Category: Middle East

MIL-OSI: WTW Reports First Quarter 2025 Earnings

Source: GlobeNewswire (MIL-OSI)

Revenue¹decreased 5% over prior year to $2.2 billion for the quarter due to the sale of TRANZACT
Organic Revenue growth of 5% for the quarter
Diluted Earnings per Share was $2.33 for the quarter, up 27% over prior year
Adjusted Diluted Earnings per Share was $3.13 for the quarter, comparable to prior year²
Operating Margin was 19.4% for the quarter, up 740 basis points over prior year
Adjusted Operating Margin was 21.6% for the quarter, up 100 basis points from prior year²

LONDON, April 24, 2025 (GLOBE NEWSWIRE) — WTW (NASDAQ: WTW) (the “Company”), a leading global advisory, broking and solutions company, today announced financial results for the first quarter ended March 31, 2025.

“We had a solid start to the year, delivering results in line with our expectations and making strong progress on our strategy to accelerate our performance, enhance our efficiency and optimize our portfolio,” said Carl Hess, WTW’s chief executive officer. “We are well-positioned to help our clients navigate economic uncertainty and highly focused on driving continued growth and margin expansion, and we are confident in our outlook. I’m proud of our team’s dedication and look forward to achieving our strategic and financial goals together.”

Consolidated Results

As reported, USD millions, except %

Key Metrics	Q1-25	Q1-24²	Y/Y Change
Revenue¹	$2,223	$2,341	Reported (5)% \| CC (4)% \| Organic 5%
Income from Operations	$432	$280	54%
Operating Margin %	19.4%	12.0%	740 bps
Adjusted Operating Income	$480	$483	(1)%
Adjusted Operating Margin %	21.6%	20.6%	100 bps
Net Income	$239	$194	23%
Adjusted Net Income	$316	$325	(3)%
Diluted EPS	$2.33	$1.83	27%
Adjusted Diluted EPS	$3.13	$3.13	0%

¹	The revenue amounts included in this release are presented on a U.S. GAAP basis except where stated otherwise. The segment discussion is on an organic basis.
²	Refer to “WTW Non-GAAP Measures” below and the Q1-25 Supplemental Slides for recast of historical Non-GAAP measures.

Revenue was $2.22 billion for the first quarter of 2025, a decrease of 5% as compared to $2.34 billion for the same period in the prior year. Excluding the impact of foreign currency, revenue decreased 4%. On an organic basis, revenue increased 5%. See Supplemental Segment Information for additional detail on book-of-business settlements and interest income included in revenue.

Net Income for the first quarter of 2025 was $239 million compared to Net Income of $194 million in the prior-year first quarter. Adjusted EBITDA for the first quarter was $532 million, or 23.9% of revenue, a decrease of 3%, compared to Adjusted EBITDA of $546 million, or 23.3% of revenue, in the prior-year first quarter. The U.S. GAAP tax rate for the first quarter was 21.5%, and the adjusted income tax rate for the first quarter used in calculating adjusted diluted earnings per share was 22.7%.

Cash Flow and Capital Allocation

Cash flows used in operating activities were $35 million for the quarter ended March 31, 2025, compared to cash flows from operating activities of $24 million for the prior year. Free cash flow for the quarters ended March 31, 2025 and 2024 was $(86) million and $(36) million, respectively, a decrease of $50 million, primarily driven by the absence of cash collections related to TRANZACT, which the Company sold on December 31, 2024, and increased compensation payments in the current-year quarter as compared to the prior-year quarter. During the quarter ended March 31, 2025, the Company repurchased 607,221 of its outstanding shares for $200 million.

First Quarter 2025 Segment Highlights

Health, Wealth & Career (“HWC”)

As reported, USD millions, except %

Health, Wealth & Career	Q1-25	Q1-24	Y/Y Change
Total Revenue	$1,165	$1,336	Reported (13)% \| CC (12)% \| Organic 3%
Operating Income	$311	$336	(7)%
Operating Margin %	26.7%	25.1%	160 bps

The HWC segment had revenue of $1.17 billion in the first quarter of 2025, a decrease of 13% (12% decrease constant currency and organic growth of 3%) from $1.34 billion in the prior year. Health delivered organic revenue growth in all regions driven by solid client retention, new business and geographic expansion. Wealth generated organic revenue growth from higher levels of Retirement work in Europe and International, alongside growth in our Investments business due to the success of our LifeSight solution and capital market improvements. Career had modest revenue growth as increased advisory work was tempered by some postponements amid economic uncertainty. Benefits Delivery & Outsourcing revenue grew primarily from increased project and core administration work.

Operating margins in the HWC segment increased 160 basis points from the prior-year first quarter to 26.7%, primarily due to the sale of TRANZACT and savings from the Transformation program. Please refer to the Supplemental Slides for TRANZACT’s standalone historical financial results.

Risk & Broking (“R&B”)

As reported, USD millions, except %

Risk & Broking	Q1-25	Q1-24	Y/Y Change
Total Revenue	$1,027	$978	Reported 5% \| CC 7% \| Organic 7%
Operating Income	$226	$203	11%
Operating Margin %	22.0%	20.8%	120 bps

The R&B segment had revenue of $1.03 billion in the first quarter of 2025, an increase of 5% (7% increase constant currency and organic) from $978 million in the prior year. Corporate Risk & Broking (CRB) had organic revenue growth driven by higher levels of new business activity and strong client retention globally. Insurance Consulting and Technology (ICT) had organic revenue growth for the quarter driven by the Consulting and Technology practices.

Operating margins in the R&B segment increased 120 basis points from the prior-year first quarter to 22.0%, due primarily to operating leverage driven by strong organic revenue growth and savings from the Transformation program which were partially offset by headwinds from decreased interest income and foreign currency fluctuations.

Select 2025 Financial Considerations

Changes to Non-GAAP financial measures:

All reported non-GAAP metrics will exclude non-cash net periodic pension and postretirement benefits
Free cash flow and free cash flow margin will capture cash outflows for capitalized software costs
Refer to Supplemental Slides for recast of historical Non-GAAP measures

Business mix:

TRANZACT business, which contributed $1.14 to adjusted diluted earnings per share in 2024, is no longer part of the business portfolio following the completion of the TRANZACT sale in the fourth quarter of 2024
Reinsurance joint venture with Bain Capital expected to be a headwind on adjusted diluted earnings per share of approximately $0.25 to $0.35

Free cash flow:

Expect cash outflows in 2025 from the payment of accrued costs related to the Transformation program which concluded in 2024
Cash taxes related to receipt of earnout from reinsurance divestiture will be classified as Cash Flows from Operating Activities on Statement of Cash Flows

Capital allocation:

Expect share repurchases of ~$1.5 billion, subject to market conditions and potential capital allocation to organic and inorganic investment opportunities

Foreign exchange:

Expect a foreign currency impact on adjusted diluted earnings per share to be neutral in 2025 at today’s rates

Adjusted operating margin outlook:

~100 basis points of average annual margin expansion over next 3 years in R&B
Incremental annual margin expansion at HWC and enterprise levels

The 2025 Financial Considerations above include Non-GAAP financial measures. We do not reconcile forward-looking Non-GAAP measures for reasons explained under “WTW Non-GAAP Measures” below.

Conference Call

The Company will host a live webcast and conference call to discuss the financial results for the first quarter 2025. It will be held on Thursday, April 24, 2025, beginning at 9:00 a.m. Eastern Time. A live broadcast of the conference call will be available on WTW’s website here. The conference call will include a question-and-answer session. To participate in the question-and-answer session, please register here. An online replay will be available at www.wtwco.com shortly after the call concludes.

About WTW

At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance. Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you. Learn more at www.wtwco.com.

WTW Non-GAAP Measures

In order to assist readers of our consolidated financial statements in understanding the core operating results that WTW’s management uses to evaluate the business and for financial planning, we present the following non-GAAP measures: (1) Constant Currency Change, (2) Organic Change, (3) Adjusted Operating Income/Margin, (4) Adjusted EBITDA/Margin, (5) Adjusted Net Income, (6) Adjusted Diluted Earnings Per Share, (7) Adjusted Income Before Taxes, (8) Adjusted Income Taxes/Tax Rate, (9) Free Cash Flow and (10) Free Cash Flow Margin.

We believe that those measures are relevant and provide pertinent information widely used by analysts, investors and other interested parties in our industry to provide a baseline for evaluating and comparing our operating performance, and in the case of free cash flow, our liquidity results.

Within the measures referred to as ‘adjusted’, we adjust for significant items which will not be settled in cash, or which we believe to be items that are not core to our current or future operations. Some of these items may not be applicable for the current quarter, however they may be part of our full-year results. Additionally, we have historically adjusted for certain items which are not described below, but for which we may adjust in a future period when applicable. Items applicable to the quarter or full year results, or the comparable periods, include the following:

Restructuring costs and transaction and transformation – Management believes it is appropriate to adjust for restructuring costs and transaction and transformation when they relate to a specific significant program with a defined set of activities and costs that are not expected to continue beyond a defined period of time, or significant acquisition-related transaction expenses. We believe the adjustment is necessary to present how the Company is performing, both now and in the future when the incurrence of these costs will have concluded.
Gains and losses on disposals of operations – Adjustment to remove the gains or losses resulting from disposed operations that have not been classified as discontinued operations.
Net periodic pension and postretirement benefits – Adjustment to remove the recognition of net periodic pension and postretirement benefits (including pension settlements), other than service costs. We have included this adjustment as applicable in our prior-period disclosures in order to conform to the current-period presentation.

We evaluate our revenue on an as reported (U.S. GAAP), constant currency and organic basis. We believe presenting constant currency and organic information provides valuable supplemental information regarding our comparable results, consistent with how we evaluate our performance internally.

We consider Constant Currency Change, Organic Change, Adjusted Operating Income/Margin, Adjusted EBITDA/Margin, Adjusted Net Income, Adjusted Diluted Earnings Per Share, Adjusted Income Before Taxes, Adjusted Income Taxes/Tax Rate and Free Cash Flow to be important financial measures, which are used to internally evaluate and assess our core operations and to benchmark our operating and liquidity results against our competitors. These non-GAAP measures are important in illustrating what our comparable operating and liquidity results would have been had we not incurred transaction-related and non-recurring items. Reconciliations of these measures are included in the accompanying tables with the following exception: The Company does not reconcile its forward-looking non-GAAP financial measures to the corresponding U.S. GAAP measures, due to variability and difficulty in making accurate forecasts and projections and/or certain information not being ascertainable or accessible; and because not all of the information, such as foreign currency impacts necessary for a quantitative reconciliation of these forward-looking non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure, is available to the Company without unreasonable efforts. For the same reasons, the Company is unable to address the probable significance of the unavailable information. The Company provides non-GAAP financial measures that it believes will be achieved, however it cannot accurately predict all of the components of the adjusted calculations and the U.S. GAAP measures may be materially different than the non-GAAP measures.

Our non-GAAP measures and their accompanying definitions are presented as follows:

Constant Currency Change – Represents the year-over-year change in revenue excluding the impact of foreign currency fluctuations. To calculate this impact, the prior year local currency results are first translated using the current year monthly average exchange rates. The change is calculated by comparing the prior year revenue, translated at the current year monthly average exchange rates, to the current year as reported revenue, for the same period. We believe constant currency measures provide useful information to investors because they provide transparency to performance by excluding the effects that foreign currency exchange rate fluctuations have on period-over-period comparability given volatility in foreign currency exchange markets.

Organic Change – Excludes the impact of fluctuations in foreign currency exchange rates, as described above and the period-over-period impact of acquisitions and divestitures on current-year revenue. We believe that excluding transaction-related items from our U.S. GAAP financial measures provides useful supplemental information to our investors, and it is important in illustrating what our core operating results would have been had we not included these transaction-related items, since the nature, size and number of these transaction-related items can vary from period to period.

Adjusted Operating Income/Margin – Income from operations adjusted for amortization, restructuring costs, transaction and transformation and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results. Adjusted operating income margin is calculated by dividing adjusted operating income by revenue. We consider adjusted operating income/margin to be important financial measures, which are used internally to evaluate and assess our core operations and to benchmark our operating results against our competitors.

Adjusted EBITDA/Margin – Net Income adjusted for provision for income taxes, interest expense, depreciation and amortization, restructuring costs, transaction and transformation, gains and losses on disposals of operations, net periodic pension and postretirement benefits, and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results. Adjusted EBITDA Margin is calculated by dividing adjusted EBITDA by revenue. We consider adjusted EBITDA/margin to be important financial measures, which are used internally to evaluate and assess our core operations, to benchmark our operating results against our competitors and to evaluate and measure our performance-based compensation plans.

Adjusted Net Income – Net Income Attributable to WTW adjusted for amortization, restructuring costs, transaction and transformation, gains and losses on disposals of operations, net periodic pension and postretirement benefits, and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results and the related tax effect of those adjustments and the tax effects of internal reorganizations. This measure is used solely for the purpose of calculating adjusted diluted earnings per share.

Adjusted Diluted Earnings Per Share – Adjusted Net Income divided by the weighted-average number of ordinary shares, diluted. Adjusted diluted earnings per share is used to internally evaluate and assess our core operations and to benchmark our operating results against our competitors.

Adjusted Income Before Taxes – Income from operations before income taxes and interest in earnings of associates adjusted for amortization, restructuring costs, transaction and transformation, gains and losses on disposals of operations, net periodic pension and postretirement benefits, and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results. Adjusted income before taxes is used solely for the purpose of calculating the adjusted income tax rate.

Adjusted Income Taxes/Tax Rate – Provision for income taxes adjusted for taxes on certain items of amortization, restructuring costs, transaction and transformation, gains and losses on disposals of operations, net periodic pension and postretirement benefits, the tax effects of significant adjustments and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results, divided by adjusted income before taxes. Adjusted income taxes is used solely for the purpose of calculating the adjusted income tax rate. Management believes that the adjusted income tax rate presents a rate that is more closely aligned to the rate that we would incur if not for the reduction of pre-tax income for the adjusted items and the tax effects of internal reorganizations, which are not core to our current and future operations.

Free Cash Flow – Cash flows from operating activities less cash used to purchase fixed assets and software. Free Cash Flow is a liquidity measure and is not meant to represent residual cash flow available for discretionary expenditures. Management believes that free cash flow presents the core operating performance and cash-generating capabilities of our business operations. As a result of our change in presentation, free cash flow for the prior period has been adjusted to conform to the current period, which includes the deduction of our capitalized software costs.

Free Cash Flow Margin – Free Cash Flow as a percentage of revenue, which represents how much of revenue would be realized on a cash basis. We consider this measure to be a meaningful metric for tracking cash conversion on a year-over-year basis due to the non-cash nature of our pension income, which is included in our GAAP and Non-GAAP earnings metrics presented herein.

These non-GAAP measures are not defined in the same manner by all companies and may not be comparable to other similarly titled measures of other companies. Non-GAAP measures should be considered in addition to, and not as a substitute for, the information contained within our condensed consolidated financial statements.

WTW Forward-Looking Statements

This document contains ‘forward-looking statements’ within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbors created by those laws. These forward-looking statements include information about possible or assumed future results of our operations. All statements, other than statements of historical facts, that address activities, events or developments that we expect or anticipate may occur in the future, including such things as: our outlook; the potential impact of natural or man-made disasters like health pandemics and other world health crises; future capital expenditures; ongoing working capital efforts; future share repurchases; financial results (including our revenue, costs or margins) and the impact of changes to tax laws on our financial results; existing and evolving business strategies including those related to acquisition and disposition; demand for our services and competitive strengths; strategic goals; the benefits of new initiatives; growth of our business and operations; the sustained health of our product, service, transaction, client, and talent assessment and management pipelines; our ability to successfully manage ongoing leadership, organizational and technology changes, including investments in improving systems and processes; our ability to implement and realize anticipated benefits of any cost-savings initiatives generated from our now-completed multi-year operational transformation program or other expense savings initiatives; our recognition of future impairment charges; and plans and references to future successes, including our future financial and operating results, short-term and long-term financial goals, plans, objectives, expectations and intentions, including with respect to free cash flow generation, adjusted net revenue, adjusted operating margin and adjusted earnings per share, are forward-looking statements. Also, when we use words such as ‘may’, ‘will’, ‘would’, ‘anticipate’, ‘believe’, ‘estimate’, ‘expect’, ‘intend’, ‘plan’, ‘continues’, ‘seek’, ‘target’, ‘goal’, ‘focus’, ‘probably’, or similar expressions, we are making forward-looking statements. Such statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. All forward-looking disclosure is speculative by its nature.

There are important risks, uncertainties, events and factors that could cause our actual results or performance to differ materially from those in the forward-looking statements contained in this document, including the following: our ability to successfully establish, execute and achieve our global business strategy as it evolves; our ability to fully realize the anticipated benefits of our growth strategy, including inorganic growth through acquisitions; our ability to achieve our short-term and long-term financial goals, such as with respect to our cash flow generation, and the timing with respect to such achievement; the risks related to changes in general economic conditions, business and political conditions, changes in the financial markets, inflation, credit availability, increased interest rates, changes in trade policies, increased tariffs and retaliatory actions; the risks to our short-term and long-term financial goals from any of the risks or uncertainties set forth herein; the risks relating to the adverse impacts of macroeconomic trends, including those relating to changes in trade policies and tariffs, as well as political events, war, such as the Russia-Ukraine and Israel-Hamas wars, and other international disputes, terrorism, natural disasters, public health issues and other business interruptions on the global economy and capital markets, such as uncertainty in the global markets, inflation, changes in interest rates and recessionary trends, changes in spending by government agencies and contractors, which could have a material adverse effect on our business, financial condition, results of operations and long-term goals; our ability to successfully hedge against fluctuations in foreign currency rates; the risks relating to the adverse impacts of natural or man-made disasters such as health pandemics and other world health crises on the demand for our products and services, our cash flows and our business operations; material interruptions to or loss of our information processing capabilities, or failure to effectively maintain and upgrade our information technology resources and systems and related risks of cybersecurity breaches or incidents; our ability to comply with complex and evolving regulations related to data privacy, cybersecurity and artificial intelligence; the risks relating to the transitional arrangements in effect subsequent to our now-completed sale of TRANZACT; significant competition that we face and the potential for loss of market share and/or profitability; the impact of seasonality and differences in timing of renewals and non-recurring revenue increases from disposals and book-of-business sales; the insufficiency of client data protection, potential breaches of information systems or insufficient safeguards against cybersecurity breaches or incidents; the risk of increased liability or new legal claims arising from our new and existing products and services, and expectations, intentions and outcomes relating to outstanding litigation; the risk of substantial negative outcomes on existing or potential future litigation or investigation matters; changes in the regulatory environment in which we operate, including, among other risks, the impacts of pending competition law and regulatory investigations; various claims, government inquiries or investigations or the potential for regulatory action; our ability to make divestitures or acquisitions, including our ability to integrate or manage acquired businesses or carve-out businesses to be disposed, as well as our ability to identify and successfully execute on opportunities for strategic collaboration; our ability to integrate direct-to-consumer sales and marketing solutions with our existing offerings and solutions; our ability to successfully manage ongoing organizational changes, including as a result of our recently-completed multi-year operational transformation program, investments in improving systems and processes, and in connection with our acquisition and divestiture activities; disasters or business continuity problems; our ability to successfully enhance our billing, collection and other working capital efforts, and thereby increase our free cash flow; our ability to properly identify and manage conflicts of interest; reputational damage, including from association with third parties; reliance on third-party service providers and suppliers; risks relating to changes in our management structures and in senior leadership; the loss of key employees or a large number of employees and rehiring rates; our ability to maintain our corporate culture; doing business internationally, including the impact of global trade policies and retaliatory considerations as well as foreign currency exchange rates; compliance with extensive government regulation; the risk of sanctions imposed by governments, or changes to associated sanction regulations (such as sanctions imposed on Russia) and related counter-sanctions; our ability to effectively apply technology, data and analytics changes for internal operations, maintaining industry standards and meeting client preferences; changes and developments in the insurance industry or the U.S. healthcare system, including those related to Medicare, and any other changes and developments in legal, regulatory, economic, business or operational conditions that could impact our businesses; the inability to protect our intellectual property rights, or the potential infringement upon the intellectual property rights of others; fluctuations in our pension assets and liabilities and related changes in pension income, including as a result of, related to, or derived from movements in the interest rate environment, investment returns, inflation, or changes in other assumptions that are used to estimate our benefit obligations and their effect on adjusted earnings per share; our capital structure, including indebtedness amounts, the limitations imposed by the covenants in the documents governing such indebtedness and the maintenance of the financial and disclosure controls and procedures of each; our ability to obtain financing on favorable terms or at all; adverse changes in our credit ratings; the impact of recent or potential changes to U.S. or foreign laws, and the enactment of additional, or the revision of existing, state, federal, and/or foreign laws and regulations, recent judicial decisions and development of case law, other regulations and any policy changes and legislative actions, including those that may impose additional excise taxes or impact our effective tax rate; U.S. federal income tax consequences to U.S. persons owning at least 10% of our shares; changes in accounting principles, estimates or assumptions; our recognition of future impairment charges; risks relating to or arising from environmental, social and governance (‘ESG’) practices; fluctuation in revenue against our relatively fixed or higher-than-expected expenses; the risk that investment levels increase; the laws of Ireland being different from the laws of the U.S. and potentially affording less protections to the holders of our securities; and our holding company structure potentially preventing us from being able to receive dividends or other distributions in needed amounts from our subsidiaries.

The foregoing list of factors is not exhaustive and new factors may emerge from time to time that could also affect actual performance and results. For more information, please see Part I, Item 1A in our Annual Report on Form 10-K, and our subsequent filings with the SEC. Copies are available online at http://www.sec.gov or www.wtwco.com.

Although we believe that the assumptions underlying our forward-looking statements are reasonable, any of these assumptions, and therefore also the forward-looking statements based on these assumptions, could themselves prove to be inaccurate. Given the significant uncertainties inherent in the forward-looking statements included in this document, our inclusion of this information is not a representation or guarantee by us that our objectives and plans will be achieved.

Our forward-looking statements speak only as of the date made and we will not update these forward-looking statements unless the securities laws require us to do so. With regard to these risks, uncertainties and assumptions, the forward-looking events discussed in this document may not occur, and we caution you against unduly relying on these forward-looking statements.

Contact

INVESTORS
Claudia De La Hoz | Claudia.Delahoz@wtwco.com


	WTW Supplemental Segment Information (In millions of U.S. dollars) (Unaudited)

REVENUE
							Components of Revenue Change⁽ⁱ⁾
							Less:				Less:
	Three Months Ended March 31,				As Reported		Currency		Constant Currency		Acquisitions/		Organic
	2025		2024		% Change		Impact		Change		Divestitures		Change

Health, Wealth & Career
Revenue excluding interest income	$	1,158	$	1,327		(13)%		(1)%		(12)%		(14)%		3%
Interest income		7		9
Total		1,165		1,336		(13)%		(1)%		(12)%		(14)%		3%

Risk & Broking
Revenue excluding interest income	$	1,005	$	950		6%		(2)%		8%		0%		8%
Interest income		22		28
Total		1,027		978		5%		(2)%		7%		0%		7%

Segment Revenue	$	2,192	$	2,314		(5)%		(2)%		(4)%		(8)%		5%
Corporate, reimbursable expenses and other		21		21
Interest income		10		6
Revenue	$	2,223	$	2,341		(5)%		(1)%		(4)%		(8)%	5%⁽ⁱⁱ⁾

⁽ⁱ⁾	Components of revenue change may not add due to rounding.
⁽ⁱⁱ⁾	Interest income did not contribute to organic change for the three months ended March 31, 2025.

BOOK-OF-BUSINESS SETTLEMENTS AND INTEREST INCOME

	Three Months Ended March 31,
	HWC				R&B				Corporate				Total
	2025		2024		2025		2024		2025		2024		2025		2024
Book-of-business settlements	$	2	$	—	$	—	$	2	$	—	$	—	$	2	$	2
Interest income		7		9		22		28		10		6		39		43
Total	$	9	$	9	$	22	$	30	$	10	$	6	$	41	$	45

SEGMENT OPERATING INCOME ⁽ⁱ⁾

	Three Months Ended March 31,
	2025		2024

Health, Wealth & Career	$	311	$	336
Risk & Broking		226		203
Segment Operating Income	$	537	$	539

⁽ⁱ⁾

Segment operating income excludes certain costs, including amortization of intangibles, restructuring costs, transaction and transformation expenses, certain litigation provisions, and to the extent that the actual expense based upon which allocations are made differs from the forecast/budget amount, a reconciling item will be created between internally-allocated expenses and the actual expenses reported for U.S. GAAP purposes.

SEGMENT OPERATING MARGINS

	Three Months Ended March 31,
	2025		2024
Health, Wealth & Career		26.7%		25.1%
Risk & Broking		22.0%		20.8%

RECONCILIATION OF SEGMENT OPERATING INCOME TO INCOME FROM OPERATIONS BEFORE INCOME TAXES

	Three Months Ended March 31,
	2025			2024

Segment Operating Income	$	537		$	539
Amortization		(48	)		(60	)
Restructuring costs		—			(18	)
Transaction and transformation⁽ⁱ⁾		—			(125	)
Unallocated, net⁽ⁱⁱ⁾		(57	)		(56	)
Income from Operations		432			280
Interest expense		(65	)		(64	)
Other (loss)/income, net		(64	)		26
Income from operations before income taxes and interest in earnings of associates	$	303		$	242

⁽ⁱ⁾	In addition to legal fees and other transaction costs, includes primarily consulting fees and compensation costs related to the Transformation program.
⁽ⁱⁱ⁾	Includes certain costs, primarily related to corporate functions which are not directly related to the segments, and certain differences between budgeted expenses determined at the beginning of the year and actual expenses that we report for U.S. GAAP purposes.

