, artificial intelligence and ethics in public administration in 2023; notes with satisfaction that, through the query procedure, the Ombudsman assists ENO members in resolving investigations at national and regional level, whereas, in 2023, the Ombudsman concluded five queries originating from five Union Member States; commends the organisation of the ENO annual conference in 2023 as a valuable platform for dialogue on key issues influencing the activities of Ombudsmen across Europe;

    50. Welcomes the fact that the Ombudsman in 2023 continued its close cooperation with relevant European Parliament Committees on important inquiries, either by presenting the work directly in Committee meetings or through information being sent to the Committee Chairs; underlines that the strategic initiatives and inquiries conducted by the Ombudsman are key to improving the transparency and accountability of the Union’s administration;

    Communication

    51. Notes that the overall budget for communication and promotional activities (publications, event organisation, digital communication etc.) increased by 17,20 % from EUR 132 400 in 2022 to EUR 155 200 in 2023;

    52. Welcomes the efforts of and actions taken by the Ombudsman in 2023 to raise citizens’ awareness about its role and the possibility of recourse to it in the event of maladministration by a Union institution; notes in this sense the communication campaigns carried out in 2023 around a series of videos presenting the Ombudsman’s work and explaining three of the key areas of its interventions, an explainer in the form of a scrollable story on the impact of the Ombudsman’s work over time and an access to documents guide; welcomes moreover the organisation of the ‘Award for Good Administration’ ceremony and the participation of the Ombudsman at the EU Open Day in Brussels and Strasbourg, where it hosted targeted stakeholder events with academics and think tanks, and at the European Youth Event in Strasbourg in 2023;

    53. Recognises the efforts undertaken by the Ombudsman to provide transparent information and publish data (including statistics on its caseload) in an informative and user friendly format on the Ombudsman website (although such data are not available in open format); welcomes the publication on the website of a timeline for all inquiries into complaints providing information about past and future milestones in each inquiry;

    °

    ° °

    54. Notes that the Ombudsman has social media accounts on Instagram, LinkedIn, X (ex-Twitter), where the number of followers and the engagement rates continued to grow in 2023; welcomes the participation of the Ombudsman in a pilot project led by the EDPS aimed at bringing Union institutions onto EU Voice and EU Video, which are two free, open-source social media networks, based on Mastodon software, allowing Union institutions to interact with the public by sharing texts, images, videos and podcasts.

    MIL OSI Europe News

  • MIL-OSI Europe: REPORT on the 2023 and 2024 Commission reports on Serbia – A10-0072/2025

    Source: European Parliament

    MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

    on the 2023 and 2024 Commission reports on Serbia

    (2025/2022(INI))

    The European Parliament,

     having regard to the Stabilisation and Association Agreement between the European Communities and their Member States of the one part, and the Republic of Serbia, of the other part[1], which entered into force on 1 September 2013,

     having regard to Serbia’s application for membership of the EU of 19 December 2009,

     having regard to the Commission opinion of 12 October 2011 on Serbia’s application for membership of the European Union (COM(2011)0668), the European Council’s decision of 1 March 2012 to grant Serbia candidate status and the European Council’s decision of 28 June 2013 to open EU accession negotiations with Serbia,

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

     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)[2],

     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[3],

     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 and of 6 May 2020 in Zagreb,

     having regard to its resolutions on foreign interference in all democratic processes in the European Union, including disinformation,

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

     having regard to the first agreement on principles governing the normalisation of relations between the governments of 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 agreement on free movement between the governments of Serbia and Kosovo of 27 August 2022, to the agreement on licence plates of 23 November 2022, and to the Energy Agreements’ Implementation Roadmap in the EU-facilitated Dialogue of 21 June 2022,

     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 October 2020 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 ‘Serbia 2023 Report’ (SWD(2023)0695),

     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 ‘Serbia 2024 Report’ (SWD(2024)0695),

     having regard to the European Council conclusions of 9 February 2023 on the EU-facilitated dialogue between Belgrade and Pristina,

     having regard to Article 14 of the Serbian Constitution on the protection of national minorities,

     having regard to the Council of Europe’s Framework Convention for the Protection of National Minorities, ratified by Serbia in 2001 and the Council of Europe’s European Charter for Regional or Minority Languages, ratified by Serbia in 2006,

     

     having regard to the European Council conclusions of 26 and 27 October 2023 on Kosovo and Serbia,

     having regard to the Council conclusions of 17 December 2024 on enlargement,

     having regard to the final report of the Organization for Security and Co-operation in Europe Office for Democratic Institutions and Human Rights (OSCE/ODIHR) election observation mission on the early parliamentary and presidential elections of 3 April 2022 in Serbia, published on 19 August 2022,

     having regard to the European Council conclusions of December 2006, to the Council conclusions of March 2020 and to the Conclusions of the Presidency of the European Council in Copenhagen of 21-22 June 1993, also known as the Copenhagen criteria,

     having regard to the final report of the OSCE/ODIHR election observation mission on the early parliamentary elections of 17 December 2023 in Serbia, published on 28 February 2024,

     having regard to the memorandum of understanding between the European Union and the Republic of Serbia on a strategic partnership on sustainable raw materials, battery value chains and electric vehicles, signed on 19 July 2024,

     having regard to its resolution of 29 February 2024 on deepening EU integration in view of future enlargement[4],

     having regard to its previous resolutions on Serbia, in particular that of 19 October 2023 on the recent developments in the Serbia-Kosovo dialogue, including the situation in the northern municipalities in Kosovo[5], and that of 8 February 2024 on the situation in Serbia following the elections[6],

     having regard to Rule 55 of its Rules of Procedure,

     having regard to the report of the Committee on Foreign Affairs (A10-0072/2025),

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

    B. whereas according to the Copenhagen criteria, candidate countries must adhere to the values of the Union in order to be able to join it;

    C. whereas democracy and the rule of law are the fundamental values on which the EU is founded;

    D. whereas in recent years, political rights and civil liberties have been steadily eroded, putting pressure on independent media, the political opposition and civil society organisations;

    E. whereas the Fourth Opinion on Serbia of the Council of Europe Advisory Committee on the Framework Convention on National Minorities, adopted on 26 June 2019, criticised Serbia’s delays in fully implementing education rights for minorities;

    F. whereas freedom of religion is a core European value and a fundamental human right and Serbia is therefore obliged to respect and guarantee this freedom for all individuals residing within its territory, in accordance with its international commitments and human rights obligations;

    G. whereas in line with Chapter 23 of the acquis, Serbia must demonstrate real improvements in the effective exercise of the rights of persons belonging to national minorities;

    H. whereas each candidate country for enlargement is judged on its own merits, including their respect for and unwavering commitment to shared European rights and values and alignment with the EU’s foreign and security policy;

    I. whereas Serbia has not imposed sanctions against Russia following the Russian aggression in Ukraine; whereas Serbia’s rate of alignment with the common foreign and security policy (CFSP) has been steadily declining since 2021; whereas Serbia supports the territorial integrity and political independence of Ukraine, and has clearly condemned the Russian Federation’s aggression against Ukraine and voted alongside the EU in the UN, even though it has not imposed sanctions against Russia; whereas Serbia’s rate of alignment with the CFSP dropped from 54 % in 2023 to 51 % in 2024 while other candidate countries in the region – Albania, Bosnia and Herzegovina, Montenegro and North Macedonia – achieved 100 % alignment;

    J. whereas Serbia remains a critical battleground for foreign disinformation campaigns, notably by Russia and China, which seek to create an anti-Western rhetoric; whereas the final report of the OSCE/ODHIR on the early parliamentary elections held on 17 December 2023 pointed out several procedural deficiencies, as well as the use of harsh rhetoric and the presence of consistent bias in the media that gave an unbalanced advantage to the ruling party; whereas the issues identified in that report need to be assessed thoroughly and promptly; whereas as part of the accession negotiations, Serbia adopted the Strategy for Combating Cybercrime 2019-2023 and the relevant action plans in September 2018; whereas the strategy and the relevant action plans were not renewed after December 2023; whereas Serbia did not align with the EU’s restrictive measures in reaction to cyberattacks in 2023 and 2024;

    K. whereas the normalisation of relations between Kosovo and Serbia is a precondition for the progression of both countries towards EU membership;

    L. whereas accession to the EU inevitably requires full alignment with the foreign policy objectives of the Union;

    M. whereas Serbia recognises the territorial integrity of Ukraine, including the Crimean peninsula and the Donbas region;

    N. whereas the EU is Serbia’s main trading partner, accounting for 59.7 % of Serbia’s total trade;

    O. whereas Russia is using its influence in Serbia to try to destabilise, interfere in and threaten neighbouring sovereign states and undermine Serbia’s European future; whereas Russian propaganda outlets such as RT (formerly Russia Today) and Sputnik operate freely in Serbia and exert significant influence in shaping anti-EU and anti-democratic narratives; whereas disinformation often originates from a false or misleading statement by a political figure, which is then reported by state-owned media and subsequently amplified on social media, often with an intention to undermine political opponents and democratic principles;

    P. whereas on 8 June 2024, an ‘All-Serb Assembly’ took place in Belgrade with the participation of political leaders from Serbia, Bosnia and Herzegovina, Montenegro and Kosovo under the slogan ‘One people, one assembly’;

    Commitment to EU accession

    1. Notes Serbia’s stated commitment to EU membership as its strategic goal and its ambition to align fully with the EU acquis by the end of 2026; urges Serbia to deliver quickly and decisively on essential reforms, especially in cluster 1, for this very ambitious commitment to be perceived as realistic, genuine and meaningful; stresses the need for Serbia to seriously and categorically demonstrate that it is strategically oriented towards the EU, by showing strong political will and consistency in the implementation of EU-related reforms and by communicating objectively and unambiguously with its citizens about the EU, Serbia’s European path and the required reforms;

    2. Reiterates the strategic importance of the Western Balkans in the current geopolitical context and for the security and stability of the EU as a whole; outlines that, owing to its geopolitical position, the country has a direct impact on the overall stability of the region; condemns, therefore, Serbia’s attempts to establish a sphere of influence undermining the sovereignty of neighbouring countries;

    3. Acknowledges Serbia’s good level of preparation with regard to macroeconomic stability and fiscal discipline and the Commission’s assessment that cluster 3 is technically ready for opening but notes with concern that there has been limited or no overall progress in meeting the benchmarks for EU membership across negotiating chapters, with particular shortcomings in critical areas such as the rule of law, media freedom, public administration reform, and alignment with EU policies, particularly the EU’s foreign policy;

    4. Regrets the fact that no substantial progress has been made on Chapter 31, as Serbia’s pattern of alignment with EU foreign policy positions has remained largely unchanged, mainly due to Serbia’s close relations with Russia; recalls that Serbia remains a notable exception in the Western Balkans regarding CFSP alignment; calls on Serbia to reverse this trend and to demonstrate positive steps towards full alignment; notes that Serbia’s rate of compliance with EU statements and declarations is increasing but remains at only 61 %; welcomes Serbia’s continued active participation in and positive contribution to EU military crisis management missions and operations;

    5. Welcomes Serbia’s humanitarian support for Ukraine and takes note of the sale of ammunition to the value of EUR 800 million for use by Ukraine in a mutually beneficial agreement; notes that Serbia has aligned with some of the EU’s positions regarding Russia’s war of aggression against Ukraine; regrets, however, that Serbia still does not align with the EU’s restrictive measures against Russia; calls on the EU to reconsider the extent of the financial assistance provided by the EU to Serbia in the event of continued support for anti-democratic ideologies and non-alignment with the EU’s restrictive measures and the CFSP; calls on Serbia to swiftly align with the EU’s restrictive measures and general policy towards Russia and Belarus, systematically and without delay;

    6. Stresses the importance of implementing sanctions against Russia for the security of Europe as a whole; deplores Serbia’s continued close relations with Russia, raising concerns about its strategic orientation; reiterates its calls on the Serbian authorities to enhance transparency regarding the role and activities of the so-called Russian-Serbian Humanitarian Center in Nis and to immediately terminate all military cooperation with Russia; notes Serbia’s decision to support the UN resolution condemning Russia’s aggression against Ukraine three years after the full-scale invasion; regrets President Vučić’s immediate verbal retraction of Serbia’s UN vote, calling it a ‘mistake’; considers that maintaining privileged relations with the Kremlin regime undermines not only Serbia’s credibility as a candidate country but also the trust of its European partners and the future of EU-Serbia relations;

    7. Regrets the continued decline in public support for EU membership in Serbia and the growing support for the Putin regime, which is the result of a long-standing anti-EU and pro-Russian rhetoric from the government-controlled media as well as some government officials; calls on the Serbian authorities to foster a fact-based and open discussion on accession to the EU;

    8. Deplores the continued spread of disinformation, including about Russia’s war of aggression against Ukraine; condemns the spillover effects of these actions in other countries in the region; calls on the Serbian authorities to combat disinformation and calls for the EU to enhance cooperation with Serbia to strengthen democratic resilience and counter hybrid threats;

    9. Notes Serbia’s progress on aligning with EU visa policy and calls for full alignment, in particular with regard to those non-EU countries presenting a security threat to the EU, including the threat of cyberattacks; welcomes the agreement signed on 25 June 2024 between the EU and Serbia on operational cooperation on border management with Frontex, highlighting the need to act in line with fundamental rights and international standards;

    10. Reiterates that the overall pace of the accession negotiations should depend on tangible progress on the fundamentals, the rule of law and a commitment to the shared European rights and values as well as to the Belgrade-Pristina Dialogue, which is to be conducted in good faith so that it results in a legally binding agreement based on mutual recognition, as well as alignment with the EU’s CFSP; reiterates its position that accession negotiations with Serbia should only advance if the country aligns with EU sanctions against Russia and makes significant progress on its EU-related reforms, in particular in the area of the fundamentals;

    11. Repeats its concern regarding the appeasing approach of the Commission towards Serbia against the backdrop of the country’s year-long rollback on the rule of law, democracy and fundamental rights, as well as its destabilising influence on the whole region; urges the Commission to use clearer language, including on the highest level, towards Serbia, consistently addressing significant shortcomings, lack of progress and even backsliding, thus upholding the EU’s fundamental values;

    12.  Calls on the Serbian Government to promote the role and benefits of EU accession and EU-funded projects and reforms among the Serbian population;

    Democracy and the rule of law

    13. Notes the ongoing challenges in ensuring judicial independence, including undue influence and political pressure on the judiciary; expresses concern about the failure to implement safeguards preventing political interference in judicial appointments and disciplinary actions against judges and prosecutors; calls on Serbia to ensure that the High Judicial Council, the High Prosecutorial Council and the Government and Parliament of Serbia effectively and proactively defend judicial independence and prosecutorial autonomy;

    14. Stresses the importance of adopting the Law on the Judicial Academy and the Venice Commission opinion and making necessary judicial appointments to reduce existing vacancies and improve the overall effectiveness of the judicial system; notes that the delay in adopting this law has stalled key judicial reforms necessary for alignment with EU standards; calls for the draft law to be amended following transparent consultation with all relevant stakeholders, with a view to ensuring the independence and control mechanisms of the institution in order to contribute to overall judicial independence;

    15. Notes that limited progress has been made in the fight against corruption despite the adoption of a new anti-corruption strategy for 2024-2028; calls on Serbia to adopt and begin implementing the accompanying anti-corruption action plan and to establish an effective monitoring and coordination mechanism to track progress, in line with international standards; expresses concern that corruption is still prevalent in many areas, particularly related to ‘projects of interests for the Republic of Serbia’, and that strong political will is required to effectively address corruption as well as to mount a robust criminal justice response to high-level corruption; notes that Serbia ranks 105th in the Corruption Perceptions Index 2024, well below the EU average; considers that the level of corruption in Serbia is a significant obstacle to its EU accession process; notes with concern that results have still not been delivered in cases of high public interest, after several years, such as in the long-standing cases of Krušik, Jovanjica, Savamala and Belivuk; calls on Serbia to strengthen the independence of its anti-corruption institutions by ensuring that they are adequately resourced and protected from political interference; calls on the Government of Serbia to sign the Anti-Bribery Convention of the Organisation for Economic Co-operation and Development and to fully align its legal framework on police cooperation and organised crime with that of the EU;

    16. Welcomes the more pluralistic composition of the new parliament, with a broader representation of political parties, including parties of national minorities; notes that the early election and the corresponding break in the functioning of the government and parliament have impeded progress on reforms; notes the frequent pattern of early elections, a permanent campaign mode and long delays in forming governments, as well as the disrupted work of the national parliament, including the absence of government question-time sessions, the lack of discussion on the reports of independent institutions, and the more frequent use of urgent procedures, which lead to a lack of parliamentary legislative oversight and legitimacy and do not contribute to the effective democratic governance of the country;

    17. Takes note of the resignation of Prime Minister Miloš Vučević on 28 January 2025, which was confirmed by the National Assembly on 19 March 2025; takes note of the resumption of the work of the National Assembly on 4 March 2025, after a pause of three months, and condemns all the acts of violence that occurred on this occasion;

    18. Reiterates its readiness to support the National Assembly and the members thereof in the democratic processes related to Serbia’s European path, including the proper functioning of the parliament in accordance with its rules of procedure, by using the European Parliament’s existing democracy support tools and initiatives and by supporting increased parliamentary oversight of the EU accession process and reforms;

    19. Takes note, with deep concern, of the final report of the OSCE/ODIHR election observation mission on the December 2023 elections; notes that in April 2024, the National Assembly formed a working group for the improvement of the election process but that, by the end of the year, it had not agreed on any legal measures to improve the election process; notes that two out of three representatives of civil society left the working group in February 2025; notes that steps were taken in the first months of 2025 on amending the Law on Unified Voter Registry but that there is no consensus among political and civil society actors on the content; calls on all parliamentary groups in the National Assembly to decide on the implementation of ODIHR recommendations, with the agreement of all groups; calls for equal treatment of all members of parliament in the work of the National Assembly, consistent and effective implementation of the parliamentary Code of Conduct and the impartial sanctioning of breaches of parliamentary integrity;

    20. Is concerned about the increasing role of foreign information manipulation and interference (FIMI) and foreign cyber operations and interference in Serbia’s democratic election processes;

    21. Stresses the critical importance of ensuring the independence of key institutions, including media regulators such as the Regulatory Authority for Electronic Media (REM); regrets the delay in the election of the new members; regrets the irregularities in the nomination process; notes the withdrawal of several candidates from the selection in February 2025, who justified their decision on the basis of these irregularities; deeply regrets the fact that the REM neglected its legal obligations to scrutinise the conduct of the 2023 election campaign in the media in a timely manner, to report on its findings and to sanction media outlets that breached the law, spread hate speech or violated journalistic standards; notes, with concern, the absence of pluralistic political views in the nationwide media; notes that the REM should actively promote media pluralism and transparency regarding the ownership structures of media outlets and independence from foreign actors;

    22. Notes that the REM awarded four national frequencies to channels that have a history of violating journalistic standards, including using hate speech and misleading the public, not complying with warnings issued by the REM, spreading disinformation and supporting the Kremlin’s narrative on Russia’s war in Ukraine; deeply regrets the fact that REM has not issued the fifth national licence and calls for it to be awarded through a transparent and impartial process without unnecessary delay and in compliance with international media freedom standards as soon as a new REM council is elected; calls for the Serbian Government to scrap and re-start the process of electing new members, in line with Serbian law and international media freedom standards;

    Fundamental freedoms and human rights

    23. Expresses its sincere condolences to the families of the 15 victims who lost their lives and to those who were injured following the collapse of the canopy of Novi Sad train station on 1 November 2024; calls for full and transparent legal proceedings following the investigation by the authorities, to bring those responsible to justice; underlines the need to examine more broadly to what extent corruption led to the lowering of safety standards and contributed to this tragedy;

    24. Regrets the delayed response and accountability of the Serbian authorities, the slow investigation process and the lack of transparency in the aftermath of the tragedy, which were partially addressed in the face of escalating public pressure;

    25. Expresses deep concern about the systemic issues highlighted by the student protests and various other protests in Serbia, such as issues relating to civil liberties, separation of powers, corruption, environmental protection, institutional and financial transparency, especially in relation to infrastructure projects, and accountability; regrets the fact that the government missed the opportunity to meet the demands of the students and of the citizens who support the students in good faith; affirms that the students’ demands align with reforms that Serbia is expected to implement on its European path;

    26. Underlines the importance of freedom of speech and assembly; calls on the authorities of Serbia to ensure the protection of those participating in the peaceful protests; takes note of the mass protests on 15 March 2025, the largest in the modern history of Serbia; calls for an impartial investigation of the claims that unlawful technology of crowd control was used against the protesters, causing injuries to a number of them;

    27. Condemns, in the strongest terms, the misuse of personal data from public registries to retaliate against peaceful protesters; calls on the prosecution office in Serbia to file charges against all persons who physically attacked and incited violence against the participants of the demonstrations; is deeply concerned about any act of violence; is carefully following developments as regards arrests of protesters and legal proceedings that have been opened against them; is concerned about the reports that the security services were involved in intimidation and surveillance of the protesters; condemns the language used by the Serbian authorities inciting violence against students and other protesters; notes that student activists have faced legal harassment, intimidation and excessive use of force by the authorities; calls for a thorough, impartial and speedy investigation into allegations of violence used against demonstrators and police misconduct during protests; urges the diplomatic missions of the EU and the Member States to continue to monitor closely the ongoing legal cases relating to the protests;

    28.  Is deeply alarmed that the Serbian authorities have engaged in widespread illegal surveillance practices using spyware against activists, journalists and members of civil society, as indicated in the recent reports by Amnesty International and the SHARE Foundation; urges the Government of Serbia to immediately cease the use of advanced surveillance technology against activists, journalists and human rights defenders, and calls on the competent state authorities to conduct a thorough investigation into all existing cases of unlawful surveillance and use of spyware and to initiate appropriate proceedings against those responsible; calls on the European Commission, in the light of this, to follow up on these incidents, address these issues with the Serbian authorities and insist on a thorough investigation into these matters;

    29. Rejects allegations that the EU and some of its Member States were involved in organising the student protests with a view to triggering a ‘colour revolution’; strongly condemns, in that context, the unlawful arrests and expulsions of EU citizens and the public disclosure, by convicted war criminals, of the personal data of EU citizens, as well as hate speech against national minorities; expresses concern about the rising number of detention cases involving EU citizens at Serbia’s border; notes that anti-EU narratives are being manifested in decreasing support for EU integration in Serbian society and in a strengthening of the presence of foreign autocratic actors in the country;

    30. Calls on the Serbian authorities to restore citizens’ confidence in state institutions by granting transparency and accountability; encourages all political and social actors to engage in an inclusive, substantive dialogue aimed at fulfilling EU-related reforms;

    31. Notes that media freedom in Serbia has deteriorated further, as evidenced by Serbia’s drop to 98th place in the 2024 Reporter Without Borders World Press Freedom Index; urges Serbia to improve and protect media professionalism, diversity and media pluralism, and to promote quality investigative journalism, the highest ethical journalistic standards, through respecting journalistic codes of conduct, and media literacy; recalls the importance of the plurality and transparency of the media, including on aspects related to ownership and state financing, most notably through better involvement of the REM; recalls that the concentration of media ownership can have adverse effects on the freedom of the media and the professionalism of reporting; reaffirms that, as part of the accession negotiations, Serbia needs to align with the EU in matters of strategic importance, such as countering FIMI; calls on Serbia to align with EU policies in countering foreign interference and disinformation campaigns by implementing concrete regulatory measures in line with EU standards, such as the provisions included in the Digital Services Act[7] and Regulation (EU) 2024/900 on the transparency and targeting of political advertising[8]; encourages cooperation between Serbia, the European External Action Service and the European Centre of Excellence for Countering Hybrid Threats in tackling disinformation; expects the authorities to investigate and prosecute all instances of hate speech, smear campaigns and strategic lawsuits against journalists;

    32. Expresses its deep concerns about reported cases of abusive attacks, digital surveillance and harassment against journalists, human rights activists and civil society organisations, most recently a police raid on 25 February 2025 on four leading civil society organisations, ostensibly regarding their misuse of US Agency for International Development funds; strongly condemns persistent smear campaigns and intimidation against civil society in Serbia, including false allegations about plots to overthrow the government with foreign support;

    33. Expresses concern that civil society organisations in Serbia face increasing challenges, including restrictive conditions, funding constraints, police raids and other forms of intimidation from state authorities; underlines the importance of a framework that enables local, vibrant civil society organisations to operate freely and participate in policymaking, including EU integration processes, in inclusive and meaningful ways; regrets that Serbia currently does not provide a framework that enables its lively and pluralistic civil society organisations, particularly those engaged in democracy support and electoral observation, to operate freely and participate in policymaking in inclusive and meaningful ways; expresses concern about recent raids of the offices of civil society organisations; calls for investigations into all attacks and smear campaigns against civil society organisations and for the improved transparency of public funding;

    34. Urges the Serbian authorities to expand the availability of public broadcasting services in all minority languages across the country, ensuring equal access to media for all communities, while drawing on the best practice of the region of Vojvodina;

    35. Expresses its deep concern about the draft law submitted to the Serbian Parliament on 29 November 2024, which proposes the establishment of a Russian-style foreign agents law; reminds Serbian legislators that civil society organisations and journalists play a key role in a healthy democratic society; reiterates that such legislation is incompatible with the values of the EU; notes that multiple civil society organisations suspended their cooperation with the legislative and executive branches of the government in February 2025;

    36. Expresses grave concern about the increasing political interference in heritage protection in Serbia, including the removal of protected status from cultural monuments and the disregard for legal procedures governing their preservation, as in the case of the Generalštab Modernist Complex;

    37. Calls on Serbia to fight disinformation, including manipulative anti-EU narratives and, in particular, to end its own state-sponsored disinformation campaigns; condemns the opening of an RT office in Belgrade, the launch of RT’s online news service in Serbian and the continued operation of the Russian online news service Sputnik Srbija, which is used to propagate pro-Russian narratives and misinformation across the Western Balkans region; urges the Serbian authorities to counter hybrid threats and fully align with the Council’s decision on the suspension of the broadcasting activities of Sputnik and RT; is deeply concerned about the spread of disinformation about the Russian aggression against Ukraine; calls on Serbia and the Commission to bolster infrastructure to fight disinformation and other hybrid threats; condemns the increasing influence of Russian and Chinese state-sponsored disinformation in Serbia, including the dissemination of anti-EU and anti-democratic narratives;

    38. Takes note of the adoption of the national strategy for equality and the strategy for prevention of and protection against discrimination, and calls for their full implementation and for further alignment with European standards; urges the Serbian authorities to address the recommendations of the Group of Experts on Action against Violence against Women and Domestic Violence (GREVIO), with a view to improving compliance with the Istanbul Convention ratified by Serbia; notes with concern the temporary suspension of the implementation of the Law on Gender Equality by the Constitutional Court; expresses concern about the persistent lack of adequate support for organisations promoting women’s rights and gender equality;

    39.  Stresses that the Serbian authorities must take concrete measures to uphold and strengthen the respect for the rights of the child in the country, including by ratifying the third Optional Protocol to the Convention on the Rights of the Child, adopting a national action plan for the rights of the child, adopting a new strategy on violence against children, given the expiry of the previous framework, and establishing a national framework to protect children from abuse and neglect;

    40. Welcomes the fact that Belgrade Pride 2024 parade, the biggest in Serbia so far, passed off peacefully, though being protected by a high-profile police presence;

    41. Highlights the need for strong commitment to safeguarding the rights of national minorities, ensuring their full representation at all levels of government, preserving their cultural identity through the use of their respective languages and by meeting their educational needs, freedom of expression and access to information, and to actively pursuing investigations into hate-motivated crimes as an irreplaceable part of common European values; regrets the fact that almost all national minorities are protected only formally; expresses concerns about the practice of pro forma representation of national minorities who are under government control; calls on Serbia to protect and promote the cultural heritage and traditions of its national minorities, in particular to create a positive atmosphere for education in minority languages, including by providing sufficient numbers of teachers, textbooks and additional materials, and deplores the violation of minority rights in this area; calls on Serbia to refrain from exploiting the national identities of national minorities that create division within these communities, and strongly condemns recorded cases of hate speech against some of them; notes the considerable delay in drafting a new action plan for the realisation of national minority rights and stresses the urgent need for Serbia to finalise and implement it promptly; highlights the need for the new action plan to fully incorporate the findings and recommendations of the Advisory Committee on the Framework Convention for the Protection of National Minorities;

    42. Expresses concerns about the significant decline in the population of certain minority groups, including the Bulgarian minority; calls on Serbia to ensure the right to use names and language specific to minority groups, including women within the Bulgarian community; notes with concern that not all school textbooks have been translated into Bulgarian; calls on the Serbian Government to ensure reciprocal equal rights for the Croatian minority in Serbia as the Serbian minority enjoys in Croatia, in particular with regard to ensuring their reciprocal representation at all levels of government, including regional and local levels; reiterates its concern regarding the restrictive and arbitrary enforcement of the Law on Permanent and Temporary Residence related to the passivation of address of thousands of Albanians in the south of Serbia; emphasises the situation of the Romanian Orthodox Church in Serbia, which is not officially recognised by the state as a traditional church;

    43. Regrets the attempts by the Serbian authorities to undermine the national identity of communities within the country; expresses concern, in this context, about the promotion of narratives such as that of the ‘Shopi nation’, which seek to erase the existence of the Bulgarian community and deny its historical roots and cultural heritage; regrets the searches carried out by the Serbian authorities at the Bosilegrad Cultural Centre and the initiation of pre-trial proceedings for ‘ethnic hatred’ against activists from non-governmental organisations;

    44. Calls on Serbia to refrain from distorting historical events, such as the narrative surrounding the so-called Surdulica massacre, which only serve to spread division and hatred against minorities and neighbouring countries, which is incompatible with EU membership;

    Reconciliation and good neighbourly relations

    45. Reiterates that good neighbourly relations and regional cooperation remain essential elements of the enlargement process; calls on Serbia to stop restrictions on entry for regional civil society activists and artists as such practices undermine regional dialogue and cooperation; reaffirms, furthermore, the importance of the stability of south-eastern European countries and their resilience against foreign interference in internal democratic processes; stresses the importance of Serbia developing good neighbourly relations, implementing bilateral agreements and resolving outstanding bilateral issues with its neighbours; notes Serbia’s participation in regional initiatives and its active involvement in the Growth Plan for the Western Balkans and the Common Regional Market; underlines the fact that respect for national minority rights is an essential condition of Serbia’s advancement along its European path;

    46. Calls for historical reconciliation and the overcoming of discrimination and prejudices from the past; deplores the recent inflammatory rhetoric by the government, targeting neighbouring states that did not support the opening of cluster 3 for Serbia;

    47. Reiterates that Serbia must refrain from influencing the domestic politics of its neighbouring Western Balkan countries, including regarding the unconstitutional celebration of Republika Srpska Day in Bosnia and Herzegovina and questioning Bosnia and Herzegovina’s court decisions;

    48. Urges Serbia to step up its reconciliation efforts and seek solutions to past disputes, in particular when it comes to missing persons, who account for 1 782 people in Croatia, 7 608 people in Bosnia and Herzegovina and 1 595 people in Kosovo; calls on the Serbian authorities to achieve justice for victims by recognising and respecting court verdicts on war crimes, fighting against impunity for wartime crimes, investigating cases of missing persons, investigating grave sites, and supporting domestic prosecutors in bringing perpetrators to justice, which requires the cooperation of other parties too; strongly condemns the widespread public denials of international verdicts for war crimes, including the denial of the Srebrenica genocide;

    49. Calls on the judicial authorities in Serbia to ensure compliance with the standards of fair trial and satisfaction of justice for victims in all war crime cases; calls for the denial of war crimes and the glorification of war criminals to be included in the Criminal Code, with a view to prosecuting any form of denial of war crimes determined by the verdicts of the International Criminal Tribunal of the former Yugoslavia and the International Court of Justice;

    50. Reiterates its position on the importance of opening and publishing wartime archives, and reiterates its call for the former Yugoslav archives to be opened and, in particular, for access to be granted to the files of the former Yugoslav secret service (UDBA) and the Yugoslav People’s Army Counterintelligence Service (KOS), and for the files to be returned to the respective governments if they so request;

    51. 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;

    52. Reiterates the importance of constructive engagement on the part of the authorities of both Serbia and Kosovo 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;

    53. 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;

    54. 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;

    Socio-economic reforms

    55. Welcomes Serbia’s steady progress towards developing a functioning market economy with positive GDP growth and increased foreign investment in some sectors; takes note of that fact that Serbia received its first-ever investment-grade credit rating; underlines the fact that the EU is Serbia’s main trading partner, the largest source of foreign direct investment and by far the largest donor; reiterates that the financial assistance, which is of great benefit to Serbia, is conditional on the strengthening of democratic principles and alignment with the CFSP and other EU policies; reiterates the need for more substantial reforms in the labour market, education and public administration, including to address social inequalities; expresses concern about the scale and scope of intergovernmental contracts awarded that are exempt from the current legislative framework on public procurement; regrets, however, the fact that public debt as a percentage of GDP remains well above the eastern European average;

    56. Is concerned about the investment in Serbia by Russia and China and their growing influence on the political and economic processes in the region;

    57. Calls on Serbia to intensify efforts and increase investment in the socio-economic development of its border regions to address depopulation and ensure that the residents have access to essential services, including professional opportunities, healthcare and education; underlines the potential of the IPA III cross-border cooperation programmes as a key tool to promote long-term sustainable regional growth;

    58. Welcomes Serbia’s active engagement in the implementation of the new Growth Plan for the Western Balkans; takes note of the fact that Serbia adopted its Reform Agenda on 3 October 2024; believes that embracing the opportunities of the growth plan would further enhance the Serbian economy, which over the past three years benefited from more than EUR 586 million in financial and technical assistance under IPA III; believes that the EU funding should better support the democratic reforms of the country; calls, in that context, for the relevant EU funding, including from the Growth Plan for the Western Balkans, to be reprogrammed to redirect more funds towards supporting judiciary reforms and anti-corruption measures, as well as towards independent media and civil society organisations, in order to support their critical work, in particular in the vacuum created by the withdrawal of US donors; calls, furthermore, for the EU and the Western Balkan countries to establish a framework for fruitful cooperation between the European Public Prosecutor’s Office (EPPO) and its Western Balkan counterparts in order to ensure that the EPPO can effectively exercise its power on IPA III and Western Balkan Facility funds in the recipient countries; urges the Serbian authorities to step up efforts to communicate clearly to citizens the benefits of the EU funds and to improve their visibility;

    59. Regrets the lack of public consultation during the adoption of the Serbian Reform Agenda; calls for more effective oversight of the EU funding programmes and projects;

    60. Advocates increased regional cooperation among Western Balkan countries to share best practice and develop joint strategies in combating disinformation and foreign interference; emphasises the role of the EU in facilitating such collaborative efforts; calls for the continuation and further reinforcement of the IPA regional cybersecurity programme;

    61. Recognises the important role of Serbia’s business community in advancing economic convergence with the EU, including through the opportunities offered by and in the implementation of the growth plan as a sustainable alternative to Russian and Chinese investment in the country; welcomes the business community’s contribution to advancing socio-economic relations in the Western Balkans;

    62. Takes note of Serbia’s business community’s efforts in advocating for the accession of the Western Balkans to the EU’s single market as a concrete step towards full EU membership; calls for clear, measurable actions and well-defined roles and responsibilities for the implementation of the Common Regional Market action plan, as a key driver for the region’s successful accession to the EU’s single market;

    Energy, the environment, sustainable development and connectivity

    63. Calls on Serbia to increase its efforts towards the transposition of relevant environmental and climate acquis and to ensure the proper application of environmental protection standards, including by significantly enhancing its administrative and technical capacities at all levels of government, notably on waste management legislation and the adoption of the Climate Change Adaptation Programme and the National Energy and Climate Plan; urges the Serbian authorities to improve the transparency and environmental impact assessment of all investment, including from China and Russia;

    64. Reiterates its regret regarding the lack of action on the pollution of the Dragovishtitsa river by mines operating in the region and the detrimental effect on the health of the local people and the environment;

    65. Calls on Serbia to increase its efforts towards the decarbonisation of its energy system and to enable effective enforcement of pollution reduction regulations related to thermal power plants;

    66. Emphasises the need for further progress in transboundary cooperation with neighbouring countries, especially with regard to transboundary road infrastructure; urges Serbia to begin implementing the activities outlined in the memorandum of understanding on environmental protection cooperation with Bulgaria;

    67. Takes note of the EU-Serbia memorandum of understanding launching a strategic partnership on sustainable raw materials, battery value chains and electric vehicles, in view of the European energy transition and in line with the highest environmental standards; recalls that dialogue with the affected populations, the scientific community and civil society should be at the centre of any such strategic partnership;

    68. Welcomes the agreement reached at the EU-Western Balkans summit in Tirana 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 roaming charges for data and further reductions leading to prices close to the domestic prices between the Western Balkans and the EU by 2027; welcomes the entering into force of the first phase of implementation of the roadmap for roaming between the Western Balkans and the EU;

    69. Reiterates that it is important for Serbia to continue diversifying its energy supply, to be able to break away from its dependency on Russia; takes note of the sanctions announced by the United States against Naftna Industrija Srbije (NIS), a subsidiary of the Russian Gazprom; welcomes the completion of the gas interconnector between Serbia and Bulgaria (IBS) in December 2023; regrets the postponement of the launching of the IBS’s commercial operation; calls for the swift finalisation of the permitting process to ensure its full operability in compliance with the energy community acquis; notes that Serbia is taking steps to introduce a carbon tax by 2027 as a step towards aligning with the EU emissions trading system;

    70. Notes that all chapters in cluster 4 on the green agenda and sustainable connectivity have been opened; notes the adoption of the Law on Environmental Impact Assessment as a positive step towards environmental protection in Serbia, while expressing its regret that the new law fails to align fully with the relevant EU Directive 2014/52/EU[9], since it still leaves the opportunity for significant projects to advance without comprehensive environmental scrutiny; reiterates the need to designate and rigorously manage protected areas, particularly those identified as Important Bird and Biodiversity Areas (IBAs); calls for special attention to be given to critical sites where enforcement against poaching needs to be improved;

    °

    ° °

    71. 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 Serbia.

    MIL OSI Europe News

  • MIL-OSI Europe: REPORT on competition policy – annual report 2024 – A10-0071/2025

    Source: European Parliament

    MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

    on competition policy – annual report 2024

    (2024/2079(INI))

    The European Parliament,

     having regard to the Treaty on the Functioning of the European Union (TFEU), in particular to Articles 101 to 109 thereof,

     having regard to the publication of 18 July 2024 by Ursula von der Leyen entitled ‘Europe’s choice – political guidelines for the next European Commission 2024–2029’,

     having regard to the report of 9 September 2024 by Mario Draghi entitled ‘The future of European competitiveness’,

     having regard to the report of 18 April 2024 by Enrico Letta entitled ‘Much more than a market’,

     having regard to the European Court of Auditors Special Report21/2024 of 23 October 2024 entitled ‘State aid in times of crisis – Swift reaction but shortcomings in the Commission’s monitoring and inconsistencies in the framework to support the EU’s industrial policy objectives’,

     having regard to Council Regulation (EC) No 139/2004 of 20 January 2004 on the control of concentrations between undertakings (the EC Merger Regulation)[1],

     having regard to Article 11 TFEU, which mandates the integration of environmental protection requirements into the definition and implementation of all EU policies and activities, with a view to promoting sustainable development,

     having regard to Article 3 of Decision (EU) 2022/591 of the European Parliament and of the Council of 6 April 2022 on a General Union Environment Action Programme to 2030[2], which provides that environmentally harmful subsidies, in particular fossil fuel subsidies, should be phased out without delay,

     having regard to the judgments of the Court of Justice of the European Union of 3 September 2024 in Case C‑611/22 P, Illumina v Commission[3], of 10 September 2024 in Case C‑465/20 P, European Commission v Ireland and Others[4], and of 10 September 2024 in Case C‑48/22 P (Google and Alphabet v Commission)[5],

     having regard to the Commission’s report of June 2024 entitled ‘Protecting competition in a changing world – Evidence on the evolution of competition in the EU during the past 25 years’,

     having regard to the study entitled ‘The role of commodity traders in shaping agricultural markets’, published by its Policy Department for Structural and Cohesion Policies in November 2024,

     having regard to the report of 20 December 2023 by the European Securities and Markets Authority entitled ‘CRA Market Share Report: 2023 edition’,

     having regard to Rule 55 of its Rules of Procedure,

     having regard to the report of the Committee on Economic and Monetary Affairs (A10-0071/2025),

    A. whereas the current challenging economic, climate and geopolitical contexts, marked by uncertainty and unpredictability, require a renewed approach to European competitiveness and concrete strategies to boost economic growth;

    B. whereas the proper enforcement of the EU competition policy framework leads to lower prices, higher quality, greater choice for consumers, faster innovation and a fairer and more resilient economy, and protects entry conditions for operators in the internal market, tackling abuses of dominant position, monopolies and practices distortive to the internal market;

    C. whereas the Draghi report underlines that the EU has a broad and diversified industrial innovation base, with a strong comparative advantage in green technologies, but that sustained efforts are needed in order to retain that advantage; whereas the integration of climate and environmental considerations into competition policy is essential, in that regard; whereas the Letta report maintains that the lack of EU integration in the financial, energy and electronic communications sectors is a primary reason for Europe’s declining competitiveness;

    D. whereas the EU’s competition policy could contribute to bolstering the resilience of the internal market, as well as achieving the goals of the European Green Deal, the 2030 Digital Compass and the Competitiveness Compass, for which international exchange and cooperation are essential;

    E. whereas the Commission and the national competition authorities need to act in an impartial and objective way in order to preserve the credibility of the EU’s competition policy; whereas the political independence of national competition authorities is of utmost importance to ensure the impartiality and credibility of competition policy;

    General considerations

    1. Considers that EU competition law seeks to shield against excessive levels of concentration and accumulation of market power, and reaffirms the role of competition policy in encouraging efficiency, innovation and growth, creating a level playing field and protecting consumers, by assuring that markets remain competitive, efficient, dynamic and innovative, delivering high-quality products and services at fair prices and with a wider range of choice;

    2. Reiterates that competition policy should contribute to all of the EU’s policies, notably in the fields of sustainability, energy, defence and digitalisation; welcomes the Commission’s commitment to a new State aid framework to accompany the Clean Industrial Deal, so as to ensure competitiveness through mobilising the necessary public support for the energy transition to decarbonise EU industry, while ensuring that this does not hinder innovation, increase prices or reduce competition in the internal market; reiterates that State aid should not distort fair and effective competition;

    3. Emphasises that the global strength and importance of the EU single market derives not only from its internal and external competitiveness but also from its ability to set common standards and guarantee territorial cohesion; notes that at the same time, policymakers should take due account of international regulatory and market developments and calls on the Commission to strive for continued dialogue and cooperation at international level, including via second-generation cooperation agreements that allow for more effective information exchange between competition authorities, and the development of influence on competition policy, globally; highlights the importance of the European Competition Network (ECN) and calls on the Commission to prioritise sustained constructive dialogue and cooperation, in this regard, at international level; calls for the coordination between national competition authorities to ensure the uniform application of competition rules and underlines the necessity of increasing collaboration between antitrust and other sectoral regulators;

    A competitive Union

    4. Supports the Commission’s commitment to investing in sustainable competitiveness; welcomes the Draghi report’s emphasis on innovation, investments, market integration, decarbonisation and resilience, and the Letta report’s focus on integration, autonomy and solidarity; encourages policies that promote innovation, competitiveness and sustainable and inclusive growth;

    5. Underlines the need for coordinated, targeted and truly European industrial policy to boost competitiveness; notes that this must not result in market dominance or abuse thereof, price distortion or economic inefficiencies, and points to the need for effective merger control procedures;

    6. Considers that any State aid granted should be consistent with EU policy objectives; notes the Commission’s intention to provide guidance on the compatibility of State aid with innovation, climate and economic security considerations, as well as its actions to scale down and phase out fossil fuel subsidies under the Clean Industrial Deal, and encourages the Member States to consider the introduction of further conditions for the receipt of State aid; calls for companies structured through non-EU tax havens to be barred from receiving State aid; invites the Commission to investigate the lack of harmonisation of clawback mechanisms;

    7. Takes note of the Commission’s report asserting that market concentration, markups and profits have increased over the past 25 years, while industry dynamism has decreased, despite the active enforcement of competition law; also takes note that this increase in markups was found to be driven by market share reallocation towards the largest firms; further notes that weak levels of competition have had significant negative impacts on consumers, purchasing power, and on the competitiveness of EU firms and overall economic growth; recalls that the application of competition law should focus on ensuring open, competitive markets free from anti-competitive practices;

    8. Points out that State aid is increasingly used to support industrial policy objectives; recalls that such aid, as permitted under Article 107(3)(c) TFEU, must not adversely affect trading conditions or the common interest; notes the divergent fiscal capabilities of the Member States and warns that fragmented State aid creates an uneven playing field; calls on the Commission to monitor these effects and to ensure the integrity of the single market, which can be done through a common financing instrument for a European industrial policy, such as a European Competitiveness Fund, as proposed by Commission President von der Leyen in her political guidelines; calls on the Commission and the Member States not to engage in subsidy competition, which only exacerbates market distortions, notably when financing undertakings that are not efficient; concludes that temporary State aid frameworks have failed to prevent further market fragmentation and notes that only two of the Member States accounted for 77 % of State aid notified; calls for stricter State aid notification monitoring and enhanced State aid reporting and transparency, in line with the recommendations of the European Court of Auditors;

    9. Underlines the importance of the important projects of common European interest (IPCEIs) for financing projects within the EU with a cross-border dimension; stresses that IPCEIs should have genuine EU added value, which means that they should have a positive impact on more than one Member State; calls on the Commission and the Member States to ensure that any such State aid notification is completed within six months at the latest;

    10. Takes note of the Draghi report’s estimate that, in order to protect our EU competitiveness, an additional EUR 800 billion per year is needed; acknowledges the importance of public and private investment in this context; underlines that the EU budget needs to be properly equipped to that end; regards the completion of the Savings and Investments Union as important for mobilising private investment, addressing the fragmentation of the internal market and supporting the EU’s industrial strategy; acknowledges the urgent need for reforms alongside the effective implementation of the three action areas outlined in the Draghi report: (i) closing the innovation gap with the US and China; (ii) a common plan for decarbonisation and competitiveness to accelerate the energy transition and reduce energy costs; and (iii) enhancing security and reducing dependencies;

    11. Welcomes the protection of the level playing field of European markets and European companies and their workers granted by anti-dumping measures that correct for distortive foreign State aid; calls on the Commission to make swift use of available trade instruments on procurement and foreign subsidies to prevent unfair competition in the internal market;

    Enforcement priorities

    12. Observes changes in business practices, highlighting a decline in cartel cases; cautions, however, against new forms of harmful conduct like tacit collusion and algorithmic collusion, and emphasises the need to align enforcement priorities with this evolving landscape;

    13. Notes the Draghi report’s proposal for a ‘new competition tool’ as a flexible market investigation tool designed to address structural competition problems that do not result from anti-competitive agreements or abuse of dominance, and to impose market-wide, forward-looking structural or behavioural remedies, including by lowering entry barriers for competitors, with the aim of increasing competitiveness, incentivising innovation and protecting vulnerable consumers; invites the Commission to analyse how this tool would complement the existing framework for sector investigations;

    14. Recalls that under the Treaty, the Commission is empowered to address exploitative abuses;

    15. Acknowledges the existence of a legal base for structural remedies against the abuse of market dominance; is aware that EU competition rules stipulate that structural remedies should only be used as a last resort if behavioural remedies have proven ineffective, but nonetheless regrets the reluctance of the Commission to address market dominance through structural remedies; reiterates its invitation to make better use of structural remedies and end the primacy given to behavioural remedies, and encourages further efforts to strengthen their application when necessary; calls on the Commission to make better use of the interim measures instrument to stop any practice that would seriously harm competition, particularly in relation to dynamic and rapidly developing markets such as digital markets;