WTW Reconciliations of Non-GAAP Measures (In millions of U.S. dollars, except per share data) (Unaudited)

RECONCILIATION OF NET INCOME ATTRIBUTABLE TO WTW TO ADJUSTED DILUTED EARNINGS PER SHARE

	Three Months Ended March 31,
	2025			2024

Net income attributable to WTW	$	235		$	190
Adjusted for certain items:
Amortization		48			60
Restructuring costs		—			18
Transaction and transformation		—			125
Net periodic pension and postretirement benefits		75			(22	)
Gain on disposal of operations		(14	)		—
Tax effect on certain items listed above⁽ⁱ⁾		(28	)		(46	)
Adjusted Net Income	$	316		$	325

Weighted-average ordinary shares, diluted		101			104

Diluted Earnings Per Share	$	2.33		$	1.83
Adjusted for certain items:⁽ⁱⁱ⁾
Amortization		0.48			0.58
Restructuring costs		—			0.17
Transaction and transformation		—			1.21
Net periodic pension and postretirement benefits		0.74			(0.21	)
Gain on disposal of operations		(0.14	)		—
Tax effect on certain items listed above⁽ⁱ⁾		(0.28	)		(0.44	)
Adjusted Diluted Earnings Per Share⁽ⁱⁱ⁾	$	3.13		$	3.13

⁽ⁱ⁾	The tax effect was calculated using an effective tax rate for each item.
⁽ⁱⁱ⁾	Per share values and totals may differ due to rounding.

RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA

	Three Months Ended March 31,
	2025				2024

Net Income	$	239		10.8%	$	194		8.3%
Provision for income taxes		65				48
Interest expense		65				64
Depreciation		54				59
Amortization		48				60
Restructuring costs		—				18
Transaction and transformation		—				125
Net periodic pension and postretirement benefits		75				(22	)
Gain on disposal of operations		(14	)			—
Adjusted EBITDA and Adjusted EBITDA Margin	$	532		23.9%	$	546		23.3%

RECONCILIATION OF INCOME FROM OPERATIONS TO ADJUSTED OPERATING INCOME

	Three Months Ended March 31,
	2025			2024

Income from operations and Operating margin	$	432	19.4%	$	280	12.0%
Adjusted for certain items:
Amortization		48			60
Restructuring costs		—			18
Transaction and transformation		—			125
Adjusted operating income and Adjusted operating income margin	$	480	21.6%	$	483	20.6%

RECONCILIATION OF GAAP INCOME TAXES/TAX RATE TO ADJUSTED INCOME TAXES/TAX RATE

	Three Months Ended March 31,
	2025			2024

Income from operations before income taxes and interest in earnings of associates	$	303		$	242

Adjusted for certain items:
Amortization		48			60
Restructuring costs		—			18
Transaction and transformation		—			125
Net periodic pension and postretirement benefits		75			(22	)
Gain on disposal of operations		(14	)		—
Adjusted income before taxes	$	412		$	423

Provision for income taxes	$	65		$	48
Tax effect on certain items listed above⁽ⁱ⁾		28			46
Adjusted income taxes	$	93		$	94

U.S. GAAP tax rate		21.5	%		19.9	%
Adjusted income tax rate		22.7	%		22.3	%

⁽ⁱ⁾	The tax effect was calculated using an effective tax rate for each item.

RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES TO FREE CASH FLOW

	Years Ended December 31,
	2025			2024

Cash flows (used in)/from operating activities	$	(35	)	$	24
Less: Additions to fixed assets and software		(51	)		(60	)
Free Cash Flow	$	(86	)	$	(36	)

WILLIS TOWERS WATSON PUBLIC LIMITED COMPANY Condensed Consolidated Statements of Income (In millions of U.S. dollars, except per share data) (Unaudited)

	Three Months Ended March 31,
	2025			2024
Revenue	$	2,223		$	2,341

Costs of providing services
Salaries and benefits		1,324			1,342
Other operating expenses		365			457
Depreciation		54			59
Amortization		48			60
Restructuring costs		—			18
Transaction and transformation		—			125
Total costs of providing services		1,791			2,061

Income from operations		432			280

Interest expense		(65	)		(64	)
Other (loss)/income, net		(64	)		26

INCOME FROM OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES		303			242

Provision for income taxes		(65	)		(48	)

INCOME FROM OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES		238			194

Interest in earnings of associates, net of tax		1			—

NET INCOME		239			194

Income attributable to non-controlling interests		(4	)		(4	)

NET INCOME ATTRIBUTABLE TO WTW	$	235		$	190

EARNINGS PER SHARE
Basic earnings per share	$	2.34		$	1.84
Diluted earnings per share	$	2.33		$	1.83

Weighted-average ordinary shares, basic		100			103
Weighted-average ordinary shares, diluted		101			104

WILLIS TOWERS WATSON PUBLIC LIMITED COMPANY Condensed Consolidated Balance Sheets (In millions of U.S. dollars, except share data) (Unaudited)

	March 31,			December 31,
	2025			2024
ASSETS
Cash and cash equivalents	$	1,507		$	1,890
Fiduciary assets		10,293			9,504
Accounts receivable, net		2,366			2,494
Prepaid and other current assets		1,295			1,217
Total current assets		15,461			15,105
Fixed assets, net		667			661
Goodwill		8,841			8,799
Other intangible assets, net		1,255			1,295
Right-of-use assets		487			485
Pension benefits assets		550			530
Other non-current assets		803			806
Total non-current assets		12,603			12,576
TOTAL ASSETS	$	28,064		$	27,681
LIABILITIES AND EQUITY
Fiduciary liabilities	$	10,293		$	9,504
Deferred revenue and accrued expenses		1,499			2,211
Current debt		549			—
Current lease liabilities		120			118
Other current liabilities		923			765
Total current liabilities		13,384			12,598
Long-term debt		4,761			5,309
Liability for pension benefits		552			615
Provision for liabilities		359			341
Long-term lease liabilities		498			502
Other non-current liabilities		296			299
Total non-current liabilities		6,466			7,066
TOTAL LIABILITIES		19,850			19,664
COMMITMENTS AND CONTINGENCIES
EQUITY⁽ⁱ⁾
Additional paid-in capital		11,017			10,989
Retained earnings		51			109
Accumulated other comprehensive loss, net of tax		(2,935	)		(3,158	)
Total WTW shareholders’ equity		8,133			7,940
Non-controlling interests		81			77
Total Equity		8,214			8,017
TOTAL LIABILITIES AND EQUITY	$	28,064		$	27,681


⁽ⁱ⁾	Equity includes (a) Ordinary shares $0.000304635 nominal value; Authorized 1,510,003,775; Issued 99,210,847 (2025) and 99,805,780 (2024); Outstanding 99,210,847 (2025) and 99,805,780 (2024) and (b) Preference shares, $0.000115 nominal value; Authorized 1,000,000,000 and Issued none in 2025 and 2024.

WILLIS TOWERS WATSON PUBLIC LIMITED COMPANY Condensed Consolidated Statements of Cash Flows (In millions of U.S. dollars) (Unaudited)

	Years Ended March 31,
	2025			2024
CASH FLOWS (USED IN)/FROM OPERATING ACTIVITIES
NET INCOME	$	239		$	194
Adjustments to reconcile net income to total net cash from operating activities:
Depreciation		54			59
Amortization		48			60
Non-cash restructuring charges		—			11
Non-cash lease expense		25			27
Net periodic cost/(benefit) of defined benefit pension plans		88			(4	)
Provision for doubtful receivables from clients		5			8
Benefit from deferred income taxes		(23	)		(9	)
Share-based compensation		37			24
Net gain on disposal of operations		(14	)		—
Non-cash foreign exchange loss/(gain)		9			(1	)
Other, net		9			8
Changes in operating assets and liabilities, net of effects from purchase of subsidiaries:
Accounts receivable		162			113
Other assets		1			(53	)
Other liabilities		(691	)		(426	)
Provisions		16			13
Net cash (used in)/from operating activities		(35	)		24

CASH FLOWS USED IN INVESTING ACTIVITIES
Additions to fixed assets and software		(51	)		(60	)
Acquisitions of operations, net of cash acquired		(1	)		(15	)
(Purchase)/sale of investments		(32	)		1
Net cash used in investing activities		(84	)		(74	)

CASH FLOWS FROM FINANCING ACTIVITIES
Senior notes issued		—			746
Debt issuance costs		—			(7	)
Repayments of debt		(1	)		(1	)
Repurchase of shares		(200	)		(101	)
Net proceeds from fiduciary funds held for clients		315			1,011
Cash paid for employee taxes on withholding shares		(2	)		(5	)
Dividends paid		(88	)		(86	)
Acquisitions of and dividends paid to non-controlling interests		—			(1	)
Net cash from financing activities		24			1,556

(DECREASE)/INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH		(95	)		1,506
Effect of exchange rate changes on cash, cash equivalents and restricted cash		80			(47	)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD ⁽ⁱ⁾		4,998			3,792
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD ⁽ⁱ⁾	$	4,983		$	5,251

⁽ⁱ⁾	The amounts of cash, cash equivalents and restricted cash, their respective classification on the condensed consolidated balance sheets, as well as their respective portions of the increase or decrease in cash, cash equivalents and restricted cash for each of the periods presented have been included in the Supplemental Disclosure of Cash Flow Information section.

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

	Years Ended March 31,
	2025			2024

Supplemental disclosures of cash flow information:
Cash and cash equivalents	$	1,507		$	1,893
Fiduciary funds (included in fiduciary assets)		3,476			3,358
Total cash, cash equivalents and restricted cash	$	4,983		$	5,251

(Decrease)/increase in cash, cash equivalents and other restricted cash	$	(411	)	$	487
Increase in fiduciary funds		316			1,019
Total ⁽ⁱ⁾	$	(95	)	$	1,506

⁽ⁱ⁾	Does not include the effect of exchange rate changes on cash, cash equivalents and restricted cash.

The MIL Network –

April 24, 2025

MIL-OSI China: China-Egypt Eagles of Civilization 2025 joint air force training deepens cooperation between two militaries: Defense Spokesperson 2025-04-24 “This will help enhance technical and tactical capabilities of the two air forces and deepen substantive cooperation between the Chinese and Egyptian militaries,” said Senior Colonel Zhang Xiaogang.
Source: People’s Republic of China – Ministry of National Defense 2
loading…

MIL OSI China News –
April 24, 2025
MIL-OSI Submissions: Palestinians in Gaza are enduring one of the darkest chapters of the war

Source: Medecins Sans Frontieres/Doctors Without Borders (MSF)

23 April 2025 – Flash Quote by Franz Luef, Medecins Sans Frontieres/Doctors Without Borders (MSF) Emergency Coordinator in Gaza:

“Palestinians in Gaza are enduring one of the darkest chapters of the war since its onset in October 2023. With hostilities reigniting on March 18th, Israeli forces have intensified their military operations across the Strip, while forcibly displacing people en masse with evacuation orders, and attacks and killings of medical and humanitarian workers. These actions, combined with the ongoing full siege of the Gaza Strip for over 50 days, are not isolated—they represent a systematic effort to dismantle its health system and any effective and principled humanitarian response.

MSF, like most humanitarian actors operating inside Gaza, faces daily operational dilemmas in a very volatile and unpredictable context. Do we move our teams from one place to another without receiving acknowledgement from Israeli forces after we notified them? Do we continue to operate in medical facilities that are being continuously attacked? How do we scale up our activities with no supplies or fuel entering the Strip and critical equipment and infrastructure being bombed?

The situation for Palestinians and those trying to help them in Gaza has become hell. With no end in sight, we are rushing towards the abyss. Israeli strikes are also targeting utility and construction vehicles, including bulldozers, water tankers, and sewage trucks. Without access to such essential tools, we cannot ensure minimum access to clean water and sanitation and prevent further health risks for the population in Gaza.

Since the war started, Israeli forces imposed imperfect mechanisms to protect civilians and humanitarian workers. But they have been nothing more than smoke and mirrors, with over 50,000 Palestinians killed according to the Ministry of health and at least 409 aid workers killed, according to the UN. Today, even these nominal systems are no longer in place. Evacuation orders by Israeli forces are forcibly transferring Palestinians into densely packed, makeshift zones, and humanitarians have no safety guarantees.

The Israeli authorities’ use of aid as a political weapon, coupled with the imposition of arbitrary restrictions on international humanitarian actors, while maintaining the illusion of humanitarian access, is coercing humanitarian and medical actors to compromise on their safety and their principles.”

MIL OSI – Submitted News –

April 24, 2025

MIL-OSI United Kingdom: Change of His Majesty’s Ambassador to Kazakhstan: Sally Axworthy

Source: United Kingdom – Executive Government & Departments

Press release

Change of His Majesty’s Ambassador to Kazakhstan: Sally Axworthy

Mrs Sally Axworthy MBE has been appointed His Majesty’s Ambassador to the Republic of Kazakhstan.

Mrs Sally Axworthy

Mrs Sally Axworthy MBE has been appointed His Majesty’s Ambassador to the Republic of Kazakhstan in succession to Ms Kathy Leach who will be transferring to another Diplomatic Service appointment. Mrs Axworthy will take up her appointment during August 2025.

Curriculum vitae

Full name: Sally Jane Axworthy

Year	Role
2024 to present	Full-time Kazakh language training
2021 to 2024	FCDO, Head, Negotiations and Peace Processes Department, Office for Conflict, Stabilisation and Mediation
2016 to 2021	Holy See, HM Ambassador
2013 to 2015	FCO, Joint Head, North Africa Department
2011 to 2013	FCO, Head, Somalia Unit
2011	FCO, Head, Great Lakes, East Africa and Somalia Department
2009 to 2011	India, Director, Corporate Services
2007 to 2008	FCO, Head of Financial Skills
2006	FCO, Senior Flexible Working Project, Human Resources Directorate
2004 to 2005	Government Office South West, Vulnerable Adults Project Leader
2001 to 2003	Government Office South West, Assistant Director, Devon and Cornwall
1998 to 2000	FCO, Head, Turkey, Cyprus & Malta Section, European Union Department
1996 to 1998	Bonn, First Secretary (European Union)
1994 to 1996	Secondment to the German Foreign Ministry
1993 to 1994	FCO, Head, Political Section, United Nations Department
1991 to 1992	Kyiv, Second Secretary Economic
1989 to 1991	Moscow, Third Secretary Commercial
1988 to 1989	Full time language training (Russian)
1987 to 1988	FCO, Desk Officer, Hungary and Czechoslovakia

Published 24 April 2025

MIL OSI United Kingdom –

April 24, 2025

MIL-OSI United Kingdom: UKHSA urges Hajj and Umrah pilgrims to get meningitis vaccination
Source: United Kingdom – Executive Government & Departments

News story

UKHSA urges Hajj and Umrah pilgrims to get meningitis vaccination

UKHSA is reminding travellers to the Kingdom of Saudi Arabia (KSA) for Umrah and the upcoming Hajj pilgrimages to ensure they are vaccinated against meningitis.

The UK Health Security Agency (UKHSA) is urging travellers to the Kingdom of Saudi Arabia (KSA) for Umrah and the upcoming Hajj pilgrimages to ensure they are vaccinated against meningococcal disease with the MenACWY vaccine, due to ongoing outbreaks of serogroup W (MenW) disease associated with travel to KSA.

UKHSA has confirmed 5 cases of MenW disease between February and March 2025 in people who had recently returned from KSA or in their close contacts in England and Wales.

Invasive meningococcal disease is rare but serious and is caused by meningococcal bacteria. Meningococcal meningitis (inflammation of the lining of the brain and spinal cord) and septicaemia (blood poisoning) are severe conditions that can kill or leave people with life-changing disabilities.

Those undertaking Hajj or Umrah, along with seasonal workers, are required to present a valid certificate of MenACWY vaccination issued between 10 days and 3 to 5 years before arrival, depending on the type of MenACWY vaccine previously received. The World Health Organization (WHO) and the National Travel Health Network and Centre (NaTHNaC) advise, however, that all travellers to KSA should consider receiving the quadrivalent meningococcal (MenACWY) vaccine, especially during the current MenW outbreak.

While abroad and in the 2 weeks after returning to the UK, pilgrims and travellers returning from KSA should monitor for symptoms such as:

fever

severe headache

vomiting

stiff neck

rash

extreme sleepiness

seizures

Symptoms may resemble flu initially and can appear in any order, but can lead to serious illness within hours. Anyone who has symptoms and becomes concerned about their own or someone else’s health should seek immediate medical advice or dial 999 in a medical emergency.

Dr Shamez Ladhani, Consultant Epidemiologist at UKHSA, said:

The MenACWY vaccination is essential for pilgrims travelling to KSA for Umrah and Hajj, particularly given recent cases among UK returnees and their families. Meningococcal disease can be fatal and may leave survivors with serious lifelong conditions including hearing loss, brain damage and limb amputations.

Pilgrims should ensure vaccination at least ten days before travel and remain vigilant for symptoms like sudden fever, severe headache, stiff neck, or rash. If you or anyone at home becomes unwell with any symptoms of meningitis within two weeks of returning from Saudi Arabia, contact your GP or NHS 111, mentioning your recent travel history, or dial 999 in case of emergency.

Dr Sahira Dar, President of the British Islamic Medical Association, said:

During Hajj and Umrah, millions of people gather in very close proximity during the pilgrim rights, in accommodation sites and on public transport. This means that there is a much higher risk of contracting infectious diseases such as meningitis which is a serious illness. We highly recommend that everyone going on Hajj and Umrah receive their MenACWY vaccine which could protect them and their loved ones back home.

UKHSA is also advising pilgrims about Middle East Respiratory Syndrome coronavirus (MERS-CoV). While risk to UK travellers remains low, pilgrims should:

avoid consuming raw or undercooked animal products

avoid contact with camels and animal waste

practise good hygiene, particularly washing hands after visiting farms, barns or markets

Should fever, coughing or breathing difficulties develop within 2 weeks of leaving Saudi Arabia, contact a GP or NHS 111, mentioning recent travel history and any contact with respiratory cases, healthcare facilities or camels during travel.

Further information on vaccinations and travel health precautions for KSA is available on the NaTHNaC website.

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Published 24 April 2025
MIL OSI United Kingdom –
April 24, 2025
MIL-OSI Russia: The number of capital enterprises in the creative industries has reached 113 thousand

Translation. Region: Russian Federal

Source: Moscow Government – Government of Moscow –

Over four years, the number of Moscow companies and individual entrepreneurs in the creative industries has increased by 12 percent to 113 thousand. The products of the capital’s creative business attract audiences throughout Russia and abroad. This was reported by Natalia Sergunina, Deputy Mayor of Moscow.

“In 2024 alone, more than seven thousand new creative enterprises appeared in the capital. The most popular areas are information technology and video games, fashion, cinema and animation,” said Natalia Sergunina.

The development of the sector is facilitated by comprehensive support from the city — from the construction of modern infrastructure to the launch of accelerators and professional competitions. Projects such as “Design Workshop”, “Art. Workshop” and “Video Game Factory” give industry representatives the opportunity to make a name for themselves, work with renowned experts and find major customers. The “Creative Market” program helps increase sales and tell more potential buyers about the brand.

Large-scale production sites, in particular the Moscow Film Cluster, provide residents with work spaces, necessary equipment and useful services.

Export of creative projects

Moscow pays special attention to promoting creative business products abroad.

“Last year, with the support of the city, entrepreneurs concluded about 100 international contracts and agreements in the creative industries. The total amount of export contracts exceeded one billion rubles,” Natalya Sergunina specified.

Many of them were signed within the framework of the BRICS Fashion Summit, Moscow Fashion Week, Moscow International Film Week and other major industry events.

Continuing work in this direction, in 2025 the city will organize the participation of capital companies in foreign exhibitions, including in Belarus, Indonesia and Egypt.

For example, a trip to the computer games and e-sports festival in Istanbul is planned for September, and to the Shanghai International Children’s Book Fair in November. Entrepreneurs will be able to present their products and take part in negotiations with potential partners.

Quickly find out the main news of the capital in the official telegram channelthe city of Moscow.

Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

Please Note; This Information is Raw Content Directly from the Information Source. It is access to What the Source Is Stating and Does Not Reflect

https: //vv.mos.ru/nevs/ite/153066073/

MIL OSI Russia News –

April 24, 2025
MIL-OSI China: China to launch Chang’e-8 lunar mission around 2029, collaborating with int’l partners

Source: People’s Republic of China – State Council News

China to launch Chang’e-8 lunar mission around 2029, collaborating with int’l partners

SHANGHAI, April 24 — The China National Space Administration (CNSA) revealed Thursday that the Chang’e-8 lunar probe is scheduled for launch around 2029, and will carry payloads from 11 countries and regions and one international organization as part of international cooperation.

The announcement was made at the opening ceremony for 2025 Space Day of China, which is celebrated annually on April 24.

The Chang’e-8 mission will target the Leibnitz-Beta Plateau near the lunar south pole region, working with the earlier Chang’e-7 mission to conduct scientific exploration and in-situ resource utilization experiments. These efforts will lay the groundwork for the future International Lunar Research Station.

According to CNSA, the 10 selected collaborative projects include a multi-functional robot designed by researchers in Hong Kong, a lunar rover developed by Pakistan and the International Society for Terrain-Vehicle Systems (ISTVS), an exploration rover made by Türkiye, and radio astronomical instruments by South Africa and Peru.

The projects also include Italy’s laser retroreflector arrays, Russia’s plasma and dust analyzer and high-energy particle detector, Thailand’s neutron analyzer, Bahrain and Egypt’s lunar surface imaging system, and Iran’s lunar potential monitor.

Shan Zhongde, head of CNSA, said China will work closely with international partners to achieve new scientific discoveries and technological breakthroughs that will ultimately benefit all of humanity.

CNSA announced in October 2023 international cooperation opportunities for Chang’e-8 lunar mission, which offered 200 kilograms of payload resources for global partners. A total of 41 cooperation proposals were received.

MIL OSI China News –

April 24, 2025

MIL-OSI: Nokia Corporation Interim Report for Q1 2025

Source: GlobeNewswire (MIL-OSI)

Nokia Corporation

Interim report
24 April 2025 at 08:00 EEST

Nokia Corporation Interim Report for Q1 2025

Network Infrastructure delivers strong net sales growth to start 2025

Infinera acquisition completed during Q1, increasing Nokia’s scale in Optical Networks and with hyperscalers. Integration underway with many portfolio decisions already taken. Positive momentum with customers, with Q1 seeing strong order intake for Infinera driven by growth in hyperscalers.
Q1 net sales declined 3% y-o-y on a constant currency and portfolio basis (-1% reported) due to a challenging prior year comparison in Nokia Technologies. Network Infrastructure grew 11% on a constant currency and portfolio basis while Cloud and Network Services grew 8%. Mobile Networks grew 2%.
Comparable gross margin in Q1 decreased 820bps y-o-y to 42.3% (reported decreased 820bps to 41.5%), half of which is related to lower net sales in Nokia Technologies. It was also impacted by a contract settlement charge with net impact of EUR 120 million in Mobile Networks.
Q1 comparable operating margin decreased 990bps y-o-y to 3.6% (reported up 1 020bps to -1.1%), mainly due to lower gross margin and increased operating expenses resulting from targeted investments for long-term growth.
Q1 comparable diluted EPS for the period of EUR 0.03; reported diluted EPS for the period of EUR -0.01.
Q1 free cash flow of EUR 0.7 billion, net cash balance of EUR 3.0 billion.
Full year 2025 outlook unchanged with comparable operating profit of between EUR 1.9 billion and 2.4 billion and free cash flow conversion from comparable operating profit of between 50% and 80%.

This is a summary of the Nokia Corporation Interim Report for Q1 2025 published today. Nokia only publishes a summary of its financial reports in stock exchange releases. The summary focuses on Nokia Group’s financial information as well as on Nokia’s outlook. The detailed, segment-level discussion will be available in the complete financial report hosted at www.nokia.com/financials. A video interview summarizing the key points of our Q1 results will also be published on the website. Investors should not solely rely on summaries of Nokia’s financial reports and should also review the complete reports with tables.

JUSTIN HOTARD, PRESIDENT AND CEO, ON Q1 2025 RESULTS

In the following quote, net sales growth rates are on a constant currency and portfolio basis.
Since joining Nokia as President and CEO three weeks ago, I’ve had great engagements with some of our customers, partners and employees. I see great potential for Nokia, and my early focus is on capital allocation to ensure we both drive efficiency and invest sufficiently in the right growth segments for long-term value creation. I am impressed with our core technology base across our portfolio including in RAN and core as well as in IP, Optical and Fiber technologies. In speaking with customers, it is clear we play a critical role as a trusted partner operating their mobile and fixed networks and have the potential to expand our presence in hyperscale, enterprise and defense markets. Spending the time with our employees I’ve been excited by their innovative spirit, energy and drive to unlock Nokia’s full potential.

Our first quarter financial performance saw a net sales decline of 3%. However, excluding the catch-up element of licensing deals signed in the prior year, sales grew 7%. Our operating margin declined year-on-year due to the challenging prior year comparison in Nokia Technologies and a one-time charge in Mobile Networks, while profitability improved in both Network Infrastructure and Cloud and Network Services.

Network Infrastructure net sales grew 11% with all units contributing to growth and its backlog increased. The highlight of the first quarter was the completion of the Infinera acquisition. Our expanded Optical Networks business had a strong first quarter with 15% net sales growth along with several important design wins, particularly with hyperscalers. We have initiated the integration of Infinera and made many important roadmap decisions which we communicated to customers in early April. We are on track to deliver our synergy targets and I believe this acquisition has significant value creation potential for Nokia.

In Mobile Networks we continue to see positive signs of stabilization with further wins in addition to those we discussed last quarter. Today we have announced an important contract extension with T-Mobile US. Regarding our financial performance, net sales grew 2% but profitability was impacted by an unexpected one-time contract settlement with a net impact of EUR 120 million. The settlement related to a project for a single customer that started shipping in 2019 and the settlement fully resolves the situation.

Cloud and Network Services delivered net sales growth of 8% and we continue to see strong demand in the market for our 5G Core offers with additional footprint won at AT&T, Boost Mobile, Ooredoo Qatar and Telefónica. Nokia Technologies continued its execution with further deals signed in the quarter that increased the contracted annual net sales run-rate to approximately EUR 1.4 billion.

Looking forward, we are not immune to the rapidly evolving global trade landscape however based on early customer feedback, I believe our markets should prove to be relatively resilient. In 2025, we continue to expect strong net sales growth in Network Infrastructure, growth in Cloud and Network Services and largely stable net sales for Mobile Networks. In Nokia Technologies we expect approximately EUR 1.1 billion of operating profit.

Regarding the tariff situation, there could be some short-term disruption. We will continue to utilize the flexibility of our global manufacturing network to minimize impact of the evolving tariff landscape. Based on what we see today, we currently expect a EUR 20 to 30 million impact to our comparable operating profit in the second quarter from the current tariffs. Given the lack of visibility, we have not taken an assumption related to tariffs in the second half of 2025.

In terms of our outlook for the financial year 2025, we will continue to focus on investing in future growth opportunities and we now have an unexpected charge impacting Mobile Networks. Considering these factors, while achieving the top-end of the range will now be more challenging, our comparable operating profit guidance remains between EUR 1.9 and 2.4 billion. Our free cash flow guidance remains between 50% and 80% of comparable operating profit.

In the coming months I will continue to listen and learn from customers, employees, shareholders and other stakeholders. I will provide an update with our Q2 results and I look forward to presenting our complete value creation vision for Nokia at our capital markets day which we now expect to hold in November.

Justin Hotard
President and CEO

FINANCIAL RESULTS

EUR million (except for EPS in EUR)	Q1’25	Q1’24	YoY change
Reported results
Net sales	4 390	4 444	(1)%
Gross margin %	41.5%	49.7%	(820)bps
Research and development expenses	(1 145)	(1 125)	2%
Selling, general and administrative expenses	(728)	(693)	5%
Operating (loss)/profit	(48)	405	(112)%
Operating margin %	(1.1)%	9.1%	(1 020)bps
(Loss)/profit from continuing operations	(60)	451
Profit/(loss) from discontinued operations	—	(13)
(Loss)/profit for the period	(60)	438
EPS for the period, diluted	(0.01)	0.08
Net cash and interest-bearing financial investments	2 988	5 137	(42)%
Comparable results
Net sales	4 390	4 444	(1)%
Constant currency and portfolio YoY change⁽¹⁾			(3%)
Gross margin %	42.3%	50.5%	(820)bps
Research and development expenses	(1 115)	(1 076)	4%
Selling, general and administrative expenses	(587)	(584)	1%
Operating profit	156	600	(74)%
Operating margin %	3.6%	13.5%	(990)bps
Profit for the period	153	512	(70)%
EPS for the period, diluted	0.03	0.09	(67)%

Business group results	Network Infrastructure		Mobile Networks		Cloud and Network Services		Nokia Technologies		Group Common and Other
EUR million	Q1’25	Q1’24	Q1’25	Q1’24	Q1’25	Q1’24	Q1’25	Q1’24	Q1’25	Q1’24
Net sales	1 722	1 439	1 729	1 682	567	546	369	757	4	23
YoY change	20%		3%		4%		(51)%		(83)%
Constant currency and portfolio YoY change⁽¹⁾	11%		2%		8%		(52)%		(83)%
Gross margin %	40.6%	40.8%	30.9%	40.9%	45.9%	39.4%	100.0%	100.0%
Operating profit/(loss)	135	85	(152)	(32)	14	(37)	259	658	(99)	(75)
Operating margin %	7.8%	5.9%	(8.8)%	(1.9)%	2.5%	(6.8)%	70.2%	86.9%

(1) This metric provides additional information on the growth of the business and adjusts for both currency impacts and portfolio changes. The full definition is provided in the Alternative performance measures section in Nokia Corporation Interim Report for Q1 2025.

SHAREHOLDER DISTRIBUTION

Dividend

The Board of Directors proposes that the Annual General Meeting 2025 to be held on 29 April 2025 authorizes the Board to resolve on the distribution of an aggregate maximum of EUR 0.14 per share to be paid in respect of the financial year 2024. The authorization would be used to distribute dividend and/or assets from the reserve for invested unrestricted equity in four installments during the authorization period unless the Board decides otherwise for a justified reason. Subject to approval by the Annual General Meeting, the Board is expected to resolve on the amount and timing of each distribution so that the preliminary record and payment dates will be as set out in the Board’s proposal to the Annual General Meeting. Accordingly, the first expected record date would be 5 May 2025 and the expected payment date would be 12 May 2025. The actual dividend payment date outside Finland will be determined by the practices of the intermediary banks transferring the dividend payments.

Share buyback program

On 27 June 2024, Nokia announced its intention to acquire Infinera in a transaction that valued Infinera at US$1.7 billion equity value with up to 30% of the consideration to be paid in Nokia American depositary shares, depending on the elections of Infinera shareholders. To offset the dilution from the transaction to Nokia shareholders, on 22 November 2024 Nokia announced a share buyback program targeting to repurchase 150 million shares. This share buyback program was completed on 2 April 2025. Under this program, Nokia repurchased 150 million of its own shares at an average price per share of approximately EUR 4.69. The repurchases reduced the company’s unrestricted equity by approximately EUR 703 million and the repurchased shares were cancelled on 23 April 2025.

OUTLOOK

The outlook provided below reflects the acquisition of Infinera.

	Full Year 2025
Comparable operating profit⁽¹⁾	EUR 1.9 billion to EUR 2.4 billion
Free cash flow⁽¹⁾	50% to 80% conversion from comparable operating profit

¹Please refer to Alternative performance measures section in Nokia Corporation Interim Report for Q1 2025 for a full explanation of how these terms are defined.

The outlook and all of the underlying outlook assumptions described below are forward-looking statements subject to a number of risks and uncertainties as described or referred to in the Risk Factors section later in this report.

Along with Nokia’s official outlook targets provided above, Nokia provides the below additional assumptions that support the group level financial outlook.

	Full year 2025	Comment
Group Common and Other operating expenses	approximately EUR 400 million
Comparable financial income and expenses	Positive EUR 50 to 150 million
Comparable income tax rate	~25%
Cash outflows related to income taxes	EUR 500 million (update)	Mainly reflecting evolving regional mix and the inclusion of Infinera
Capital Expenditures	EUR 650 million (update)	Reflecting the inclusion of Infinera
Recurring gross cost savings	EUR 400 million	Related to ongoing cost savings program and not including Infinera-related synergies
Restructuring and associated charges related to cost savings programs	EUR 250 million	Related to ongoing cost savings program and not including Infinera-related synergies
Restructuring and associated cash outflows	EUR 400 million	Related to ongoing cost savings program and not including Infinera-related synergies

ADDITIONAL TOPICS

Completion of Infinera acquisition

On 28 February 2025, Nokia announced the completion of the acquisition of Infinera Corporation, pursuant to the definitive agreement announced on 27 June 2024. Infinera, the San Jose based global supplier of innovative open optical networking solutions and advanced optical semiconductors, has become part of the Nokia group effective as of the closing with Nokia holding 100% of its equity and voting rights. The total purchase consideration was EUR 2.5 billion, consisting of cash proceeds, Nokia shares in the form of American Depositary Shares, the fair value of the portion of Infinera’s performance and restricted shares attributable to pre-combination services that were replaced with Nokia’s share-based payment awards and the fair value of Infinera’s convertible senior notes in line with relevant bond indentures. For more information regarding the acquisition, refer to Note 3. Acquisitions in Nokia Corporation Interim Report for Q1 2025.

“Constant currency and portfolio net sales growth” alternative performance metric

In Q1 2025, Nokia has introduced a new alternative performance metric (APM), “constant currency and portfolio net sales growth”. Constant currency and portfolio net sales growth is presented on a constant currency basis and also assumes certain specific acquisitions had already been owned during both periods and as if disposals had already occurred in both comparison periods. This has been added to mainly consider the acquisition of Infinera and is an evolution of the constant currency APM that had been previously used.

RISK FACTORS

Nokia and its businesses are exposed to a number of risks and uncertainties which include but are not limited to:

Competitive intensity, which is expected to continue at a high level as some competitors seek to take share;
Changes in customer network investments related to their ability to monetize the network;
Our ability to ensure competitiveness of our product roadmaps and costs through additional R&D investments;
Our ability to procure certain standard components and the costs thereof, such as semiconductors;
Disturbance in the global supply chain;
Impact of inflation, increased global macro-uncertainty, major currency fluctuations, changes in tariffs and higher interest rates;
Potential economic impact and disruption of global pandemics;
War or other geopolitical conflicts, disruptions and potential costs thereof;
Other macroeconomic, industry and competitive developments;
Timing and value of new, renewed and existing patent licensing agreements with licensees;
Results in brand and technology licensing; costs to protect and enforce our intellectual property rights; on-going litigation with respect to licensing and regulatory landscape for patent licensing;
The outcomes of on-going and potential disputes and litigation;
Our ability to execute, complete, successfully integrate and realize the expected benefits from transactions;
Timing of completions and acceptances of certain projects;
Our product and regional mix;
Uncertainty in forecasting income tax expenses and cash outflows, over the long-term, as they are also subject to possible changes due to business mix, the timing of patent licensing cash flow and changes in tax legislation, including potential tax reforms in various countries and OECD initiatives;
Our ability to utilize our Finnish deferred tax assets and their recognition on our balance sheet;
Our ability to meet our sustainability and other ESG targets, including our targets relating to greenhouse gas emissions;

as well the risk factors specified under Forward-looking statements of this release, and our 2024 annual report on Form 20-F published on 13 March 2025 under Operating and financial review and prospects-Risk factors.

FORWARD-LOOKING STATEMENTS

Certain statements herein that are not historical facts are forward-looking statements. These forward-looking statements reflect Nokia’s current expectations and views of future developments and include statements regarding: A) expectations, plans, benefits or outlook related to our strategies, projects, programs, product launches, growth management, licenses, sustainability and other ESG targets, operational key performance indicators and decisions on market exits; B) expectations, plans or benefits related to future performance of our businesses (including the expected impact, timing and duration of potential global pandemics, geopolitical conflicts and the general or regional macroeconomic conditions on our businesses, our supply chain, the timing of market changes or turning points in demand and our customers’ businesses) and any future dividends and other distributions of profit; C) expectations and targets regarding financial performance and results of operations, including market share, prices, net sales, income, margins, cash flows, cost savings, the timing of receivables, operating expenses, provisions, impairments, tariffs, taxes, currency exchange rates, hedging, investment funds, inflation, product cost reductions, competitiveness, value creation, revenue generation in any specific region, and licensing income and payments; D) ability to execute, expectations, plans or benefits related to transactions, investments and changes in organizational structure and operating model; E) impact on revenue with respect to litigation/renewal discussions; and F) any statements preceded by or including “anticipate”, “continue”, “believe”, “envisage”, “expect”, “aim”, “will”, “target”, “may”, “would”, “could“, “see”, “plan”, “ensure” or similar expressions. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control, which could cause our actual results to differ materially from such statements. These statements are based on management’s best assumptions and beliefs in light of the information currently available to them. These forward-looking statements are only predictions based upon our current expectations and views of future events and developments and are subject to risks and uncertainties that are difficult to predict because they relate to events and depend on circumstances that will occur in the future. Factors, including risks and uncertainties that could cause these differences, include those risks and uncertainties identified in the Risk Factors above.

ANALYST WEBCAST

Nokia’s webcast will begin on 24 April 2025 at 11.30 a.m. Finnish time (EEST). The webcast will last approximately 60 minutes.
The webcast will be a presentation followed by a Q&A session. Presentation slides will be available for download at www.nokia.com/financials.
A link to the webcast will be available at www.nokia.com/financials.
Media representatives can listen in via the link, or alternatively call +1-412-317-5619.

FINANCIAL CALENDAR

Nokia’s Annual General Meeting 2025 is planned to be held on 29 April 2025.
Nokia plans to publish its second quarter and half year 2025 results on 24 July 2025.
Nokia plans to publish its third quarter and January-September 2025 results on 23 October 2025.

About Nokia

At Nokia, we create technology that helps the world act together.

As a B2B technology innovation leader, we are pioneering networks that sense, think and act by leveraging our work across mobile, fixed and cloud networks. In addition, we create value with intellectual property and long-term research, led by the award-winning Nokia Bell Labs, which is celebrating 100 years of innovation.

With truly open architectures that seamlessly integrate into any ecosystem, our high-performance networks create new opportunities for monetization and scale. Service providers, enterprises and partners worldwide trust Nokia to deliver secure, reliable and sustainable networks today – and work with us to create the digital services and applications of the future.

Inquiries:

Nokia
Communications
Phone: +358 10 448 4900
Email: press.services@nokia.com
Maria Vaismaa, Global Head of External Communications

Nokia

Investor Relations
Phone: +358 931 580 507
Email: investor.relations@nokia.com

Attachment

2025 Q1 Nokia_ Earnings_release_English

The MIL Network –

April 24, 2025

MIL-OSI New Zealand: ANZAC Day – ‘Never Again’ Anzac Day Peace Picnic

Source: Peace Action Wellington

Friday 25 April 2025 – An Anzac Day Peace Picnic with the theme of ‘Never Again’ will be held at Pukeahu National War Memorial on Friday 25 April from 12:30pm-2pm. This is a family-friendly peace event operating under the tikanga of mana whenua, Te Kotahitanga o Taranaki Whanui ki te Upoko o te Ika.

“’Never again’ means no genocide,” said Valerie Morse, member of Peace Action Wellington.

“‘Never again’ is a phrase or slogan which is associated with the lessons of the Holocaust and other genocides. The slogan was used by liberated prisoners at Buchenwald concentration camp to denounce fascism.”

“We are coming together to stand against war, against fascism and to demand that we meet the aspirations of our ancestors who survived World War 1 and World War 2 for global peace and freedom,” said Valerie Morse, member of Peace Action Wellington.

“Anzac Day is portrayed as a day where the country can reflect on the horrors of war, the costs in human lives and commit collectively to never again allowing genocidal mass murder. We have to ask, is that really happening?” said Morse.

“In 2025 the Western world is actively funding a campaign of complete annihilation against Palestinians. Two million men, women and children are daily being shot, bombed from above, burned alive, bulldozed with tanks and held hostage inside a giant concentration camp called Gaza. This is paid for and provided by the US. Meanwhile, across the West fascism and far right political parties are gaining power with campaigns of hatred, exclusion, war, austerity and visions of armageddon.”

“The NZ government has failed to provide any humanitarian path for Palestinian refugees fleeing the bloodbath. It has been silent about Israel’s crimes. What’s worse is the government is now aiming to spend billions on new weapons of war and committing to fighting alongside the fascist USA in its endless wars. The new Defence Capability Plan clearly aligns NZ to the US and the Five Eyes intelligence alliance. This is incredibly dangerous for the peace and security of Aotearoa NZ and the wider Pacific,” said Morse.

The Anzac Day event is organised by Peace Action Wellington, Pōneke Anti-Fascist Coalition, VUW Socialists, Justice for Palestine, Students for Justice in Palestine, Falastin Tea Collective and Alternative Jewish Voices.

MIL OSI New Zealand News –

April 24, 2025
MIL-OSI China: China, Iran exchange in-depth views on latest progress of Iran nuclear issue

Source: People’s Republic of China – State Council News

Chinese Foreign Minister Wang Yi, also a member of the Political Bureau of the Communist Party of China Central Committee, holds talks with Iranian Foreign Minister Seyed Abbas Araghchi in Beijing, capital of China, April 23, 2025. [Photo/Xinhua]

BEIJING, April 23 — Chinese Foreign Minister Wang Yi held talks with Iranian Foreign Minister Seyed Abbas Araghchi in Beijing on Wednesday, with the two sides exchanging in-depth views on the latest progress of the Iranian nuclear issue.

Wang, also a member of the Political Bureau of the Communist Party of China Central Committee, said the friendship between China and Iran has stood the test of the international situation, and that developing China-Iran relations is a shared strategic choice for both sides.

In recent years, China and Iran have deepened political mutual trust through mutual support, tightened the connection between their interests through practical cooperation, and united and collaborated in the fight against unilateral bullying, Wang said.

“Today’s world is full of turbulence. The United States’ abuse of tariffs has lost people’s support and isolated the country itself from the international community. The international community needs to stand united more than ever to uphold multilateralism and safeguard the basic norms governing international relations,” Wang said.

He said that China is willing to work with Iran to implement the important consensus reached between the leaders of the two countries, and to continuously consolidate coordination and collaboration in deepening friendly cooperation in various fields of international and regional affairs. China is also ready to work with Iran to promote the greater influence of the Shanghai Cooperation Organization, the BRICS mechanism and other multilateral frameworks, and to make more efforts to safeguard the common interests of the two countries, as well as efforts to promote regional and world peace and stability.

Araghchi said that Iran attaches great importance to developing its relations with China, abides by the one-China principle, and supports China in safeguarding its core interests. Iran will continue to work with China to provide firm mutual support, oppose unilateralism and hegemonism, and safeguard multilateralism.

Wang emphasized that China has always been committed to a political and diplomatic resolution of the Iranian nuclear issue, and opposes the abuse of force and illegal unilateral sanctions.

China appreciates Iran’s commitment to not developing nuclear weapons, respects Iran’s right to the peaceful use of nuclear energy, supports Iran in conducting dialogue with all parties — including the United States — and in safeguarding its legitimate rights and interests through consultation and negotiation, Wang said, adding that it will help safeguard the international nuclear non-proliferation regime and promote regional peace and stability.

Araghchi praised China’s important and positive role in promoting the political and diplomatic settlement of the Iranian nuclear issue, and expressed willingness to maintain close communication and coordination with China.

Chinese Foreign Minister Wang Yi, also a member of the Political Bureau of the Communist Party of China Central Committee, holds talks with Iranian Foreign Minister Seyed Abbas Araghchi in Beijing, capital of China, April 23, 2025. [Photo/Xinhua]

MIL OSI China News –

April 24, 2025
MIL-OSI United Kingdom: National roadshow kicks off to get businesses exporting and grow the economy
Source: United Kingdom – Executive Government & Departments

Press release

National roadshow kicks off to get businesses exporting and grow the economy

SMEs from across the UK will benefit from new government support to match them up with international buyers and markets.

Export Roadshows, created to get more small businesses exporting and grow the economy, kick off today in the North East

Taking place across all nations and regions of the UK, events will bring together small firms, industry experts, trade bodies and government

Part of the modern Industrial Strategy, the roadshow aims to channel government support to growth-driving sectors, as part of the Plan for Change

SMEs from across the UK will benefit from new government support to match them up with international buyers and markets, to turbocharge UK exports and grow the economy as part of the Plan for Change.

The ‘Made in the UK, Sold to the World’ roadshows, kicking off today [24 April] in Blyth and taking place across all nations and regions of the UK, have been designed to directly connect international buyers with SME exporters ready to seize the opportunity to grow their businesses. Through these events, the Government is working to maximise international opportunities for UK businesses by highlighting tangible opportunities that exist in new markets.

Each event will be aligned to one of the eight key growth driving sectors outlined in Britain’s modern Industrial Strategy, channelling government support to sectors with the highest potential to create jobs, boost productivity and grow the economy. All of which will help deliver the Plan for Change to put more money in more working people’s pockets.

Highlighted sectors include clean energy, advanced manufacturing, technology, life sciences, digital and technology, and financial services.

Gareth Thomas, Minister for Services, Small Businesses and Exports, said:

Maximising the UK’s export potential is crucial to achieving our Plan for Change, by creating good jobs with high wages, raising productivity, and boosting the economy.

Through these roadshows, the government is focussing on supporting key growth sectors, making it quicker and easier for smaller businesses to connect with markets, grasp export opportunities and expand.

The focus of the first roadshow, taking place today, is exporting in the clean energy sector.

There will be 100 attendees at the event – made up of small businesses, trade bodies, and government representatives, as well as 30 Commercial Officers from UK embassies and consulates from around the world, and 97 buyers, all of whom will join the event virtually through pre-planned meetings.

The 97 buyers span 19 markets worldwide, from Argentina to Austria, Thailand, Turkey, Mexico, India, and the UAE.

All roadshow events will provide opportunities for delegates to meet with domestic and international Commercial Officers, who will be on hand to offer expert support and advice on specific products, markets, and export opportunities.

There will also be a designated advice zone for SMEs to learn about wider export support services offered by the Department for Business and Trade, as well as those provided by other public sectors partners like regional Growth Hubs, and trusted private sector providers like the Chambers of Commerce, Federation of Small Business, UKEF and MAKE UK.

A range of workshops and seminars on topical issues such as ‘conducting market research’ and ‘routes to market’ will take place throughout the day, led by the UK Export Academy. Several of these will feature DBT Export Champions who will speak of their own experiences in target markets.

Alex Marshall, Group Business Development Director at Clarke Energy, said:

From the Americas, Africa, Asia to Australasia, clean technologies are now established as one of the most important pillars of the global economy.

So as an Export Champion and a UK business developing innovative clean technology solutions across the world, this Made in the UK, Sold to the World roadshow event is an excellent place to discuss the latest international trends and export opportunities for UK businesses in the clean energy sector.

We know that when SMEs trade around the world, the whole economy benefits, which is why this government is so committed to supporting smaller businesses grow and export.

Just last month, the Department of Business and Trade relaunched the Board of Trade, to help businesses, and in particular the UK’s 5.5 million SMEs, boost their exports.

And later this year, we will be launching a small business strategy to raise growth and productivity across the UK’s SME population and boost the number of scale-ups.

UK businesses can access DBT’s wealth of export support via Great.gov.uk. This comprises an online support offer and a wider network of support including the Export Academy, UK Export Finance, the International Markets network, and one-to-one support from International Trade Advisers.

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Published 24 April 2025
MIL OSI United Kingdom –
April 24, 2025
MIL-OSI USA News: Days of Remembrance of Victims of the Holocaust, 2025

Source: The White House

class=”has-text-align-center”>By the President of the United States of America

A Proclamation

On Yom HaShoah, Holocaust Remembrance Day, and during this week of solemn remembrance, we honor the blessed memories of the six million Jewish men, women, and children who were viciously slaughtered by the genocidal Nazi regime and their collaborators — one of the bleakest hours in human history. We also remember the Roma and Sinti, peoples of Slavic and Polish ancestry, persons with disabilities, Soviet prisoners of war, Jehovah’s Witnesses, persons targeted based on their sexual orientation, and countless other innocent victims of this tragedy.
Earlier this year, our Nation solemnly commemorated the 80th anniversary of the liberation of Auschwitz, during which we memorialized the lives of the mothers, fathers, sisters, brothers, daughters, sons, grandmothers, and grandfathers whose futures were barbarically ripped away in Nazi-occupied Europe. During these Days of Remembrance of Victims of the Holocaust, we once again honor every Holocaust survivor who has imparted their wisdom to younger generations. Today and every day, we commit to preserving their stories.
The price to humanity of the lives lost during the Shoah can never be fully grasped or understood. Yet, even in the wake of the Holocaust, a self-determined Jewish homeland rose from the ashes as the modern State of Israel.
Sadly, our Nation has borne witness to the worst outbreak of anti-Semitism on American soil in generations. Nearly every day following the deadly October 7, 2023, attack on Israel, Jewish Americans were threatened on our streets and in our public square — a reminder that the poison of anti-Semitism tragically still exists.
For that reason, my Administration is proudly upholding the basic truth that anti-Semitism has no place in a civilized society. As President, I signed an Executive Order directing the Federal Government to use all available and appropriate legal tools to combat the explosion of anti-Semitic harassment in our schools and on college campuses — including through the removal of resident aliens who violate our laws. We are also steadfastly committed to investigating and swiftly punishing all anti-Semitic discrimination in leftist, anti-American colleges and universities.
During these Days of Remembrance of Victims of the Holocaust, we reflect upon the dark affront to human dignity posed by Nazis. We cherish the eternal memories of all those whose lives were lost to the deadly scourge of anti-Semitism. Above all, we vow to never forget the atrocities of the Holocaust. We declare that never again means now.
NOW, THEREFORE, I, DONALD J. TRUMP, President of the United States of America, do hereby ask the people of the United States to observe the Days of Remembrance of Victims of the Holocaust from April 20 through April 27, 2025, and the solemn anniversary of the liberation of Nazi death camps with appropriate study, prayers, and commemoration and to honor the memory of the victims of the Holocaust and Nazi persecution by remembering the lessons of this atrocity so that it is never repeated.
IN WITNESS WHEREOF, I have hereunto set my hand this
twenty-third day of April, in the year of our Lord two thousand twenty-five, and of the Independence of the United States of America the two hundred and forty-ninth.