    16. Welcomes the priority given to housing by the 2024-2029 Commission; calls on the Commission to assess how EU competition principles affect the supply of services of general economic interest (SGEI); calls on the Commission to assess the position of social services of general interest and an SGEI exemption for affordable housing;

    17.  Stresses the importance of State aid as a tool for closing the economic gap between more developed EU regions and island areas, inland areas, outermost regions and economically depressed areas; recalls that allowing State aid in the context of SGEIs remains essential for the survival of these areas, especially in the context of State support dedicated to connectivity and other basic provisions of services for communities residing in isolated, remote or peripheral regions of the EU; calls on the Commission to investigate possibilities of further flexibility in providing funding to these regions;

    18. Takes note of the recent Court of Justice of the European Union ruling which found that one of the Member States has failed to transpose the ECN+ Directive into national legislation; underlines the importance of transposing the ECN+ Directive fully; calls on all of the Member States to ensure a proper implementation of this Directive;

    Merger and antitrust

    19. Notes with concern the Court of Justice of the European Union’s interpretation of Article 22 of the EC Merger Regulation in Case C-611/22 P (Illumina v Commission), rescinding the Commission’s approach of accepting referrals of non-notifiable deals; acknowledges that the EC Merger Regulation does not provide the Commission with sufficient tools for dealing with killer acquisitions; strongly believes that the impact of merger decisions on the internal market justifies the inclusion of an internal market legal base in the EC Merger Regulation, so as to fully involve co-legislators, in a manner similar to that of the Digital Markets Act (DMA); calls on the Commission to require Member States that have or can claim the relevant competence to examine potential killer acquisitions in the light of their national merger control laws, and to continue to refer those deals in accordance with Article 22 of the EC Merger Regulation; calls on the Commission to explore the possibility of reviewing the EC Merger Regulation to be able to examine mergers that fall below EU or national thresholds, regardless of the sectors involved;

    20. Notes that since the 2004 entry into force of the EC Merger Regulation, 0.7 % of notified mergers have been either blocked by the Commission or withdrawn following an investigation;

    21. Notes that the turnover thresholds in the EC Merger Regulation alone might not be suitable for detecting all cases that should be reviewed by the competition authorities; highlights practices used by dominant firms to avoid formal investigations, such as the growing use of ‘partnerships’ in the AI sector, which further suggests that a review of the EU Merger Regulation is necessary;

    22. Welcomes the Draghi report’s proposal for an ‘innovation defence’ in cases where a merger increases the ability and incentive to innovate, and invites the Commission to analyse and further develop this concept; furthermore calls for matters of public interest, such as the impact on workers, to be taken into account;

    23. Asks the Commission to identify the national barriers that may prevent it from considering the EU market as the relevant one in its analyses of mergers; calls on the Commission to present a legislative proposal to remove these impediments; notes that the international environment needs to be carefully analysed when deciding on the definition of the relevant market in competition and merger control cases; calls on the Commission to adopt a forward-looking approach to consolidation in the EU where appropriate, as also proposed by the Draghi and Letta reports, taking into account the strategic importance and pro-competitive impact of scale and favourable investment conditions in certain sectors for driving innovation and long-term competition;

    24. Calls for merger assessment frameworks to be updated to reflect the realities of the digital economy, where market power can be manifested in ways beyond traditional market share in clearly delineated markets; supports the development of advanced methodologies for analysing data-driven dominance and network effects, emphasising the critical role of consumer choice in selecting digital services and devices; encourages the Commission to enhance mechanisms enabling interoperability across services and devices, fostering innovation and competition in the digital ecosystem; urges the Commission to progress swiftly on the implementation of the existing interoperability obligations for messaging services under the DMA, the existing interoperability obligations for cloud providers under the Data Act and to start work on the review of the DMA for May 2026; urges the Commission to implement existing interoperability obligations under the DMA and look into extending interoperability obligations to online social networking services; supports the Commission in taking more account of the potential harm to competition when assessing mergers where expansion into adjacent markets would have the effect of further strengthening market dominance in the acquiring company’s core market;

    25. Calls on the Commission to address excessively long antitrust investigations during which companies continue to benefit from their anticompetitive practices; calls on the Commission to set appropriate time limits for antitrust cases and ensure an effective follow-through of decisions taken; calls on the Commission to adopt further interim measures to stop any practice which would seriously harm competition, particularly in relation to dynamic and rapidly developing markets such as digital markets;

    Sectoral policies

    26. Welcomes the two September 2024 landmark judgments by the Court of Justice confirming the Commission’s assertion that the Irish tax deal with Apple constitutes illegal State aid and that Google abused its dominant position in contravention of the Treaties; acknowledges that the legal framework in Ireland has since changed; encourages the Commission to continue the clamp down on State aid abuses involving the selective granting of tax breaks to companies;

    27. Notes the detrimental effect of international tax competition; recalls its support for the implementation of Pillar Two of the Organisation for Economic Co-operation and Development (OECD); deeply regrets the US presidential Executive Order of 20 January 2025 which asserts that the OECD global tax agreement has ‘no force or effect within the United States’; stresses the importance of multilateralism in ensuring that multinationals pay their fair share of taxation where value is created; takes the view that the EU should fully stand by the OECD’s Pillar Two Directive;

    28. Emphasises the worrying market concentrations in various digital markets, such as social media, search engines, AI, cloud services, e-commerce, microchips and online advertising; underlines the actual and potential negative impact on EU competitiveness, the resilience of supply chains, media freedom, privacy and data protection, society and democracy; urges the Commission to address issues that are specific to the tech market, including infrastructural power in hardware and cloud computing layers, vertical concentration, algorithmic manipulation of the digital public sphere and market leveraging in digital markets, as demonstrated by the progress made under the DMA; additionally calls for the opening of new investigations into the cloud services sector to further ensure fair competition and innovation, taking into account the degree of market concentration in this sector and anticompetitive practices related to complex and non-transparent licensing terms or forced bundling; furthermore, urges the Commission to address the increasing vertical concentration of dominant players across the advertising value chain, which puts the EU online advertising sector at risk;

    29. Notes the rapid development of AI services, which has the potential to result in market concentration; calls on the Commission to take an ecosystemic approach towards this sector, including by developing and applying new theories of harm to address the further entrenchment of the dominant players in this sector; highlights that the DMA contains several provisions that must be used to prevent gatekeepers from restricting emerging AI developers, and asks the Commission to act swiftly to address the risk of consumers being forced into using pre-determined AI services on their mobile devices, ensuring that AI systems remain user-selectable and transparent, thereby safeguarding competition and consumer choice; calls on the Commission to explore the possibility of adding generative AI as a new core platform service under the DMA;

    30. Notes that large digital players use their market power, power over consumers, financial resources and data concentration in one market to leverage their position in another; stresses that small players cannot compete with the aforementioned factors, which makes EU citizens even more dependent on the same small number of non-EU companies and endangers strategic autonomy; calls for increased scrutiny of the leveraging of position by dominant digital sector players into other sectors and the EU’s strategic autonomy, through a revision of the merger guidelines to ensure that market leveraging can be scrutinised more effectively;

    31. Notes the importance of data and data analytics tools as one of the deterring factors for digital market concentrations and acquisitions in the digital sector; calls for an opinion of the European Data Protection Board in cases of concentrations involving one or more operators in digital sectors on the relevance of datasets for the intended concentration, the personal data the target acquisition processes and the potential impact on the rights to privacy and data protection the intended concentration has;

    32. Expresses concern regarding the growing use of dynamic pricing mechanisms across the EU; calls on the Commission to explore regulatory measures against highly adaptive and opaque pricing methods;

    33. Calls on the Commission to vigorously enforce all competition rules, including the Foreign Subsidies Regulation and the DMA, in order to address gatekeeper practices and foster contestable markets and fair competition; stresses that the Commission must have sufficient staff for enforcement, while noting that new tools, as well as scientists and economists stemming from divergent disciplines, can work to improve competition law enforcement; underlines in particular that the DMA should be applied rigorously and independently, without any undermining by external pressures; stresses that the DMA and potential fines must not be used as a bargaining chip in relation to discussions on tariffs, but as a cornerstone of the EU’s efforts to ensure fair and competitive digital markets; notes the six non-compliance procedures launched against some designated gatekeepers; is deeply concerned about potential delays in critical investigations and the capacity of the Commission to respect their ‘best effort’ obligations and to make a decision on non-compliance procedures without undue delay;

    34. Notes with concern the fragmentation in numerous consumer markets, including financial services, telecoms and household energy, and calls for faster and greater market integration where there are benefits for consumers, and for recognition that this market integration can drive investment and innovation;

    35. Expresses alarm at the high concentration in the retail, agricultural and automotive sectors in overseas territories whereby excessive prices set by dominant undertakings on essential products and services amplify inequalities, precariousness and territorial disparities; calls on the Commission to launch an investigation into potential abuses of dominant position under Article 102 TFEU;

    36. Notes with concern the high degree of market concentration in the European financial sector, as well as its sustained over-reliance on a limited number of non-EU service providers; notes that the three largest credit rating agencies still hold a market share of over 90 %; expresses concern about the continued high concentration in the public interest entities (PIE) audit market, with four firms mainly holding the vast majority of EU revenues for PIE audits, limiting choice and risking supervisory capture; invites the Commission to present an impact assessmenton options to address these concerns; urges the Commission to carefully assess public tenders for expertise from audit market participants so that potential conflicts of interest are avoided;

    37. Expresses concern about the food price crisis and notes, in this regard, the high levels of market concentration in food supply chains; reiterates its call for the Commission to urgently conduct a thorough analysis of the extent and effect of buying alliances, thereby devoting special attention to guaranteeing fair competition and greater transparency in supermarket and hypermarket chains’ commercial practices, particularly where such practices affect brand value and product choice or limit innovation or price comparability; recalls, in this light, the market concentration in agri-commodity trading wherein four companies account for the vast majority of the global crop trade; regrets that the Commission nonetheless conditionally approved the 2024 Bunge-Viterra merger (M.11204) despite competition concerns; asks the Commission to address excessive power accumulation in the hands of a few large players in this market, in order to strengthen the bargaining position of farmers and consumers alike; highlights the implementation of the New Competition Tool in this context;

    38. Notes the high-net profits of EU banks during this inflationary period, mostly driven by the delayed pass-through of the rapid monetary policy tightening to deposit rates;

    39.  Notes with particular concern the dominant position of two international card schemes in the EU payments market, and their engagement in practices that reinforce and extend their dominance of this market, potentially further increasing barriers to entry and hampering long-term innovation[6], as well as leading to higher costs for EU businesses and ultimately consumers; calls on the Commission to take decisive actions, emphasising the need for a review of the Interchange Fee Regulation (Regulation (EU) 2015/751) to tackle the significant increase in card scheme fees charged by international card schemes and to ensure a fair, competitive and transparent market environment;

    Parliamentary involvement

    40. Stresses that Parliament should be sufficiently involved in shaping competition policy; cautions against the over-reliance on soft-law instruments, such as guidance and temporary frameworks, in which Parliament’s involvement is limited; calls on the Commission to enter into negotiation for an interinstitutional agreement on competition policy to formalise its enforcement priorities to Parliament; calls on the European Council to adopt a decision under Article 48(7) TEU allowing for the adoption of legislative acts in the area of competition policy in accordance with the ordinary legislative procedure; stresses that Parliament should be more involved in the activity of working parties and expert groups in the International Competition Network and the OECD as an observer, and also in the High-Level Group on the DMA;

    41. Calls on the responsible Executive Vice-President, also Commissioner in charge of competition policy to maintain close contact with Parliament’s competent committee and its working group on competition issues;

    °

    ° °

    42. Instructs its President to forward this resolution to the Council and the Commission.

    MIL OSI Europe News

  • MIL-OSI Europe: REPORT on the protection of the European Union’s financial interests – combating fraud – annual report 2023 – A10-0049/2025

    Source: European Parliament

    MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

    on the protection of the European Union’s financial interests – combating fraud – annual report 2023

    (2024/2083(INI))

    The European Parliament,

     having regard to Articles 310(6) and 325(5) of the Treaty on the Functioning of the European Union (TFEU),

     having regard to the Commission report of 25 July 2024 entitled ‘35th Annual Report on the protection of the European Union’s financial interests and the fight against fraud – 2023’ (COM(2024)0318) (2023 PIF Report),

     having regard to the European Anti-Fraud Office (OLAF) 2023 annual report[1] and the Activity report of the Supervisory Committee of OLAF – 2023[2],

     having regard to the European Public Prosecutor’s Office (EPPO) 2023 Annual Report published on 1 March 2024,

     having regard to Regulation (EU, Euratom) 2020/2092 of the European Parliament and of the Council of 16 December 2020 on a general regime of conditionality for the protection of the Union budget[3] (the Conditionality Regulation),

     having regard to Directive (EU) 2019/1937 of the European Parliament and of the Council of 23 October 2019 on the protection of persons who report breaches of Union law [4] (the Whistleblower Directive) and to the Commission report of 3 July 2024 on its implementation and application (COM(2024)0269),

     having regard to the Commission communication of 5 July 2023 entitled ‘2023 Rule of Law Report – The rule of law situation in the European Union’ (COM(2023)0800), and to the European Parliament resolution of 28 February2024 entitled ‘Report on the Commission’s 2023 Rule of Law report’[5],

     having regard to the Commission’s decision of 16 December 2024 not to lift the measure imposed in application of Article 2(2) of 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,

     having regard to the judgments of the Court of Justice of the European Union (CJEU) of 16 February 2022 in Cases C-156/21[6] and C-157/21[7] and to 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, all of which refer to the Conditionality Regulation,

     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[8] (the Financial Regulation),

     having regard to Regulation (EU) 2024/1624[9], Regulation (EU) 2024/1620[10] and Directive (EU) 2024/1640[11], all of the European Parliament and of the Council, all adopted on 31 May 2024 and all concerning the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, including through the establishment of the Authority for Anti-Money Laundering and Countering the Financing of Terrorism,

     having regard to Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight against fraud to the Union’s financial interests by means of criminal law[12] (the PIF Directive),

     having regard to the Commission report of 16 September 2022 entitled ‘Second report on the implementation of Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight against fraud to the Union’s financial interests by means of criminal law’ (COM(2022)0466),

     having regard to the Commission report of 3 July 2024 on the implementation and application of Directive (EU) 2019/1937 of the European Parliament and of the Council of 23 October 2019 on the protection of persons who report breaches of Union law (COM(2024)0269),

     having regard to Regulation (EU) 2021/1060 of the European Parliament and of the Council of 24 June 2021 laying down common provisions on the European Regional Development Fund, the European Social Fund Plus, the Cohesion Fund, the Just Transition Fund and the European Maritime, Fisheries and Aquaculture Fund and financial rules for those and for the Asylum, Migration and Integration Fund, the Internal Security Fund and the Instrument for Financial Support for Border Management and Visa Policy[13] (the Common Provisions Regulation),

     having regard to the Commission communication of 24 July 2024 entitled ‘2024 Rule of Law Report – The rule of law situation in the European Union’ (COM(2024)0800),

     having regard to the study entitled ‘Strengthening the fight against organised crime: Assessing the legislative framework’, published in December 2022[14],

     having regard to the study entitled ‘Strengthening the fight against corruption: assessing the legislative and policy framework’, published in January 2023[15],

     having regard to the study entitled ‘Compliance assessment of measures adopted by the Member States to adapt their systems 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’)’ and its extension, both published in December 2023[16],

     having regard to the joint communication from the Commission and the High Representative of the Union for Foreign Affairs and Security Policy of 3 May 2023 on the fight against corruption (JOIN(2023)0012) and to the Commission proposal of 3 May 2023 for a directive of the European Parliament and of the Council on combating corruption, replacing Council Framework Decision 2003/568/JHA and the Convention on the fight against corruption involving officials of the European Communities or officials of Member States of the European Union and amending Directive (EU) 2017/1371 of the European Parliament and of the Council (COM(2023)0234),

     having regard to the joint Europol-OLAF report of 6 June 2023 entitled ‘Assessing the Threats to the NextGenerationEU (NGEU) Fund’,

     having regard to the European Ombudsman’s closing note of 12 September 2023 on the Strategic Initiative concerning the transparency and accountability of the Recovery and Resilience Facility in relation to Case SI/6/2021/PVV, opened on 24 February 2022,

     having regard to the European Court of Auditors (ECA) report entitled ‘Our activities in 2023’, published on 9 October 2024,

     having regard to ECA Review 04/2023 of 6 July 2023 entitled ‘Digitalising the management of EU funds’,

     having regard to Special Eurobarometer 534 entitled ‘Citizens’ attitudes towards corruption in the EU in 2023’[17],

     having regard to ECA special report 06/2023 of 13 March 2023 entitled ‘Conflict of interest in EU cohesion and agricultural spending – Framework in place but gaps in transparency and detection measures’,

     having regard to Regulation (EU) 2021/785 of the European Parliament and of the Council of 29 April 2021 establishing the Union Anti-Fraud Programme and repealing Regulation (EU) No 250/2014[18],

     having regard to its resolution of 18 January 2024 on the protection of the European Union’s financial interests – combating fraud – annual report 2022[19],

     having regard to Rule 55 of its Rules of Procedure,

     having regard to the report of the Committee on Budgetary Control (A10-0049/2025),

    A. whereas, in line with the obligation laid down in Article 325(5) TFEU, each year, the Commission submits to the European Parliament and to the Council a report drafted in cooperation with the Member States on the measures taken for the implementation of this article (known as PIF reports);

    B. whereas PIF reports are based mainly on information provided by the Member States, including data on irregularities and fraud detected, via the Irregularity Management System (IMS), and on data extracted from the Commission’s accounting system (ABAC);

    C. whereas effective measures to protect the EU’s financial interests at EU level have to be implemented on the basis of data-based knowledge of the specific situation in each Member State, particularly in cases involving complex criminal activity;

    D. whereas the number of irregularities detected and reported demonstrates the results of Member States’ efforts to counter illegal activities in this area and is not to be interpreted, by itself, as an indication of the level of mismanagement or fraud in the Member States;

    E. whereas the links between irregularities’ occurrence, their detection and the reporting level require a wider overall assessment;

    F. whereas sound management of public resources and protecting the EU’s financial interests across all EU policies should be key to increasing citizens’ confidence by ensuring the proper and effective use of taxpayers’ money;

    G. whereas protecting the EU budget involves multiple actors at various levels who can only achieve their mandate through a structured network of relationships and coordination within the anti-fraud architecture (AFA)[20];

    H. whereas the diversity of legal and administrative systems in the Member States and their varying levels of digitalisation need to be adequately addressed with the creation of more unified, interoperable and comparable administrative and reporting systems in the EU in order to effectively prevent and counter fraud, corruption, irregularities and other infringements;

    I. whereas solid cooperation between authorities conducting administrative investigations and those conducting criminal investigations at both EU and Member State levels should be encouraged;

    J. whereas the Early Detection and Exclusion System (EDES) and ARACHNE are effective tools to protect the EU budget from risks of insolvency, negligence, fraud or irregularity committed by private actors, in the case of the EDES, and via a data-mining and risk-scoring approach, in the case of ARACHNE;

    K. whereas criminal networks operating in the EU are fully embracing the entire range of cutting-edge information technology, including artificial intelligence (AI), to facilitate their criminal activities, posing an even more complex threat to the EU budget and a new challenge for law enforcement and requiring the AFA to fast-track its exploration of AI use in the fight against fraud;

    L. whereas respect for the values on which the EU is founded and for fundamental rights, as well as compliance with the Charter of Fundamental Rights of the European Union, are prerequisites for accessing EU funding;

    M. whereas the rule of law conditionality mechanism applies across the entire EU budget as a prerequisite for accessing all EU funds and allows measures to be taken in cases of breaches of the rule of law principles that affect or seriously risk affecting the sound financial management of the EU budget or the EU’s financial interests;

    N. whereas Article 22 of Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility[21] (the RRF Regulation) contains provisions concerning the protection of the EU’s financial interests;

    General remarks on PIF reporting and on major threats

    1. Welcomes the 2023 PIF Report and its analyses on the relevant findings, and endorses its recommendations;

    2. Shares the view that effective protection of the Union’s financial interests requires the acceleration of the digitalisation that facilitates knowledge sharing, data accessibility and data processing and that would enhance the governance of the overall AFA; maintains that both the EU and national authorities should intensify the use of digital tools with a view to facilitating cooperation;

    3. Reiterates that a more measurable and results-oriented governance of the activities of the AFA’s many components is key both to effectively protecting the Union’s financial interests and to assessing the AFA’s efficiency;

    4. Recalls that solid cooperation between the administrative and judicial authorities conducting investigations at both EU and Member State levels is essential; reiterates its concerns over the still suboptimal situation, in particular as regards the detection and reporting of suspected fraud and irregularities and their follow-up, in which there are marked differences between Member States; encourages the Member States, therefore, to take a proactive approach to protecting the Union’s financial interests and to enhance the exchange of information between their national authorities and with EU bodies and agencies, including in order to identify and address emerging risks and fraud trends in a timely manner; underlines the fact that the fight against fraud requires a holistic and comprehensive approach, covering all stages of the anti-fraud cycle and reflecting the multiple, interconnected and interdependent actors and processes in place for the protection of the financial interests of the Union;

    5. Notes that the overall number of cases of fraud and irregularities reported by the competent EU and national authorities increased significantly, by 9 %, in 2023 (13 563) compared to 2022 (12 455); regrets the fact that this is an all-time high and is the continuation of a growing trend over the last five years; observes, further, that the overall financing concerned in relation to these cases in 2023 (EUR 1.90 billion) was markedly higher than in 2022 (EUR 1.77 billion), having increased by 7.3 %; acknowledges that the multiannual cycle of implementation of numerous programmes makes comparisons based on a five-year average more appropriate than year-to-year comparisons for identifying real-time situations and obtaining reliable analysis of trends and patterns; appreciates, accordingly, that the 2023 PIF Report refers to the results of the 2019-2023 period; observes that the rise in the number of irregularities and in funding that achieves no positive results highlights the need to correlate budgets with the performance indicators of the competent institutions;

    6. Is concerned by the overall scenario depicted by the multiannual analysis in the 2023 PIF Report; emphasises that the current situation justifies the efforts made to ensure more effective deployment of adequate resources and their more efficient use, which requires better governance and cooperation; underlines that fraud, corruption and violations of democracy, justice and the rule of law are deeply interconnected and cannot be tackled in isolation; calls on the Commissioners on budget, fraud and public administration and on democracy, justice and the rule of law to work closely and immediately on launching initiatives to make the actions and the results of the AFA measurable and more tangible and to present them to Parliament, in line with the commitment made at the confirmation hearings; suggests that stronger synergies be created between the Commission’s Directorate-General for Budget and other Commission directorates-general working on the rule of law and the protection of other EU values, particularly the Directorate-General for Justice and Consumers, the Directorate-General for Employment, Social Affairs and Inclusion and the Directorate-General for Regional and Urban Policy, to ensure that all the departments work together, rather than in silos, to address these systemic challenges more effectively;

    7. Reiterates the call for a holistic approach in PIF reports, which are also considered an AFA governance tool, in order to provide a comprehensive overview of the synergies between all the relevant actors, identify best practices and address shortcomings; is aware that, as emphasised in the 2023 PIF Report, the operational protection of the Union’s financial interests from fraud, irregularities and other illicit activities is entrusted to national authorities, OLAF and the EPPO, and welcomes the integration of OLAF and EPPO findings in the 2023 PIF Report; asks for a deeper analysis of the interaction between the AFA components, and for the introduction of measures to increase the efficiency of the competent institutions with a view to reducing fraud and irregularities; calls for the further improvement of this holistic approach to provide a clearer, more complete and more concrete picture of the overall state of play of the protection of the Union’s financial interests, encompassing the entirety of anti-fraud action at both national and EU levels;

    8. Welcomes OLAF’s investigative performance, in particular the increased number of recommendations issued (309 compared to 275 in 2022) and the overall amount recommended for financial recovery (EUR 1 043.8 million compared to EUR 426.8 million in 2022) against a stable number of cases opened (190 in 2023 and 192 in 2022) and concluded (265 in 2023 and 256 in 2022); points out, in particular, that over the 2019-2023 period, more than 88 % of the irregularities identified as potentially fraudulent and related to expenditure disbursed under direct management were detected following OLAF investigations; regrets that the long duration of the investigations can have a negative impact regarding the consequential late launching of remedial measures; reiterates its request to receive comprehensive and adequately detailed figures on the amounts effectively recovered by the Commission on the grounds of the financial recommendations issued by OLAF; calls on the Commission also to integrate in the next PIF reports ad hoc sections on OLAF in order to develop a more granular analysis and reporting of its activities and of the financial recoveries carried out;