DONALD J. TRUMP

MIL OSI USA News –

April 24, 2025

MIL-OSI: Precision Drilling Announces 2025 First Quarter Unaudited Financial Results

Source: GlobeNewswire (MIL-OSI)

CALGARY, Alberta, April 23, 2025 (GLOBE NEWSWIRE) — This news release contains “forward-looking information and statements” within the meaning of applicable securities laws. For a full disclosure of the forward-looking information and statements and the risks to which they are subject, see the “Cautionary Statement Regarding Forward-Looking Information and Statements” later in this news release. This news release contains references to certain Financial Measures and Ratios, including Adjusted EBITDA (earnings before income taxes, gain on investments and other assets, finance charges, foreign exchange, gain on asset disposals and depreciation and amortization), Funds Provided by (Used in) Operations, Net Capital Spending, Working Capital and Total Long-term Financial Liabilities. These terms do not have standardized meanings prescribed under International Financial Reporting Standards (IFRS) Accounting Standards and may not be comparable to similar measures used by other companies. See “Financial Measures and Ratios” later in this news release.

Precision Drilling Corporation (“Precision” or the “Company”) (TSX:PD; NYSE:PDS) announces 2025 first quarter results, confirms shareholder return targets, and lowers 2025 capital budget.

Financial Highlights

Revenue in the first quarter was $496 million compared to $528 million realized in the same period last year as strong drilling activity in Canada was offset by lower U.S. drilling activity.
Adjusted EBITDA⁽¹⁾ was $137 million and included $3 million of restructuring costs and $3 million of share-based compensation expense. In 2024, first quarter Adjusted EBITDA⁽¹⁾ was $143 million and included share-based compensation expense of $23 million.
First quarter net earnings attributable to shareholders was $35 million or $2.52 per share and comparable to $37 million or $2.53 per share in 2024. Precision has consistently delivered positive net earnings since mid-2022.
Cash provided by operations during the quarter was $63 million, allowing the Company to repurchase $31 million of common shares and repay $17 million of debt.
Capital expenditures were $60 million and the Company has lowered its 2025 capital budget to $200 million versus the $225 million previously announced.
Precision remains committed to repaying at least $100 million of debt in 2025 and allocating 35% to 45% of free cash flow, before debt repayments, to share buybacks.

Operational Highlights

Canada’s activity averaged 74 drilling rigs in the first quarter and surpassed the 73 active rigs in the same period last year.
Canadian revenue per utilization day was $35,601 and comparable to the $35,596 in the first quarter of 2024.
U.S. activity averaged 30 drilling rigs compared to 38 in the same period last year.
U.S. revenue per utilization day was US$33,157, which included US$1,263 per utilization day for idle but contracted rig revenue, versus US$32,867 in the first quarter of last year.
Internationally, we had eight rigs active in the first quarter, consistent with the first quarter of 2024, and realized revenue of US$36 million compared to US$38 million in 2024.
Service rig operating hours decreased 10% compared to the same quarter last year due to customer project deferrals and impacts of an earlier spring break up in Canada, plus lower U.S. activity.
(1) See “FINANCIAL MEASURES AND RATIOS.”

MANAGEMENT COMMENTARY

“I am pleased with Precision’s first quarter financial and operational results, and particularly with the efforts of the Precision team as we manage our way through a period of unusual volatility and market uncertainty. In the first quarter, our net earnings attributable to shareholders was $35 million, marking 11 consecutive quarters of positive earnings, and we are well on our way to meeting our capital allocation targets. During the quarter, we generated $63 million of cash provided by operations, allowing us to repay $17 million of debt and purchase $31 million of shares. Over the last four quarters, Precision has reduced its outstanding shares by nearly one million shares, representing 7% of our outstanding balance.

“During the first quarter our Canadian drilling activity remained slightly higher than last year, averaging 74 active rigs compared to 73 in 2024 and we expect this trend to continue through the first half of this year. In the U.S., we have modestly increased our activity levels from the fourth quarter, currently operating 34 rigs, primarily by capitalizing on the emerging opportunities in natural gas plays. With initial Liquefied Natural Gas (LNG) exports beginning shortly in Canada and significant LNG export capacity expansion underway in the U.S., we believe our market positioning for these increasing LNG opportunities is constructive.

“Second-half industry activity in North America will depend largely on customer realized cash flows and their capital allocation priorities. We believe industry capital discipline will remain a stabilizing market feature muting our customers’ short-term response to volatile commodity prices. However, global events and conflicts, including unexpected OPEC+ production increases, trade and tariff uncertainty, and geopolitical conflicts have the potential to impact global economic growth and access to commodity supplies, creating a range of commodity price scenarios which are difficult to predict.

“Tightly controlling all aspects of our business, adjusting spending and specifically managing Precision’s cash inflows and outflows at a pace that matches the cyclicality of our industry is a cornerstone of Precision’s business model. We are reducing our 2025 capital spending by $25 million to $200 million to mitigate increased market uncertainty and a potential reduction in customer demand. This includes trimming our expected upgrade spending by approximately $8 million and maintenance capital by $17 million. We remain poised to further adjust capital spending in response to actual customer demand.

“We have also reduced our fixed costs by approximately $10 million annually by streamlining our internal structure and focusing more directly on customer needs and aligning with current activity levels. These changes included flattening our operations leadership structure, exiting our North Dakota well-servicing business and reducing the related staffing levels.

“Our International drilling operations and Completion and Production business both contributed meaningful free cash flow for the quarter, and this is expected to continue for the rest of the year.

“With a predominantly variable cost business and low debt levels, a highly experienced team committed to serving our customers, and a high-performance rig fleet, Precision is better positioned than any time in the past decade to navigate uncertainty while simultaneously creating shareholder value,” concluded Mr. Neveu.

SELECT FINANCIAL AND OPERATING INFORMATION

Financial Highlights

	For the three months ended March 31,
(Stated in thousands of Canadian dollars, except per share amounts)		2025		2024		% Change
Revenue		496,331		527,788			(6.0	)
Adjusted EBITDA⁽¹⁾		137,497		143,149			(3.9	)
Net earnings		34,947		36,516			(4.3	)
Net earnings attributable to shareholders		34,511		36,516			(5.5	)
Cash provided by operations		63,419		65,543			(3.2	)
Funds provided by operations⁽¹⁾		109,842		117,765			(6.7	)

Cash used in investing activities		57,202		75,237			(24.0	)
Capital spending by spend category⁽¹⁾
Expansion and upgrade		19,546		14,370			36.0
Maintenance and infrastructure		40,419		41,157			(1.8	)
Proceeds on sale		(3,765	)	(5,186	)		(27.4	)
Net capital spending⁽¹⁾		56,200		50,341			11.6

Net earnings attributable to shareholders per share :
Basic		2.52		2.53			(0.4	)
Diluted		2.20		2.53			(13.0	)
Weighted average shares outstanding:
Basic		13,683		14,407			(5.0	)
Diluted		14,287		14,410			(0.9	)

(1) See “FINANCIAL MEASURES AND RATIOS.”

Operating Highlights

	For the three months ended March 31,
	2025		2024		% Change
Contract drilling rig fleet		215		214		0.5
Drilling rig utilization days:
Canada		6,680		6,617		1.0
U.S.		2,691		3,453		(22.1	)
International		720		728		(1.1	)
Revenue per utilization day:
Canada (Cdn$)		35,601		35,596		0.0
U.S. (US$)		33,157		32,867		0.9
International (US$)		49,419		52,808		(6.4	)
Operating costs per utilization day:
Canada (Cdn$)		20,822		19,959		4.3
U.S. (US$)		23,568		21,719		8.5

Service rig fleet		153		183		(16.4	)
Service rig operating hours		66,986		74,505		(10.1	)

Drilling Activity

	Average for the quarter ended 2024								Average for the quarter ended 2025
	Mar. 31		June 30		Sept. 30		Dec. 31			Mar. 31
Average Precision active rig count⁽¹⁾:
Canada		73		49		72		65			74
U.S.		38		36		35		34			30
International		8		8		8		8			8
Total		119		93		115		107			112

(1) Average number of drilling rigs working or moving.

Financial Position

(Stated in thousands of Canadian dollars, except ratios)	March 31, 2025			December 31, 2024
Working capital⁽¹⁾		(45,033	)		162,592
Cash		28,245			73,771
Long-term debt		567,824			812,469
Total long-term financial liabilities⁽¹⁾		632,369			888,173
Total assets		2,915,984			2,956,315
Long-term debt to long-term debt plus equity ratio⁽¹⁾		0.25			0.33

(1) See “FINANCIAL MEASURES AND RATIOS.”

Summary for the three months ended March 31, 2025:

Revenue was $496 million compared to $528 million in the first quarter of 2024 as strong drilling activity in Canada was offset by lower U.S. drilling activity.
Adjusted EBITDA decreased to $137 million from $143 million, primarily due to lower drilling activity in the U.S. and restructuring costs of $3 million that were partially offset by lower share-based compensation expense. Please refer to “Other Items” later in this news release for additional information on share-based compensation.
Adjusted EBITDA as a percentage of revenue was relatively stable at 28% compared to 27% in 2024.
Net earnings attributable to shareholders was $35 million or $2.52 per share and comparable with $37 million or $2.53 per share for the same period last year. On a diluted basis, net earnings attributable to shareholders was $2.20 versus $2.53 in 2024.
Cash provided by operations was $63 million, allowing the Company to repurchase 408,973 shares for $31 million, reduce debt by $17 million by repaying the outstanding balance on the Senior Credit Facility, and end the quarter with $28 million of cash and almost $550 million of available liquidity.
In Canada, revenue per utilization day was $35,601, consistent with the first quarter of 2024. Canadian operating costs per utilization day increased 4% to $20,822, mainly due to wage increases and Super Single rig reactivations. First quarter revenue and operating costs per utilization day were consistent with the fourth quarter of 2024.
In the U.S. revenue per utilization day, excluding idle but contracted rig revenue of US$1,263, was US$31,894 compared with US$32,867 in the first quarter of last year. First quarter revenue per utilization day, excluding idle but contracted rig revenue, increased by 4% from the fourth quarter of 2024.
U.S. operating costs per utilization day increased 9% to US$23,568 compared to the same quarter last year due to higher mobilization costs, additional rig reactivations, and fixed costs being spread over fewer activity days. These same factors caused operating costs per utilization per day in the first quarter to rise 9% compared to the fourth quarter of 2024.
Internationally, we realized revenue of US$36 million from eight active drilling rigs, which is similar to the US$38 million generated in the first quarter of 2024.
Completion and Production Services revenue was $79 million, a decrease of $8 million from 2024, as service rig operating hours decreased 10% due to a number of customer project deferrals and an earlier spring break up in Canada, plus less activity in the U.S. Adjusted EBITDA was $18 million, representing 22% of revenue compared to 21% in the first quarter of 2024.
General and administrative expenses were $30 million compared with $45 million in the first quarter of 2024 primarily due to lower share-based compensation expense.
Capital expenditures increased slightly to $60 million versus $56 million in 2024 and by spend category included $40 million for the maintenance of existing assets, infrastructure, and intangible assets and $20 million for expansion and upgrades. Precision has lowered its 2025 capital budget to $200 million.

STRATEGY

Precision’s vision is to be globally recognized as the High Performance, High Value provider of land drilling services. We work toward this vision by defining and measuring our results against strategic priorities that we establish at the beginning of every year.

Precision’s 2025 strategic priorities and the progress made during the first quarter are as follows:

Maximize free cash flow through disciplined capital deployment and strict cost management.
- Generated cash from operations of $63 million, allowing the Company to reduce debt and buy back shares.
- Proactively reduced fixed cost structure to address market uncertainty and expect to realize approximately $10 million in annual savings.
- Reduced our 2025 capital budget to $200 million versus the $225 million previously announced.
Enhance shareholder returns through debt reduction and share repurchases. Plan to reduce debt by at least $100 million and allocate 35% to 45% of free cash flow before debt repayments for share repurchases.
- Returned $31 million of capital to shareholders by repurchasing 408,973 shares during the quarter.
- Reduced debt by $17 million and ended the quarter with almost $550 million of available liquidity.
- Remain committed to reducing debt by at least $100 million in 2025 and allocating 35% to 45% of free cash flow, before debt repayments, directly to shareholders.
Grow revenue in existing service lines through contracted upgrades, optimized pricing and utilization, and opportunistic consolidating tuck-in acquisitions.
- Increased Canadian rig utilization, averaging 74 active rigs for the first quarter versus 73 in 2024.
- Maintained strong pricing in Canada with revenue per utilization per day of $35,601, aligning with an average day rate of $35,596 in the first quarter of 2024.
- Invested $20 million in expansion and upgrade capital to enhance our drilling rigs.
- Current market conditions and commodity price volatility make acquisitions less likely in the near term.

OUTLOOK

Near-term expectations for global energy demand growth have been tempered by several geopolitical events including OPEC+ easing of curtailments, trade policy uncertainty, and international conflicts. However, we believe the long-term fundamentals for energy demand are positive, driven by economic growth, increasing demand from emerging economies, and new energy sources of power demand.

In Canada, the Trans Mountain pipeline expansion, which became operational in May of 2024, combined with the imminent startup of LNG Canada will provide significant tidewater access for Canadian crude oil and natural gas, supporting Canadian drilling activity. In the U.S., the next wave of LNG export terminals is expected to add approximately 13 bcf/d of export capacity over the next five years, supporting U.S. natural gas drilling activity beyond domestic demand growth and further supporting natural gas drilling.

Our Canadian drilling activity peaked at 82 rigs in the first quarter with our Super Triple and Super Single rigs near full utilization. We expect the traditional spring breakup period this year to have a historically small impact on our activity, as strong demand for our growing fleet of pad-capable rigs should allow 45 to 48 rigs to continue operating during this period versus 43 last year. Despite trade and tariff uncertainty and oil prices falling to approximately US$60 per barrel, we have not experienced any meaningful change in customer demand or their longer-term plans. Overall, we expect our Canadian drilling activity to be up for the first half of the year compared to the first six months of 2024.

In the U.S., we have modestly increased our activity levels from the fourth quarter, currently operating 34 rigs, primarily by capitalizing on the emerging opportunities in natural gas plays. With significant LNG export capacity expansion underway in the U.S., we believe our market positioning for these increasing LNG opportunities is constructive.

North American industry activity in the second half of this year will depend largely on customer realized cash flows and their capital allocation priorities. We believe industry capital discipline will remain a stabilizing market feature muting our customers’ short-term response to volatile commodity prices. However, global events and conflicts, including unexpected OPEC+ production increases, trade and tariff uncertainty, and geopolitical conflicts have the potential to impact global economic growth and access to commodity supplies, creating a range of commodity price scenarios which are difficult to predict.

Internationally, we have eight rigs on term contracts, five in Kuwait and three in the Kingdom of Saudi Arabia. The majority of these rigs are under five-year term contracts that extend into 2027 and 2028, providing predictable cash flow for the next few years. In May and for the remainder of the year, we expect seven active rigs compared to eight for the first four months of the year but with no material impact on our 2025 cash flow. We continue to look for opportunities to leverage our international expertise.

As the premier well service provider in Canada, the outlook for this business remains strong, driven by increased takeaway capacity from Trans Mountain pipeline expansion and LNG Canada, and increased regulatory spending requirements for abandonment work. With continued labour constraints, we expect firm pricing into the foreseeable future.

Contracts

The following chart outlines the average number of drilling rigs under term contract by quarter as at April 23, 2025. For those quarters ending after March 31, 2025, this chart represents the minimum number of term contracts from which we will earn revenue. We expect the actual number of contracted rigs to vary in future periods as we sign additional term contracts.

As at April 23, 2025	Average for the quarter ended 2024								Average		Average for the quarter ended 2025								Average
	Mar. 31		June 30		Sept. 30		Dec. 31		2024		Mar. 31		June 30		Sept. 30		Dec. 31		2025
Average rigs under term contract:
Canada		24		22		23		23		23		20		19		18		14		18
U.S.		20		17		17		16		18		16		15		11		8		13
International		8		8		8		8		8		8		7		7		7		7
Total		52		47		48		47		49		44		41		36		29		38

SEGMENTED FINANCIAL RESULTS

Precision’s operations are reported in two segments: Contract Drilling Services, which includes our drilling rig, oilfield supply and manufacturing divisions; and Completion and Production Services, which includes our service rig, rental and camp and catering divisions.

SEGMENT REVIEW OF CONTRACT DRILLING SERVICES

	For the three months ended March 31,
(Stated in thousands of Canadian dollars, except where noted)		2025		2024		% Change
Revenue		419,457		443,367			(5.4	)
Expenses:
Operating		272,412		276,692			(1.5	)
General and administrative		11,029		13,002			(15.2	)
Adjusted EBITDA⁽¹⁾		136,016		153,673			(11.5	)
Adjusted EBITDA as a percentage of revenue⁽¹⁾		32.4	%	34.7	%

(1) See “FINANCIAL MEASURES AND RATIOS.”

Canadian onshore drilling statistics:⁽¹⁾

2025

2024

Precision

Industry⁽²⁾

Precision

Industry⁽²⁾

Average number of active land rigs for quarters ended:

March 31

214

208

(1) Canadian operations only.
(2) Baker Hughes rig counts.

United States onshore drilling statistics:⁽¹⁾

2025

2024

Precision

Industry⁽²⁾

Precision

Industry⁽²⁾

Average number of active land rigs for quarters ended:

March 31

572

602

(1) United States lower 48 operations only.
(2) Baker Hughes rig counts.

SEGMENT REVIEW OF COMPLETION AND PRODUCTION SERVICES

	For the three months ended March 31,
(Stated in thousands of Canadian dollars, except where noted)		2025		2024		% Change
Revenue		79,330		87,087			(8.9	)
Expenses:
Operating		59,112		65,480			(9.7	)
General and administrative		2,672		3,002			(11.0	)
Adjusted EBITDA⁽¹⁾		17,546		18,605			(5.7	)
Adjusted EBITDA as a percentage of revenue⁽¹⁾		22.1	%	21.4	%
Well servicing statistics:
Number of service rigs (end of period)		153		183			(16.4	)
Service rig operating hours		66,986		74,505			(10.1	)

(1) See “FINANCIAL MEASURES AND RATIOS.”

OTHER ITEMS

Share-based Incentive Compensation Plans

We have several cash and equity-settled share-based incentive plans for non-management directors, officers, and other eligible employees. Our accounting policies for each share-based incentive plan can be found in our 2024 Annual Report.

A summary of expense amounts under these plans during the reporting periods are as follows:

	For the three months ended March 31,
(Stated in thousands of Canadian dollars)	2025		2024
Cash settled share-based incentive plans		403		21,759
Equity settled share-based incentive plans		2,427		875
Total share-based incentive compensation plan expense		2,830		22,634

Allocated:
Operating		1,128		5,252
General and Administrative		1,702		17,382
		2,830		22,634

FINANCIAL MEASURES AND RATIOS

Non-GAAP Financial Measures

We reference certain additional Non-Generally Accepted Accounting Principles (Non-GAAP) measures that are not defined terms under IFRS Accounting Standards to assess performance because we believe they provide useful supplemental information to investors.

Adjusted EBITDA

We believe Adjusted EBITDA (earnings before income taxes, gain on investments and other assets, finance charges, foreign exchange, gain on asset disposals and depreciation and amortization), as reported in our Condensed Interim Consolidated Statements of Net Earnings and our reportable operating segment disclosures, is a useful measure because it gives an indication of the results from our principal business activities prior to consideration of how our activities are financed and the impact of foreign exchange, taxation and depreciation and amortization charges.

The most directly comparable financial measure is net earnings.

	For the three months ended March 31,
(Stated in thousands of Canadian dollars)		2025		2024
Adjusted EBITDA by segment:
Contract Drilling Services		136,016		153,673
Completion and Production Services		17,546		18,605
Corporate and Other		(16,065	)	(29,129	)
Adjusted EBITDA		137,497		143,149
Depreciation and amortization		75,036		78,213
Gain on asset disposals		(2,872	)	(3,237	)
Foreign exchange		367		394
Finance charges		15,760		18,369
Gain on investments and other assets		(49	)	(228	)
Income taxes		14,308		13,122
Net earnings		34,947		36,516
Non-controlling interests		436		—
Net earnings attributable to shareholders		34,511		36,516

Funds Provided by (Used in) Operations

We believe funds provided by (used in) operations, as reported in our Condensed Interim Consolidated Statements of Cash Flows, is a useful measure because it provides an indication of the funds our principal business activities generate prior to consideration of working capital changes, which is primarily made up of highly liquid balances.

The most directly comparable financial measure is cash provided by (used in) operations.

Net Capital Spending

We believe net capital spending is a useful measure as it provides an indication of our primary investment activities.

The most directly comparable financial measure is cash provided by (used in) investing activities.

Net capital spending is calculated as follows:

	For the three months ended March 31,
(Stated in thousands of Canadian dollars)		2025		2024
Capital spending by spend category
Expansion and upgrade		19,546		14,370
Maintenance, infrastructure and intangibles		40,419		41,157
		59,965		55,527
Proceeds on sale of property, plant and equipment		(3,765	)	(5,186	)
Net capital spending		56,200		50,341
Purchase of investments and other assets		11		—
Receipt of finance lease payments		(208	)	(191	)
Changes in non-cash working capital balances		1,199		25,087
Cash used in investing activities		57,202		75,237

Working Capital

We define working capital as current assets less current liabilities, as reported in our Condensed Interim Consolidated Statements of Financial Position.

Working capital is calculated as follows:

	March 31,			December 31,
(Stated in thousands of Canadian dollars)		2025			2024
Current assets		481,111			501,284
Current liabilities		(526,144	)		(338,692	)
Working capital		(45,033	)		162,592

Total Long-term Financial Liabilities

We define total long-term financial liabilities as total non-current liabilities less deferred tax liabilities, as reported in our Condensed Interim Consolidated Statements of Financial Position.

Total long-term financial liabilities is calculated as follows:

	March 31,			December 31,
(Stated in thousands of Canadian dollars)		2025			2024
Total non-current liabilities		688,940			935,624
Deferred tax liabilities		(56,571	)		(47,451	)
Total long-term financial liabilities		632,369			888,173

Non-GAAP Ratios
We reference certain additional Non-GAAP ratios that are not defined terms under IFRS to assess performance because we believe they provide useful supplemental information to investors.
*Adjusted EBITDA % of Revenue*	We believe Adjusted EBITDA as a percentage of consolidated revenue, as reported in our Condensed Interim Consolidated Statements of Net Earnings, provides an indication of our profitability from our principal business activities prior to consideration of how our activities are financed and the impact of foreign exchange, taxation and depreciation and amortization charges.
*Long-term debt to long-term debt plus equity*	We believe that long-term debt (as reported in our Condensed Interim Consolidated Statements of Financial Position) to long-term debt plus equity (total equity as reported in our Condensed Interim Consolidated Statements of Financial Position) provides an indication of our debt leverage. For the period ended March 31, 2025 long-term debt includes long-term debt plus current portion of long-term debt as reported in our Consolidated Interim Consolidated Statements of Financial Position.
*Net Debt to Adjusted EBITDA*	We believe that the Net Debt (long-term debt plus current portion of long-term debt less cash, as reported in our Condensed Interim Consolidated Statements of Financial Position) to Adjusted EBITDA ratio provides an indication of the number of years it would take for us to repay our debt obligations. For the period ended March 31, 2025 long-term debt includes long-term debt plus current portion of long-term debt as reported in our Consolidated Interim Consolidated Statements of Financial Position.
Supplementary Financial Measures
We reference certain supplementary financial measures that are not defined terms under IFRS to assess performance because we believe they provide useful supplemental information to investors.
*Capital Spending by Spend Category*	We provide additional disclosure to better depict the nature of our capital spending. Our capital spending is categorized as expansion and upgrade, maintenance and infrastructure, or intangibles.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS

Certain statements contained in this release, including statements that contain words such as “could”, “should”, “can”, “anticipate”, “estimate”, “intend”, “plan”, “expect”, “believe”, “will”, “may”, “continue”, “project”, “potential” and similar expressions and statements relating to matters that are not historical facts constitute “forward-looking information” within the meaning of applicable Canadian securities legislation and “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking information and statements”).

In particular, forward-looking information and statements include, but are not limited to, the following:

our strategic priorities for 2025;
our capital expenditures, free cash flow allocation and debt reduction plans for 2025 and beyond;
anticipated activity levels, demand for our drilling rigs, day rates and daily operating margins in 2025;
the average number of term contracts in place for 2025;
customer adoption of Alpha™ technologies and EverGreen™ suite of environmental solutions;
potential commercial opportunities and rig contract renewals; and
our future debt reduction plans.

These forward-looking information and statements are based on certain assumptions and analysis made by Precision in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. These include, among other things:

our ability to react to customer spending plans as a result of changes in oil and natural gas prices;
the status of current negotiations with our customers and vendors;
customer focus on safety performance;
existing term contracts are neither renewed nor terminated prematurely;
our ability to deliver rigs to customers on a timely basis;
the impact of an increase/decrease in capital spending; and
the general stability of the economic and political environments in the jurisdictions where we operate.

Undue reliance should not be placed on forward-looking information and statements. Whether actual results, performance or achievements will conform to our expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results to differ materially from our expectations. Such risks and uncertainties include, but are not limited to:

volatility in the price and demand for oil and natural gas;
fluctuations in the level of oil and natural gas exploration and development activities;
fluctuations in the demand for contract drilling, well servicing and ancillary oilfield services;
our customers’ inability to obtain adequate credit or financing to support their drilling and production activity;
changes in drilling and well servicing technology, which could reduce demand for certain rigs or put us at a competitive advantage;
shortages, delays and interruptions in the delivery of equipment supplies and other key inputs;
liquidity of the capital markets to fund customer drilling programs;
availability of cash flow, debt and equity sources to fund our capital and operating requirements, as needed;
the impact of weather and seasonal conditions on operations and facilities;
the impact of tariffs and trade disputes;
competitive operating risks inherent in contract drilling, well servicing and ancillary oilfield services;
ability to improve our rig technology to improve drilling efficiency;
general economic, market or business conditions;
the availability of qualified personnel and management;
a decline in our safety performance which could result in lower demand for our services;
changes in laws or regulations, including changes in environmental laws and regulations such as increased regulation of hydraulic fracturing or restrictions on the burning of fossil fuels and greenhouse gas emissions, which could have an adverse impact on the demand for oil and natural gas;
terrorism, social, civil and political unrest in the foreign jurisdictions where we operate;
fluctuations in foreign exchange, interest rates and tax rates; and
other unforeseen conditions which could impact the use of services supplied by Precision and Precision’s ability to respond to such conditions.

Readers are cautioned that the forgoing list of risk factors is not exhaustive. Additional information on these and other factors that could affect our business, operations or financial results are included in reports on file with applicable securities regulatory authorities, including but not limited to Precision’s Annual Information Form for the year ended December 31, 2024, which may be accessed on Precision’s SEDAR+ profile at www.sedarplus.ca or under Precision’s EDGAR profile at www.sec.gov. The forward-looking information and statements contained in this release are made as of the date hereof and Precision undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, except as required by law.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

(Stated in thousands of Canadian dollars)	March 31, 2025			December 31, 2024
ASSETS
Current assets:
Cash	$	28,245		$	73,771
Accounts receivable		397,684			378,712
Inventory		49,176			43,300
Assets held for sale		6,006			5,501
Total current assets		481,111			501,284
Non-current assets:
Deferred tax assets		2,437			6,559
Property, plant and equipment		2,342,482			2,356,173
Intangibles		13,537			12,997
Right-of-use assets		63,223			66,032
Finance lease receivables		4,670			4,806
Investments and other assets		8,524			8,464
Total non-current assets		2,434,873			2,455,031
Total assets	$	2,915,984		$	2,956,315

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	271,696		$	314,355
Income taxes payable		4,526			3,778
Current portion of lease obligations		19,703			20,559
Current portion of long-term debt		230,219			—
Total current liabilities		526,144			338,692

Non-current liabilities:
Share-based compensation		5,391			13,666
Provisions and other		7,478			7,472
Lease obligations		51,676			54,566
Long-term debt		567,824			812,469
Deferred tax liabilities		56,571			47,451
Total non-current liabilities		688,940			935,624
Equity:
Shareholders’ capital		2,287,422			2,301,729
Contributed surplus		77,011			77,557
Accumulated other comprehensive income		197,827			199,020
Deficit		(866,323	)		(900,834	)
Total equity attributable to shareholders		1,695,937			1,677,472
Non-controlling interest		4,963			4,527
Total equity		1,700,900			1,681,999
Total liabilities and equity	$	2,915,984		$	2,956,315

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF NET EARNINGS (LOSS) (UNAUDITED)

	Three Months Ended March 31,
(Stated in thousands of Canadian dollars, except per share amounts)	2025			2024


Revenue	$	496,331		$	527,788
Expenses:
Operating		329,068			339,506
General and administrative		29,766			45,133
Earnings before income taxes, gain on investments and other assets, finance charges, foreign exchange, gain on asset disposals, and depreciation and amortization		137,497			143,149
Depreciation and amortization		75,036			78,213
Gain on asset disposals		(2,872	)		(3,237	)
Foreign exchange		367			394
Finance charges		15,760			18,369
Gain on investments and other assets		(49	)		(228	)
Earnings before income taxes		49,255			49,638
Income taxes:
Current		1,106			1,017
Deferred		13,202			12,105
		14,308			13,122
Net earnings	$	34,947		$	36,516
Attributable to:
Shareholders of Precision Drilling Corporation	$	34,511		$	36,516
Non-controlling interests	$	436		$	—
Net earnings per share attributable to shareholders of Precision Drilling Corporation:
Basic	$	2.52		$	2.53
Diluted	$	2.20		$	2.53

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)

	Three Months Ended March 31,
(Stated in thousands of Canadian dollars)	2025			2024
Net earnings	$	34,947		$	36,516
Unrealized gain (loss) on translation of assets and liabilities of operations denominated in foreign currency		(658	)		32,253
Foreign exchange loss on net investment hedge with U.S. denominated debt		(535	)		(20,159	)
Comprehensive income	$	33,754		$	48,610
Attributable to:
Shareholders of Precision Drilling Corporation	$	33,318		$	48,610
Non-controlling interests	$	436		$	—

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	Three Months Ended March 31,
(Stated in thousands of Canadian dollars)	2025			2024
Cash provided by (used in):
Operations:
Net earnings	$	34,947		$	36,516
Adjustments for:
Long-term compensation plans		3,016			7,451
Depreciation and amortization		75,036			78,213
Gain on asset disposals		(2,872	)		(3,237	)
Foreign exchange		(783	)		728
Finance charges		15,760			18,369
Income taxes		14,308			13,122
Gain on investments and other assets		(49	)		(228	)
Income taxes paid		(321	)		(234	)
Interest paid		(29,637	)		(33,430	)
Interest received		437			495
Funds provided by operations		109,842			117,765
Changes in non-cash working capital balances		(46,423	)		(52,222	)
Cash provided by operations		63,419			65,543

Investments:
Purchase of property, plant and equipment		(59,965	)		(55,527	)
Proceeds on sale of property, plant and equipment		3,765			5,186
Purchase of investments and other assets		(11	)		—
Receipt of finance lease payments		208			191
Changes in non-cash working capital balances		(1,199	)		(25,087	)
Cash used in investing activities		(57,202	)		(75,237	)

Financing:
Repayment of long-term debt		(17,110	)		(716	)
Repurchase of share capital		(30,766	)		(10,081	)
Lease payments		(3,587	)		(3,200	)
Cash used in financing activities		(51,463	)		(13,997	)
Effect of exchange rate changes on cash		(280	)		457
Increase (decrease) in cash		(45,526	)		(23,234	)
Cash, beginning of period		73,771			54,182
Cash, end of period	$	28,245		$	30,948

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)

	Attributable to shareholders of the Corporation
(Stated in thousands of Canadian dollars)	Shareholders’ Capital			Contributed Surplus			Accumulated Other Comprehensive Income			Deficit			Total			Non- controlling interest		Total Equity
Balance at January 1, 2025	$	2,301,729		$	77,557		$	199,020		$	(900,834	)	$	1,677,472		$	4,527	$	1,681,999
Net earnings for the period		—			—			—			34,511			34,511			436		34,947
Other comprehensive income for the period		—			—			(1,193	)		—			(1,193	)		—		(1,193	)
Settlement of Executive Performance and Restricted Share Units		11,651			(2,790	)		—			—			8,861			—		8,861
Share repurchases		(26,141	)		—			—			—			(26,141	)		—		(26,141	)
Redemption of non-management directors share units		183			(183	)		—			—			—			—		—
Share-based compensation expense		—			2,427			—			—			2,427			—		2,427
Balance at March 31, 2025	$	2,287,422		$	77,011		$	197,827		$	(866,323	)	$	1,695,937		$	4,963	$	1,700,900

	Attributable to shareholders of the Corporation
(Stated in thousands of Canadian dollars)	Shareholders’ Capital			Contributed Surplus			Accumulated Other Comprehensive Income		Deficit			Total			Non- controlling interest		Total Equity
Balance at January 1, 2024	$	2,365,129		$	75,086		$	147,476	$	(1,012,029	)	$	1,575,662		$	—	$	1,575,662
Net earnings for the period		—			—			—		36,516			36,516			—		36,516
Other comprehensive income for the period		—			—			12,094		—			12,094			—		12,094
Settlement of Executive Performance and Restricted Share Units		21,846			(1,479	)		—		—			20,367			—		20,367
Share repurchases		(10,081	)		—			—		—			(10,081	)		—		(10,081	)
Share-based compensation expense		—			875			—		—			875			—		875
Balance at March 31, 2024	$	2,376,894		$	74,482		$	159,570	$	(975,513	)	$	1,635,433		$	—	$	1,635,433

2025 FIRST QUARTER RESULTS CONFERENCE CALL AND WEBCAST

Precision Drilling Corporation has scheduled a conference call and webcast to begin promptly at 11:00 a.m. MT (1:00 p.m. ET) on Thursday, April 24, 2025.

To participate in the conference call please register at the URL link below. Once registered, you will receive a dial-in number and a unique PIN, which will allow you to ask questions.

https://register-conf.media-server.com/register/BIfac587dca2994a30be564b41d99b43ac

The call will also be webcast and can be accessed through the link below. A replay of the webcast call will be available on Precision’s website for 12 months.

https://edge.media-server.com/mmc/p/gifawh57

About Precision

Precision is a leading provider of safe and environmentally responsible High Performance, High Value services to the energy industry, offering customers access to an extensive fleet of Super Series drilling rigs. Precision has commercialized an industry-leading digital technology portfolio known as Alpha™ that utilizes advanced automation software and analytics to generate efficient, predictable, and repeatable results for energy customers. Our drilling services are enhanced by our EverGreen™ suite of environmental solutions, which bolsters our commitment to reducing the environmental impact of our operations. Additionally, Precision offers well service rigs, camps and rental equipment all backed by a comprehensive mix of technical support services and skilled, experienced personnel.

Precision is headquartered in Calgary, Alberta, Canada and is listed on the Toronto Stock Exchange under the trading symbol “PD” and on the New York Stock Exchange under the trading symbol “PDS”.

Additional Information

For further information, please contact:

Lavonne Zdunich, CPA, CA
Vice President, Investor Relations
403.716.4500

800, 525 – 8th Avenue S.W.
Calgary, Alberta, Canada T2P 1G1
Website: www.precisiondrilling.com

The MIL Network –

April 24, 2025

MIL-OSI USA: State’s Outdoor Recreation and Conservation Leaders Announce Launch of Colorado’s Outdoors Strategy
Source: US State of Colorado

Collaborative vision for conservation, outdoor recreation, and climate resilience ensures an enduring future for generations to come

COLORADO SPRINGS – Colorado Governor Jared Polis and coordinating partners from several state conservation, outdoor recreation, and climate resilience departments and programs, announced today the launch of Colorado’s Outdoors Strategy, a statewide vision and framework for action that ensures a future where Colorado’s outdoors, people, community character, and ways of life endure for generations to come. The Strategy was unveiled at the Partners in the Outdoors Conference in Colorado Springs. Coordinating partners involved in the Strategy development and rollout included Colorado Parks and Wildlife, Great Outdoors Colorado (GOCO), Colorado Department of Natural Resources, the Colorado Outdoor Recreation Industry Office, and the Governor’s Office of Climate Preparedness & Disaster Recovery.

Colorado’s Outdoors Strategy, one of the first of its kind in the United States, is the state’s conservation, outdoor recreation, and climate resilience strategy. It advances coordination, tools, and funding to align, prioritize, and implement strategic actions on the landscape for conservation, outdoor recreation, and climate resilience.

“Coloradans and our visitors love our great outdoors, and the outdoors are essential to what makes our state special,” said Governor Polis. “The health of our wildlife, biodiversity, people, communities, agriculture, and economies depends on thriving natural environments and amazing outdoor recreation experiences that our state provides. But our wild areas face significant and urgent pressures from growing populations, human disturbance, climate change, wildfires, and drought – and we are at an important crossroads. Our Strategy provides structure and important tools to help communities effectively and successfully plan and implement for the future.”

Outdoor spaces are vital to residents, with 96% engaging in outdoor activities at least annually and 90 million visitors exploring the state in 2022. With more than 960 wildlife species and a population expected to grow from 5.5 million to 8.5 million by 2050, the Strategy supports Colorado’s efforts to celebrate and balance both conservation and recreation. Colorado’s Outdoors Strategy has three goals:
1. Climate-Resilient Conservation and Restoration: Conservation and restoration of lands and waters help wildlife and biodiversity thrive; habitats are resilient and connected; communities beneﬁt from healthy ecosystems and agricultural lands.
2. Exceptional and Sustainable Outdoor Recreation: A diversity of high-quality outdoor experiences are accessible, equitable, and inclusive; management and stewardship enhance beneﬁts for and minimize impacts to people, landscapes, and communities.
3. Coordinated Planning and Funding: Planning and implementation are interdisciplinary; supported by robust funding and capacity; inclusive of diverse perspectives and communities; and drive meaningful action for the outdoors.
“The Strategy supports all who love the outdoors in working together to achieve climate-resilient conservation and restoration coupled with exceptional and sustainable outdoor recreation,” said Jeff Davis, Director, Colorado Parks and Wildlife. “Everyone can use the Strategy’s vision and goals as ‘North Stars’ to champion Colorado’s outdoors and coordinate efforts to achieve key outcomes for the state. The success of Colorado’s Outdoors Strategy hinges on partnerships to work together toward common goals and solutions.”

The Strategy comes to life through 9 objectives and 33 coordinating partner actions, along with a Resource Hub, offering free online data, mapping tools, and other resources to support conservation, outdoor recreation, and climate resilience planning. Available to public and private partners, the hub streamlines collaboration and enhances planning efforts for the outdoors. It currently provides:
- An interactive data dashboard with state and county scale information, data, and links for conservation, outdoor recreation, and climate resilience.
- An interactive plan library that is searchable for federal, regional, state, and county scale conservation, outdoor recreation, and climate resilience plans in Colorado.
- Planning resources and guidance for conservation, outdoor recreation, and climate resilience.
- A statewide Guidance Framework for Tribal Collaboration in Conservation, Outdoor Recreation, and Climate Resilience.
- An interactive Equity, Diversity, and Inclusion Resource and Action Guide that is searchable by topic area.
- Colorado’s Conservation Data Explorer (CODEX) and StoryMap with conservation, outdoor recreation, and climate resilience mapping tools.
Coordinating partners worked to develop the Strategy and Resource Hub over the past year. Other key partners contributed to the effort including state, federal, and local governments; Tribal Nations; private and agricultural land/water rights owners and managers; local communities; Colorado Regional Partnerships Initiative; Colorado Outdoor Partnership; and diverse private and public sector partners in conservation, restoration, outdoor recreation, stewardship, climate resilience, and equity, diversity, and inclusion.

“Colorado’s Outdoors Strategy is a bold, collaborative vision for the future of our state’s great outdoors. With leadership from the Department of Natural Resources, Great Outdoors Colorado, Colorado Parks and Wildlife, the Outdoor Recreation Office, and the Governor’s office, we’ve developed an innovative framework that will guide how we protect and steward Colorado’s landscapes — making them more climate-resilient, while also ensuring exceptional recreational opportunities are accessible to all. Our outdoors are more than just playgrounds — they are the heart of our Colorado way of life. But they’re under pressure — from population growth, increasing visitation, climate change, wildfires, and drought. To help tackle these challenges, we’ve spent the last few years listening — to communities, to experts, to everyday Coloradans — and crafting a strategy that reflects our shared commitment to protecting what makes this state so special. We’re proud of the work that’s been done, and even more excited about what comes next,” said Dan Gibbs, Executive Director, Colorado Department of Natural Resources.

“As Colorado’s significant outdoor industry continues to grow, the Colorado Outdoor Strategy offers a vital roadmap for balancing economic opportunity with environmental stewardship and conservation. It empowers communities, businesses, and land managers to work together in building a future where our landscapes are resilient, recreation is sustainable, and access is equitable. This strategy reflects our shared belief that the outdoors are central to Colorado’s identity, economy, and way of life—and that we all have a role in protecting them,” said Conor Hall, Director, Colorado Outdoor Recreation Industry Office.

“Colorado’s Outdoors Strategy boosts Colorado’s technical chops, partner collaboration and funding menu to answer the question; how do we ensure our wild places, wildlife and wild opportunities thrive even while accounting for a changing climate and growing state. The Office of Climate Preparedness is proud to see this multi-year effort launch, advancing Colorado’s preparedness for a climate impacted future, building a state of the art technical foundation, on which state, local and federal partnerships can work together to realize a flourishing future for Colorado’s outdoors,” said Jonathan Asher, Director, Governor’s Office of Climate Preparedness & Disaster Recovery.

“Colorado’s outdoor champions are showing their strength. The strategy is a testament to the power of partnership. United by a shared vision and leveraging the best available research, data, and resources, we are equipped to make decisions that will protect Colorado’s landscapes, foster vibrant communities, and improve Coloradans’ quality of life for years to come,” said GOCO’s Executive Director Jackie Miller. “We’ve accomplished so much already, and we’re just getting started.”

“The Nature Conservancy in Colorado is proud to have offered our science, insights, and expertise to help develop Colorado’s Outdoors Strategy. We are excited to be part of this historic milestone for conservation, outdoor recreation, and climate resilience, and we believe it will have far-reaching and meaningful impacts to benefit our lands, waters, recreation, and economy. Efforts like Colorado’s Outdoors Strategy show that we can work together to find solutions that benefit people and nature,” said Carlos Fernández, Colorado State Director, The Nature Conservancy.

“The Strategy’s Guidance Framework for Tribal Collaboration offers a much-needed approach to ensuring that Tribes are actively involved in decision-making processes, and we appreciate the opportunity to contribute our expertise and traditional knowledge to help shape the direction of this work. By supporting this framework, our focus is to enhance Tribal participation in land and water management decisions, protect sacred lands, and preserve ecosystems that are vital to the health and well-being of our communities,” said Chairman Melvin J. Baker of the Southern Ute Indian Tribe.

“To plan for recreation and conservation as separate pursuits would be like planting two halves of a tree on opposite sides of the forest — they will grow at the same time, but they will never form the same canopy. The health of the land requires harmony, not division. The Colorado Outdoor Strategy offers a way to manage the needs of wildlife and the wanderings of people in concert,” said Patt Dorsey, West Region Director of Conservation Operations, National Wild Turkey Federation.

“Colorado’s Outdoors Strategy is a voluntary collaborative partnership for agriculture, conservation and recreation possibilities, whilst safeguarding Agriculture integrity and productivity,” said Tony Hass, Las Animas County Commissioner and Manager, Walking Y Ranch.

“I am immensely grateful to have been chosen as a member of the Colorado Outdoors Strategy Steering Committee. The Strategy has the potential of memorializing a comprehensive approach to the symbiotic relationship between recreation and conservation that exists in Colorado and fairly makes this state a mecca for high quality experiences,” said Janelle Kukuk, Former State Trails Member, snowmobile at-large.

“Colorado’s Outdoors Strategy represents years of hard work by countless communities, organizations and individuals, but more importantly it represents a collective commitment to look forward in a proactive and inclusive manner to avoid the mistakes of our past. Our ability to address the challenges of climate change, wildlife habitat loss and fragmentation, and fostering equitable and inclusive outdoor recreation opportunities requires collaboration from all stakeholders and Colorado’s Outdoors Strategy provides the framework for our local Regional Partnership Initiatives to envision what they want their communities to invest in for the future, a future that all Coloradans now have a stake in because of the Strategy,” said Luke Shafer, West Slope Director, Conservation Colorado.

“Envision is excited to see Colorado’s Outdoors Strategy launch. Since 2016, Envision has been listening to residents and visitors and taking action with community and agency partners to sustain the healthy forests, waters, wildlife, working agricultural landscapes and exceptional outdoor recreation that make Chaffee County and Colorado such a special place to live and to visit. The Strategy offers a statewide framework to connect and empower grassroots efforts and organizations like ours to do more to protect the Colorado we love together,” said Cindy Williams, Chair, Envision Chaffee County.

“Strategic approaches have been the cornerstone for much of the success around land conservation and outdoor recreation state-wide. Colorado’s Outdoors Strategy represents a cohesive and forward thinking approach to how we continue to balance the conservation of key landscapes that characterize the beauty and sustainability of our state while at the same time providing for meaningful outdoor experiences,” said Daylan Figgs, Director, Larimer County Natural Resources.

“Colorado’s Outdoors Strategy cohesively aligns with Larimer County’s vision for the future by outlining a pathway to conserve its vibrant natural resources and valuable outdoor experiences. It is clear the challenges we face as a state are not unique to any one of us alone. The Strategy guides our future as partners in solving issues collectively, strengthening our resiliency as we face the future,” said Jody Shadduck-McNally, Larimer County Commissioner.

“COS is a transformative path to a future where Colorado’s nature, people, and ways of life endure and thrive. The Colorado Natural Heritage Program is proud to have been a partner on the project team, helping to build a legacy of planning tools to inform decision-making in climate-resilient conservation, exceptional and sustainable outdoor recreation, and coordinated planning and funding. We are thrilled to host the map layers from COS on Colorado’s Conservation Data Explorer (CODEX), a collaborative space where all Coloradans can explore these tools and use them to drive sustainable investment in Colorado’s future. CNHP will use COS tools across our program, including our five-year Statewide Natural Heritage Survey, in which we are leveling up Colorado’s conservation data in the service of the COS, the Regional Partnership Initiative, and all of Colorado’s communities,” said David Anderson, Director and Chief Scientist, Colorado Natural Heritage Program, Colorado State University.

“The love of the outdoors brings Coloradoans together. The COS is a voluntary partnership and tool that will help communities and regions celebrate and enhance access to Colorado’s innate natural beauty,” said Kelly Flenniken, Executive Director, Colorado Counties, Inc.

“I am thrilled to see the release of Colorado’s Outdoors Strategy after years working with stakeholders from around the state to address community needs and find a balance between conservation and outdoor recreation. BLM depends on partnerships with the state and local communities to meet the needs of the over 10 million visitors each year to BLM public lands, which generate over $1.5 billion in economic impact each year. This new strategy continues Colorado’s leadership in fostering collaboration between hunters, anglers, boaters, climbers, equestrians, mountain bikers, OHVers, and so many more partners, to steward our incredible public lands,” said Doug Vilsack, Colorado State Director, Bureau of Land Management.

“Colorado has thousands of miles of incredible rivers that hundreds of thousands of residents and visitors flock to every year. American Whitewater is very excited about the direction and guidance Colorado’s Outdoors Strategy will provide. This effort is sure to protect our incredible recreational resources and vital ecosystems for many future generations,” said Hattie Johnson, Southern Rockies Restoration Director, American Whitewater.

“COS provides navigational guidance and robust tools to integrate wildlife conservation needs and outdoor recreation desires,” said Suzanne O’Neill, Colorado Wildlife Federation.

“Colorado’s Outdoors Strategy was born to help Coloradans enjoy robust wildlife populations, awe-inspiring landscapes, fulfilling recreational opportunities, and strong economies. But this future is only possible through informed planning followed by strategic action that avoids, minimizes, and mitigates adverse impacts to important habitats. Colorado’s Outdoors Strategy helps pave the way for community-developed, interdisciplinary plans that simultaneously conserve our wildlife and wild places and support sustainable recreation for all people,” Liz Rose, Colorado Program Manager, Theodore Roosevelt Conservation Partnership.

“We at the Pikes Peak Outdoor Recreation Alliance are excited to see the launch of Colorado’s Outdoors Strategy for so many reasons. Among them, in our own partnerships, we’ve been able to utilize the data collection and resources that will now be available to us across the state. We leveraged the Strategy’s statewide conservation summary data and worked with local expertise to build a Pikes Peak Region conservation summary, which will inform planning and decision making moving forward. The Strategy’s north star goals support exceptional recreation and exceptional conservation of our natural resources. Our regional partnership’s advancement of a new land management partnership on Pikes Peak – America’s Mountain will support the Strategy, and we look forward to seeing it develop,” said Becky Leinweber, Executive Director, PPORA leading Outdoor Pikes Peak Initiative.

Moving forward, Colorado Parks and Wildlife will steward Colorado’s Outdoors Strategy by coordinating collaborative leadership and implementation with GOCO, the Department of Natural Resources, Outdoor Recreation Industry Ofﬁce, and the Governor’s Ofﬁce, along with other agencies and partners.

For more information, or to access Colorado’s Outdoors Strategy Resource Hub, visit the website.

###

MIL OSI USA News –
April 24, 2025
MIL-OSI Security: FBI Joint Terrorism Task Force Turns 45 – Dallas Division Reflects on Past Success, Continues Vigilance

Source: Office of United States Attorneys

DALLAS – This week, Special Agent in Charge (SAC) R. Joseph Rothrock is joining FBI offices around the country in marking the 45th anniversary of the FBI’s first Joint Terrorism Task Force (JTTF). Formed in New York in 1980, the first JTTF became a model for law enforcement cooperation across the nation.

JTTFs can be found at each of the FBI’s 55 field offices and many resident agencies—around 280 locations in all. The Dallas Field Office organized the North Texas JTTF in 1995 and it is comprised of dozens of investigative personnel from more than 20 agencies across the Division’s territory.

JTTFs gather trained investigators, intelligence analysts, linguists, and tactical experts from federal, state, local, territorial, tribal law enforcement and intelligence agencies. Task force members share intelligence and investigative leads and respond to threats and incidents.

“We know from each potential crisis or thwarted attack that we cannot do this job alone,” said SAC Rothrock. “Each member of the North Texas JTTF brings unique skills and specialized resources from their agency to enhance our collective investigative capabilities. We are proud to work side-by-side with our partners in the fight against terrorism, and will continue to vigorously defend the Dallas Division’s territory.”

The FBI’s JTTF model dates to 1979, when the New York Police Department and the FBI’s New York Field Office created a joint task force to tackle violent bank robberies. They imitated the model in 1980, when terrorist bombings, bomb threats, and other violence plagued the city, and announced the formation of the first JTTF in April 1980.

“The JTTF has proven to be a world class model of what can be accomplished when law enforcement resources from federal, state, and local agencies converge to combat terrorism and disrupt the plans of evil actors throughout the United States,” said Eastern District of Texas Acting U.S. Attorney Abe McGlothin, Jr. “The JTTF has been called upon to investigate some of the most horrific acts of violence imaginable and we should all be thankful for the work the JTTF does daily to keep communities across the United States safe.”