    9. Welcomes the way in which the EPPO, operationally active since June 2021, has developed and increased its activities, which is well-reflected in the numbers of opened investigations (1 371 compared to 865 in 2022), of overall currently active investigations (1 927 compared to 1 117 in 2022) and of indictments (139 compared to 87 in 2022); appreciates the level of detail in EPPO reporting, which offers relevant information on many trends and on the situation in the participating Member States; calls for greater EPPO efficiency, with this being reflected in the amounts recovered and not just in the number of investigations;

    10. Stresses the added value that EU bodies bring to the protection of the financial interests of the Union and the fight against fraud, especially when it comes to cross-border crime, as shown by the operational results of the EPPO and OLAF in 2023 too; reiterates its call for all relevant EU actors involved in the fight against fraud to be guaranteed adequate resources and, in this regard, reminds the Commission and the Council that every euro spent on investigation and anti-fraud action returns to the EU budget;

    11. Is concerned that the substantial financial loss of value added tax (VAT) fraud reported by the EPPO is having a detrimental effect on the national budgets of the Member States while simultaneously threatening fair taxation and fair competition between businesses in the single market; underlines the fact that VAT is an important resource for the Union’s budget too; deems it appropriate to take into account the complexity of the underlying provisions on the system of own resources of the Union when quantifying the financial impact of the EPPO’s activities[22]; points out the concerning number of investigations into the recovery and resilience programmes (233) and the estimated financial loss (EUR 1.86 billion); calls, therefore, for adequate measures to be taken at both national and EU levels;

    12. Calls on the Commission to develop and implement solutions allowing a follow-up to OLAF recommendations and EPPO prosecutions, their analysis and the measurability of the actual impact of their actions on the protection of the Union’s budget in terms of recovery of both mismanaged funds and of uncollected resources, with a view to providing additional justification for results-oriented policymaking; calls on the Commission to notify Parliament of the outcomes of EPPO prosecutions;

    13. States that communication and transparency are essential to address fraud and corruption; emphasises the importance of engaging civil society, the media and investigative journalism to enhance awareness; underlines the central role played by the media and investigative journalism in the fight against fraud, corruption, conflicts of interest and other misuse of public funds; considers that it is essential to safeguard the media from political pressure and influence to protect its independence and its role as a watchdog of democracy and the sound management of public funds;

    14. Underlines that transparency plays an important role in the management of public funds; encourages the Commission and the Member States to maximise transparency in the use of funds, including with regard to information about final beneficiaries;

    15. Underlines the importance of the role played by public authorities in fostering a zero-tolerance culture with regard to fraud and states that communication and transparency are essential to address fraud and corruption; emphasises the importance of engaging civil society, the private sector, the media and investigative journalism to enhance awareness; encourages the Commission to provide support to these relevant actors in the form of training programmes, funding and any other measures required to ensure their independence from external influence and from unlawful state surveillance, intimidation and attempts to undermine their legitimacy, in line with EU fundamental rights and the rule of law; invites the Commission to launch an EU-wide public awareness campaign on the risks of fake news, misinformation and deepfake content in fraud cases affecting EU-funded projects;

    16. Is concerned about the EPPO’s and Europol’s clear warning on the increasing presence of groups of organised criminals behind the most relevant cases of cross-border fraud; notes that the EPPO’s annual report indicates 209 investigated offences concerning PIF-focused criminal organisations in its active investigations up to the end of 2023; understands that organised crime affects Union resources substantially and that the scale of fraud affecting the financial interests of the Union, in particular on the revenue side of the budget, can only be explained by the heavy involvement of serious organised criminal groups; is aware that the current analysis and reporting tools do not allow its quantification in a way that is satisfactory for evaluating the effectiveness or the shortcomings of the measures and policies in place; calls on the Commission to swiftly launch all necessary actions to address the analysis and reporting issue;

    17. Maintains that the fact that the relevant EU legislation has not been transposed efficiently into the national legislation of many Member States and the fact that the Member States’ national laws are not harmonised give organised criminal groups opportunities to conduct a number of illegal cross-border activities in areas affecting the Union’s financial interests; reiterates, therefore, its previous calls for the revision of Council Framework Decision 2008/841/JHA on the fight against organised crime[23] and for the introduction of a new common definition of organised crime, taking into account, in particular, the use of corruption, violence, threat or intimidation to obtain control of economic activities or procurement;

    18. Points out the results of the 2023 Eurobarometer survey on ‘Citizens’ attitudes towards corruption in the EU in 2023’, showing that corruption is a serious concern for EU citizens and businesses in the EU; maintains that high-level corruption, including in EU institutions, not only affects the Union’s financial interests and the EU economy as a whole, but also undermines citizens’ trust in democratic institutions, both in the EU and in the Member States; underlines that organised criminal groups are increasingly using corruption to infiltrate public administrations and gain economic advantages;

    19. Points out that, in relation to corruption cases, the EPPO reported 131 investigated offences up to the end of 2023 (there were 87 cases in 2022) and that, over the years 2019-2023, 65 cases were reported to the Commission via IMS[24] by 11 countries, and that the reported irregular amounts linked to such cases come to about EUR 50.5 million; calls on the Commission to request that the EPPO inform Parliament of how much of that EUR 50.5 million has been recovered;

    20. Acknowledges that anti-corruption strategies are in place in the Member States; calls for an evaluation and a periodical revision of these strategies; emphasises the importance of taking into account and fully addressing country-specific recommendations relating to the fight against corruption;

    21. Acknowledges the Commission’s efforts to prevent and address cases of conflict of interest in the management of the Union’s financial resources; observes that, in the 2019-2023 period, 419 cases were reported via the IMS related to conflict of interest (there were 375 in 2018-2022), involving in total about EUR 112 million; stresses that the ECA has indicated in its audit work[25] that the main source of information on conflict of interest is the IMS and that the quantity and quality of the data recorded in the IMS varies between Member States; underlines that where Member States consider a conflict of interest to be a minor component in a wider fraud case, they do not report such cases as relating to conflicts of interest; calls on the Commission to adopt initiatives necessary to ensure consistent and adequately detailed reporting in the IMS of the above situations; calls for the provisions on conflicts of interest to be applied in a way that ensures legal certainty, be based on a clear and proportionate assessment of the risks and allow practical application by the competent authorities;

    Revenue

    22. Observes that, in 2023, the overall number of fraudulent and non-fraudulent irregularities related to traditional own resources (TOR) (5 118 compared to 4 661 in 2022) was 10 % higher than the five-year average (2019-2023), but that the amount involved decreased by 12 % to EUR 478 million (compared to EUR 783 million bat the end of2022); regrets that while the data show improved recovery for non-fraudulent cases (82 %), the recovery rate for fraudulent cases remains unchanged at 25 %, which is still low and is distributed unevenly across the Member States;

    23. Points out that, in 2023, the Commission considered that in only five of the new write-off reports submitted to it by the Member States had it been satisfactorily demonstrated that TOR had been lost for reasons not imputable to the Member States in question and that the latter were not financially responsible for the loss; notes, by contrast, that in 81 cases, amounting to almost EUR 69 million, the Commission considered that the Member States had not satisfactorily demonstrated that TOR had been lost for reasons not imputable to them and that they were therefore financially responsible for the loss; concludes, therefore, that there is actionable room for improvement in the collection of TOR by the Member States;

    24  Underlines that it is essential for Member States to live up to their responsibility to collect TOR in order to ensure that the burden of financing EU expenditure is shared fairly among the Member States and maintain a level playing field for economic actors in the single market; calls on the Member States to step up their efforts to improve the effectiveness of their national administrations’ activity in the field of recovery, following the detection of irregularities and fraud relating to VAT, in order to increase the amount of TOR made available to the EU budget; acknowledges that the VAT compliance gap relates to more than just fraud and evasion, but also covers VAT lost as a result of insolvencies, bankruptcies, administrative errors and legal tax optimisation; believes, however, that VAT fraud, such as missing trader intra-Community fraud, contributes meaningfully to VAT non-compliance and reiterates its call for the issue to be addressed through digital means, the fraud-proofing of VAT rules and stronger cooperation between national tax authorities and the competent EU investigative bodies;

    25. Acknowledges the current legal framework relating to cooperation with OLAF, the EPPO and Eurofisc; calls on the Commission to speed up the process of revising the current legal framework to provide a clear legal basis for direct cooperation between Eurofisc and the EPPO; encourages OLAF to maximise the possibilities offered by mutual administrative assistance practices to detect and identify customs fraud and related VAT fraud, as well as to report such cases to the EPPO without delay; stresses that, in 2023, the EPPO identified VAT fraud in about 20 % of its active cases (873 cases), making this the second most frequent type of crime after non-procurement expenditure fraud (1 586 cases); is concerned by the increasing participation of groups of organised criminals in VAT fraud operations and by the identified connections between this kind of fraud and other kinds of very serious crimes, such as money laundering;

    26. Reiterates its call on the Commission to reconsider the threshold of EUR 10 million set in the PIF Directive, which has a major impact on the EPPO’s activities in VAT fraud cases; maintains that different interpretations of the methodologies for calculating this threshold make the situation unclear; emphasises that the current threshold limits deterrence and allows perpetrators to seek out the weakest jurisdiction to elude the EPPO’s intervention; believes that the revision of the PIF Directive should either remove the threshold or substantially lower it; calls on the Commission, in the meantime, to provide adequate guidance on the calculation method for cases prior to the amendment of the PIF Directive;

    27. Stresses the importance of effective and efficient cooperation between OLAF and the EPPO in this specific revenue sector and maintains that adequate detection and data transmission by OLAF to the EPPO could increase the collection of VAT and customs revenue for the EU budget, and would help avoid any overlap between the activities of the two offices;

    Expenditure

    28. Is concerned by the high levels of fraud and irregularities detected, both in 2023 and in 2022, under the common agricultural policy, both in rural development and in support for agriculture; remarks that the data confirm patterns and risks identified in previous years; observes that, during the 2019-2023 period, fraudulent irregularities reported for rural development increased, mainly owing to a rising number of irregularities detected for the 2014-2020 programming period; notes that during the 2019-2023 period, the number of non-fraudulent rural development irregularities continuously increased in line with the implementation of the programmes;

    29. Observes that in cohesion policy the number and financial amounts of non-fraudulent irregularities reported for the 2014-2020 programming period are much lower than those reported during the first 10 years of implementation of the 2007-2013 programming period; points out that the fraud detection rate[26] (0.53 %) for the 2014-2020 programming period is similar to the rate for the 2007-2013 programming period, while the irregularity detection rate (0.67 %) is much lower than the rate recorded for the 2007-2013 programming period (2.5 %); notes that individual irregularities involving large financial amounts have a substantial impact on the fraud detection rate; calls for further clarification of the correlation between the fraud detection rate and the occurrence of fraud;

    30. Welcomes OLAF’s analytical report entitled ‘Fraud and irregularities by areas of the cohesion policy – comparing risks’, which refers to information from Member States for the 2014-2020 programming period up until December 2023 and identifies areas particularly exposed to fraud risk (such as investments for the environment, climate change and the transition to a low carbon economy, research, development and innovation); remarks that the largest financial amounts in fraud cases were in environmental protection and research, technology development and innovation;

    31. Reiterates its concern over the lengthy administrative procedures for dealing with the fraudulent cases reported; points out that, on average, during the 2019-2023 period, under the common agricultural policy, nearly four years were required from the start of an irregularity to arrive at a suspicion of fraudulent activity, and nearly three more years to close the case after its being reported to the Commission; highlights that, for cohesion, on average and during the 2014-2020 period, it took about a year and a half to arrive at a suspicion that a fraudulent irregularity had been committed and more than two years to close the case after its being reported to the Commission; asks the Commission to intensify dialogue with, and provide advice to, the Member State authorities to reduce the length of administrative procedures;

    32. Observes that, for direct management between 2019 and 2023, OLAF was mentioned as the source of detection of fraudulent irregularities for 88.4 % of recovery items, corresponding to 92.1 % of total recovery amounts; asks the Commission to provide clear information on the data and on the actions taken to enhance swift recovery, including data on overall recovery levels for fraudulent and non-fraudulent irregularities;

    33. Emphasises that when, despite preventive measures, fraudulent or non-fraudulent irregularities are detected, recovery is the measure that protects the Union’s financial interests, allowing for the correct implementation of EU policies and for the refunding of disbursed expenditure that is non-compliant with the funding requirements; stresses the findings of ECA special report 7/2024[27] when referring to the 2014-2020 period, for which the reported irregular expenditure was EUR 14 billion, which is to be refunded via recovery; stresses the need to speed up the recovery process by establishing clear deadlines and imposing penalties for delays, so that funds are returned to the EU budget as quickly as possible; calls on the Commission to propose adequate measures to provide complete information on irregular expenditure and the associated corrective measures taken;

    34. Stresses the importance of follow-up measures after the necessary corrective actions have been taken, with a view to learning from cases of fraud and improving procedures to prevent similar cases from occurring in the future; considers it important, in this regard, that the Member States thoroughly follow up on cases by analysing the enabling factors behind fraud and assessing the need to revise their management and control systems accordingly;

    35. Understands that, following a lack of support in the Council for its initiatives in 2004 and 2014, the Commission is not willing to put forward another legislative proposal for mutual administrative assistance in the areas of EU spending that do not currently provide for this practice; encourages the Commission to take advantage of the revision of the OLAF Regulation[28], which already provides OLAF with an enhanced mandate for the coordination of Member States’ actions in order to further develop the current provisions with a view to filling this gap;

    36. Notes that civil society organisations are an essential component of a vibrant democratic society, ensuring the broad coverage of diverse views in public debates; recognises that these organisations may receive Union funds to support their work in contributing to democratic dialogue and public engagement; emphasises that transparency in stakeholder meetings is fundamental to democratic integrity and should apply equally to all entities engaging with EU institutions; stresses that clear documentation and disclosure of such interactions strengthens public trust and democratic accountability; stresses that lobbying should be transparent, with full disclosure of all parties involved; takes notes of the allegations that the Commission subsidises NGOs to influence Members of the European Parliament; stresses that, if their existence is confirmed, such practices could distort policy discussions and contravene the principle of separation of powers and should therefore be ended; calls on the ECA to audit the programmes concerned and give its recommendations; expects the future ECA report to bring clarity on these issues; recalls that the ECA asked, in special report 05/2024[29], for more efforts to be made to improve checks on the ground; notes with concern the ECA’s observation that lobbyists can choose to which category they belong, regardless of their legal form, to avoid disclosing financial information; notes that the EU is one of the largest global funders of civil society organisations; underlines the need for the EU Transparency Register Secretariat to enhance its systematic checks of the self-declarations of entities declaring themselves to be ‘NGOs, platforms, networks and similar’; observes that such systematic checks could be based on a set of criteria, including non-profit status, objectives relating to public benefit, and independence, to strengthen the trust in all entities registered in the EU Transparency Register, and should be supported by robust requirements for accountability and transparency;

    37. Considers that when assessing delivery models for EU expenditure, the susceptibility of the various options to fraud and other misuse should be taken into account; calls on the Commission to ensure that the lessons learnt from the design and implementation of the RRF, including the recommendations addressed to it by the ECA and Parliament, are taken into account in future EU funding instruments, notably the post-2027 multiannual financial framework (MFF); underlines that the shortcomings identified in the implementation of the RRF, including risks of fraud, double funding, and lack of transparency, must serve as a lesson for future EU financial frameworks; opposes any replication of the RRF model in its current form and stresses that any future performance-based funding must be accompanied by significantly stronger safeguards, transparency requirements and fraud prevention mechanisms to ensure the sound management of EU funds;

    NextGenerationEU (NGEU) and the Recovery and Resilience Facility (RRF)

    38. Appreciates the efforts made by the Commission in the revision of the 27 recovery and resilience plans (RRPs) to adjust to the energy market disruptions following Russia’s full-scale invasion of Ukraine; notes that the integration into the RRPs of REPowerEU is expected to contribute to reducing dependence on Russian fossil fuels and increasing European self-sufficiency;

    39. Recalls, nevertheless, that delays can be observed in the implementation of the RRF and calls on the Commission to remain vigilant, in particular towards the end of the RRF life cycle, in order to ensure that Member States adequately protect the financial interests of the EU and that EU taxpayers’ money is spent appropriately;

    40. Underlines the importance of robust management and control systems in preventing fraud as they have the effect of deterring criminals from attempting to defraud public authorities; expresses concerns about the ECA’s repeated observations pointing to persistent weaknesses in the implementation of Member State control systems, as this poses risks to the availability of complete and accurate data underlying payment requests, access to those requests for control purposes, and the effective functioning of Member State control systems to protect the EU’s financial interests; regrets that in several Member States, the control systems were not fully functional when the national RRPs started to be implemented, and underlines that such issues pose risks to the regularity of RRF payments and to the protection of the EU’s financial interests; calls on the Commission to ensure that the Member States remedy the inadequacies identified in their control frameworks without delay, including by implementing the recommendations addressed to it by the ECA;

    41. Observes that the Commission’s control framework for the RRF relies primarily on the responsibility of the Member States to protect the EU’s financial interests; calls on the Commission to maintain a high level of attention to the fulfilment by the Member States of the specific audit and control milestones added to those RRPs which had lacked robustness and to continue efforts to close accountability gaps; takes notes of the actions launched by the Commission following the ECA’s recommendations on the identifiable weaknesses of some Member States’ control and reporting systems; urges the Commission to take decisive and swift action whenever necessary and to make full use of the provisions of the RRF Regulation if deficiencies persist in the control systems of Member States;

    42. Notes with grave concern that ECA special report 14/2024 found that the climate impact of green spending under the RRF could have been overestimated by up to EUR 34.5 billion, with some projects having minimal impact on the energy transition or even causing environmental harm while also increasing the risk of fraud;

    43. Calls for the establishment of clear, measurable criteria for green investments under the EU budget and the RRF to ensure that only projects with significant and proven environmental and economic benefits receive funding, thereby enhancing accountability and long-term sustainability while reducing the risk of fraud;

    44. Observes that, for the RRF in 2023, the 2023 PIF Report indicates the number of cases of suspected fraud reported by the Commission (15) and the number of audits (13, compared with 16 carried out in 2022), but it does not include the concerningly high number of EPPO investigations (233 investigations referred to recovery and resilience programmes, with an estimated financial loss of EUR 1.86 billion); is concerned by a possible increase in the number of cases of fraud, corruption, double funding and conflicts of interest in the coming years and urges the Commission and the Member States to act swiftly in order to ensure the sound management and fair distribution of RRF funds;

    45. Calls on the Commission to introduce mandatory fraud reporting via the IMS for all RRF-related cases, ensuring that irregularities and fraud affecting RRF funds are systematically recorded and monitored; notes with concern the lack of transparency in reporting fraud linked to RRF funds and insists that all Member States comply with standardised reporting obligations;

    46. Asks OLAF to continue its risk analysis, which, in 2023, was made available to Member States along with an updated version of the ‘RRF risk framework’, and with the training and seminars for Member State authorities; endorses the use of the IMS for reporting RRF irregularities; reiterates its call on the Commission, on the specialised EU agencies and bodies, as well as on Member States, to actively cooperate and interact to ensure the protection of the EU’s financial interests when implementing the NGEU;

    47. Observes that, as part of the Guidance on RRPs, the Commission has adopted[30] Annex IV on the framework for reduction and recoveries under the RRF; understands that the reduction of a payment is feasible when there are still payments to be effected; recalls that the RRF ends in 2026; points out that recovery is only to be launched whenever no further instalments remain; is concerned by the fact that this recovery procedure, borrowed from the model for implementing cohesion funds, has proved to be extremely ineffective and was abandoned in the current MFF; strongly regrets the fact that by the end of 2023 there were no recovery orders in ABAC concerning the RRF, and that there is still no obligation for Member States to report irregularities related to the RRF via the IMS;

    48. Reiterates that transparency plays a vital role in exposing fraudulent schemes and discouraging fraudsters; reiterates its dissatisfaction with the interpretation endorsed by the Commission of the concept of ‘final recipient’ under the RRF; rejects the Commission’s incomplete and misleading interpretation[31]; remarks that, even according to the Commission guidelines[32], the ‘final recipient’ is the ‘last entity’ that receives funds for an RRF measure, and that any initial or intermediary recipient of funding, such as ministries or agencies operating merely as distributors of the funds, should not be considered to be the ‘last entity’; asks the Commission again to request that the Member States provide information on the ‘final recipient’ or ‘last entity’ and not to accept from Member States any information on ‘second-level recipients’ that is not in line with the agreement between the co-legislators; calls on the Commission to review its guidance by providing cases and examples that can clarify the provision and be a solid term of reference for the national authorities, in such a way as to endorse an adequate transparency level and a homogeneous interpretation across all the Member States; stresses that, should the Commission continue to refuse to ensure full transparency, Parliament must consider all available measures to enforce compliance;

    49. Is concerned by the ECA’s opinion[33] on the increasing risk of EU funds being spent twice on the same measure and handed out twice for the same action; understands that corresponding measures in similar areas, such as transport and energy infrastructure, are financed from both the EU budget and the RRF, because the EU’s pandemic recovery fund finances actions similar to those covered by standard EU programmes; acknowledges that complementarity between the RRF and other EU instruments is allowed, but observes that this could result in delivering milestones that are fully financed by funds other than the RRF, because the RRF is not linked to the reimbursement of costs effectively incurred, but rather rewards the fulfilment of milestones and targets; emphasises that the several layers of governance, the fragmented IT landscape and the limited exchanges of data or use of data-mining tools such as ARACHNE, prevent the detection of double funding, and therefore the control mechanisms in place may be insufficient to properly mitigate this increased risk; maintains that the absence of direct access to the full list of RRF final recipients limits the Commission’s capacity to detect potential cases of double funding; believes that the precaution adopted by some Member States of avoiding combining the RRF with other EU instruments contributes to mitigating the risk of double funding; calls on the Commission to increase its controls in this regard;

    50. Observes that Member States may include measures in their RRPs with no estimated costs or estimated costs of zero[34]; points out also that these ‘cost-free’ milestones are the main term of reference for assessing the correct use of RRF resources for their intended purposes; understands that the payments for these ‘cost-free’ or ‘zero-cost’ milestones are released following the milestones’ achievement, irrespective of the cost sustained, in line with the ‘financing not linked to cost’ approach under the RRF; observes, however, that such milestones make it impossible to verify the sound management of paid RRF resources, because such resources are disbursed in connection with a milestone for which they have not been deployed; calls on the Commission to reconsider its assumption that a ‘zero-cost’ measure cannot induce double funding, irrespective of whether other EU funds are used to implement it; strongly calls on the Commission to strengthen controls on ‘zero-cost’ measures and to give guidance to the Member States on how to address the financial design of the measures concerned in order to prevent such risk;

    51. Reiterates its calls on the Commission to maintain adequate ex post audit procedures and to pay close attention to the risk of reversal after payment for the achievement of targets previously audited and assessed as satisfactorily fulfilled;

    52. Follows up on the Ombudsman’s strategic initiative, launched in February 2022 and closed in September 2023, conducted on the transparency and accountability of the RRF, whose results it fully endorses; welcomes the ongoing dialogue between the Commission and the Ombudsman to address the suboptimal situations detected, in particular concerning the scoreboard and the proactive publication of documents related to the RRF;

    Digitalisation and transparency to enhance the fight against fraud

    53. Welcomes the political agreement reached on the proposed recast text of the Financial Regulation; believes that extending the scope of EDES to include shared management, and the adoption of a legal basis to use ARACHNE as a model for an EU-wide data-mining and risk-scoring tool, will strengthen the protection of the EU’s financial interests; recalls the calls made in previous reports to ensure that all Member States make use of data-mining tools, especially ARACHNE, to ensure timely and diligent reporting standards;

    54. Shares the view that the IMS, the system through which Member States report to the Commission on irregularities and fraud affecting the EU budget, has potential for greater interoperability with other corporate tools of the Commission, such as ARACHNE and EDES, and with digital tools in Member States; asks to be informed, following the recast of the Financial Regulation, on the progress of the EDES-IMS interface and about the possible use of IMS data within the data-mining and risk-scoring tool (ARACHNE);

    55. Reiterates its call for increased interoperability between data systems and for the harmonisation of reporting, monitoring and auditing in the Union; is aware of the crosscutting nature of interoperability and appreciates the adoption of the Interoperable Europe Act[35];

    56. Underlines the findings of ECA Review 4/2023 of 6 July 2023 on digitalising the management of EU funds; recalls the positive effects of digitalisation on prevention and detection of fraud and irregularities, as well as on the management, control and auditing of EU funds, by allowing easier and quicker access to data and remote cross-checks, thereby limiting costs by reducing the need for controls and on-the-spot checks;

    57. Recognises that taking advantage of a real-time and data-driven economy has significant benefits for the protection of the Union’s financial interests, while reducing the administrative burden on public authorities and businesses operating and trading across borders within the EU; calls for the EU and the Member States to improve the effectiveness of data sharing by creating a digital ecosystem allowing for the seamless, real-time and secure movement of standardised, structured and machine-readable data between businesses and public authorities, in particular national tax administrations, with a view to limiting possibilities for committing fraud and tax evasion;

    58. Shares the view that digitalisation should be at the core of every anti-fraud strategy, and in particular that it should be integrated into national anti-fraud strategies to allow coordination between its constituent parts and for the threats posed by new technologies to be factored in;

    59. Believes that digitalisation offers opportunities for tangible improvements to the governance of the anti-fraud network and that by facilitating communication and accessibility it helps to improve reporting, thereby allowing for a better understanding of the obstacles that persist and a more timely and comprehensive response by decision-makers and co-legislators; welcomes the fact that over half of the Member States have taken steps to identify and address skills gaps in digitalisation, in particular a lack of information and access to data on digitalisation; encourages the Member States and actors in the AFA to continue addressing skills gaps through measures involving, inter alia, knowledge sharing, training and the broadening of know-how and skills in the field of digitalisation;

    60. Welcomes the efforts of many components of the AFA in assessing and further developing the options offered by AI and machine learning in identifying and detecting irregularities and pursuing efficiency gains in both analysis and classic administrative tasks; reiterates that human assessment must remain the pivotal characteristic of every process; adds that AI has the potential to be a game changer in the fight against fraud, allowing the rapid analysis of large data sets, as well as enhancing fraud detection and identification of fraud patterns; recalls that the successful use of AI relies on effective collaboration between all stakeholders and on the availability of high quality data, underpinned by the effective use of ARACHNE; urges the Commission to work towards developing AI in Europe so as to uphold data sovereignty and ensure robust data protection, aligning with the principles outlined in the AI Act[36] and the General Data Protection Regulation[37] (GDPR); calls on all anti-fraud actors to strengthen their cooperation to leverage the use of AI effectively and responsibly in the fight against fraud;

    61. Recognises the growing risk of AI-generated content being used to manipulate procurement processes, financial transactions and evidence in fraud investigations; calls on the Commission to prioritise research and policy measures to combat fraudulent activities enabled by artificial intelligence, including deepfake technology and AI-driven disinformation campaigns that could compromise financial and anti-fraud mechanisms; calls on the Commission to propose stricter legal provisions and penalties for entities found to be using AI to commit or facilitate financial fraud, including AI-driven money laundering schemes, falsification of contracts, and digital identity theft in procurement processes;

    62.  Acknowledges the importance of the use of AI to make improvements in the quality and completeness of data exchanged with Member States; welcomes, in this regard, OLAF’s actions, including recommendations in the annual PIF reports, structured bilateral dialogues with Member States, the revision of the Commission Anti-Fraud Strategy action plan, and interinstitutional exchanges focusing on these matters;

    63. Further calls for a dedicated EU-wide initiative to develop AI-driven fraud detection mechanisms within OLAF, the EPPO, and Europol, to increase efficiency in tracking and preventing financial crimes against the EU budget; recommends the establishment of an EU-wide task force composed of representatives from OLAF, the EPPO, Europol and national anti-fraud units, with a dedicated focus on digital fraud threats, including deepfake technology, AI-generated fake documents and synthetic identity fraud; underlines that this task force should develop and share best practices with the Member States;

    64. Stresses the need for increased cross-border cooperation and data-sharing mechanisms between Member States to combat AI-enabled fraud, particularly in high-risk areas such as VAT, customs and financial aid distribution; encourages the creation of a joint EU intelligence hub to track fraudulent AI activity in real time; calls on the Commission and the Member States to integrate AI and data analytics into fraud detection systems, ensuring interoperability between national and EU-level databases while maintaining strong data protection safeguards;

    65. Calls on the Commission and the Member States to implement strict transparency and audit measures in AI-based fraud detection tools to prevent bias, algorithmic manipulation and misuse in financial oversight systems; urges the development of AI ethics guidelines for anti-fraud institutions to ensure accountability;

    66. Calls for a mandatory forensic verification process for all digital evidence submitted in financial fraud cases, ensuring the authenticity of documents and audio and video material used in investigations;

    The internal layer of the EU’s AFA – 2023 key measures at EU level

    67. Underlines the fact that the EU’s AFA is a composite institutional architecture designed to detect, prevent and combat fraud and other forms of misconduct affecting the EU’s financial interests, built on a multi-layered network of cooperation in which the first layer (OLAF, the EPPO, Europol, Eurojust, AMLA, the Commission, the ECA and the European Investment Bank (EIB)) is grounded on horizontal cooperation between the EU institutions, bodies, offices and agencies, while the other layers are based on vertical relationships between EU and national authorities, and between EU authorities and international organisations; points out that the AFA has evolved over the years through a series of separate decisions that have led to an innovative network of entities; underlines that their coordinated activities in recent years have generated valuable experience that should be considered in the future revision of the relevant regulations; stresses that with the creation of the EPPO, the first European prosecutorial authority was established, enabling prompt and direct criminal law investigations and prosecutions, and that the lessons learnt in the first years of its operational activity need to be adequately integrated in the legislative framework to be able to take full advantage of the available tools and resources; stresses the importance of clear mandates between the various EU institutions, bodies, offices and agencies in order to minimise the risk of overlaps and duplication and thereby ensure the efficiency of the functioning of the AFA;

    68. Appreciates the integration in the 2023 PIF Report of the main administrative and judicial results achieved by OLAF and the EPPO, respectively, which follows the many calls from Parliament for more comprehensive reporting of the actions carried out by the components of the AFA; considers, however, that the differences in nature, scope and granularity between the two reports should be addressed and that the areas of cooperation should be indicated clearly; deems the differences in the figures provided by OLAF, the EPPO and the 2023 PIF Report to be justified in the current circumstances; highlights that reporting bodies in the Member States may report on criminal investigations only when the relevant judicial authorities grant the authorisation for them to do so, and this implies that while the EPPO and OLAF report data on active investigations, the reporting bodies are often unable to enter these details in the IMS database because of the need to protect confidentiality and ensure the proper conduct of investigations; understands that these cases result in a divergence in the data (‘delta’) that can only be eliminated when the investigations are completed and the relevant data are included in the reporting to the Commission so they can be included in a future PIF Report;

    69. Welcomes the adoption by the Commission, in May 2023, of a package of anti-corruption measures which encompasses a proposal for a directive on combating corruption; believes that prevention and prosecution of corruption need to be stepped up and calls on the Commission to intensify the monitoring of the enforcement of measures in the Member States;

    70. Welcomes the establishment of a network against corruption, which met for the first time on 20 September 2023, believes that the mapping of areas at a high-risk of corruption could contribute effectively to the further development of the EU anti-corruption strategy;

    71. Underlines the importance of the rule of law as one of the fundamental values of the Union and stresses that the rule of law conditionality mechanism is crucial in order to ensure that Member States continue to respect rule of law principles; reiterates its deep concern regarding the situation concerning the rule of law in certain Member States, which is deeply worrying in its own right and can lead to serious losses for the Union budget; calls on the Commission to ensure the strict and fast implementation of all elements of the mechanism when Member States breach rule of law principles and when this affects, or risks affecting, EU financial interests; further insists on the need for coherence across various instruments when assessing the rule of law situation in Member States;

    72. Notes that the fourth Commission Report 2023 on the rule of law, adopted in February 2024, provides a follow-up to the recommendations issued in the previous year’s Rule of Law Report; acknowledges that, in the fight against corruption, various Member States have updated or launched a revision of their national strategies and/or action plans, while others have reformed criminal law to strengthen the fight against corruption; observes that for many Member States the main obstacle to the fight against corruption is the limited resources of prosecution services; calls on the Commission to continue encouraging and supporting the efforts of Member States to reform and improve the efficacy of criminal proceedings and addressing the other challenges identified in the report; reminds the Commission of the effective tools at its disposal to safeguard the rule of law, such as infringement procedures, funding conditionality and the Article 7 TEU procedures, and expects it to make full use of them all; highlights, in this regard, that the new Financial Regulation introduces conditionality linked to the values enshrined in Article 2 TEU and calls on the Commission to start applying it, particularly in cases where infringement procedures have already been launched against a Member State for violations of the values enshrined in Article 2 TEU, as this constitutes a clear recognition of an ongoing breach that could also impact the sound financial management of the Union budget;

    73. Takes note of the Commission’s decision not to lift the measure under Article 2(2) of 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[38]; expects the Commission and the Council to lift the adopted measures only where evidence is collected that the remedial measures adopted by the Hungarian Government have proven effective in practice and, in particular, that no regression has been detected on already adopted measures; condemns the threats, such as espionage, to which EU institution staff are exposed, such as OLAF staff during their investigative missions in Hungary; stresses that such actions gravely undermine the rule of law and the integrity of the EU institutions; calls for the swift establishment of robust protection measures to safeguard EU institution staff on missions; calls on the Hungarian authorities to take immediate and concrete steps to safeguard judicial independence, uphold media freedom and fully implement the recommendations of the Commission’s Rule of Law Report to restore democratic checks and balances; urges the Council to continue the Article 7 TEU procedure against the Hungarian Government;

    74. Emphasises that respect for the rule of law, including the fight against corruption, is a key determinant of the single market environment that fosters investment, growth, jobs and innovation, and protects small and medium-sized enterprises (SMEs) and economic operators operating across borders; stresses that the Commission is accountable for rigorous verification, as a condition for disbursing funding, of the fulfilment of the rule of law-related milestones integrated in the various Member State RRPs; recalls that the Commissioner for democracy, justice and rule of law, working in close coordination with the recently appointed Commissioner on budget, anti-fraud and public administration, holds primary responsibility for the full application of the general regime of conditionality; calls on the Commission not to use ‘dialogue’ with Member States or the ‘pilot’ procedure as an open-ended means to avoid launching actual infringement procedures; calls, furthermore, on the Commission to prioritise horizontally infringements affecting the EU’s financial interests, in particular regarding the PIF Directive and the EPPO Regulation[39]; welcomes the statement in the Commission Political Guidelines on the importance of the rule of law for EU funds and the commitment by the Commissioner for budget, anti-fraud and public administration to introduce strong safeguards on the rule of law in the next MFF;

    75. Considers that the protection of the common EU values enshrined in Article 2 TEU currently included in the Common Provisions Regulation needs to be further strengthened; calls on the Commission to explore how a mechanism equivalent to the horizontal enabling conditions could be developed as a general feature in all areas of the EU budget, with a view to linking a wider range of policies to all the values set out in Article 2 TEU; calls on the Commission to explore means of linking funding to rule of law conditions and the completion of necessary reforms in order to ensure a comprehensive approach, applied horizontally to all EU funds; calls on the Commission to pursue a comprehensive approach and to put forward proposals for further strengthening the Union’s rule of law toolbox as a priority, including strengthened rule of law conditionality for funds deployed in the current programming period;

    76. Maintains that corruption is intrinsically linked to money laundering, and that money laundering is one of the most important enablers of illegal activities by organised criminals, as it allows them to transfer the proceeds of their crime into the legal economy; recognises that the heterogeneous national legal systems and fragmented application of the Union’s anti-money laundering framework have made it difficult to prevent, detect and counter money laundering; welcomes, in this regard, the adoption of the ambitious legislative package on anti-money laundering and countering the financing of terrorism, which will unify national rules and thus enhance the collective fight against money laundering across the Union; welcomes the establishment of the new Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA); considers that the new agency will play a central role in the new anti-money laundering framework through its coordinating and supervisory responsibilities; recalls that money laundering and terrorist financing are intrinsically linked and calls for the EPPO, OLAF and the ECA to have a stronger role in countering these phenomena;

    77. Shares the view that the protection of the EU’s financial interests has been strengthened by the recast Financial Regulation; points out that the scope of EDES has been extended to encompass shared and direct management and provide new grounds for exclusion; welcomes the introduction of a legal basis for a risk-scoring and data-mining tool to be used by all Member States and in all management modes; regrets that both these measures will enter into force only in 2028 and only from the next MFF, resulting in several more years without comprehensive transparency regarding the final recipients of EU funds and missing a crucial opportunity to use these data to strengthen safeguards against corruption and fraud;

    78. Appreciates the adoption of an updated action plan[40] for the 2019 Commission Anti-Fraud Strategy; notes that it includes 44 actions distributed over seven themes covering, in particular, digitalisation, cooperation, the RRF, customs fraud, and awareness-raising in ethical and anti-fraud culture matters;

    79. Points out that the EU’s anti-fraud programme (UAFP) is the only spending programme specifically dedicated to fighting fraud affecting the EU’s financial interests and that it provides relevant support to all Member States’ authorities as components of the external layer of the AFA, in order to strengthen the fight against fraud; observes that the UAFP has the flexibility needed to adapt to the constantly changing anti-fraud landscape and is aligned with the seven-year period (2021-2027) of the current MFF; notes that, so far, 55 % of the total implementation of the UAFP has contributed to the digital transition;

    80. Calls on the Commission to build on the success of the UAFP and encourages the Commissioner on budget and anti-fraud to consider the UAFP as a model to be extended in the next MFF, in line with the task, indicated in the mission letter, of securing support for Member States’ efforts to protect the Union’s financial interests;

    81. Welcomes the first UAFP association request received in 2023 from a non-EU country, namely Ukraine, with which an association agreement covering its participation in the programme has been negotiated and was adopted in March 2024;

    82. Expresses concern that the Commission’s latest interim evaluation of Hercule III found aspects that may have hampered the programme’s effectiveness, notably that certain Member States’ administrations lacked the resources to enable them to cope with the programme’s administrative requirements;

    83. Takes note of the reiterated calls from the EPPO to bolster the detection capacity of the relevant components of the AFA, and recalls that, in line with the Commission Anti-Fraud Strategy, emphasis is to be given to data analysis as a tool for detecting fraud; highlights, in this regard, the importance of harmonising definitions in order to obtain comparable data across the EU; encourages the Commission to strengthen the use of the IMS as a tool to support auditors’ risk analysis when preparing audit activities; invites OLAF to increase its training offer to Commission staff, including auditors and relevant actors in the financial flow circuit;

    84. Is aware that the decentralised structure of the EPPO entails an interplay between national law and EU law and between national authorities and the EPPO; understands that the EPPO operates based on the directly applicable EU regulations but that it also requires adequate implementing measures to be adopted via national legislation transposing the PIF Directive and other relevant Union acts; calls on the Commission to ensure that national legislation is fully in line with the EPPO Regulation and the PIF Directive, launch infringement proceedings and propose the revision of these legal acts in order to make the EPPO more effective in the exercise of its mandate;

    85. Notes the results of the Compliance assessment of measures adopted by the Member States to adapt their systems to the EPPO Regulation[41], which was presented in September 2023; regrets that many situations are still suboptimal and need to be addressed because they weaken the effectiveness of the protection of the Union’s financial interests by means of criminal investigations; refers, in particular, to the attribution of competence between national prosecution services and the EPPO; stresses also that the EPPO Regulation stipulates the reporting of possible EPPO cases directly and without undue delay; calls on the Commission to verify and monitor Member States’ full compliance with the EPPO Regulation and their prompt reporting of suspicions of fraud in areas within the EPPO’s competence directly to it;

    86. Is concerned that in many Member States the designated national authority deciding on disagreements between the EPPO and national authorities on the competence for prosecuting a case is not a ‘court’ or a ‘tribunal’; calls on the Commission to verify and monitor whether Member States are fully complying with Article 25(6) and Article 42(2)(c) of the EPPO Regulation, which requires the possibility of an appeal to the Court of Justice of the European Union (CJEU) against a decision by a national authority on the attribution of competence;

    87. Stresses that the current control by national authorities over the ‘necessary’ resources and equipment of the European Delegated Prosecutors (EDPs) and the need to refer to the national authorities’ provisions for ‘adequate arrangements’ on social security, pensions and insurance coverage could constrain the autonomy and independence of the EPPO’s actions; calls on the Commission to propose adequate solutions in the forthcoming revision of the EPPO Regulation;

    88. Points out that the transposition of the PIF Directive differs between Member States, which, in some cases, affects the cross-border exercise of EPPO competences; calls on the Commission to ensure proper implementation of the PIF Directive and to propose its revision, based on the experience gathered;

    89. Underlines that Article 25(3) of the EPPO Regulation, which elaborates on the exercise of the EPPO’s competence in the event of non-PIF offences inextricably linked to PIF offences, raises legal and practical questions and requires further streamlining in order to make effective use of the EPPO’s legal framework; calls on the Commission to propose suitable solutions in the forthcoming revision of the EPPO Regulation in order to reinforce the EPPO’s ability to investigate cross-border organised crime;

    90. Reiterates[42] that the EPPO has an important role in safeguarding the rule of law and in combating corruption in the Union, and encourages the Commission to closely monitor Member States’ level of cooperation with the EPPO in the rule of law reports; welcomes the accession of Poland and Sweden to the EPPO; notes with approval Ireland’s recent announcement of its intention to participate; calls on the Government of Hungary, 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; recalls that broad public support for Hungary’s accession has been demonstrated by 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;

    91. Reiterates its call for the launch of an exchange of views on the possible clarification of the competence of the EPPO within its mandate, as defined in the Treaty, as regards protecting the financial interests of the Union;

    92. Notes that in 2023, cooperation between the relevant actors increased, with the EPPO and Eurojust cooperating on 26 ongoing cases at the end of 2023; observes that also in 2023 the EPPO and Europol cooperated efficiently on various operational matters, and understands that this cooperation almost doubled in 2023, with Europol providing support on 47 cases upon the EPPO’s request; calls on the Commission to request that the EPPO and Eurojust specify the efficiency criteria on the basis of which they conduct their activities;

    93. Welcomes the efforts by OLAF and the EPPO to strengthen their cooperation; understands that information is being exchanged between the two offices in order to avoid parallel investigations into the same matters, and that, in 2023, 22 complementary investigations were opened by OLAF and four supporting investigations were requested by the EPPO; is aware that the synergies resulting from the use of complementary investigations (ex Article 12(f) of the OLAF Regulation) and investigations in support (ex Article 12(e) of the OLAF Regulation) are suboptimal; calls on the Commission to address the legal and operational causes of this when reviewing its regulations;

    94. Is concerned about the lack of analysis and accurate information on the recoveries to the benefit of the Union’s budget that should follow both OLAF and EPPO investigations; is aware that the impact of the AFA on the security of citizens and on the enforcement of the rule of law in the Union goes beyond the quantification of financial recoveries alone; stresses, however, that the results of the efforts made to create the AFA should tend towards measurability and be tangible at least as regards the budgetary aspects; emphasises that the impact of the activities implemented for the protection of the Union’s financial interests should be assessed and taken into consideration in the allocation of resources and definition of mandates;

    95. Understands that the Commission has yet to provide data on the recoveries to the benefit of the Union budget following the EPPO activities reported to the Commission, as provided by Article 103(2) of the EPPO Regulation, and that this matter is included in the mission letter of the Commissioner for budget, anti-fraud and public administration; observes that the freezing of assets is essential to combat crime affecting the EU budget and that a certain amount of time is needed for freezing to be converted into actual confiscations and recoveries; highlights that the amount confiscated is not expected to return by default to the Union’s budget; notes that, in line with Article 38 of the EPPO Regulation, the potential revenue resulting from seizure and confiscation measures taken by EDPs in Member States should flow back into the EU budget and could be accounted for in the EU budget as non-assigned revenue; calls on the Commission to make the necessary arrangements with the relevant national authorities to allow these sums to enter the EU budget;

    96. Points out that data on effective recoveries following OLAF financial recommendations are not published in the OLAF Annual Report or in any other official report from the Commission; regrets that only aggregated data are made available and they refer to 2 299 financial recommendations issued by OLAF between 2012 and 2023 for an overall amount of about EUR 9 billion; remarks that the analysis of the available figures suggests considerable room for improvement; observes that a large gap exists between the amounts recommended for recovery by OLAF, the amount established as recoverable by the Commission’s services and the amount eventually effectively recovered; is concerned by the low recovery rates for undue expenditure (for activities implemented under shared and indirect management modes the rate is 34 % and 11 %, respectively, and for recovery under direct management only 22 %); calls on the Commission to provide data with adequate granularity on recovery and to assess the reasons behind the recovery gap; stresses the need for OLAF and the Commission to agree upon, and apply consistently, common evaluation criteria that ensure greater convergence and clarity, thereby improving the efficiency and effectiveness of financial recovery assessment; emphasises that recovery following an OLAF recommendation and the EPPO’s investigations is an important measurement of the efficiency of the AFA and calls for more transparency in this regard;

    The external layer of the EU’s AFA – key measures at national level in 2023

    97. Understands that the overall level of implementation by the Member States of the Commission’s recommendations issued in the 2022 PIF Report is considered satisfactory; highlights, however, that significant differences between Member States persist; is concerned, in particular, by the cases of inadequate reporting of irregularities by some Member States via the IMS; recalls that reporting is mandatory under the current regulations and encourages OLAF to strengthen its oversight and monitoring actions with a view to achieving uniform reporting across the Union;

    98. Calls on the Commission to monitor the comprehensiveness of the reporting in IMS by countries benefiting from pre-accession assistance and welcomes the initiatives of the Directorate-General for Neighbourhood and Enlargement Negotiations to enforce candidate countries’ obligations to report irregularities in the IMS on a regular basis;

    99. Encourages the Member States to report in the IMS the irregularities related to the RRF, in line with the ECA recommendations; calls on the Commission to facilitate such use of the IMS by the Member States by providing support in the form of training, seminars and exchange of best practices;

    100. Welcomes the participation of Sweden and Poland in the EPPO, decided on in 2024, as well as the objective of the new Irish Government to join the EPPO; insists that Member States that are not yet participating must do so without delay and calls on the Commission to incentivise participation in the EPPO through positive measures;

    101. Reiterates that Member States’ ineffective, untimely or lack of cooperation with the EPPO and OLAF constitute grounds for action under the Conditionality Regulation; calls on the Commission to take into due consideration all information from the EPPO and OLAF on situations where Member States fail to comply with their obligations;

    102. Maintains that National Anti-Fraud Strategies (NAFS) are the most effective tool for coordination between the various national, regional and sectoral authorities and the many local entities entrusted with the tasks into which the anti-fraud cycle is organised; notes that, in 2023, 21 out of 27 Member States reported having an anti-fraud strategy; observes that out of 21, only 10 Member States had a full national anti-fraud strategy[43] while 11 Member States had only sectoral rather than national anti-fraud strategies in place; recognises that the approach taken by Member States in their anti-fraud strategies today varies widely; regrets that six Member States do not have any anti-fraud strategy at all; strongly regrets this highly unsatisfactory situation, which compromises the integrity of EU spending and undermines citizens’ trust in EU institutions;

    103. Maintains that Member States would benefit from a periodic evaluation of their anti-fraud frameworks; calls on the Commission to encourage Member States to run independent or peer reviews of their anti-fraud frameworks to enhance consistency and pursue high standards;

    104. Encourages the Commission to propose enforceable initiatives to clarify the relationship and consider establishing a link between the adoption of NAFS by the Member States and the level of financial support they receive;