After the 9/11 attacks, FBI leadership directed all FBI field offices to establish a JTTF. In addition, the FBI established its National Joint Terrorism Task Force to support the local task forces in June of 2002. The NJTTF, at FBI Headquarters, enhances communication, coordination, and cooperation from partner agencies.

“This Office depends on the critical work of the JTTF in keeping Americans safe,” said Acting U. S. Attorney Chad E. Meacham. “We applaud the JTTF’s decades of significant efforts in partnership with the USAO-NDTX.”

Nationally, JTTFs have disrupted dozens of plots in the past four decades. Notable investigations in Dallas’ territory include:

•    Hosam Maher Husein Smadi: Sentenced to 24 years in prison for his attempted bombing of a downtown Dallas skyscraper in September 2009. According to documents filed, Smadi knowingly took possession of a truck that contained a weapon of mass destruction, and while the bomb was inert when Smadi took possession of it, it was a readily-convertible weapon of mass destruction.

•    Khalid Ali-M Aldawsari: Sentenced to life in prison for the attempted use of a weapon of mass destruction in connection with his 2011 purchase of chemicals and equipment necessary to make an improvised explosive device (IED) and his research of potential U.S. targets, including persons and infrastructure.

•    Omer Kuzu: Pleaded guilty in 2020 to conspiring to provide material support to terrorism. In March 2019, Kuzu was captured by the Syrian Democratic Forces, alongside 1,500 suspected ISIS fighters. He was handed over to FBI custody, returned to American soil, and charged with conspiring to provide material support to ISIS.

Report suspicious activity to 1-800-CALL-FBI (225-5324). You can also submit a tip online at tips.fbi.gov tips.fbi.gov.

MIL Security OSI –

April 24, 2025
MIL-OSI USA: TRUMP EFFECT: A Running List of New U.S. Investment in President Trump’s Second Term

US Senate News:

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

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

MIL OSI USA News –

April 24, 2025
MIL-OSI USA: N.C. State Parks Campsite and Reservoir Entrance Fees to Increase Effective May 1

Source: US State of North Carolina

Headline: N.C. State Parks Campsite and Reservoir Entrance Fees to Increase Effective May 1

N.C. State Parks Campsite and Reservoir Entrance Fees to Increase Effective May 1
jejohnson6
Wed, 04/23/2025 – 15:57

Effective May 1, 2025, reservation fees at campgrounds and vehicle entrance fees at reservoirs will increase across the state parks system, the N.C. Department of Natural and Cultural Resources’ Division of Parks and Recreation announced. This marks the first major fee change for state park facilities since 2019. While some fees are increasing, most state parks are and will continue to be free to access for day-use year-round.

Fee changes will only impact entrance fees at the reservoir state recreation areas during peak season, most camping rates, and some boat slip rentals at Carolina Beach State Park. There are no changes to picnic shelter reservation fees, equipment rentals, and swim passes.

Beginning May 1, tent campsites will range from $20 to $30, and RV campsites with full hookups (electric, water and sewer) will cost $45. Campsite reservations made by 11:59 p.m. on April 30 will not be affected by the price increases.

The per-vehicle entrance fee, charged on weekends in April, May and September, and daily from Memorial Day to Labor Day at Falls Lake, Jordan Lake and Kerr Lake state recreation areas will cost $10. Senior citizens (62 years old or older), veterans, and active-duty military will continue to receive a discounted rate of $5 per vehicle. The 2026 State Parks Annual Pass — which covers entrance fees, equipment rentals and more — will also increase in price. The Annual Pass for Reservoirs will cost $70, the Annual Pass $100, and the Annual Pass with Four-Wheel-Drive Beach Access will be $200.

In addition to the May 1 changes, transient and monthly boat slip rentals at the Carolina Beach State Park marina will increase beginning July 1.

The increases reflect market adjustments and the higher costs to maintain these facilities.

For a full list of fee changes, please visit ncparks.gov/fees.

About North Carolina Division of Parks and Recreation
The Division of Parks and Recreation manages more than 264,000 acres of iconic landscape within North Carolina’s state parks, state recreation areas and state natural areas. It administers the N.C. Parks and Recreation Trust Fund, including its local grants program, as well as a state trails program, North Carolina Natural and Scenic Rivers and more, all with a mission dedicated to conservation, recreation and education. The state parks system welcomes more than 19 million visitors annually.

About the North Carolina Department of Natural and Cultural Resources
The N.C. Department of Natural and Cultural Resources (DNCR) manages, promotes, and enhances the things that people love about North Carolina – its diverse arts and culture, rich history, and spectacular natural areas. Through its programs, the department enhances education, stimulates economic development, improves public health, expands accessibility, and strengthens community resiliency.

The department manages over 100 locations across the state, including 27 historic sites, seven history museums, two art museums, five science museums, four aquariums, 35 state parks, four recreation areas, dozens of state trails and natural areas, the North Carolina Zoo, the State Library, the State Archives, the N.C. Arts Council, the African American Heritage Commission, the American Indian Heritage Commission, the State Historic Preservation Office, the Office of State Archaeology, the Highway Historical Markers program, the N.C. Land and Water Fund, and the Natural Heritage Program. For more information, please visit www.dncr.nc.gov.

Apr 23, 2025

MIL OSI USA News –

April 24, 2025

MIL-OSI: Horizon Bancorp, Inc. Reports First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

MICHIGAN CITY, Ind., April 23, 2025 (GLOBE NEWSWIRE) — (NASDAQ GS: HBNC) – Horizon Bancorp, Inc. (“Horizon” or the “Company”), the parent company of Horizon Bank (the “Bank”), announced its unaudited financial results for the three months ended March 31, 2025.

“Horizon’s first quarter earnings displayed continued positive momentum in our core financial metrics and management’s commitment to deliver long term value to its shareholders. Our results were highlighted by a sixth consecutive quarter of margin expansion, now above 3%, strong loan growth with exceptional credit metrics and a core funding base that continues to deliver value, even in an uncertain economic environment. The team also delivered a more efficient expense base entering 2025 and added optionality to our capital position through the successful sale of our mortgage warehouse business”, President and CEO, Thomas Prame stated. “We are pleased with our first quarter results and the positive momentum across our community banking model. The core franchise remains strong and our investments in expanding our local relationship banking model is paying dividends”.

Net income for the three months ended March 31, 2025 was $23.9 million, or $0.54 per diluted share, compared to net loss of $10.9 million, or $0.25, for the fourth quarter of 2024 and compared to $14.0 million, or $0.32 per diluted share, for the first quarter of 2024.

First Quarter 2025 Highlights

Net interest margin, on a fully taxable equivalent (“FTE”) basis¹, expanded for the sixth consecutive quarter, to 3.04% compared with 2.97% for the three months ended December 31, 2024 and 2.50% for the three months ended March 31, 2024.

Total loans held for investment (“HFI”) increased 5% linked quarter annualized, with strong organic commercial loan growth of $103.3 million, or 14% annualized. This growth was partially funded by the continued strategic runoff of lowering yielding indirect auto loans of approximately $36 million.

Core deposits continued to be stable, with non-interest-bearing balances growing $62.5 million during the period, or 24% annualized.

Credit quality remained strong, with annualized net charge offs of 0.07% of average loans during the first quarter. Non-performing assets remain well within expected ranges, with no material change from the prior quarter.

On January 17, 2025, the Company completed the sale of its mortgage warehouse business to an unrelated third party, resulting in a pre-tax gain of $7.0 million.

Expenses were down $5.6 million from the fourth quarter of 2024, reflecting management’s commitment to creating a more efficient expense base in 2025.

_________________________________
^¹ Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.


Financial Highlights
(Dollars in Thousands Except Share and Per Share Data and Ratios)
	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2025			2024			2024			2024			2024
Income statement:
Net interest income	$	52,267		$	53,127		$	46,910		$	45,279		$	43,288
Credit loss expense		1,376			1,171			1,044			2,369			805
Non-interest income (loss)		16,499			(28,954	)		11,511			10,485			9,929
Non-interest expense		39,306			44,935			39,272			37,522			37,107
Income tax expense (benefit)		4,141			(11,051	)		(75	)		1,733			1,314
Net income (loss)	$	23,943		$	(10,882	)	$	18,180		$	14,140		$	13,991

Per share data:
Basic earnings (loss) per share	$	0.55		$	(0.25	)	$	0.42		$	0.32		$	0.32
Diluted earnings (loss) per share		0.54			(0.25	)		0.41			0.32			0.32
Cash dividends declared per common share		0.16			0.16			0.16			0.16			0.16
Book value per common share		17.72			17.46			17.27			16.62			16.49
Market value – High		17.76			18.76			16.57			12.74			14.44
Market value – Low		15.00			14.57			11.89			11.29			11.75
Weighted average shares outstanding – Basic		43,777,109			43,721,211			43,712,059			43,712,059			43,663,610
Weighted average shares outstanding – Diluted		43,954,164			43,721,211			44,112,321			43,987,187			43,874,036
Common shares outstanding (end of period)		43,785,932			43,722,086			43,712,059			43,712,059			43,726,380

Key ratios:
Return on average assets		1.25	%	(0.55		)%		0.92	%		0.73	%		0.72	%
Return on average stockholders’ equity		12.44			(5.73	)		9.80			7.83			7.76
Total equity to total assets		10.18			9.79			9.52			9.18			9.18
Total loans to deposit ratio		85.21			87.75			83.92			85.70			82.78
Allowance for credit losses to HFI loans		1.07			1.07			1.10			1.08			1.09
Annualized net charge-offs of average total loans⁽¹⁾		0.07			0.05			0.03			0.05			0.04
Efficiency ratio		57.16			185.89			67.22			67.29			69.73

Key metrics (Non-GAAP)⁽²⁾:
Net FTE interest margin		3.04	%		2.97	%		2.66	%		2.64	%		2.50	%
Return on average tangible common equity		15.79			(7.35	)		12.65			10.18			10.11
Tangible common equity to tangible assets		8.20			7.83			7.58			7.22			7.20
Tangible book value per common share	$	13.96		$	13.68		$	13.46		$	12.80		$	12.65


⁽¹⁾ Average total loans includes loans held for investment and held for sale.
⁽²⁾ Non-GAAP financial metrics. See non-GAAP reconciliation included herein for the most directly comparable GAAP measures.

Income Statement Highlights

Net Interest Income

Net interest income was $52.3 million in the first quarter of 2025, compared to $53.1 million in the fourth quarter of 2024. Continued expansion of the Company’s net FTE interest margin was offset by a decline in average interest earning asset balances and two fewer days when compared with the prior quarter. Horizon’s net FTE interest margin² was 3.04% for the first quarter of 2025, compared to 2.97% for the fourth quarter of 2024, attributable to the favorable mix shift in average interest earning assets toward higher-yielding loans and in the average funding mix toward deposit balances, in addition to continued disciplined pricing strategies on both sides of the balance sheet. Additionally, as previously noted, the fourth quarter net FTE interest margin included approximately five basis points related to interest recoveries on specific commercial loans that did not recur.

Provision for Credit Losses

During the first quarter of 2025, the Company recorded a provision for credit losses of $1.4 million. This compares to a provision for credit losses of $1.2 million during the fourth quarter of 2024, and $0.8 million during the first quarter of 2024. The increase in the provision for credit losses during the first quarter of 2025 when compared with the fourth quarter of 2024 was primarily attributable to increased net growth in commercial loans HFI and changes in economic factors, partially offset by the reduction of specific reserves and the reserves for unfunded commitments in the current quarter.

For the first quarter of 2025, the allowance for credit losses included net charge-offs of $0.9 million, or an annualized 0.07% of average loans outstanding, compared to net charge-offs of $0.6 million, or an annualized 0.05% of average loans outstanding for the fourth quarter of 2024, and net charge-offs of $0.3 million, or an annualized 0.04% of average loans outstanding, in the first quarter of 2024.

The Company’s allowance for credit losses as a percentage of period-end loans HFI was 1.07% at March 31, 2025, compared to 1.07% at December 31, 2024 and 1.09% at March 31, 2024.

Non-Interest Income

For the Quarter Ended	March 31,			December 31,			September 30,		June 30,		March 31,
(Dollars in Thousands)	2025			2024			2024		2024		2024
Non-interest Income
Service charges on deposit accounts	$	3,208		$	3,276		$	3,320	$	3,130	$	3,214
Wire transfer fees		71			124			123		113		101
Interchange fees		3,241			3,353			3,511		3,826		3,109
Fiduciary activities		1,326			1,313			1,394		1,372		1,315
Loss on sale of investment securities		(407	)		(39,140	)		—		—		—
Gain on sale of mortgage loans		1,076			1,071			1,622		896		626
Mortgage servicing income net of impairment		385			376			412		450		439
Increase in cash value of bank owned life insurance		335			335			349		318		298
Other income		7,264			338			780		380		827
Total non-interest income (loss)	$	16,499		$	(28,954	)	$	11,511	$	10,485	$	9,929

Total non-interest income was $16.5 million in the first quarter of 2025, compared to non-interest loss of $29.0 million in the fourth quarter of 2024. The increase in non-interest income of $45.5 million is primarily due to a pre-tax loss on sale of investment securities of $39.1 million from the completion of the repositioning of $332.2 million of available-for-sale securities during the fourth quarter of 2024, compared to a loss on the sale of investment securities of $0.4 million in the first quarter of 2025. In addition, the Company completed the sale of its mortgage warehouse business to an unrelated third party in the current period, resulting in a pre-tax gain of $7.0 million.

_________________________________
^¹ Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

Non-Interest Expense

For the Quarter Ended	March 31,		December 31,		September 30,		June 30,		March 31,
(Dollars in Thousands)	2025		2024		2024		2024		2024
Non-interest Expense
Salaries and employee benefits	$	22,414	$	25,564	$	21,829	$	20,583	$	20,268
Net occupancy expenses		3,702		3,431		3,207		3,192		3,546
Data processing		2,872		2,841		2,977		2,579		2,464
Professional fees		826		736		676		714		607
Outside services and consultants		3,265		4,470		3,677		3,058		3,359
Loan expense		689		1,285		1,034		1,038		719
FDIC insurance expense		1,288		1,193		1,204		1,315		1,320
Core deposit intangible amortization		816		843		844		844		872
Merger related expenses		305		—		—		—		—
Other losses		228		371		297		515		16
Other expense		2,901		4,201		3,527		3,684		3,936
Total non-interest expense	$	39,306	$	44,935	$	39,272	$	37,522	$	37,107

Total non-interest expense was $39.3 million in the first quarter of 2025, compared with $44.9 million in the fourth quarter of 2024. The current period included $0.3 million of direct expenses related to the sale of the mortgage warehouse business. The decrease in non-interest expense during the first quarter of 2025 when compared with the prior period was primarily driven by a $3.2 million decrease in salaries and employee benefits expense, which is attributable to expenses incurred in the fourth quarter of 2024 related to the termination of legacy compensation and benefits programs that did not recur in the current period, and lower incentive compensation expense. Additionally, outside services and consultants expense decreased by $1.2 million, partially attributable to expense related to specific corporate initiatives in the fourth quarter of 2024 that did not recur in the current period. Other expenses decreased $1.3 million, partially attributable to a decrease in marketing expense.

Income Taxes

Horizon recorded a net tax expense of $4.1 million for the first quarter of 2025, representing an effective tax rate of 14.8%. Net tax expense in the fourth quarter of 2024 was impacted by the realized securities loss and the reversal of the $5.2 million tax valuation allowance.

Balance Sheet Highlights

Total assets decreased by $175.5 million, or 2.2%, to $7.6 billion as of March 31, 2025, from $7.8 billion as of December 31, 2024. The decrease in total assets is primarily due to the sale of the mortgage warehouse portfolio and a decrease in interest-bearing cash related to the payoff of FHLB advances and deposit outflows.

Total investment securities decreased by $26.1 million, or 1.2%, to $2.1 billion as of March 31, 2025.

Total loans were $4.9 billion at March 31, 2025, a decrease of $1.6 million from December 31, 2024 balances. The decrease is primarily due to the sale of the mortgage warehouse business during the quarter, which was offset by continued organic commercial loan growth.

Total deposits increased by $165.1 million, or 2.9%, to $5.8 billion as of March 31, 2025 when compared to balances as of December 31, 2024. Time deposits increased by $155.9 million, or 14.3% during the quarter, while non-interest bearing deposits grew by $62.5 million, or 5.9%. Total borrowings decreased by $330.1 million during the quarter, to $812.2 million as of March 31, 2025, due to the pay down of FHLB advances. Balances subject to repurchase agreements declined by $2.1 million, to $87.9 million.

Capital

The following table presents the consolidated regulatory capital ratios of the Company for the previous three quarters, and the Company’s preliminary estimate of its consolidated regulatory capital ratios for the quarter ended March 31, 2025:

For the Quarter Ended	March 31,			December 31,			September 30,			June 30,
	2025*			2024			2024			2024
Consolidated Capital Ratios
Total capital (to risk-weighted assets)		14.28	%		13.91	%		13.45	%		13.41	%
Tier 1 capital (to risk-weighted assets)		12.35			12.00			11.63			11.59
Common equity tier 1 capital (to risk-weighted assets)		11.34			11.00			10.68			10.63
Tier 1 capital (to average assets)		9.25			8.88			9.02			9.02
*Preliminary estimate – may be subject to change

As of March 31, 2025, the ratio of total stockholders’ equity to total assets is 10.18%. Book value per common share was $17.72, increasing $0.26 during the first quarter of 2025.

Tangible common equity³ totaled $611.4 million at March 31, 2025, and the ratio of tangible common equity to tangible assets¹ was 8.20% at March 31, 2025, up from 7.83% at December 31, 2024. Tangible book value, which excludes intangible assets from total equity, per common share¹ was $13.96, increasing $0.28 during the first quarter of 2025 behind the growth in retained earnings.

Credit Quality

As of March 31, 2025, total non-accrual loans increased by $3.0 million, or 12%, from December 31, 2024, to 0.59% of total loans HFI. Total non-performing assets increased $4.0 million, or 15%, to $31.4 million, compared to $27.4 million as of December 31, 2024. The ratio of non-performing assets to total assets increased to 0.41% compared to 0.35% as of December 31, 2024.

As of March 31, 2025, net charge-offs increased by $0.2 million to $0.9 million, compared to $0.6 million as of December 31, 2024 and remain just 0.07% annualized of average loans.

_________________________________
^¹ Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

Earnings Conference Call

As previously announced, Horizon will host a conference call to review its first quarter financial results and operating performance.

Participants may access the live conference call on April 24, 2025 at 7:30 a.m. CT (8:30 a.m. ET) by dialing 833-974-2379 from the United States, 866-450-4696 from Canada or 1-412-317-5772 from international locations and requesting the “Horizon Bancorp, Inc. Call.” Participants are asked to dial in approximately 10 minutes prior to the call.

A telephone replay of the call will be available approximately one hour after the end of the conference through May 2, 2025. The replay may be accessed by dialing 877-344-7529 from the United States, 855-669-9658 from Canada or 1–412–317-0088 from other international locations, and entering the access code 6313653.

About Horizon Bancorp, Inc.

Horizon Bancorp, Inc. (NASDAQ GS: HBNC) is the $8 billion-asset commercial bank holding company for Horizon Bank, which serves customers across diverse and economically attractive Midwestern markets through convenient digital and virtual tools, as well as its Indiana and Michigan branches. Horizon’s retail offerings include prime residential and other secured consumer lending to in-market customers, as well as a range of personal banking and wealth management solutions. Horizon also provides a comprehensive array of in-market business banking and treasury management services, as well as equipment financing solutions for customers regionally and nationally, with commercial lending representing over half of total loans. More information on Horizon, headquartered in Northwest Indiana’s Michigan City, is available at horizonbank.com and investor.horizonbank.com.

Use of Non-GAAP Financial Measures

Certain information set forth in this press release refers to financial measures determined by methods other than in accordance with GAAP. Specifically, we have included non-GAAP financial measures relating to net income, diluted earnings per share, pre-tax, pre-provision net income, net interest margin, tangible stockholders’ equity and tangible book value per share, efficiency ratio, the return on average assets, the return on average common equity, and return on average tangible equity. In each case, we have identified special circumstances that we consider to be non-recurring and have excluded them. We believe that this shows the impact of such events as acquisition-related purchase accounting adjustments and swap termination fees, among others we have identified in our reconciliations. Horizon believes these non-GAAP financial measures are helpful to investors and provide a greater understanding of our business and financial results without giving effect to the purchase accounting impacts and one-time costs of acquisitions and non–recurring items. These measures are not necessarily comparable to similar measures that may be presented by other companies and should not be considered in isolation or as a substitute for the related GAAP measure. See the tables and other information below and contained elsewhere in this press release for reconciliations of the non-GAAP information identified herein and its most comparable GAAP measures.

Forward Looking Statements

This press release may contain forward–looking statements regarding the financial performance, business prospects, growth and operating strategies of Horizon Bancorp, Inc. and its affiliates (collectively, “Horizon”). For these statements, Horizon claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this press release should be considered in conjunction with the other information available about Horizon, including the information in the filings we make with the Securities and Exchange Commission (the “SEC”). Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance.

Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include: effects on Horizon’s business resulting from new U.S. domestic or foreign governmental trade measures, including but not limited to tariffs, import and export controls, foreign exchange intervention accomplished to offset the effects of trade policy or in response to currency volatility, and other restrictions on free trade; uncertain conditions within the domestic and international macroeconomic environment, including trade policy, monetary and fiscal policy, and conditions in the investment, credit, interest rate, and derivatives markets, and their impact on Horizon and its customers; current financial conditions within the banking industry; changes in the level and volatility of interest rates, changes in spreads on earning assets and changes in interest bearing liabilities; increased interest rate sensitivity; the aggregate effects of elevated inflation levels in recent years; loss of key Horizon personnel; increases in disintermediation; potential loss of fee income, including interchange fees, as new and emerging alternative payment platforms take a greater market share of the payment systems; estimates of fair value of certain of Horizon’s assets and liabilities; changes in prepayment speeds, loan originations, credit losses, market values, collateral securing loans and other assets; changes in sources of liquidity; legislative and regulatory actions and reforms; changes in accounting policies or procedures as may be adopted and required by regulatory agencies; litigation, regulatory enforcement, and legal compliance risk and costs; rapid technological developments and changes; cyber terrorism and data security breaches; the rising costs of cybersecurity; the ability of the U.S. federal government to manage federal debt limits; climate change and social justice initiatives; the inability to realize cost savings or revenues or to effectively implement integration plans and other consequences associated with mergers, acquisitions, and divestitures; acts of terrorism, war and global conflicts, such as the Russia and Ukraine conflict and the Israel and Hamas conflict; and supply chain disruptions and delays. These and additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in Horizon’s reports (such as the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K) filed with the SEC and available at the SEC’s website (www.sec.gov). Undue reliance should not be placed on the forward–looking statements, which speak only as of the date hereof. Horizon does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward–looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.