    105. Asks the Commission to launch, in preparation for the revision of the OLAF Regulation, a monitoring exercise on the state of play of the Anti-Fraud Coordination Services (AFCOS) established in the Member States; encourages the Commission to plan for the update and redesign of their structure, role, responsibilities and mandate; regrets the suboptimal staffing level across the majority of the AFCOS in the Member States; underlines the need to ensure sufficient levels of expertise among staff in national anti-fraud coordinating structures; calls on the Commission to encourage and support Member States in addressing these issues as a matter of priority, including in the context of the European Semester cycle;

    106. Underlines the role played by public authorities in fostering a zero-tolerance culture against fraud and stresses, in particular, the importance of fraud prevention to ensure that fraud, corruption, conflicts of interest and other misuse of funds do not occur in the first place; recalls that the correct transposition of the PIF Directive, adopted on 5 July 2017, is crucial for the protection of the Union budget, for the implementation of all the EU policies for which EU money is used, including in the context of RRF deployment, and for establishing the scope of investigations and prosecutions by the EPPO, whose competence is established by reference to the PIF Directive, as implemented by national law; expects national authorities, including governments, in all Member States unequivocally to condemn fraud, corruption, conflicts of interest and any other misuse of public funds, taking a proactive approach in protecting the financial interests of the Union through effective measures in areas including risk assessment, communication and information sharing, and training of staff; calls on the Commission to intervene in a timely manner through infringement procedures to ensure the consistent transposition of the PIF Directive and the effective liability of – and sanctions for – legal and natural persons;

    107. Reiterates that whistleblowers play a key role in boosting fraud detection, investigation and prosecution; understands that, by the end of 2023, 24 Member States had adopted national legislation to transpose the Whistleblower Directive and declared their transposition complete; regrets, however, that in March 2023, after analysis of the national measures adopted, the Commission was obliged to refer six Member States to the CJEU for their failure to transpose the Directive and failure to notify transposition measures, asking the Court to impose financial sanctions; is concerned by the further infringement proceedings[44] ongoing against six other Member States; calls on the Commission to intensify the monitoring of national transposition measures and report to Parliament accordingly; stresses that Parliament itself must also urgently ensure the proper transposition of the Directive, as confirmed by the CJEU ruling of 11 September 2024, which found that Parliament’s current framework fails to provide balanced and effective protection against retaliation; calls for Parliament to immediately adopt robust rules in line with the Directive to safeguard its own whistleblowers;

    108. Notes that the Investigative Division of the European Investment Bank (EIB IG/IN) had made 10 referrals to the EPPO and 17 to OLAF by the end of 2023; is aware that entities which have been found by EIB IG/IN to engage in prohibited practices may be excluded, in other words declared ineligible, for a stated period, from being awarded any contracts or entering into any relationship with the EIB; observes that, in 2023, these exclusion proceedings resulted in the exclusion of five economic operators for a minimum duration of three years, while five other companies reached settlement agreements applying conditionality to their eligibility;

    External dimension of the protection of the EU’s financial interests

    109. Welcomes the Commission’s reaction to its call to increase the monitoring of, and control over, the funds under the Global Europe, Neighbourhood, Development and International Cooperation Instrument for assistance to non-EU countries, as well as via the joint communication with the High Representative of the Union for Foreign Affairs and Security Policy[45]; appreciates the Commission’s continuous efforts to ensure that anti-corruption measures are mainstreamed into EU external action instruments; reiterates its recommendation to suspend budgetary support and de-commit funds to non-EU countries, including candidate countries, where the authorities clearly fail to take genuine action against widespread corruption, without compromising support for the civil population; emphasises that respect for and commitment to promoting EU values is an essential precondition for all partners aspiring to join the Union; reiterates that accession to the EU is a merit-based process whereby each applicant is assessed on its own merits and its fulfilment of the Copenhagen criteria; considers that when applying the revised enlargement methodology there should be a particular focus on fundamental reforms, and that fair and rigorous conditionality should be applied as well as reversibility where setbacks occur; considers that appropriate tools must be used to ensure that candidate countries show concrete and sustainable compliance with the rule of law, democratic principles and fundamental rights, both before and after joining the Union;

    110. Observes that in the context of the Russian war of aggression against Ukraine, Ukraine will continue to require substantial support in the current and next MFF and, in the perspective of a fair and sustainable peace agreement, Ukraine will need support for post-war reconstruction, including for central government services and reforms;

    111. Considers that the three pillars of the Ukraine Facility could be reshaped accordingly and that reconstruction should align with pre-accession requirements; emphasises the importance of close coordination and cooperation with the Ukraine coordination mechanism established by the G7; calls for the EU and all Member States to increase their support for Ukraine, while putting appropriate measures in place to protect the financial interests of the EU through the prevention, detection and correction of fraud, corruption, conflicts of interest and irregularities in the use of Union funds, including by performing more thorough checks, in order to ensure that EU funds sent to Ukraine and to its neighbouring countries are adequately monitored and controlled and end up benefiting those most in need;

    112. Stresses that the unprecedented volume of financial support received by Ukraine from the EU in recent years, and deployed in the extremely adverse conditions imposed by the ongoing war, imply the adoption of appropriate measures to ensure that such resources are employed as intended, in particular where they are aimed at benefiting infrastructure and people in need;

    113. Appreciates the work carried out by OLAF and the EPPO in protecting the financial interests of the Union by providing training to increase administrative capacity and autonomy, carrying out investigations in Ukraine and agreeing on the working arrangement with the National Anti-Corruption Bureau of Ukraine to facilitate cooperation in the investigation of corruption; invites the competent EU offices to continue their cooperation with and support for the Ukrainian authorities;

    114. Acknowledges, in this regard, the progress made by Ukraine in advancing reforms related to judicial independence, accountability, anti-corruption and anti-money laundering, despite the difficult conditions caused by Russia’s ongoing war of aggression; encourages Ukraine to continue on the path of reform, including with regard to the influence of oligarchs in politics;

    115. Welcomes the enhanced sanctions adopted by the EU against Russia so far, encompassing the banning of Russian nationals and entities from participating in public procurement contracts in the EU and restrictions on EU funding for Russian publicly owned or controlled entities; recognises, however, that despite the current measures, individuals and entities subject to the sanctions against Russia can still find ways to circumvent the sanctions and calls, therefore, for the EU and the Member States to maintain, reinforce and extend the scope and effectiveness of the sanctions policy against Russia and Belarus;

    116. Recognises that the Member States and their relevant competent authorities are responsible for the effective implementation and enforcement of EU sanctions, as well as for identifying breaches and imposing appropriate penalties; underlines the role played by customs authorities and the importance of their close cooperation in strengthening the uniform enforcement of sanctions; welcomes, in this regard, the Baltic Customs Initiative;

    117. Underlines that the EU is the biggest provider of external assistance to Palestinian refugees; stresses that the Union budget must continue to provide support to build peace and stability in the Middle East region, combat terrorism, hate, fundamentalism and disinformation, as well as promote human rights, fight impunity and strengthen adherence to the rule of law; emphasises, accordingly, that EU budgets must not support, under any circumstances, activities that go against these objectives; notes that, following the heinous terror attacks of 7 October 2023 by Hamas and allegations of misuse of EU funds for terrorism, a funding review has been conducted by the Commission, which, although concluding that no evidence has been found, to date, that money had been diverted for unintended purposes (including for support for incarcerated terrorists) and reporting that the safeguards in place worked well, still called for certain additional measures that were deemed necessary; recalls that all hostages taken by Hamas have to be released; emphasises the importance of ensuring that EU funds are effectively allocated and managed in order to achieve their intended goals, even via scrutiny by the EPPO, OLAF and the ECA where appropriate; recalls the ongoing issue of the destruction of EU-funded projects in Gaza and the West Bank and calls for greater accountability and safeguards in this context;

    118. Stresses that suspension of budgetary support in non-EU countries, including candidate countries, is an appropriate measure in the event of failure to take genuine action against widespread corruption; expects priority to be given to the fight against corruption in pre-accession negotiations, with capacity building via the establishment of specialised anti-corruption bodies; asks the Commission to ensure, also in cases where funding is suspended, assistance for civil populations, where possible through alternative channels;

    119. Underlines the importance of cooperation with international organisations in combating fraud; regrets the lack of cooperation by some international organisations in providing the ECA with complete, unlimited and timely access to the documents necessary to carry out its tasks; notes that the Commission has stepped up communication with international organisations and calls on it to further intensify efforts to ensure access to all requested documentation;

     

    °

    ° °

    120. Instructs its President to forward this resolution to the Council and the Commission.

     

    MIL OSI Europe News

  • MIL-OSI Europe: REPORT on the ninth report on economic and social cohesion – A10-0066/2025

    Source: European Parliament

    MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

    on the ninth report on economic and social cohesion

    (2024/2107(INI))

    The European Parliament,

     having regard to Articles 2 and 3 of the Treaty on European Union,

     having regard to Articles 4, 162, 174 to 178, and 349 of the Treaty on the Functioning of the European Union (TFEU),

     having regard to Regulation (EU) 2021/1060 of the European Parliament and of the Council of 24 June 2021 laying down common provisions on the European Regional Development Fund, the European Social Fund Plus, the Cohesion Fund, the Just Transition Fund and the European Maritime, Fisheries and Aquaculture Fund and financial rules for those and for the Asylum, Migration and Integration Fund, the Internal Security Fund and the Instrument for Financial Support for Border Management and Visa Policy[1] (Common Provisions Regulation),

     having regard to Regulation (EU) 2021/1058 of the European Parliament and of the Council of 24 June 2021 on the European Regional Development Fund and on the Cohesion Fund[2],

     having regard to Regulation (EU) 2021/1059 of the European Parliament and of the Council of 24 June 2021 on specific provisions for the European territorial cooperation goal (Interreg) supported by the European Regional Development Fund and external financing instruments[3],

     having regard to Regulation (EU) 2021/1057 of the European Parliament and of the Council of 24 June 2021 establishing the European Social Fund Plus (ESF+) and repealing Regulation (EU) No 1296/2013[4],

     having regard to Regulation (EU) 2021/1056 of the European Parliament and of the Council of 24 June 2021 establishing the Just Transition Fund[5],

     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[6],

     having regard to Regulation (EU) 2020/460 of the European Parliament and of the Council of 30 March 2020 amending Regulations (EU) No 1301/2013, (EU) No 1303/2013 and (EU) No 508/2014 as regards specific measures to mobilise investments in the healthcare systems of Member States and in other sectors of their economies in response to the COVID-19 outbreak (Coronavirus Response Investment Initiative)[7],

     having regard to Regulation (EU) 2020/558 of the European Parliament and of the Council of 23 April 2020 amending Regulations (EU) No 1301/2013 and (EU) No 1303/2013 as regards specific measures to provide exceptional flexibility for the use of the European Structural and Investments Funds in response to the COVID-19 outbreak[8],

     having regard to Regulation (EU) 2020/461 of the European Parliament and of the Council of 30 March 2020 amending Council Regulation (EC) No 2012/2002 in order to provide financial assistance to Member States and to countries negotiating their accession to the Union that are seriously affected by a major public health emergency[9],

     having regard to Regulation (EU) 2020/2221 of the European Parliament and of the Council of 23 December 2020 amending Regulation (EU) No 1303/2013 as regards additional resources and implementing arrangements to provide assistance for fostering crisis repair in the context of the COVID-19 pandemic and its social consequences and for preparing a green, digital and resilient recovery of the economy (REACT-EU)[10],

     having regard to Regulation (EU) 2022/562 of the European Parliament and of the Council of 6 April 2022 amending Regulations (EU) No 1303/2013 and (EU) No 223/2014 as regards Cohesion’s Action for Refugees in Europe (CARE)[11],

     having regard to Regulation (EU) 2022/2039 of the European Parliament and of the Council of 19 October 2022 amending Regulations (EU) No 1303/2013 and (EU) 2021/1060 as regards additional flexibility to address the consequences of the military aggression of the Russian Federation FAST (Flexible Assistance for Territories) – CARE[12],

     having regard to the URBACT programme for sustainable urban cooperation, established in 2002,

     having regard to the Urban Agenda for the EU of 30 May 2016,

     having regard to the Territorial Agenda 2030 of 1 December 2020,

     having regard to the 9th Cohesion Report, published by the Commission on 27 March 2024[13], and the Commission communication of 27 March 2024 on the 9th Cohesion Report (COM(2024)0149),

     having regard to the study entitled ‘The future of EU cohesion: Scenarios and their impacts on regional inequalities’, published by the European Parliamentary Research Service in December 2024,

     having regard to the Commission report of February 2024 entitled ‘Forging a sustainable future together – Cohesion for a competitive and inclusive Europe’[14],

     having regard to the opinion of the European Economic and Social Committee of 31 May 2024 on the 9th Cohesion Report[15],

     having regard to the opinion of the Committee of the Regions of 21 November 2024 entitled ‘A renewed Cohesion Policy post 2027 that leaves no one behind – CoR responses to the 9th Cohesion Report and the Report of the Group of High-Level Specialists on the Future of Cohesion Policy’,

     having regard to the report entitled ‘The future of European competitiveness – A competitiveness strategy for Europe’, published by the Commission on 9 September 2024,

     having regard to the agreement adopted at the 21st Conference of the Parties to the UN Framework Convention on Climate Change (COP21) in Paris on 12 December 2015 (the Paris Agreement),

     having regard to the study entitled ‘Streamlining EU Cohesion Funds: addressing administrative burdens and redundancy’, published by its Directorate-General for Internal Policies of the Union in November 2024[16],

     having regard to Regulation (EU) 2025/XXXX of the European Parliament and of the Council of [INSERT DATE] on the Border Regions’ Instrument for Development and Growth in the EU (BRIDGEforEU) [INSERT FOOTNOTE ONCE PUBLISHED IN OJ],

     having regard to the Commission communication of 3 May 2022 entitled ‘Putting people first, securing sustainable and inclusive growth, unlocking the potential of the EU’s outermost regions’ (COM(2022)0198),

     having regard to the opinion in the form of a letter from the Committee on Agriculture and Rural Development (XXX),

     having regard to its resolution of 25 March 2021 on cohesion policy and regional environment strategies in the fight against climate change[17],

     having regard to its resolution of 20 May 2021 on reversing demographic trends in EU regions using cohesion policy instruments[18],

     having regard to its resolution of 14 September 2021 entitled ‘Towards a stronger partnership with the EU outermost regions[19],

     having regard to its resolution of 15 September 2022 on economic, social and territorial cohesion in the EU: the 8th Cohesion Report[20],

     having regard to its resolution of 20 October 2023 on possibilities to increase the reliability of audits and controls by national authorities in shared management[21],

     having regard to its resolution of 23 November 2023 on harnessing talent in Europe’s regions[22],

     having regard to its resolution of 14 March 2024 entitled ‘Cohesion policy 2014-2020 – implementation and outcomes in the Member States[23],

     having regard to Rule 55 of its Rules of Procedure,

     having regard to the report of the Committee on Regional Development (A10-0066/2025),

    A. whereas cohesion policy is at the heart of EU policies and is the EU’s main tool for investments in sustainable economic, social and territorial development, and contributing to the Green Deal objectives, across the EU under its multiannual financial frameworks for the periods of 2014-2020 and 2021-2027; whereas cohesion policy, as mandated by the Treaties, is fundamental for a well-functioning and thriving internal market by promoting the development of all regions in the EU, and especially the less developed ones;

    B. whereas cohesion policy has fostered economic, social and territorial convergence in the EU, notably by increasing the gross domestic products, for example, of central and eastern EU Member States, which went from 43 % of the EU average in 1995 to around 80 % in 2023; whereas the 9th Cohesion Report highlights that, by the end of 2022, cohesion policy supported over 4.4 million businesses, creating more than 370 000 jobs in these companies; whereas it also underlines that cohesion policy generates a significant return on investment, and that each euro invested in the 2014–2020 and 2021–2027 programmes will have generated 1.3 euros of additional GDP in the Union by 2030; whereas cohesion policy constituted, on average, around 13 % of total public investment in the EU[24];

    C. whereas the Commission report entitled ‘The long-term vision for the EU’s rural areas: key achievements and ways forward’, presented alongside the ninth Cohesion Report, underlines that EUR 24.6 billion, or 8 % of the rural development pillar of the common agricultural policy, is directed towards investments in rural areas beyond farming investments, setting the scene for a debate on the future of rural areas;

    D. whereas between 2021 and 2027, cohesion policy will have invested over EUR 140 billion in the green and digital transitions[25], to help improve networks and infrastructure, support nature conservation, improve green and digital skills and foster job creation and services for the public;

    E. whereas despite the widely acknowledged and proven positive impact of cohesion policy on social, economic and territorial convergence, significant challenges remain, marked notably by development disparities at sub-national level, within regions and in regions caught in a development trap, and by the impact of climate change, in terms of demography, the digital and green transitions, and connectivity, but also in terms of sustainable economic development, in particular in least developed regions and rural and remote areas;

    F. whereas cohesion policy and sectoral programmes of the EU have repeatedly and efficiently helped regions to respond effectively to emergencies and asymmetric shocks such as the COVID-19 crisis, Brexit, the energy crisis and the refugee crisis caused by Russia’s invasion of Ukraine, as well as natural disasters, even though it is a long-term, structural policy and not a crisis management instrument or the ‘go-to’ emergency response funding mechanism; whereas such crises have delayed the implementation of the European Structural and Investment Funds and whereas a considerable number of projects financed with Recovery and Resilience Facility (RRF) funds have been taken for the most part from projects that had been slated for investment under cohesion policy;

    G. whereas despite measures already taken for the 2014-2020 and 2021-2027 periods, the regulatory framework governing the use and administration of cohesion policy instruments and funds should be further simplified and interoperable digital tools better used and developed, including the establishment of one-stop digitalised service centres, with the objective of streamlining procedures, enhancing stakeholder trust, reducing the administrative burden, increasing flexibility in fund management and speeding up payments, not only for the relevant authorities but also for the final beneficiaries; whereas it is necessary to increase the scope for using funds more flexibly, including the possibility of financing the development of dual-use products; whereas it is of utmost importance to formulate any future cohesion policy with a strategic impetus throughout the funding period, which could, however, be reassessed at midterm;

    H. whereas the low absorption rate of the 2021-2027 cohesion policy funds, currently at just 6 %, is not because of a lack of need from Member States or regions, but rather stems from delays in the approval of operational programmes, the transition period between financial frameworks, the prioritisation of NextGenerationEU by national managing authorities, limited administrative capacity and complex bureaucratic procedures; whereas Member States and regions may not rush to absorb all available funds as they anticipate a possible extension under the N+2 or N+3 rules;

    I. whereas radical modifications to the cohesion regulatory framework, from one programming period to the next, contribute to generating insecurity among the authorities responsible and beneficiaries, gold-plating legislation, increasing error rates (and the accompanying negative reputational and financial consequences), delays in implementation and, ultimately, disaffection among beneficiaries and the general population;

    J. whereas there is sometimes competition between cohesion funds, emergency funds and sectoral policies;

    K. whereas demographic changes vary significantly across EU regions, with the populations of some Member States facing a projected decline in the coming years and others projected to grow; whereas demographic changes also take place between regions, including movement away from outermost regions, but are generally observed as movement from rural to urban areas within Member States, wherein women are leaving rural areas in greater numbers than men, but also to metropolitan areas, where villages around big cities encounter difficulties in investing in basic infrastructure; whereas the provision of essential services such as healthcare, education and transportation must be reinforced in all regions, with a particular focus on rural and remote areas; whereas a stronger focus is needed on areas suffering from depopulation and inadequate services, requiring targeted measures to encourage young people to remain through entrepreneurship projects, high-quality agriculture and sustainable tourism;

    L. whereas taking account of the ageing population is crucial in order to ensure justice among the generations and thereby to strengthen participation, especially among young people;

    M. whereas urban areas are burdened by new challenges resulting from the population influx to cities, as well as rising housing and energy prices, requiring the necessary housing development, new environmental protection and energy-saving measures, such as accelerated deep renovation to combat energy poverty and promote energy efficiency; whereas the EU cohesion policy should help to contribute to an affordable and accessible housing market for all people in the EU, especially for low- and middle-income households, urban residents, families with children, women and young people;

    N. whereas effective implementation of the Urban Agenda for the EU can enhance the capacity of cities to contribute to cohesion objectives, thereby improving the quality of life of citizens and guaranteeing a more efficient use of the EU’s financial resources;

    O. whereas particular attention needs to be paid to rural areas, as well as areas affected by industrial transition and EU regions that suffer from severe and permanent natural or demographic handicaps, brain drain, climate-related risks and water scarcity, such as the outermost regions, and in particular islands located at their peripheries or at the periphery of the EU, sparsely populated regions, islands, mountainous areas and cross-border regions, as well as coastal and maritime regions;

    P. whereas Russia’s war of aggression against Ukraine has created a new geopolitical reality that has had a strong impact on the employment, economic development and opportunities, and general well-being of the population living in regions bordering Ukraine, Belarus and Russia, as well as candidate countries such as Ukraine and Moldova, which therefore require special attention and support, including by accordingly adapting cohesion policy; whereas this war has led to an unprecedented number of people seeking shelter in the EU, placing an additional burden on local communities and services; whereas the collective security of the EU is strongly dependent on the vitality and well-being of regions situated at the EU’s external borders;

    Q. whereas the unique situation of Northern Ireland requires a bespoke approach building on the benefits of PEACE programmes examining how wider cohesion policy can benefit the process of reconciliation;

    R. whereas 79 % of citizens who are aware of EU-funded projects under cohesion policy believe that EU-funded projects have a positive impact on the regions[26], which contributes to a pro-EU attitude;

    S. whereas overall awareness of EU-funded projects under cohesion policy has decreased by 2 percentage points since 2021[27], meaning that greater decentralisation should be pursued to bring cohesion policy even closer to the citizen;

    1. Insists that the regional and local focus, place-based approach and strategic planning of cohesion policy, as well as its decentralised programming and implementation model based on the partnership principle with strengthened implementation of the European code of conduct, the involvement of economic and civil society actors, and multi-level governance, are key and positive elements of the policy, and determine its effectiveness; is firmly convinced that this model of cohesion policy should be continued in all regions and deepened where possible as the EU’s main long-term investment instrument for reducing disparities, ensuring economic, social and territorial cohesion, and stimulating regional and local sustainable growth in line with EU strategies, protecting the environment, and as a key contributor to EU competitiveness and just transition, as well as helping to cope with new challenges ahead;

    2. Calls for a clear demarcation between cohesion policy and other instruments, in order to avoid overlaps and competition between EU instruments, ensure complementarity of the various interventions and increase visibility and readability of EU support; in this context, notes that the RRF funds are committed to economic development and growth, without specifically focusing on economic, social and territorial cohesion between regions; is concerned about the Commission’s plans to apply a performance-based approach to the European Structural and Investment Funds (ESIF); acknowledges that performance-based mechanisms can be instrumental in making the policy more efficient and results-orientated, but cautions against a one-size-fits-all imposition of the model and expresses serious doubt about ideas to link the disbursement of ESIF to the fulfilment of centrally defined reform goals, even more so if the reform goals do not fall within the scope of competence of the regional level;

    3. Is opposed to any form of top-down centralisation reform of EU funding programmes, including those under shared management, such as the cohesion policy and the common agricultural policy, and advocates for greater decentralisation of decision-making to the local and regional levels; calls for enhanced involvement of local and regional authorities and economic and civil society actors at every stage of EU shared management programmes, from preparation and programming to implementation, delivery and evaluation, keeping in mind that the economic and social development of, and territorial cohesion between, regions can only be accomplished on the basis of good cooperation between all actors;

    4. Emphasises that the European Agricultural Fund for Rural Development (EAFRD) plays a key role, alongside cohesion policy funds, in supporting rural areas; stresses that the EAFRD’s design must align with the rules of cohesion policy funds to boost synergies and facilitate multi-funded rural development projects;

    5. Is convinced that cohesion policy can only continue to play its role if it has solid funding; underlines that this implies that future cohesion policy must be provided with robust funding for the post-2027 financial period; stresses that it is necessary to provide funding that is ambitious enough and easily accessible to allow cohesion policy to continue to fulfil its role as the EU’s main investment policy, while retaining the flexibility to meet potential new challenges, including the possibility of financing the development of dual-use products, and to enable local authorities, stakeholders and beneficiaries to effectively foster local development; is of the firm opinion that the capacity to offer flexible responses to unpredictable challenges should not come at the expense of the clear long-term strategic focus and objectives of cohesion policy;

    6. Underlines the importance of the next EU multiannual financial framework (MFF) and the mid-term review of cohesion policy programmes 2021-2027 in shaping the future of cohesion policy; reiterates the need for a more ambitious post-2027 cohesion policy in the next MFF 2028-2034; calls, therefore, for the upcoming MFF to ensure that cohesion policy continues to receive at least the same level of funding as in the current period in real terms; furthermore calls for cohesion policy to remain a separate heading in the new MFF; stresses that cohesion policy should be protected from statistical effects that may alter the eligibility of regions by changing the average EU GDP; reiterates the need for new EU own resources;

    7. Proposes, therefore, that next MFF be more responsive to unforeseen needs, including with sufficient margins and flexibilities from the outset; emphasises in this regard, however, that cohesion policy is not a crisis instrument and that it should not deviate from its main objectives, namely from its long-term investment nature; calls for the European Union Solidarity Fund to be strengthened, including in its pre-financing, making it less bureaucratic and more easily accessible, in order to develop an appropriate instrument capable of responding adequately to the economic, social and territorial consequences of future natural disasters or health emergencies; emphasises the need for Parliament to have adequate control over any emergency funds and instruments;

    8. Recognises the need to also use nomenclature of territorial units for statistics (NUTS) 3 classification for specific cases, in a manner that recognises that inequalities in development exist within all NUTS 2 regions; is of the opinion that regional GDP per capita must remain the main criterion for determining Member States’ allocations under cohesion policy; welcomes the fact that, following Parliament’s persistent calls, the Commission has begun considering additional criteria[28] such as greenhouse gas emissions, population density, education levels and unemployment rates, in order to provide a better socio-economic overview of the regions;

    9. Stresses that the rule of law conditionality is an overarching conditionality, recognising and enforcing respect for the rule of law, also as an enabling condition for cohesion policy funding, to ensure that Union resources are used in a transparent, fair and responsible manner with sound financial management; considers it necessary to reinforce respect for the rule of law and fundamental rights, and to ensure that all actions are consistent with supporting democratic principles, gender equality and human rights, including workers’ rights, the rights of disabled people and children’s rights, in the implementation of cohesion policy; highlights the important role of the European Anti-Fraud Office and the European Public Prosecutor’s Office in protecting the financial interests of the Union;

    10. Calls for further efforts to simplify, make more flexible, strengthen synergies and streamline the rules and administrative procedures governing cohesion policy funds at EU, national and regional level, taking full advantage of the technologies available to increase accessibility and efficiency, building on the existing and well-established shared management framework, in order to strengthen confidence among users, thus encouraging the participation of a broader range of economic and civil society actors in projects supported and maximising the funds’ impact; calls for further initiatives enabling better absorption of cohesion funds, including increased co-financing levels, higher pre-financing and faster investment reimbursements; calls for local administration, in particular representing smaller communities, to be technically trained for better administrative management of the funds; stresses, therefore, the importance of strengthening the single audit principle, further expanding simplified cost options and reducing duplicating controls and audits that overlap with national and regional oversight for the same project and beneficiary, with a view to eliminating the possibility of repeating errors in subsequent years of implementation;

    11. Calls on the Commission and the Member States to give regions greater flexibility already at the programming stage, in order to cater for their particular needs and specificities, emphasising the need to involve the economic and civil society actors; underlines that thematic concentration was a key element in aligning cohesion policy with Europe 2020 objectives; asks the Commission, therefore, to present all findings related to the implementation of thematic concentration and to draw lessons for future legislative proposals;

    12. Acknowledges that the green, digital and demographic transitions present significant challenges but, at the same time, opportunities to achieve the objective of economic, social and territorial cohesion; recognises that, statistically, high-income areas can hide the economic problems within a region; is aware of the risk of a widening of regional disparities, a deepening of social inequalities and a rising ‘geography of discontent’ related to the transition process; underlines the need to reach the EU’s sustainability and climate objectives, and to maintain shared economic growth by strengthening the Union’s competitiveness; calls, therefore, for a European strategy that guarantees harmonious growth within the Union, meeting the respective regions’ specific needs; reaffirms its commitment to pursuing the green and digital transitions, as this will create opportunities to improve the EU’s competitiveness; underlines the need to invest in infrastructure projects that enhance connectivity, particularly in sustainable, intelligent transport, and in energy and digital networks, ensuring that all regions, including remote and less-developed ones, are fully integrated into the single market and benefit equitably from the opportunities it provides; emphasises, in this context, the need to support the development of green industries, fostering local specificities and traditions to increase the resilience of the economic environment and civil society to future challenges;

    13. Urges that the cohesion policy remain consistent with a push towards increasing innovation and completing the EU single market, in line with the conclusions of the Draghi report on European competitiveness; underlines, in the context of regional disparities, the problem of the persisting innovation divide and advocates for a tailored, place-based approach to fostering innovation and economic convergence across regions and reducing the innovation gap; calls for a stronger role for local and regional innovation in building competitive research and innovation ecosystems and promoting territorial cohesion; points to new EU initiatives, such as regional innovation valleys and partnerships for regional innovation, that aim to connect territories with different levels of innovation performance and tackle the innovation gap; considers that this approach will reinforce regional autonomy, allowing local and regional authorities to shape EU policies and objectives in line with their specific needs, characteristics and capacities, while safeguarding the partnership principle;

    14. Is convinced that cohesion policy needs to continue to foster the principle of just transition, addressing the specific needs of regions, while leaving no territory and no one behind; calls for continued financing of the just transition process, with the Just Transition Fund being fully integrated into the Common Provisions Regulation and endowed with reinforced financial means for the post-2027 programming period; emphasises, nonetheless, the need to assess the impact of the Just Transition Fund on the transformation of eligible regions and, while ensuring it remains part of cohesion policy, refine its approach in the new MFF on the basis of the findings and concrete measures to ensure the economic and social well-being of affected communities;

    15. Underlines the need to improve the relationship between cohesion policy and EU economic governance, while avoiding a punitive approach; stresses that the European Semester should comply with cohesion policy objectives under Articles 174 and 175 TFEU; calls for the participation of the regions in the fulfilment of these objectives and for a stronger territorial approach; calls for a process of reflection on the concept of macroeconomic conditionality and for the possibility to be explored of replacing this concept with new forms of conditionality to better reflect the new challenges ahead;

    16. Is concerned about the growing number of regions in a development trap, which are stagnating economically and are suffering from sharp demographic decline and limited access to essential services; calls, therefore, for an upward adjustment in co-financing for projects aimed at strengthening essential services; stresses the role of cohesion policy instruments in supporting different regions and local areas that are coping with demographic evolution affecting people’s effective right to stay, including, among others, challenges related to depopulation, ageing, gender imbalances, brain drain, skills shortages and workforce imbalances across regions; recognises the need for targeted economic incentives and structural interventions to counteract these phenomena; in this context, calls for the implementation of targeted programmes to attract, develop and retain talent, particularly in regions experiencing significant outflows of skilled workers, by fostering education, culture, entrepreneurship and innovation ecosystems that align with local and regional economic needs and opportunities;

    17. Recognises the importance of supporting and financing specific solutions for regions with long-standing and serious economic difficulties or severe permanent natural and demographic handicaps; reiterates the need for maintaining and improving the provision of quality essential services (such as education and healthcare), transport and digital connectivity of these regions, fostering their economic diversification and job creation, and helping them respond to challenges such as rural desertification, population ageing, poverty, depopulation, loneliness and isolation, as well as the lack of opportunities for vulnerable people such as persons with disabilities; underlines the need to prioritise the development and adequate funding of strategic sectors, such as renewable energy, sustainable tourism, digital innovation and infrastructure, in a manner that is tailored to the economic potential and resources of each region, in order to create broader conditions for endogenous growth and balanced development across all regions, especially rural, remote and less-developed areas, border regions, islands and outermost regions; recalls the importance of strong rural-urban linkages and particular support for women in rural areas;

    18. Emphasises the need for a tailored approach for the outermost regions, as defined under Article 349 TFEU, which face unique and cumulative structural challenges due to their remoteness, small market size, vulnerability to climate change and economic dependencies; underlines that these permanent constraints, including the small size of the domestic economy, great distance from the European continent, location near third countries, double insularity for most of them, and limited diversification of the productive sector, result in additional costs and reduced competitiveness, making their adaptation to the green and digital transition particularly complex and costly; underlines their great potential to further develop, inter alia through improved regional connectivity, key sectors such as blue economy, sustainable agriculture, renewable energies, space activities, research or eco-tourism; reiterates its long-standing call on the Commission to duly consider the impact of all newly proposed legislation on the outermost regions, with a view to avoiding disproportionate regulatory burdens and adverse effects on these regions’ economies;

    19. Underlines the fact that towns, cities and metropolitan areas have challenges of their own, such as considerable pockets of poverty, housing problems, traffic congestion and poor air quality, generating challenges for social and economic cohesion created by inharmonious territorial development; emphasises the need for a specific agenda for cities and calls for deepening their links with functional urban areas, encompassing smaller cities and towns, to ensure that economic and social benefits are spread more evenly across the entire territory; highlights the need to strengthen coordination between the initiatives of the Urban Agenda for the EU and the instruments of cohesion policy, favouring an integrated approach that takes into account territorial specificities and emerging challenges; calls, furthermore, for more direct access to EU funding for regional and local authorities, as well as cities and urban authorities, by inter alia widening the use of integrated territorial investments (ITI);

    20. Stresses the need to continue and strengthen investments in affordable housing within the cohesion policy framework, recognising its significance for both regions and cities; highlights the need to foster its changes relevant to investing in housing beyond the two current possibilities (energy efficiency and social housing); emphasises the important role that cohesion policy plays in the roll-out and coordination of these initiatives; believes, furthermore, that it is important to include housing affordability in the URBACT initiative;

    21. Stresses the strategic importance of strong external border regions for the security and resilience of the EU; calls on the Commission to support the Member States and regions affected by Russia’s war of aggression against Ukraine, in particular the regions on the EU’s eastern border, by revising the Guidelines on regional State aid[29], through tailor-made tools and investments under the cohesion policy, as well as supporting them to make the most of the possibilities offered by the cohesion policy funds, including Interreg, in a flexible way, to help cope with the detrimental socio-economic impact of the war on their populations and territories; calls, furthermore, for support to be given to regions bordering candidate countries such as Ukraine and Moldova to strengthen connections and promote their EU integration;

    22. Highlights the added value of territorial cooperation in general and cross-border cooperation in particular; underlines the importance of Interreg for cross-border regions, including outermost regions; emphasises its important role in contributing to their development and overcoming cross-border obstacles, including building trust across borders, developing transport links, identifying and reducing legal and administrative obstacles and increasing the provision and use of cross-border public services, among others; considers Interreg as the main EU instrument for tackling the persistent cross-border obstacles faced by emergency services, and proposes that there be a more prominent focus on these services; underlines the fact that cross-border areas, including areas at the EU’s external borders, bordering aggressor countries often face specific challenges; believes that EU border regions, facing multiple challenges, must be supported and is of the opinion that they must be provided with increased means; welcomes the new regulation on BRIDGEforEU; emphasises the importance of small-scale and cross-border projects and stresses the need for effective implementation on the ground; calls on the Commission to encourage Member States to actively support awareness-raising campaigns in bordering regions to maximise the impact of cross-border cooperation;

    23. Recalls the need to ‘support cohesion’, rather than just rely on the ‘do no harm to cohesion’ principle, which means that no action should hamper the convergence process or contribute to regional disparities; calls for a stronger integration of these principles as cross-cutting in all EU policies, to ensure that they support the objectives of social, economic and territorial cohesion, as set out in Articles 3 and 174 TFEU; calls, furthermore, on the Commission to issue specific guidelines on how to implement and enforce these principles across EU policies, paying particular attention to the impact of EU laws on the competitiveness of less developed regions; reiterates that new legislative proposals need to take due account of local and regional realities; suggests that the Commission draw on innovative tools such as RegHUB (the network of regional hubs) to collect data on the impact of EU policies on the regions; to this end, underlines the need to strengthen the territorial impact assessment of EU legislation, with a simultaneous strengthening of the territorial aspects of other relevant policies; insists that promoting cohesion should also be seen as a way of fostering solidarity and mutual support among Member States and their regions; calls on the Commission and the Member States to continue their efforts regarding communication and visibility of the benefits of cohesion policy, demonstrating to citizens the EU’s tangible impact and serving as a key tool in addressing Euroscepticism; welcomes the launch of the multilingual version of the Kohesio platform;

    24. Notes with concern the severe decline in recent years of adequate levels of national funding by Member States towards their poorer regions; recalls the importance of respecting the EU rule on additionality; calls on the Commission to ensure that national authorities take due account of internal cohesion in drafting and implementing structural and investment fund projects;

    25. Insists that, in addition to adjusting to regional needs, cohesion policy must be adapted to the smallest scale, i.e. funds must be accessible to the smallest projects and project bearers; points out that their initiatives are often the most innovative and have a significant impact on rural development; reiterates that these funds should be accessible to all, regardless of their size or scope; approves of the Cohesion Alliance’s call for ‘a post-2027 Cohesion Policy that leaves no one behind’;

    26. Stresses that delays in the MFF negotiations, together with the fact that Member States have placed a greater focus on the programming of the RRF funds, led to considerable delays in the programming period 2021-2027; stresses the importance of a timely agreement in the next framework, and therefore calls for the Common Provisions Regulation (CPR) and the budget negotiations to be finalised at least one year before the start of the new funding period so that Member States can develop their national and regional funding strategies in good time to ensure a successful transition to the next funding period and the continuation of existing ESIF projects;

    27. Instructs its President to forward this resolution to the Council, the Commission, the European Economic and Social Committee, the European Committee of the Regions and the national and regional parliaments of the Member States.

    MIL OSI Europe News

  • MIL-OSI Security: Grove Woman Sentenced for Strangling 70-Year-Old Neighbor to Death

    Source: Office of United States Attorneys

    TULSA, Okla. – Today, U.S. District Judge Gregory K. Frizzell sentenced Kellie Lee Crawford, 57, for Voluntary Manslaughter in Indian Country. Judge Frizzell ordered Crawford to 180 months imprisonment, followed by three years of supervised release.

    According to court documents, in September 2021, Crawford was drinking with her 70-year-old neighbor, Richard Strade. Crawford was under the influence of methamphetamine and unreasonably believed that Strade was attempting to assault her sexually. She admitted to repeatedly striking Strade in the head with a cookie jar lid and a plastic hanger before strangling him to death.

    Crawford is a citizen of the Potawatomi Nation and will remain in custody pending transfer to the U.S. Bureau of Prisons.

    The FBI, the Oklahoma State Bureau of Investigations, and the Delaware County Sheriff’s Office investigated the case. Assistant U.S. Attorney Stacey Todd prosecuted the case.

    MIL Security OSI

  • MIL-OSI Video: Inside the FBI Podcast: The Hazardous Devices School

    Source: Federal Bureau of Investigation (FBI) (video statements)

    On this episode of the Inside the FBI Podcast, we’ll give you a rare look inside the Bureau’s Hazardous Devices School to learn how the FBI molds the world’s foremost civilian public-safety bomb techs; what it takes to join their humble, but elite, ranks; and what inspires these public servants to put their lives on the line on a daily basis to keep communities safe. For a full transcript and additional resources, visit https://www.fbi.gov/news/podcasts. You can learn more about the Bureau’s Critical Incident Response Group’s mission and programs—including the Hazardous Devices School—at https://www.fbi.gov/tactics.
    —————————————————
    Subscribe to Inside the FBI wherever you get your podcasts:
    Spotify: https://open.spotify.com/show/4H2d3cg…
    Apple Podcasts: https://podcasts.apple.com/us/podcast…
    Google Podcasts: https://podcasts.google.com/feed/aHR0…
    More ways to follow us: https://inside-the-fbi.transistor.fm/…

    Follow us on social media:
    X: https://twitter.com/fbi
    Facebook: https://facebook.com/FBI
    Instagram: https://instagram.com/fbi
    YouTube: youtube.com/user/fbi

    https://www.youtube.com/watch?v=tuJLIS_D43Q

    MIL OSI Video

  • MIL-OSI Video: Sec. Bessent: ‘America First Does Not Mean America Alone’

    Source: United States of America – The White House (video statements)

    Secretary Scott Bessent speaks at the Institute of International Finance:

    ‘I wish to be clear: America First does not mean America alone.

    To the contrary, it is a call for deeper collaboration and mutual respect among trade partners.’

    https://www.youtube.com/watch?v=CvLGz776Jqc

    MIL OSI Video

  • MIL-OSI Security: FBI’s 2024 Internet Crime Complaint Center Report Released

    Source: Federal Bureau of Investigation FBI Crime News (b)

    EXINGTON, SC—The Federal Bureau of Investigation’s Internet Crime Complaint Center (IC3) has released its latest annual report. The 2024 Internet Crime Report combines information from 859,532 complaints of suspected Internet crime and details reported losses exceeding $16 billion—a 33% increase in losses from 2023.

    According to the 2024 report, South Carolina ranked 22 out of all states in the number of complaints received by the public. South Carolinians reported $146 million in losses, a $27 million increase from the prior year. As a group, people 60 and older submitted the greatest number of complaints and suffered the most severe financial losses at $58.5 million.

    The top three cyber crimes in South Carolina, by number of complaints, reported by victims in 2024 were: Extortion (1,384), phishing/spoofing (1,259), and personal data breaches (924).

    The top three cyber crimes in South Carolina reported by financial losses were: Business e-mail compromises ($40.8 million), up from $30.6 million in 2023; investment fraud ($38.4 million), down from $42.5 million the previous year; and confidence/romance scams ($15.1 million), up from $11.3 million in 2023.

    “Cyber crime remains a serious and growing threat to South Carolinians, with victims losing millions of dollars annually,” said Reid Davis, Acting Special Agent in Charge of the FBI Columbia field office. “The FBI is fully committed to identifying and bringing cybercriminals to justice and empowering the public with the critical tools and awareness. One effort is our outreach to South Carolina seniors where we engage with groups about current online threats and provide them with security measures they can take to stay ahead of the evolving cyber landscape.”

    To promote public awareness, the IC3 produces an annual report to aggregate and highlight the data provided by the public. The quality of the data is a direct reflection of the information the public provides through the IC3 website. The IC3 standardizes the data by categorizing each complaint and analyzes the data to identify and forecast trends in Internet crime. The annual report helps the FBI develop effective relationships with industry partners and share information for investigative and intelligence purposes for law enforcement and public awareness.

    The IC3, which was established in May 2000, houses nine million complaints from the public in its database and continues to encourage anyone who thinks they’ve been the victim of a cyber-enabled crime, regardless of dollar loss, to file a complaint through the IC3 website. The more comprehensive complaints the FBI receives, the more effective it will be in helping law enforcement gain a more accurate picture of the extent and nature of Internet-facilitated crimes.

    The FBI recommends that everyone frequently review consumer and industry alerts published by the IC3. If you or your business are a victim of an Internet crime, immediately notify all financial institutions involved in the relevant transactions, submit a complaint to www.ic3.gov, contact your nearest FBI field office, and contact local law enforcement.

    Learn more about the history of IC3 by listening to this previously released podcast: FBI podcast episode “Inside the FBI: IC3 Turns 20.”

    The full 2024 Internet Crime Report can be found here

    MIL Security OSI

  • MIL-OSI USA: Tucson man receives 6-year prison sentence for firearms trafficking offenses following ICE Arizona, multiagency investigation

    Source: US Immigration and Customs Enforcement

    TUCSON, Ariz. — A local area man was sentenced April 15 to six years in federal prison followed by three years of supervised released for smuggling firearms and possessing a firearm as a convicted felon. U.S. Immigration and Customs Enforcement, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Customs and Border Protection Office of Field Operations conducted the investigation in this case.

    “Laws on owning a firearm arm in the United States are clear — you can’t possess one if you’re a convicted felon — period,” said ICE Homeland Security Investigations Special Agent in Charge Arizona Francisco Burrola. “The defendant in this case not only knew he was breaking the law but also admitted to participating in organized crime — smuggling guns to Mexico. HSI and our partner agencies will not stand for this kind of criminal activity to take place — by working together, we are putting people in prison who knowingly and willingly violate our laws.”

    Julian Canastillo, 23, of Tucson, previously pleaded guilty to six counts of smuggling goods from the United States and one count of possession of a firearm by a convicted felon.

    Canastillo was the lead defendant in a 51-count indictment filed Sept. 15, 2022, charging 10 individuals involved in a firearms trafficking organization based in Tucson. An investigation leading to the indictment revealed a series of transactions linked to the organization for firearms that were later seized in the Republic of Mexico. In total, the Tucson-based organization is connected to more than 200 firearms transactions, and Canastillo admitted to smuggling 36 firearms into Mexico.

    Assistant U.S. Attorneys Angela W. Woolridge, Craig H. Russell, and Matthew C. Cassell, District of Arizona, Tucson, handled the prosecution.

    MIL OSI USA News

  • MIL-OSI Security: Hawaii Man Convicted of Sex Trafficking Three Adult Women and One Minor

    Source: United States Attorneys General 12

    Isaiah McCoy, 38, of Honolulu, Hawaii, was convicted yesterday of multiple counts of sex trafficking by a federal jury in the District of Hawaii. Specifically, the jury convicted McCoy of four counts of sex trafficking three adults and one minor, two counts of obstructing a sex trafficking investigation, seven counts of interstate and foreign travel or transportation in aid of racketeering enterprises, and one count of interstate travel for prostitution purposes.

    “This successful conviction represents this Justice Department’s commitment to putting those who prey on the innocent behind bars,” said Attorney General Pamela Bondi. “Human trafficking — which flourished under the prior administration — is a scourge on our country that the Trump Administration will eradicate.”

    “Today’s conviction vindicates the rights of multiple women and girls who the defendant terrorized over several years within the District of Hawaii,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “The defendant specifically targeted each victim’s unique vulnerabilities and used false promises, brute physical force, and psychological manipulation to compel the victims to engage in commercial sex for his own profit. There is no place in a civilized society for the defendant’s atrocious conduct, and the Justice Department is committed to standing up for vulnerable human trafficking victims and holding their traffickers accountable.”

    “The conviction of Mr. McCoy is a testament to HSI’s zero tolerance for those who engage in sex trafficking in Hawaii,” said Special Agent in Charge Lucy Cabral-DeArmas of Homeland Security Investigations (HSI) Hawaii. “McCoy is a predator who left countless victims in his path while he sought to enrich himself at their expense. HSI will aggressively pursue those, like McCoy, who seek to exploit vulnerable women and girls and mute their voices while believing they will not be held accountable.”

    The evidence presented at the 12-day trial demonstrated that McCoy compelled victims to commit hundreds of commercial sex acts between 2019 and 2021. McCoy made promises of a romantic relationship, a luxurious lifestyle, and financial security to women and girls struggling with low self-esteem, a difficult upbringing, or financial trouble. McCoy’s promises ended up hollow and false, designed to provide him with the opportunity to learn about a victim’s vulnerabilities while misrepresenting himself as caring and empathetic. McCoy’s feigned romantic interest and claimed wealth led him to emotionally manipulate his victims.

    After luring the victims into his orbit with his false promises, McCoy turned violent and abusive if the victims did not provide him with enough money or otherwise violated one of his many rules. The evidence presented at trial demonstrated that some of McCoy’s rules included requiring the victims to call him “Daddy” or “Zeus,” requiring the victims to share their cell phone location, and requiring the victims to provide him an update on the amount of money earned through commercial sex work. McCoy required his victims to work all hours of the day and night even when they were sick, hungry, or did not want to engage in commercial sex acts. If not, McCoy would physically assault his victims and leave them battered and bruised.