	Condensed Consolidated Statements of Income
	(Dollars in Thousands Except Per Share Data, Unaudited)
	Three Months Ended
	March 31,			December 31,			September 30,			June 30,		March 31,
	2025			2024			2024			2024		2024
Interest Income
Interest and fees on loans	$	74,457		$	76,747		$	75,488		$	71,880	$	66,954
Investment securities – taxable		6,039			6,814			8,133			7,986		7,362
Investment securities – tax-exempt		6,192			6,301			6,310			6,377		6,451
Other		2,487			3,488			957			738		4,497
Total interest income		89,175			93,350			90,888			86,981		85,264
Interest Expense
Deposits		25,601			27,818			30,787			28,447		27,990
Short and long-term borrowings		9,188			10,656			11,131			11,213		11,930
Subordinated notes		829			829			830			829		831
Junior subordinated debentures issued to capital trusts		1,290			920			1,230			1,213		1,225
Total interest expense		36,908			40,223			43,978			41,702		41,976
Net Interest Income		52,267			53,127			46,910			45,279		43,288
Provision for loan losses		1,376			1,171			1,044			2,369		805
Net Interest Income after Credit Loss Expense		50,891			51,956			45,866			42,910		42,483
Non-interest Income
Service charges on deposit accounts		3,208			3,276			3,320			3,130		3,214
Wire transfer fees		71			124			123			113		101
Interchange fees		3,241			3,353			3,511			3,826		3,109
Fiduciary activities		1,326			1,313			1,394			1,372		1,315
Loss on sale of investment securities		(407	)		(39,140	)		—			—		—
Gain on sale of mortgage loans		1,076			1,071			1,622			896		626
Mortgage servicing income net of impairment		385			376			412			450		439
Increase in cash value of bank owned life insurance		335			335			349			318		298
Other income		7,264			338			780			380		827
Total non-interest (loss) income		16,499			(28,954	)		11,511			10,485		9,929
Non-interest Expense
Salaries and employee benefits		22,414			25,564			21,829			20,583		20,268
Net occupancy expenses		3,702			3,431			3,207			3,192		3,546
Data processing		2,872			2,841			2,977			2,579		2,464
Professional fees		826			736			676			714		607
Outside services and consultants		3,265			4,470			3,677			3,058		3,359
Loan expense		689			1,285			1,034			1,038		719
FDIC insurance expense		1,288			1,193			1,204			1,315		1,320
Core deposit intangible amortization		816			843			844			844		872
Merger related expenses		305			—			—			—		—
Other losses		228			371			297			515		16
Other expense		2,901			4,201			3,527			3,684		3,936
Total non-interest expense		39,306			44,935			39,272			37,522		37,107
Income (Loss) Before Income Taxes		28,084			(21,933	)		18,105			15,873		15,305
Income tax expense (benefit)		4,141			(11,051	)		(75	)		1,733		1,314
Net Income (Loss)	$	23,943		$	(10,882	)	$	18,180		$	14,140	$	13,991
Basic Earnings (Loss) Per Share	$	0.55		$	(0.25	)	$	0.42		$	0.32	$	0.32
Diluted Earnings (Loss) Per Share		0.54			(0.25	)		0.41			0.32		0.32

	Condensed Consolidated Balance Sheet
	(Dollar in Thousands)

	Three Months Ended for the Period
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Assets
Interest earning assets
Federal funds sold	$	—		$	—		$	113,912		$	34,453		$	161,704
Interest-bearing deposits in banks		80,023			201,131			12,107			4,957			9,178
Interest earning time deposits		—			735			735			1,715			1,715
Federal Home Loan Bank stock		45,412			53,826			53,826			53,826			53,826
Investment securities, available for sale		231,431			233,677			541,170			527,054			535,319
Investment securities, held to maturity		1,843,851			1,867,690			1,888,379			1,904,281			1,925,725
Loans held for sale		3,253			67,597			2,069			2,440			922
Gross loans held for investment (HFI)		4,909,815			4,847,040			4,803,996			4,822,840			4,618,175
Total Interest earning assets		7,113,785			7,271,696			7,416,194			7,351,566			7,306,564
Non-interest earning assets
Allowance for credit losses		(52,654	)		(51,980	)		(52,881	)		(52,215	)		(50,387	)
Cash and due from banks		89,643			92,300			108,815			106,691			100,206
Cash value of life insurance		37,409			37,450			37,115			36,773			36,455
Other assets		140,672			152,635			119,026			165,656			160,593
Goodwill		155,211			155,211			155,211			155,211			155,211
Other intangible assets		9,407			10,223			11,067			11,910			12,754
Premises and equipment, net		93,499			93,864			93,544			93,695			94,303
Interest receivable		38,663			39,747			39,366			43,240			40,008
Total non-interest earning assets		511,850			529,450			511,263			560,961			549,143
Total assets	$	7,625,635		$	7,801,146		$	7,927,457		$	7,912,527		$	7,855,707
Liabilities
Savings and money market deposits	$	3,393,371		$	3,446,681		$	3,420,827		$	3,364,726		$	3,350,673
Time deposits		1,245,088			1,089,153			1,220,653			1,178,389			1,136,121
Short and long-term borrowings		812,218			1,142,340			1,142,744			1,229,165			1,219,812
Repurchase agreements		87,851			89,912			122,399			128,169			139,309
Subordinated notes		55,772			55,738			55,703			55,668			55,634
Junior subordinated debentures issued to capital trusts		57,531			57,477			57,423			57,369			57,315
Total interest earning liabilities		5,651,831			5,881,301			6,019,749			6,013,486			5,958,864
Non-interest bearing deposits		1,127,324			1,064,818			1,085,535			1,087,040			1,093,076
Interest payable		11,441			11,137			11,400			11,240			7,853
Other liabilities		58,978			80,308			55,951			74,096			74,664
Total liabilities		6,849,574			7,037,564			7,172,635			7,185,862			7,134,457
Stockholders’ Equity
Preferred stock		—			—			—			—			—
Common stock		—			—			—			—			—
Additional paid-in capital		360,522			363,761			358,453			357,673			356,599
Retained earnings		452,945			436,122			454,050			442,977			435,927
Accumulated other comprehensive loss		(37,406	)		(36,301	)		(57,681	)		(73,985	)		(71,276	)
Total stockholders’ equity		776,061			763,582			754,822			726,665			721,250
Total liabilities and stockholders’ equity	$	7,625,635		$	7,801,146		$	7,927,457		$	7,912,527		$	7,855,707

	Loans and Deposits
	(Dollars in Thousands)
	March 31,		December 31,		September 30,		June 30,		March 31,		% Change
	2025		2024		2024		2024		2024		Q1’25 vs Q4’24			Q1’25 vs Q1’24
Loans:
Commercial real estate	$	2,262,910	$	2,202,858	$	2,105,459	$	2,117,772	$	1,984,723		3	%		14	%
Commercial & Industrial		918,541		875,297		808,600		786,788		765,043		5	%		20	%
Total commercial		3,181,451		3,078,155		2,914,059		2,904,560		2,749,766		3	%		16	%
Residential Real estate		801,726		802,909		801,356		797,956		782,071		—	%		3	%
Mortgage warehouse		—		—		80,437		68,917		56,548		—	%		(100	)%
Consumer		926,638		965,976		1,008,144		1,051,407		1,029,790		(4	)%		(10	)%
Total loans held for investment		4,909,815		4,847,040		4,803,996		4,822,840		4,618,175		1	%		6	%
Loans held for sale		3,253		67,597		2,069		2,440		922		(95	)%		253	%
Total loans	$	4,913,068	$	4,914,637	$	4,806,065	$	4,825,280	$	4,619,097		—	%		6	%

Deposits:
Interest-bearing demand deposits	$	1,713,991	$	1,767,983	$	1,688,998	$	1,653,508	$	1,613,806		(3	)%		6	%
Savings and money market deposits		1,679,380		1,678,697		1,731,830		1,711,218		1,736,866		—	%		(3	)%
Time deposits		1,245,088		1,089,153		1,220,653		1,178,389		1,136,121		14	%		10	%
Total Interest bearing deposits		4,638,459		4,535,833		4,641,481		4,543,115		4,486,793		2	%		3	%
Non-interest bearing deposits
Non-interest bearing deposits		1,127,324		1,064,819		1,085,534		1,087,040		1,093,077		6	%		3	%
Total deposits	$	5,765,783	$	5,600,652	$	5,727,015	$	5,630,155	$	5,579,870		3	%		3	%

	Average Balance Sheet
	(Dollars in Thousands, Unaudited)
	Three Months Ended
	March 31, 2025								December 31, 2024								March 31, 2024
	Average Balance			Interest⁽⁴⁾⁽⁶⁾		Average Rate⁽⁴⁾			Average Balance			Interest⁽⁴⁾⁽⁶⁾		Average Rate⁽⁴⁾			Average Balance			Interest⁽⁴⁾⁽⁶⁾		Average Rate⁽⁴⁾
Assets
Interest earning assets
Interest-bearing deposits in banks	$	223,148		$	2,487		4.52	%	$	290,693		$	3,488		4.77	%	$	331,083			4,497		5.46	%
Federal Home Loan Bank stock		51,769			1,012		7.93	%		53,826			1,516		11.20	%		37,949			784		8.31	%
Investment securities – taxable ⁽¹⁾		974,109			5,027		2.09	%		1,079,377			5,298		1.95	%		1,326,246			6,578		1.99	%
Investment securities – non-taxable ⁽¹⁾		1,120,249			7,838		2.84	%		1,129,622			7,976		2.81	%		1,149,957			8,166		2.86	%
Total investment securities		2,094,358			12,865		2.49	%		2,208,999			13,274		2.39	%		2,476,203			14,744		2.39	%
Loans receivable ^{(2) (3)}		4,865,449			74,840		6.24	%		4,842,660			77,142		6.34	%		4,448,324			67,307		6.09	%
Total interest earning assets		7,234,724			91,204		5.11	%		7,396,178			95,420		5.13	%		7,293,559			87,332		4.82	%
Non-interest earning assets
Cash and due from banks		88,624								85,776								105,795
Allowance for credit losses		(51,863	)							(52,697	)							(49,960	)
Other assets		483,765								409,332								486,652
Total average assets	$	7,755,250							$	7,838,589							$	7,836,046

Liabilities and Stockholders’ Equity
Interest bearing liabilities
Interest-bearing demand deposits	$	1,750,446		$	6,491		1.50	%	$	1,716,598		$	6,861		1.59	%	$	1,658,709		$	6,516		1.58	%
Savings and money market deposits		1,674,590			8,263		2.00	%		1,701,012			9,336		2.18	%		1,664,518			9,373		2.26	%
Time deposits		1,212,386			10,847		3.63	%		1,160,527			11,621		3.98	%		1,176,921			12,101		4.14	%
Total interest bearing deposits		4,637,422			25,601		2.24	%		4,578,137			27,818		2.42	%		4,500,148			27,990		2.50	%
Borrowings		971,496			8,772		3.66	%		1,130,301			10,138		3.57	%		1,200,728			10,904		3.65	%
Repurchase agreements		88,469			416		1.91	%		91,960			518		2.24	%		138,052			1,026		2.99	%
Subordinated notes		55,750			829		6.03	%		55,717			829		5.92	%		55,558			831		6.02	%
Junior subordinated debentures issued to capital trusts		57,497			1,290		9.10	%		57,443			920		6.37	%		57,279			1,225		8.60	%
Total interest bearing liabilities		5,810,634			36,908		2.58	%		5,913,558			40,223		2.71	%		5,951,765			41,976		2.84	%
Non-interest bearing liabilities
Demand deposits		1,085,826								1,099,574								1,077,183
Accrued interest payable and other liabilities		78,521								70,117								82,015
Stockholders’ equity		780,269								755,340								725,083
Total average liabilities and stockholders’ equity	$	7,755,250							$	7,838,589							$	7,836,046
Net FTE interest income (non-GAAP) ⁽⁵⁾				$	54,296							$	55,197							$	45,356
Less FTE adjustments ⁽⁴⁾					2,029								2,070								2,068
Net Interest Income				$	52,267							$	53,127							$	43,288
Net FTE interest margin (Non-GAAP) ⁽⁴⁾⁽⁵⁾							3.04	%							2.97	%							2.50	%

⁽¹⁾ Securities balances represent daily average balances for the fair value of securities. The average rate is calculated based on the daily average balance for the amortized cost of securities.
⁽²⁾ Includes fees on loans held for sale and held for investment. The inclusion of loan fees does not have a material effect on the average interest rate.
⁽³⁾ Non-accruing loans for the purpose of the computation above are included in the daily average loan amounts outstanding. Loan totals are shown net of unearned income and deferred loan fees.
⁽⁴⁾ Management believes fully taxable equivalent, or FTE, interest income is useful to investors in evaluating the Company’s performance as a comparison of the returns between a tax-free investment and a taxable alternative. The Company adjusts interest income and average rates for tax-exempt loans and securities to an FTE basis utilizing a 21% tax rate.
⁽⁵⁾ Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
⁽⁶⁾ Includes dividend income on Federal Home Loan Bank stock

	Credit Quality
	(Dollars in Thousands Except Ratios)
	Quarter Ended
	March 31,			December 31,			September 30,			June 30,			March 31,			% Change
	2025			2024			2024			2024			2024			1Q25 vs 4Q24			1Q25 vs 1Q24
Non-accrual loans
Commercial	$	8,172		$	5,658		$	6,830		$	4,321		$	5,493			44	%		49	%
Residential Real estate		12,763			11,215			9,529			8,489			8,725			14	%		46	%
Mortgage warehouse		—			—			—			—			—			—	%		—	%
Consumer		7,875			8,919			7,208			5,453			4,835		(12		)%		63	%
Total non-accrual loans		28,810			25,792			23,567			18,263			19,053			12	%		22	%
90 days and greater delinquent – accruing interest		1,582			1,166			819			1,039			108			36	%		1365	%
Total non-performing loans	$	30,392		$	26,958		$	24,386		$	19,302		$	19,161			13	%		59	%

Other real estate owned
Commercial		360			407			1,158			1,111			1,124		(12		)%	(68		)%
Residential Real estate		641			—			—			—			—			—	%		—	%
Mortgage warehouse		—			—			—			—			—			—	%		—	%
Consumer		34			17			36			57			50			98	%	(32		)%
Total other real estate owned		1,035			424			1,194			1,168			1,174			144	%	(12		)%

Total non-performing assets	$	31,427		$	27,382		$	25,580		$	20,470		$	20,335			14.8	%		55	%

Loan data:
Accruing 30 to 89 days past due loans	$	19,034		$	23,075		$	18,087		$	19,785		$	15,154		(18		)%		26	%
Substandard loans		66,714			64,535			59,775			51,221			47,469			3	%		41	%
Net charge-offs (recoveries)
Commercial	$	(47	)	$	(32	)	$	(52	)	$	57		$	(171	)	(47		)%		73	%
Residential Real estate		(47	)		(10	)		(9	)		(4	)		(5	)	(370		)%	(840		)%
Mortgage warehouse		—			—			—			—			—			—	%		—	%
Consumer		963			668			439			534			488			44	%		97	%
Total net charge-offs	$	869		$	626		$	378		$	587		$	312			39	%		179	%

Allowance for credit losses
Commercial	$	32,640		$	30,953		$	32,854		$	31,941		$	30,514			5	%		7	%
Residential Real estate		3,167			2,715			2,675			2,588			2,655			17	%		19	%
Mortgage warehouse		—			—			862			736			659			—	%	(100		)%
Consumer		16,847			18,312			16,490			16,950			16,559		(8		)%		2	%
Total allowance for credit losses	$	52,654		$	51,980		$	52,881		$	52,215		$	50,387			1	%		4	%

Credit quality ratios
Non-accrual loans to HFI loans		0.59	%		0.53	%		0.49	%		0.38	%		0.41	%
Non-performing assets to total assets		0.41	%		0.35	%		0.32	%		0.26	%		0.26	%
Annualized net charge-offs of average total loans		0.07	%		0.05	%		0.03	%		0.05	%		0.04	%
Allowance for credit losses to HFI loans		1.07	%		1.07	%		1.10	%		1.08	%		1.09	%

Non–GAAP Reconciliation of Net Fully-Taxable Equivalent (“FTE”) Interest Margin
(Dollars in Thousands, Unaudited)
		Three Months Ended
		March 31,			December 31,			September 30,			June 30,			March 31,
		2025			2024			2024			2024			2024
Interest income (GAAP)	(A)	$	89,175		$	93,350		$	90,888		$	86,981		$	85,264
Taxable-equivalent adjustment:
Investment securities – tax exempt ⁽¹⁾			1,646			1,675			1,677			1,695			1,715
Loan receivable ⁽²⁾			383			395			340			328			353
Interest income (non-GAAP)	(B)		91,204			95,420			92,905			89,004			87,332
Interest expense (GAAP)	(C)		36,908			40,223			43,978			41,702			41,976
Net interest income (GAAP)	(D) =(A) – (C)	$	52,267		$	53,127		$	46,910		$	45,279		$	43,288
Net FTE interest income (non-GAAP)	(E) = (B) – (C)	$	54,296		$	55,197		$	48,927		$	47,302		$	45,356
Average interest earning assets	(F)		7,234,724			7,396,178			7,330,263			7,212,788			7,293,559
Net FTE interest margin (non-GAAP)	(G) = (E*) / (F)		3.04	%		2.97	%		2.66	%		2.64	%		2.50	%

⁽¹⁾ The following represents municipal securities interest income for investment securities classified as available-for-sale and held-to-maturity
⁽²⁾ The following represents municipal loan interest income for loan receivables classified as held for sale and held for investment
*Annualized

Non–GAAP Reconciliation of Return on Average Tangible Common Equity
(Dollars in Thousands, Unaudited)
		Three Months Ended
		March 31,			December 31,			September 30,			June 30,			March 31,
		2025			2024			2024			2024			2024

Net income (loss) (GAAP)	(A)	$	23,943		$	(10,882	)	$	18,180		$	14,140		$	13,991

Average stockholders’ equity	(B)	$	780,269		$	755,340		$	738,372		$	726,332		$	725,083
Average intangible assets	(C)		165,138			165,973			166,819			167,659			168,519
Average tangible equity (Non-GAAP)	(D) = (B) – (C)	$	615,131		$	589,367		$	571,553		$	558,673		$	556,564
Return on average tangible common equity (“ROACE”) (non-GAAP)	(E) = (A*) / (D)		15.79	%	(7.35		)%		12.65	%		10.18	%		10.11	%
*Annualized

Non–GAAP Reconciliation of Tangible Common Equity to Tangible Assets
(Dollars in Thousands, Unaudited)
		Three Months Ended
		March 31,			December 31,			September 30,			June 30,			March 31,
		2025			2024			2024			2024			2024
Total stockholders’ equity (GAAP)	(A)	$	776,061		$	763,582		$	754,822		$	726,665		$	721,250
Intangible assets (end of period)	(B)		164,618			165,434			166,278			167,121			167,965
Total tangible common equity (non-GAAP)	(C) = (A) – (B)	$	611,443		$	598,148		$	588,544		$	559,544		$	553,285

Total assets (GAAP)	(D)	$	7,625,635		$	7,801,146		$	7,927,457		$	7,912,527		$	7,855,707
Intangible assets (end of period)	(B)		164,618			165,434			166,278			167,121			167,965
Total tangible assets (non-GAAP)	(E) = (D) – (B)	$	7,461,017		$	7,635,712		$	7,761,179		$	7,745,406		$	7,687,742

Tangible common equity to tangible assets (Non-GAAP)	(G) = (C) / (E)		8.20	%		7.83	%		7.58	%		7.22	%		7.20	%

Non–GAAP Reconciliation of Tangible Book Value Per Share
(Dollars in Thousands, Unaudited)
		Three Months Ended
		March 31,		December 31,		September 30,		June 30,		March 31,
		2025		2024		2024		2024		2024
Total stockholders’ equity (GAAP)	(A)	$	776,061	$	763,582	$	754,822	$	726,665	$	721,250
Intangible assets (end of period)	(B)		164,618		165,434		166,278		167,121		167,965
Total tangible common equity (non-GAAP)	(C) = (A) – (B)	$	611,443	$	598,148	$	588,544	$	559,544	$	553,285
Common shares outstanding	(D)		43,785,932		43,722,086		43,712,059		43,712,059		43,726,380

Tangible book value per common share (non-GAAP)	(E) = (C) / (D)	$	13.96	$	13.68	$	13.46	$	12.80	$	12.65

Contact:	John R. Stewart, CFA
	EVP, Chief Financial Officer
Phone:	(219) 814–5833
Fax:	(219) 874–9280
Date:	April 23, 2025

The MIL Network –

April 24, 2025

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

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

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

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

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

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

The Anzac biscuit myth

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

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

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

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

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

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

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

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

The War Chest Cookery Book

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

The War Chest Cookery Book, published in 1917.
Trove

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

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

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

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

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

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

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

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

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

A dubious debut: not your Nan’s Anzac biscuit

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

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

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

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

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

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

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

The story behind the biscuit

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

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

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

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

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

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

MIL OSI Analysis – EveningReport.nz –

April 24, 2025
MIL-OSI Economics: Russia nuclear power capacity to reach 33.6GW in 2035, forecasts GlobalData

Source: GlobalData

Russia nuclear power capacity to reach 33.6GW in 2035, forecasts GlobalData

Posted in Power

Russia stands as a global leader in nuclear power production and technology. Following the Chernobyl disaster, nuclear power experienced a decline in public support within the country. However, in 2020, the Russian government endorsed the creation of over 40GW of nuclear power capacity by 2030. Against this backdrop, nuclear power capacity in the country is expected to reach 33.6GW in 2035, registering a compound annual growth rate (CAGR) of 2.1% during 2024-35, according to GlobalData, a leading data and analytics company.

GlobalData’s latest report, “Russia Power Market Outlook to 2035, Update 2025 – Market Trends, Regulations, and Competitive Landscape,” reveals that annual nuclear power generation in Russia is expected to increase at a CAGR of 2% between 2024-35 to reach 251.6TWh.

According to the most recent General Scheme, the government’s objective is to elevate the share of nuclear energy in the national capacity from the current 10.4% to over 15% by 2042. This strategic initiative underscores Russia’s dedication to enhancing its nuclear power infrastructure and securing a more substantial role for nuclear energy in its long-term energy strategy.

Attaurrahman Ojindaram Saibasan, Senior Power Analyst at GlobalData, comments: “Russia is investing in advanced reactor technologies to improve efficiency and safety. The BREST-OD-300, a lead-cooled fast reactor currently under construction in Seversk, is engineered for passive safety features and a closed fuel cycle. Additionally, the development of the RITM Series Reactors, including the RITM-200 and RITM-400, is progressing. These small modular reactors (SMRs) are designed for deployment in remote areas and for integration with floating nuclear power plants, offering enhanced flexibility and a diminished environmental footprint.”

Russia is exploring regional partnerships with Uzbekistan, Iran, and Vietnam for nuclear development and harbors ambitious plans to investigate the use of SMRs in extraterrestrial settings. In collaboration with China, Russia aims to establish a nuclear-powered lunar base by 2035, which will include a command center, power station, and scientific laboratories. While the concept may seem implausible, it showcases the nation’s expertise in nuclear technology.

Saibasan concludes: “The focus would be on SMRs to meet the increasing demand in Russia. Some of the key upcoming SMR projects include Seversk-BREST SMR, Primorsk SMR 1& 2, Zheleznogorsk MCC SMR 1, and North West SMR 2. Though the country may fall short of achieving its 40GW nuclear power target by 2030, it will continue to progress aggressively towards nuclear power development to ensure supply security.”

MIL OSI Economics –

April 24, 2025
MIL-OSI Video: Climate, Gaza & other topics – Daily Press Briefing | United Nations

Source: United Nations (Video News)

Noon Briefing by Stéphane Dujarric, Spokesperson for the Secretary-General.

Highlights:

– Climate
– Deputy Secretary-General
– Occupied Palestinian Territory
– Yemen
– Sudan
– Sudan/Humanitarian
– Democratic Republic of the Congo
– Democratic Republic of the Congo/Peacekeeping
– Somalia
– Ukraine
– Kashmir
– International Days
– Briefings Tomorrow

CLIMATE
This morning, the Secretary-General and President Lula of Brazil convened a virtual leaders’ session on climate and just transition.
After the meeting he spoke to some of you and said that he heard a unifying message: our world faces massive headwinds and a multitude of crises, but we cannot allow climate commitments to be blown off course.
The Secretary-General added that we must keep building momentum for action at COP30 in Brazil— and that today was an important part of that effort.
The Secretary-General also said that renewables are the economic opportunity of the century. Dissenters and fossil fuel interests may try to stand in the way, but the world is moving forward – full speed ahead.
The Secretary-General urged leaders to take action on two fronts: first — to step up efforts to submit the strongest possible national climate plans well ahead of COP30.
And second, to scale-up support for developing countries.

DEPUTY SECRETARY-GENERAL
The Deputy Secretary-General, Amina Mohammed, is travelling to Washington, D.C. this afternoon, to attend the World Bank/International Monetary Fund Annual Spring Meetings and engage in discussions with key stakeholders and government officials.
Ms. Mohammed will participate in a ministerial roundtable to discuss the upcoming fourth International Conference on Financing for Development (FfD4) and priority actions to support the Sustainable Development Goals. She will separately meet with Finance Ministers, leaders of International Financial Institutions and Multilateral Development Banks to discuss the challenging global economic context, its implications for sustainable development, and how to mitigate the risks for the world’s poorest countries.
The Deputy Secretary-General will return to New York tomorrow evening. 

Full Highlights: https://www.un.org/sg/en/content/noon-briefing-highlight?date%5Bvalue%5D%5Bdate%5D=23%20April%202025

https://www.youtube.com/watch?v=31B80i3kYCM

MIL OSI Video –

April 24, 2025
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;

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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 –

April 24, 2025
MIL-OSI Europe: France, UK and Germany urge Israel to allow aid back into Gaza
Source: France-Diplomatie – Ministry of Foreign Affairs and International Development

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France, UK and Germany urge Israel to allow aid back into Gaza

Published on April 23, 2025

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Joint statement by the foreign ministers of France, the United Kingdom and Germany (E3) (Paris, April 23, 2025)

Israel has now fully blocked the entry of humanitarian aid into Gaza for over 50 days. Essential supplies are either no longer available or quickly running out. Palestinian civilians – including one million children – face an acute risk of starvation, epidemic disease and death. This must end. We urge Israel to immediately restart a rapid and unimpeded flow of humanitarian aid to Gaza in order to meet the needs of all civilians. During the last ceasefire, the UN and INGO system was able to deliver aid at scale. The Israeli decision to block aid from entering Gaza is intolerable. Minister Katz’s recent comments politicizing humanitarian aid and Israeli plans to remain in Gaza after the war are unacceptable – they harm prospects for peace. Humanitarian aid must never be used as a political tool and Palestinian territory must not be reduced nor subjected to any demographic change. Israel is bound under international law to allow the unhindered passage of humanitarian aid.

Humanitarians must be able to deliver aid to those who need it most, independent of parties to the conflict and in accordance with their humanitarian principles. Israel must ensure unhindered access for the UN and humanitarian organizations to operate safely across Gaza. Hamas must not divert aid for their own financial gain or use civilian infrastructure for military purposes.

We reiterate our outrage at recent strikes by Israeli forces on humanitarian personnel, infrastructure, premises and healthcare facilities. Israel must do much more to protect the civilian population, infrastructure and humanitarian workers. This includes restoring deconfliction systems, allowing humanitarian workers free movement within Gaza. And Israel must prevent harm to medical personnel and premises in the course of their military operations. They must allow the urgent healthcare needs of the population to be met, while allowing the sick and wounded to temporarily leave the Gaza Strip to receive treatment.