    Evidence presented in court detailed the extensive violence to which McCoy subjected his victims. For example, McCoy repeatedly burned one of the victims with cigar butts when she did not provide him with enough money. On other occasions, McCoy threw victims to the ground before repeatedly stomping on their head, stomach, or hands with his feet. McCoy even smashed a victim’s head against a car door before carrying her unconscious body through a hotel lobby and into an elevator. McCoy inflicted violence against multiple victims that caused them to seek treatment at local hospitals. All of McCoy’s actions contributed to the creation of a climate of fear where the victims felt they had no way out because McCoy promised them that he had eyes and ears everywhere monitoring the victims’ every move.

    McCoy required the victims to turn over all the proceeds from his commercial sex business to himself because he felt that the money belonged to him. McCoy then spent the money on high-end designer shoes, belts, clothing, and other accessories. In contrast, although McCoy would intermittently buy designer items for the victims as “rewards,” the victims were ultimately left with nothing.

    A sentencing hearing is scheduled for Aug. 18. McCoy faces a minimum penalty of 15 years in prison and a maximum penalty of life in prison as well as mandatory restitution. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    HSI investigated the case, with assistance from the Honolulu Police Department.

    Trial Attorneys Maryam Zhuravitsky and Elizabeth Hutson of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.

    Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.

    MIL Security OSI

  • MIL-OSI Security: Thoreau Woman Pleads Guilty to Involuntary Manslaughter in Fatal Drunk Driving Incident on Navajo Nation

    Source: Office of United States Attorneys

    ALBUQUERQUE – A Thoreau woman has pleaded guilty to involuntary manslaughter after driving while intoxicated and fatally striking John Doe with her vehicle following an altercation.

    According to court records, on the morning of May 28, 2023, Nora Abeita, 50, an enrolled member of the Navajo Nation, and several others, including the victim, John Doe, consumed alcohol together. After an altercation with John Doe, Abeita attempted to leave the residence with a friend. While driving away, Abeita struck John Doe with their vehicle. She did not immediately realize she had run over him until alerted by others. John Doe died from his injuries.

    Abeita’s blood alcohol concentration was measured at .16 approximately five hours after the incident—more than double the legal limit in both New Mexico and the Navajo Nation.

    At sentencing, Abeita faces up to eight years in prison. Upon her release from prison, Abeita will be subject to up to three years of supervised release.

    U.S. Attorney Ryan G. Ellison and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, made the announcement today.

    The Navajo Nation Department of Public Safety investigated this case with assistance from the Navajo Nation Police Department and the Gallup Resident Agency of the FBI Albuquerque Field Office. Assistant United States Attorney Nicholas J. Marshall is prosecuting the case.

    MIL Security OSI

  • MIL-OSI Security: Mexican National Arrested in Catoosa After Being Deported for Killing His Baby

    Source: Office of United States Attorneys

    TULSA, Okla. – A Mexican national who was residing in Catoosa was indicted for unlawfully reentering the United States, announced U.S. Attorney Clint Johnson.

    Carlos Ambriz Estrada, 53, is charged with Unlawful Reentry of a Removed Alien after having been previously removed in January 2006.

    “After serving time in prison for killing his 38-day-old son, Ambriz Estrada was deported. That did not stop him from unlawfully returning to the United States and living in our community,” said U.S. Attorney Clint Johnson. “Prosecutors are working in coordinated efforts with law enforcement to help keep the citizens in the Northern District safe from violent criminals like Ambriz Estrada.”

    “This subject’s criminal record underscores the significant danger he represents to our community, particularly with the serious charge and conviction for killing his own child,” said ICE Enforcement and Removal Operations Dallas Field Office acting Director Josh Johnson. “Our officers remain committed to enhancing public safety by apprehending and removing criminal aliens who violate immigration laws.”

    According to court documents, in March, the Fugitive Operations Team with Immigration Customs Enforcement began investigating Ambriz Estrada due to his prior conviction of deliberate homicide in Montana and the possibility of him being present in the United States unlawfully. Law enforcement discovered that Ambriz Estrada was unlawfully living in Catoosa and that he did not have permission to re-enter the United States after being removed.

    In 1994, Ambriz Estrada pleaded guilty to deliberate homicide. Montana law enforcement was dispatched to the hospital to investigate apparent child abuse. Ambriz Estrada and his wife brought their 36-day-old baby to the hospital for treatment.

    The detective spoke with a doctor who confirmed that the baby had five broken ribs, detached retinas in both eyes, swelling of the head, bruises on the neck and abdomen, consistent with strangulation. The doctor reported that they believed the baby was strangled and without oxygen for some time, likely causing severe brain damage.

    When being interviewed, Ambriz Estrada admitted that he was angry with his wife and took it out on the baby. That while the baby was crying, he squeezed the child’s throat for 15 to 20 minutes, until the baby lost consciousness. Afterward, he put the baby in a crib. The baby woke up crying one hour later, and Ambriz Estrada admitted to picking up the baby and shaking him. Ambriz Estrada told detectives the baby’s breathing was irregular and appeared to have a seizure.

    After two days in intensive care, the baby had no brain activity and was declared brain dead at 38 days old.

    Ambriz Estrada was ordered to 40 years imprisonment and served nearly 10 years. After being released in 2006, Ambriz Estrada was deported.

    The U.S. Immigration and Customs Enforcement and Removal Operations and the Homeland Security Investigations are investigating the case. Assistant U.S. Attorney Ammon Brisolara is prosecuting the case.

    An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

    MIL Security OSI

  • MIL-OSI Security: Zuni Man Sentenced for Armed Standoff and Shootout with Law Enforcement

    Source: Office of United States Attorneys

    ALBUQUERQUE – A Zuni Pueblo man has been sentenced to 12 years in prison following an armed standoff with law enforcement.

    There is no parole in the federal system.

    According to court documents, on July 6, 2024, law enforcement responded to a disturbance at a residence in Zuni, where Eric Bowannie, 28, barricaded himself inside his home and fired multiple rounds at responding Zuni Police Department officers. During the incident, Bowannie charged an officer with an ax, retrieved a shotgun and a rifle, and repeatedly fired at officers positioned outside the residence. FBI agents arrived on scene and also came under fire as they attempted to negotiate a peaceful surrender.

    After a prolonged standoff and multiple exchanges of gunfire, Bowannie attempted to flee the area but was apprehended by local law enforcement without further incident. A subsequent search of the property recovered 57 spent casings and five spent shotgun shells.

    On November 13, 2024, Bowannie pleaded guilty to assault with a dangerous weapon and to using, carrying, and brandishing a firearm during a crime of violence.

    Upon his release from prison, Bowannie will be subject to three years of supervised release.

    U.S. Attorney Ryan Ellison and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, made the announcement today.

    The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Zuni Police Department. U.S. Attorney Ryan Ellison and Assistant United States Attorney Kirk Williams are prosecuting the case. 

    MIL Security OSI

  • MIL-OSI Security: Sex Offender Sentenced to 20 Years in Federal Prison for Child Exploitation Offense, Threats

    Source: Office of United States Attorneys

    Marc H. Silverman, Acting United States Attorney for the District of Connecticut, announced that GREGORY BUTTS, 54, formerly of Sprague, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 240 months of imprisonment, followed by 15 years of supervised release, for a child exploitation offense and related threats.

    According to court documents and statements made in court, in April 2016, Butts was convicted in Connecticut state court of illegal sexual contact with a child.

    In November 2020, family and friends of two missing juveniles in Colorado posted information about the missing juveniles on social media pages and included a phone number asking the public to call with information.  Butts, with his own phone number blocked, called the number and spoke to a female friend of the missing juveniles, who recorded the conversation.  Butts stated that he was with the missing juveniles and had had sexual contact with them.  He threatened to harm the missing juveniles if the conversation were recorded or if law enforcement were contacted, and threatened the female friend who answered the phone.  He then said that he would return the missing juveniles if the female friend would have sexual intercourse with him.  Shortly after the juveniles had been reported missing, they returned home.  They were not harmed and had not been kidnapped.

    Investigators determined that the call emanated from a lightly-populated area in Sprague, Connecticut, and that Butts was a registered sex offender living in the area who was on probation following a state conviction for illegal sexual contact with a minor.  After a Connecticut probation officer identified Butts’ voice on the recording, probation officers searched Butts’ residence and another residence where he also had been staying and seized a computer, storage devices, multiple cell phones, and other items.

    Forensic analysis of the seized items revealed more than 10,000 images and videos of child pornography, and downloaded conversations Butts had with minors on Snapchat and other social media applications.  In the chats, Butts engaged in sexually explicit conversations, made numerous threats, and demanded, and sometimes received, sexually explicit photos.

    Butts has been detained since March 4, 2022.  On January 17, 2025, he pleaded guilty to possession of a child pornography.

    This investigation was conducted by the Federal Bureau of Investigation in New Haven, Connecticut and Loveland, Colorado, with the assistance of the Connecticut Office of Adult Probation, Connecticut State Police, and the Connecticut Forensic Science Laboratory.  The case was prosecuted by Assistant U.S. Attorneys Nancy V. Gifford and Daniel E. Cummings.

    Acting U.S. Attorney Silverman thanked the State’s Attorney’s Office for the Judicial District of New London for its close cooperation in investigating and prosecuting this matter.

    This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation.  For more information about Project Safe Childhood, please visit www.justice.gov/psc.

    To report cases of child exploitation, please visit www.cybertipline.com

    MIL Security OSI

  • MIL-OSI Global: From Doing Business to B-READY: World Bank’s new rankings represent a rebrand, not a revamp

    Source: The Conversation – USA – By Fernanda G Nicola, Professor of Law, American University

    The 2025 spring meetings of the World Bank Group and the International Monetary Fund takes place in Washington, D.C. Bryan Dozier/Middle East Images/AFP via Getty Images

    In 2021, the World Bank shut down one of its flagship projects: the Doing Business index, a global ranking system that measured how easy it was to start and run a business in 190 countries.

    It followed an independent investigation that found World Bank officials had manipulated the rankings to favor powerful countries, including China and Saudi Arabia. The scandal raised serious concerns about the use of global benchmarks to shape development policy.

    Now, the Bank is trying again. In October 2024, it launched its newest flagship report, Business Ready. The 2025 spring meeting of the World Bank and its sister institution, the International Monetary Fund, mark the first time the report will be formally presented to delegates as part of the institutions’ high-level agenda.

    Nicknamed B-READY, the report aims to evaluate business environments through more transparent data. This time, the annual assessment has a broader ambition: to go beyond laws and efficiency and also measure social inclusion, environmental sustainability and public service delivery.

    As experts on international organizations, law and development, we have given B-READY a closer look. While we appreciate that a global assessment of the economic health of countries through data collection and participation of private stakeholders is a worthwhile endeavor, we worry that the World Bank’s latest effort risks recreating many of the same flaws that plagued its predecessor.

    From Doing Business to doing what?

    To understand what’s at stake, it’s worth recalling what the Doing Business index measured. From 2003 to 2021, the flagship report was used by governments, investors and World Bank officials alike to assess the business environment of any given country. It ranked countries based on how easy it was to start and run a business in 190 economies.

    In prioritizing that as its marker, the index often celebrated reforms that stripped away labor protections, environmental safeguards and corporate taxes in the name of greater “efficiency” of common law versus civil law jurisdictions.

    As economist Joseph E. Stiglitz argued in 2021, from its creation, the Doing Business index reflected the values of the so-called Washington Consensus − a development model rooted in deregulation, privatization and market liberalization.

    The World Bank building in Washington, D.C.
    AP Photo/Andrew Harnik

    Critics warned for years that the Doing Business index encouraged a global “race to the bottom.” Countries competed to improve their rankings, often by adopting symbolic legal reforms with little real impact.

    In some cases, internal data manipulation at the World Bank penalized governments that did not appear sufficiently business-friendly. These structural flaws − and the political pressures behind them − ultimately led to the project’s demise in 2021.

    What is B-READY?

    B-READY is the World Bank’s attempt to regain credibility after the Doing Business scandal. In recent years, there has been both internal and external pressure to create a successor − and B-READY responds to that demand while aiming to fix the methodological flaws.

    In theory, while it retains a focus on the business environment, B-READY shifts away from a narrow deregulatory logic and instead seeks to capture how regulations interact with infrastructure, services and equity considerations.

    B-READY, which in the pilot stage covers a mix of 50 countries, does not rank countries with a single score. Rather, it provides more accurate data across 10 topics grouped into three pillars: regulatory framework, public services and operational efficiency. The report also introduces new themes such as digital access, environmental sustainability and gender equity.

    Unlike the Doing Business index, B-READY publishes its full methodology and makes its data publicly available.

    On the surface, this looks like progress. But a criticism of B-READY is that in practice, the changes offer only a more fragmented ranking system — one that is harder to interpret and still shaped by the same investor driven macroeconomic assumptions.

    In our view, the framework continues to reflect a narrow view of what constitutes a healthy legal and economic system, not just for investors but for society as a whole.

    Labor flexibility over labor rights

    A key concern is how B-READY handles labor standards. The report relies on two main data sources: expert consultations and firm-level surveys.

    For assessing labor and social security regulations, the World Bank consults lawyers with expertise in each country. But when it comes to how these laws function in practice, the report relies on surveys that ask businesses whether labor costs, dismissal protections and public services are “burdens.”

    This approach captures the employer’s perspective, but leaves out workers’ experiences and the real impact on labor rights. In some cases, the scoring system even rewards weaker protections. For example, countries are encouraged to have a minimum-wage law on the books − but are penalized if the wage is “too high” relative to gross domestic product per capita. This creates pressure to keep wages low in order to appear competitive. And while that might be good news for international companies seeking to reduce their labor costs, it isn’t necessarily good for the local workforce or a country’s economic well-being.

    According to the International Trade Union Confederation, this approach risks encouraging symbolic reforms while doing little to protect workers. Georgia, for example, ranks near the top of the B-READY labor assessment, despite not having updated its minimum wage since 1999 and setting it below the subsistence level.

    Courts that work − for whom?

    Another troubling area, to us as comparative law experts, is how B-READY evaluates legal issues. It measures how quickly commercial courts resolve disputes but ignores judicial independence or respect for the rule of law. As a result, countries such as Hungary and Georgia, which have been widely criticized for democratic backsliding and the erosion of the rule of law, score surprisingly high. Not coincidentally, both governments have already used these scores for propaganda and political gain.

    This reflects a deeper problem, we believe. B-READY treats the legal system primarily as a means to attract investment, not as a framework for public accountability. It assumes that making life easier for businesses will automatically benefit everyone. But that assumption risks ignoring the people most affected by these laws and institutions − workers, communities and civil society groups.

    Be … better?

    B-READY introduces greater transparency and public data − and that, for sure, is a step up from its predecessor. But in our opinion it still reflects a narrow view of what a “good” legal system looks like: one that might deliver efficiency for firms but not necessarily justice or equity for society.

    Whether B-Ready becomes a tool for meaningful reform − or just another scoreboard for deregulation − will depend on the World Bank’s willingness to confront its long-standing biases and listen to its critics.

    The authors do not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

    ref. From Doing Business to B-READY: World Bank’s new rankings represent a rebrand, not a revamp – https://theconversation.com/from-doing-business-to-b-ready-world-banks-new-rankings-represent-a-rebrand-not-a-revamp-254958

    MIL OSI – Global Reports

  • MIL-OSI USA: Hawaii Man Convicted of Sex Trafficking Three Adult Women and One Minor

    Source: US State of North Dakota

    Isaiah McCoy, 38, of Honolulu, Hawaii, was convicted yesterday of multiple counts of sex trafficking by a federal jury in the District of Hawaii. Specifically, the jury convicted McCoy of four counts of sex trafficking three adults and one minor, two counts of obstructing a sex trafficking investigation, seven counts of interstate and foreign travel or transportation in aid of racketeering enterprises, and one count of interstate travel for prostitution purposes.

    “This successful conviction represents this Justice Department’s commitment to putting those who prey on the innocent behind bars,” said Attorney General Pamela Bondi. “Human trafficking — which flourished under the prior administration — is a scourge on our country that the Trump Administration will eradicate.”

    “Today’s conviction vindicates the rights of multiple women and girls who the defendant terrorized over several years within the District of Hawaii,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “The defendant specifically targeted each victim’s unique vulnerabilities and used false promises, brute physical force, and psychological manipulation to compel the victims to engage in commercial sex for his own profit. There is no place in a civilized society for the defendant’s atrocious conduct, and the Justice Department is committed to standing up for vulnerable human trafficking victims and holding their traffickers accountable.”

    “The conviction of Mr. McCoy is a testament to HSI’s zero tolerance for those who engage in sex trafficking in Hawaii,” said Special Agent in Charge Lucy Cabral-DeArmas of Homeland Security Investigations (HSI) Hawaii. “McCoy is a predator who left countless victims in his path while he sought to enrich himself at their expense. HSI will aggressively pursue those, like McCoy, who seek to exploit vulnerable women and girls and mute their voices while believing they will not be held accountable.”

    The evidence presented at the 12-day trial demonstrated that McCoy compelled victims to commit hundreds of commercial sex acts between 2019 and 2021. McCoy made promises of a romantic relationship, a luxurious lifestyle, and financial security to women and girls struggling with low self-esteem, a difficult upbringing, or financial trouble. McCoy’s promises ended up hollow and false, designed to provide him with the opportunity to learn about a victim’s vulnerabilities while misrepresenting himself as caring and empathetic. McCoy’s feigned romantic interest and claimed wealth led him to emotionally manipulate his victims.

    After luring the victims into his orbit with his false promises, McCoy turned violent and abusive if the victims did not provide him with enough money or otherwise violated one of his many rules. The evidence presented at trial demonstrated that some of McCoy’s rules included requiring the victims to call him “Daddy” or “Zeus,” requiring the victims to share their cell phone location, and requiring the victims to provide him an update on the amount of money earned through commercial sex work. McCoy required his victims to work all hours of the day and night even when they were sick, hungry, or did not want to engage in commercial sex acts. If not, McCoy would physically assault his victims and leave them battered and bruised.

    Evidence presented in court detailed the extensive violence to which McCoy subjected his victims. For example, McCoy repeatedly burned one of the victims with cigar butts when she did not provide him with enough money. On other occasions, McCoy threw victims to the ground before repeatedly stomping on their head, stomach, or hands with his feet. McCoy even smashed a victim’s head against a car door before carrying her unconscious body through a hotel lobby and into an elevator. McCoy inflicted violence against multiple victims that caused them to seek treatment at local hospitals. All of McCoy’s actions contributed to the creation of a climate of fear where the victims felt they had no way out because McCoy promised them that he had eyes and ears everywhere monitoring the victims’ every move.

    McCoy required the victims to turn over all the proceeds from his commercial sex business to himself because he felt that the money belonged to him. McCoy then spent the money on high-end designer shoes, belts, clothing, and other accessories. In contrast, although McCoy would intermittently buy designer items for the victims as “rewards,” the victims were ultimately left with nothing.

    A sentencing hearing is scheduled for Aug. 18. McCoy faces a minimum penalty of 15 years in prison and a maximum penalty of life in prison as well as mandatory restitution. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    HSI investigated the case, with assistance from the Honolulu Police Department.

    Trial Attorneys Maryam Zhuravitsky and Elizabeth Hutson of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.

    Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.

    MIL OSI USA News

  • MIL-OSI: XA Investments Finds Strong Start to 2025 in Fund Launches and Asset Gathering Among Non-Listed Closed End Funds in its First Quarter 2025 Market Update

    Source: GlobeNewswire (MIL-OSI)

    CHICAGO, April 23, 2025 (GLOBE NEWSWIRE) — XA Investments LLC (“XAI”), an alternative investment management and consulting firm, announced today that its Non-Listed Closed-End Funds First Quarter 2025 Market Update shows a strong start to 2025 in both fund launches and asset gathering. The market update is a comprehensive research report detailing current market trends and industry highlights. The non-listed closed-end fund (CEF) market includes all interval and tender offer funds. The report introduces the XAI Interval Fund Index™ (INTVL), analyzes recent developments in co-investment relief, and reviews 2024 net flows across the market.

    “The non-listed CEF market continues to grow after a record year in 2024, with many sponsors launching a second fund and new sponsors entering the market” stated Kimberly Flynn, the president of XAI. “Such robust growth is great for the interval / tender offer fund market. We believe the market’s trajectory will remain positive, with significant opportunities for expansion throughout the rest of the year,” she added.

    XAI recently launched their XAI Interval Fund Index™ (INTVL), a total return index that tracks the interval fund market, helping to address the lack of easily accessible information on the market. “The XAI Interval Fund Index gives asset managers and financial advisors an unprecedented level of clarity in a market that has been notoriously difficult to track,” Flynn noted. “The first index tracking the interval and tender offer fund market, INTVL serves as the sole barometer for the market, giving investors a snapshot of how interval funds as a whole are performing,” Flynn added.

    The non-listed CEF market reached a new peak with 270 interval and tender offer funds with a total of $181 billion in net assets and $220 billion in total managed assets, inclusive of leverage, as of March 31, 2025. The market includes 134 interval funds which comprise 50% of the total managed assets at $132.1 billion and 136 tender offer funds which comprise the other 50% with $88.3 billion in total managed assets. This is a significant change from previous quarters, as the number of interval funds has caught up to the total number of tender funds. In Q1 2025, 14 new funds entered the market, representing an increase of four funds compared to the 10 funds launched in Q1 2024. Market-wide net assets increased $9 billion in Q1 2025 from the prior quarter.

    In total, there are 143 unique fund sponsors in the interval and tender offer fund space, with 50 fund sponsors that have two or more interval and/or tender offer funds currently in the market. Additionally, there are 27 funds currently in the Securities and Exchange Commission registration process from fund sponsors looking to launch another fund. Notably, the top 20 funds decreased their market share from 65% Q4 2024, to 60% in Q1 2025, displaying the growth of new funds in the market. Among the new funds launched in Q1 2025, there were three new interval fund sponsors, HarbourVest, Gemcorp and Pop Venture Advisers.

    In this quarterly report, XAI covers the 2024-year end net flows which are lagged by reporting cycles. In 2024 funds had positive net flows, totaling over $38 billion, with 67% of funds reporting positive net flows. The majority of net flows in 2024 (53%) went into daily NAV funds without suitability restrictions, while 26% went into funds limited to accredited investors, and 21% went into funds limited to qualified clients. In aggregate, the top 20 largest interval/tender offer funds experienced an increase in net flows year-over-year from 2023 to 2024 including many of the market leaders such as the Cliffwater Corporate Lending Fund, Partners Group Private Equity (Master Fund), LLC, and ACAP Strategic Fund. In addition, Private Credit funds continued to dominate capital raising in 2024, bringing in over $20 billion in net assets, with Venture / Private Equity funds coming in second, bringing in over $11 billion in net assets.

    “The non-listed CEF market continues to grow with a total of 58 funds in the SEC registration process at the end of the first quarter,” said Flynn. “The SEC backlog increased by five funds from the end of 2024 to the end of Q1 2025. So far in 2025, there have been 23 new SEC filings, compared to 15 new filings from Q1 2024, representing a 53% increase in registrations. Newly launched non-listed CEFs spent around seven months in the SEC registration process, with the fund’s asset class continuing to be the main driver of time spent in the SEC review process. Tax-Free Bond funds were the quickest to launch, at 160 days on average spent in registration,” she added.

    At 49%, the majority of interval and tender offer funds do not have any suitability restrictions for investors imposed at the fund level — 30% of funds are available to accredited investors and 21% are only available to qualified clients. Alternative funds without suitability restrictions also prove to be more accessible and have gathered more assets at $118.2 billion in managed assets or 54% of market-wide assets.

    For more information on the interval fund market and to read our full quarterly report on non-listed CEFs, please visit the CEF Market research page linked here and click ‘Subscribe’ for access to XA Investments’ online research portal and pricing information. In addition, please contact info@xainvestments.com or 888-903-3358 with questions.

    About XA Investments
    XA Investments LLC (“XAI”) is a Chicago-based firm founded by XMS Capital Partners in 2016. XAI serves as the investment adviser for two listed closed-end funds and an interval closed-end fund, respectively the XAI Octagon Floating Rate & Alternative Income Trust, the XAI Madison Equity Premium Income Fund, and the Octagon XAI CLO Income Fund. In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including product development and market research, marketing and fund management. XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. For more information, please visit www.xainvestments.com.

    The MIL Network