Crucially, we urge all parties to return to a ceasefire. We continue to call on Hamas for the immediate release of all the remaining hostages, who are enduring terrible suffering. We must all work towards the implementation of a two-state solution, which is the only way to bring long-lasting peace and security to both Israelis and Palestinians and ensure long-term stability in the region./.
MIL OSI Europe News –
April 24, 2025
MIL-OSI Asia-Pac: Focused, 2-day capacity building programme for electoral field functionaries from Bihar begins

Source: Government of India

Focused, 2-day capacity building programme for electoral field functionaries from Bihar begins

229 BLOs, 12 EROs and 2 DEOs take part in the training program at IIIDEM in the National Capital

Specialized one-day training programme for State Police Nodal Officer (SPNO) and Police Officers from Bihar also begins

Posted On: 23 APR 2025 4:54PM by PIB Delhi

The Election Commission is organising a 2-day training and capacity building of Booth Level Officers (BLOs) at the India International Institute of Democracy & Election Management (IIIDEM), New Delhi. This is the third such batch of BLOs to be trained from the poll-bound state of Bihar. 229 BLOs, 12 EROs and 2 DEOs from the State are participating in the 2-day training programme. A specialized one-day training programme for the State Police Nodal Officer (SPNO) and Police Officers from Bihar also commenced today. The training programme was inaugurated by Chief Election Commissioner of India Shri Gyanesh Kumar in the presence of Election Commissioner Dr. Vivek Joshi at IIIDEM, New Delhi and was followed by an interaction with the participants.

The training is planned to familiarise the BLOs with their roles and responsibilities as per statutory framework and equip them with to ensure error-free electoral rolls. They will also be trained in the IT applications designed to support their roles.

This is the latest in the first phase of the ongoing physical training programmes at IIIDEM in which 555 BLOs from poll-bound states of Bihar, West Bengal and Assam and 279 Booth Level Agents (BLA-1s) of 10 recognised national and state political parties from Bihar have already been trained. These well-trained BLOs will form a corps of Assembly Level Master Trainers (ALMTs) to strengthen the entire network of BLOs nationwide.

The training of SPNOs and Police Officers from Bihar aims to improve coordination between election authorities and the police for enhanced electoral management, especially in the areas of law and order, vulnerability assessment, Paramilitary forces (CAPF) deployment, and model code of conduct (MCC) enforcement.

Till date over 3000 participants from 141 countries including large democracies such as Australia, United Kingdom, USA, Brazil, Egypt, France, Indonesia, Israel, Russia and South Africa have benefited from training programmes from India’s globally acclaimed election management practices at IIIDEM.

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MIL OSI Asia Pacific News –

April 24, 2025
MIL-OSI Europe: Written question – Textbooks – E-001465/2025

Source: European Parliament

Question for written answer E-001465/2025
to the Commission
Rule 144
Moritz Körner (Renew)

The Commission commissioned a study by the Georg Eckert Institute on Palestinian textbooks in 2021, which showed that:

– A religious studies textbook asked students to discuss the ‘repeated attempts by the Jews to kill the prophet Muhammad’ and inquired about ‘other enemies of Islam’;

– A maths textbook illustrated Newton’s second law of motion using a picture of Palestinians hitting Israeli soldiers with slingshots;

– In science and maths books, terrorists were praised, and those killed were referred to as martyrs;

– A female terrorist who killed several Jews was cited as an example of female empowerment;

– Most maps replaced Israel with ‘Palestine’.

Can the Commission say, which of the above five issues no longer persists? If the Commission does not know, why does it not know?

Submitted: 9.4.2025

Last updated: 23 April 2025

MIL OSI Europe News –

April 24, 2025
MIL-OSI Europe: Answer to a written question – Horizon Europe funds allocated to Israeli activities – E-000180/2025(ASW)
Source: European Parliament

Any research and innovation activities in projects carried out under Horizon Europe[1] must have an exclusive focus on civil applications. During the execution of the Horizon Europe projects, all beneficiaries must ensure that the activities under the action comply with that rule.

In addition, Horizon Europe beneficiaries must also comply with ethical principles and applicable EU and international law, and all Horizon Europe proposals go through an ethics screening during the evaluation process.

The projects, in which Israel Aerospace Industries participates, are of a purely civil nature as per Article 7 (1) of Regulation (EU) 2021/695[2].

These include among other things projects to develop hybrid electric regional aircrafts, to revolutionise liquid hydrogen aircraft refuelling at airport scale, and to advance material science applications to reduce the generation of waste and enhance the safety of workers[3].

Furthermore, also within the scope of the implementation of Horizon Europe, the Commission applies specific measures with regard to the eligibility of Israeli entities and their activities in the territories occupied by Israel since June 1967 in line with the Commission Guidelines No 2013/C 205/05[4].

All projects funded by Horizon Europe are being closely monitored by the Commission to verify compliance with the applicable legal framework[5]. Any non-compliance by a beneficiary may trigger contractual measures as provided for in the Horizon Europe model grant agreement[6].

[1] https://research-and-innovation.ec.europa.eu/funding/funding-opportunities/funding-programmes-and-open-calls/horizon-europe_en

[2] https://eur-lex.europa.eu/eli/reg/2021/695/oj/eng

[3] For information on the projects please consult the CORDIS website https://cordis.europa.eu/search?q=frameworkProgramme%3D%27HORIZON%27%20AND%20(%27israel%20aerospace%20industries%27)&p=1&num=10&srt=Relevance:decreasing or the HE Dashboard https://dashboard.tech.ec.europa.eu/qs_digit_dashboard_mt/public/sense/app/dc5f6f40-c9de-4c40-8648-015d6ff21342/sheet/3bcd6df0-d32a-4593-b4fa-0f9529c8ffb0/state/analysis/select/Organisation%20PIC/999969315

[4] OJ C 205, 19/07/2013.

[5] Including with the ethical principles and the relevant EU, national and international law . See Article 19 of Regulation (EU) 2021/695, OJ L170, 12/05/2021.

[6] E.g. the recovery of EU funding or even termination of the participation.

Last updated: 23 April 2025
MIL OSI Europe News –
April 24, 2025
MIL-OSI Europe: Answer to a written question – IMEC’s strategic importance and development challenges – E-000876/2025(ASW)

Source: European Parliament

The EU is committed to the India-Middle East-Europe Economic Corridor (IMEC) as an ambitious project of major geopolitical and economic relevance.

To this end, the Commission plans to intensify contacts with all relevant stakeholders, including the co-signatories of the memorandum of understanding signed in 2023 as well as other interested countries, Member States, and financial institutions to discuss implementation of the different segments of the corridor.

The EU is also looking at supporting IMEC through EU initiatives, such as Trans-Mediterranean Energy and Clean Tech Cooperation Initiative , and via its transport and digital connectivity programmes under the Global Gateway strategy; as well as exploring possible contributions in the form of technical assistance for feasibility studies and soft connectivity elements; and trilateral cooperation efforts to leverage private and public investments for the relevant infrastructure.

It is not foreseen that the transport-related components of the corridor would pass through the Red Sea. Rather, a railroad is envisaged to connect the Indian Ocean and the Mediterranean through the Arabian Peninsula and the Middle East.

Should any other connectivity-elements of IMEC (such as cables) need to pass through the Red Sea, the security implications would be assessed thoroughly before deploying any concrete projects.

Türkiye and Iran are not currently part of IMEC. As for any project of this kind, the Commission will assess and address scrupulously any potential risk to the EU’s economic, security or other interests, including strategic dependencies on any third country.

Last updated: 23 April 2025

MIL OSI Europe News –

April 24, 2025
MIL-OSI Europe: Answer to a written question – Presence of British Bases in the Republic of Cyprus – E-000388/2025(ASW)
Source: European Parliament

The presence of the British troops in Cyprus is regulated by the 1960 Agreement[1] establishing the Republic of Cyprus concluded between the United Kingdom of Great Britain and Northern Ireland (UK), Greece, Türkiye of the one part and the Republic of Cyprus of the other part, and therefore not a subject of discussions between the EU and the UK.

The EU works closely with the UK on many issues and regularly exchanges with British officials, including on the operation of the Sovereign Base Areas (SBAs).

Following the UK’s withdrawal, the EU has been protecting the interests of Cypriot citizens living and working in the SBAs. In this context, the Commission is in charge of the implementation of the Protocol No 3 on the Sovereign Base Areas of the United Kingdom of Great Britain and Northern Ireland in Cyprus [2]. The aim of the Protocol is to ensure that EU law, in the areas stipulated in Protocol 3 to Cyprus’ Act of Accession to the EU, will continue to apply in the SBAs. The territory of the SBAs continues to be part of the customs territory of the EU.

The EU is fully committed to a comprehensive settlement of the Cyprus problem, within the United Nations (UN) framework, in accordance with the relevant UN Security Council resolutions and in line with the principles on which the Union is founded and the EU acquis.

[1] https://peacemaker.un.org/sites/default/files/document/files/2024/05/cy20gr20tr600816treaty20of20guarantee.pdf

[2] https://eur-lex.europa.eu/eli/treaty/acc_2003/act_1/pro_3/sign/eng

Last updated: 23 April 2025
MIL OSI Europe News –
April 24, 2025
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 X – European External Action Service – A10-0069/2025

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 X – European External Action Service

(2024/2024(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 X – European External Action Service,

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

– having regard to the opinion of the Committee on Foreign Affairs,

– having regard to the report of the Committee on Budgetary Control (A10-0069/2025),

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 European External Action Service (the ‘EEAS’) is responsible for the management of the administrative expenditure of its Headquarters in Brussels and for the network of the 144 Union delegations and offices;

C. whereas the EEAS’ responsibility has been extended to cover the administrative management of the Commission staff in the delegations through a series of Service Level Arrangements (SLAs);

D. whereas the role of the delegations is to represent the Union and its citizens around the world by building networks and partnerships, and to promote the values of the Union;

E. whereas the peculiarity of the EEAS remains in its nature and origin, as it was when it was formed by the merging of staff belonging to the former external relation departments of the Council and of the Commission, into which diplomats from the Member States have been integrated;

F. whereas under the EEAS Internal Rules, the Secretary-General of the EEAS acts as authorising officer by delegation for the institution and the director-general for resource management has the role of principal sub-delegated authorising officer;

G. whereas the powers conferred by the Staff Regulations on the Appointing Authority are exercised by the High Representative of the Union for Foreign Affairs and Security Policy/Vice President (‘HR/VP’) in respect of staff of the EEAS;

H. whereas the implementation of the budget is governed by the Financial Regulation and by the Internal Rules of implementation of the Budget of the EEAS;

1. Notes that the budget of the EEAS 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 EEAS budget of approximately EUR 1,1 billion represents approximately 9,2 % of the total administrative expenditure of the Union;

2. Notes that the Court of Auditors (the ‘Court’), in its annual report for the financial year 2023 examined a sample of 70 transactions under administration, 10 more than were examined in 2022; further notes that the Court writes 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, this spending is low risk;

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

4. Notes with concern that the Court, in its annual report for the financial year 2023, found a quantifiable error in one of the 13 payments examined and raised six non-quantifiable findings concerning the EEAS; notes that the quantifiable error concerned the absence of a valid procurement procedure before a rental contract was signed for a Union delegation; notes that, in 2023, the EEAS took measures to address the two quantifiable errors found by the Court in its 2022 annual report and took measures to avoid such issues in the future;

Budgetary and financial management

5. Notes that the final EEAS budget for 2023 was EUR 821 900 280, representing an increase of 4,45 % compared to 2022; notes that the EEAS also disposed of an amount of EUR 259,7 million (including assigned revenues and carried over amounts) from the Commission to cover the administrative costs of Commission staff working in Union delegations; notes further that the EEAS received additional fixed-amount contributions to cover common costs of European Development Fund staff in delegations and co-locations, as well as other amounts received under co-location and other agreements; notes that the total budgetary amount managed by the EEAS in 2023 therefore amounted to EUR 1 198,2 million (commitment appropriations), which represented an increase of 4,8 % compared to the previous year;

6. Notes that, in 2023, the budgetary implementation rate of commitment appropriations stood at 100 %, whereas the implementation rate for payments was 91,9 % compared to 90,6 % in 2022; notes that the average time for payment was 13,57 days but notes nevertheless that 8,63 % of the total amount was paid late, which led to EUR 50 253,91 in late interest payments in 2023; urges the EEAS to pay its commitments on time; urges the EEAS to continue its efforts in improving the number of electronic payments and the digitalisation of workflows, in particular in delegations;

7. Notes that the EEAS informed the budgetary authority of two budgetary transfers in accordance with Article 29(1) of the Financial Regulation and made 11 autonomous transfers in accordance with Article 29(4), for an overall value of EUR 55,7 million; notes that the main purpose of the transfers was to increase budget line 3003 on buildings and associate costs in delegations by EUR 18,97 million and budget lines 3001 on External Staff and outside services in delegations by EUR 5,6 million; notes that further to the transfers, the final budget for the EEAS headquarters amounted to EUR 327,8 million and the final budget for delegations amounted to EUR 494,1 million;

8. Notes that, in 2023, the EEAS has faced growing political and financial challenges, as well as challenges with respect to Human Rights and the Rule of Law; notes that Russia’s war of aggression against Ukraine and its geopolitical consequences continued to be a key issue in 2023, leading the EEAS to ensure wide-range support for Ukraine, exert pressure on Russia and continue its global outreach to address the wider consequences of the war, including the implementation of the Action Plan on the geopolitical consequences of Russian aggression against Ukraine; acknowledges the EEAS’s role in gathering evidence against EU-sanctioned Russian state-backed outlets and individuals involved in spreading disinformation and manipulating information to justify Russia’s war of aggression; underlines the need to provide adequate resources to the Strategic Communication and Foresight division of the EEAS to effectively combat disinformation campaigns deployed as strategic tools by authoritarian and illiberal regimes; calls on the EEAS to reinforce the Union Delegations in the Eastern Partnership countries to support those countries heavily affected by Russia’s military aggression against Ukraine; notes that the financial ceiling of the European Peace Facility managed under the authority of the HR/VP was increased from EUR 5,6 million to more than EUR 12 million in 2023; calls on the EEAS to collaborate with DG ENEST to ensure effective oversight and monitoring of the projects funded by the Facility; notes that the reignited Israel-Palestine conflict following the Hamas attack on 7 October 2023 required the EEAS to engage in intense diplomatic efforts, encourage Union institutions to urge regional de-escalation, respond to humanitarian needs and support regional peace efforts; emphasises that Union and EEAS assistance must align with broader human rights and peace objectives in the region, with strong safeguards in place to ensure that the funds do not, either directly or indirectly, support terrorist or violent activities; emphasises that Union funding for the reconstruction of Gaza should only commence once all hostages taken by Hamas have been released; emphasises the importance of transparency in the allocation of financial resources in third countries to ensure accountability in the use of the Union budget and the new financial instruments;

9. Urges the EEAS to work closely with the Commission to ensure that the complete restitution of the Romanian National Treasure, along with the national heritage of other Member States, is on the agenda of any potential future actions regarding the Russian Federation;

10. Recalls that there have been allegations regarding the involvement of UNRWA employees in Gaza in the terrorist attacks by Hamas against Israel on 7 October 2023; notes that in response to these allegations, nine staff members had their employment formally terminated by the UNRWA; underlines that the Commission has been working with the UNRWA to improve control systems, in line with recommendations from the UN Office of Internal Oversight Services (OIOS), including the screening of staff and the strengthening of internal investigative and ethical frameworks; stresses that following the concerns repeatedly raised by Parliament regarding the misuse of Union funding, any Union aid should not under any circumstances be financing terrorism; urges continued vigilance in ensuring that the taxpayer money is not misused; stresses the importance of controls to ensure compliance with Union rules and international law by beneficiaries of Union funds, as well as the need for enhanced measures to prevent misuse of Union financial support; encourages the EEAS to reinforce efforts to safeguard Union funding, and to monitor the implementation of the milestones outlined in the agreement between Commissioner Várhelyi and the UNRWA Commissioner General Lazzarini in April 2024, which includes provisions for conducting Union audits and reinforcing internal oversight at the UNRWA; underlines the need for the Palestinian Authority to align all educational materials with UNESCO standards, particularly removing any content that includes antisemitism or incitement to violence; stresses that Union financial support for the Palestinian Authority in the area of education should be provided on the condition that these standards are met; encourages the EEAS to support diplomatic efforts for a comprehensive and sustainable solution to the Israeli-Palestinian conflict and to keep Parliament informed about any developments in Union cooperation with the Palestinian Authority;

11. Notes that, for 2023, the EEAS reported significant budgetary constraints, leading to drastic cuts and budget optimisation in order to cope with inflation in third countries, fluctuations in local currencies, an increase in prices, in particular the cost of renting office space, IT, security and energy prices, which exposed the EEAS to much higher running costs in foreign countries, thus affecting its ability to function effectively and to fulfil its duty of care towards the staff posted in delegations; regrets that, as a result of the budgetary pressures, the EEAS postponed infrastructure maintenance, set aside or cancelled security expenditures in delegations and made cuts to budget posts, such as cuts to the mission and representation budget, office supplies and training courses; deplores that, for budgetary reasons, the EEAS had to prioritise staff participation in election observation missions over other types of missions, such as follow-up missions; emphasises the necessity of establishing an EU diplomatic service;

12. Notes that, in 2023, the EEAS, both at the EEAS headquarters and in delegations, launched a total of 28 open public procurement procedures, 27 competitive procedures with negotiations, 14 negotiated procedures without prior publication of a contract notice, 6 restricted procedures and 2 negotiated procedures for middle-value works contracts, which were successful and led to the award of a contract in 52 % of cases on average; notes that the high standards and complexity of Union procurement rules might be one of the reasons for the relatively high number of failed procurement procedures, as the application of those rules might be challenging for tenderers, especially in third countries; requests the EEAS to investigate the reasons behind the relatively high number of failed procurement procedures and to propose solutions to ensure their effective implementation while maintaining the standards set by the Union; regrets that, for external actions, procurement rules have been simplified in the recast of the Financial Regulation; underlines that procurement rules are intended to ensure that funded projects maintain high standards and are not prone to fraud; calls on the EEAS to always strive for the highest possible level of scrutiny in any tender process; believes that a lack of familiarity in third countries with the high standards of Union procurement rules should never be a pretext or excuse to lower the bar;

13. Welcomes that the number of co-locations with Member States and other Union partners in Union delegations was 138 at the end of 2023, 12 more than in 2022; notes that, out of the total number of co-locations in 2023, 42 were concluded with Member States and Partner Countries, 91 with other Union partners and five were reverse co-locations; notes that, in 2023, co-locations represented 8 % of the total office surface in Union delegations and involved more than half of the Union delegations (75), which can be seen as an example of successful optimisation of the EEAS building management, but also as an indicator of the increased interest of partners in sharing premises in third countries and the relevance of co-location in diplomatic affairs;

14. Notes that the budget for missions was EUR 18 948 650 in 2023, representing a limited increase of 1,46 % compared to the previous year, the aim of which was to compensate the increase in costs due to inflation, but was insufficient when compared with the actual rise in travel costs in 2023; regrets that the EEAS does not have a separate budget line for missions and travel for the HR/VP and that the missions and travel costs for the HR/VP are shared between the EEAS and the Commission depending on the purpose of the mission; notes finally that for 2023, the EEAS had costs of EUR 2 995,14 on 6 missions for the HR/VP and air-taxi costs of EUR 288 145, corresponding to a decrease of 51% compared to 2022 when air-taxi costs were EUR 588 103; underlines that the leaders of the Union’s institutions should act as good examples to the public and citizens, especially when using Union resources in the performance of their duties; stresses that the flight options should be chosen on the basis of sound financial management criteria, provided that such alternatives are available and in line with the agenda and venue of meetings; stresses that transparency and sound financial management in using the Union’s public funds must remain a core principle for all Union institutions;

15. Underlines the negative impact cuts may have on the implementation of the external affairs instruments, such as Neighbourhood, Development and International Cooperation Instrument – Global Europe (NDICI – Global Europe) and Global Gateway; underlines the need to provide adequate resources to the Strategic Communication and Foresight division of the EEAS to continue to effectively combat disinformation campaigns deployed as strategic tools by authoritarian and illiberal regimes; welcomes in this regard the announcement of the creation of the Task Force for Strategic Communication and Countering Information Manipulation in DG COMM of the Commission;

16. Insists on the budgetary increase for Common Foreign Security Policy (CFSP) actions and other appropriate peace, conflict and crisis response instruments, as well as IT and security protocols, in order to fully match the Union’s activities and capabilities with current challenges and conflicts worldwide;

Internal management, performance and internal control

17. Notes that, following an internal reorganisation, the EEAS created a new Corporate Governance Service in October 2023, composed of three divisions in charge of inspections, internal audit and planning, reporting and compliance, to enable the EEAS to achieve greater accountability, better management and better monitoring of activities; welcomes that a Corporate Governance Board was also established to ensure coherence on corporate management issues in the EEAS; notes furthermore that the EEAS created the Managing Directorate for Peace, Security and Defence (MD PSD), the Peace, Partnership and Crisis Management Directorate and two new Divisions dedicated to “Hybrid Threats and Cyber” and “Maritime Security” in order to better support the Union’s work in security and defence matters;

18. Notes that, in 2023, the Corporate Governance Service performed a fitness check on governance processes and policies; welcomes that, as part of that process, the EEAS updated the Audit Progress Committee charter, revised its internal control framework, its annual management plan and its risk management framework;

19. Notes that, in line with the EEAS Audit Plan for 2023, three audits were finalised in 2023, namely an audit on the management of the registry of exceptions and non-compliance and two audits on the management of local agents’ salaries and the recruitment and management of local agents and equivalent local staff; notes furthermore with great concern that, due to an organisational restructuring and corresponding staff turnover in the internal audit function, a planned audit on security could not be launched in 2023 and that such audit will be reassessed in the framework of the preparation of the 2025-27 multiannual strategic internal audit plan; stresses the importance of conducting internal audits diligently and regularly; deeply regrets that 4 critical and 49 very important audit recommendations related to finalised audits remained open in 2023; requests that the Parliament be informed on the implementation of the recommendations;

20. Notes that, in December 2023, the Court adopted its final report following its audit on the coordination role of the EEAS, the scope of which was to assess whether the coordination, in particular with regard to information management, staffing and reporting, both internally and with the Commission and Council, was effective; notes that, in 2023, some of the audit recommendations had already been covered by ongoing initiatives, such as the sending of mission letters to the newly appointed Ambassadors before taking up duty and the efforts made by the EEAS since 2019 to implement its Information Management Strategy; calls on the EEAS to fully implement the ECA’s report recommendations to address identified weaknesses in information management, both within its headquarters and EU delegations in non-EU countries, as well as within the High Representative/Vice-President’s private office; asks that Parliament be kept informed on the follow-up of the Court’s recommendations;

21. Notes that, based on the 26 inspections carried out in delegations in 2023, security, buildings and administrative burden were identified as the main challenges for delegations; notes that the EEAS has put in place security risk management measures in delegations based on international standards and best practices; notes that, in 2023, five critical recommendations were formulated by the EEAS inspection service, all related to the management of three delegations; notes that in all cases, the recommendations were addressed through increased oversight and support from the EEAS headquarters; welcomes the toolbox developed by the EEAS to respond to internal management situations;

22. Notes that, in 2023, three EU Delegations (Central African Republic, Sierra Leone, and Syria) submitted reservations in their Declarations of Assurance, primarily concerning operational budget lines managed by the European Commission; highlights that these reservations did not have a substantial financial impact on the administrative budget under the responsibility of the EEAS;

23. Calls on the EEAS and on the Commission to closely collaborate with the EPLO office in Washington, D.C., and the EU delegation in the United States to identify, fund, and implement initiatives aimed at strengthening the Transatlantic Relationship, including exchange programs for professionals working in public institutions in both the EU and the U.S.;

24. Calls on the EEAS and Union delegations to intensify monitoring of the state of democracy in various countries and to enhance logistical and technological support for human rights defenders and indigenous individuals, with a particular focus on women;

25. Recalls that is crucial to further strengthen our support to human rights, democracy and development in third countries through the NDICI – Global Europe, as a world of democracies is a safer world; underlines that resources to the EU’s Digital Diplomacy should be further increased given the current context of rapid technological advancements and geopolitical competition; insists that “green diplomacy” and the green transition, as one of the Union’s priorities, should be enhanced towards third countries through the Union’s External Action; emphasises the need for EEAS to play a central role in promoting peace and stability in the Middle East, to increase funding to ensure humanitarian aid in Lebanon, Gaza, and Syria, and to strengthen human rights monitoring; highlights financial support for the EEAS delegations deployed in the Middle East, Gulf countries, and Africa to ensure they can continue implementing the Union’s External Action in the region;

26. Notes that the Special Report 14/2023 of the Court found deficiencies in the methodologies used by the Commission and the EEAS for allocating funding to partner countries and in the setup of the monitoring framework and recommended that the Commission and the EEAS notably improve the methodology for allocating funding and the assessment of the impact of Union support, focus the scope of the programming process and simplify and consistently use the indicators in the multiannual indicative programmes.

27. Welcomes the appointment of the first EU Special Representative for the Gulf region;

28. Highlights that recent events, notably Russia’s full-scale invasion of Ukraine and its hostile attempts to influence democratic processes in Europe as well as growing instability in the Middle East, have brought Union foreign policy and its implementation to the forefront of concerns among the Member States and institutions; underlines the central role played by the EEAS and its delegations in conducting the Union’s external policy and in fighting foreign information manipulation and interference (FIMI); stresses the importance of the EEAS for the Union’s relations with the 25 to 30 million Union citizens living outside the Union; acknowledges that the EEAS budget, already structurally underfunded, was disproportionately affected in comparison to other Union institutions by the higher inflation rates and subsequent energy crisis caused by Russia’s war of aggression in Ukraine, and is concerned of these negative consequences for the EEAS and the performance of the Union institutions and the lack of action to rectify the current budgetary situation that can severely impact the Union’s relations with third countries;

29. Welcomes the steadfast support provided to Ukraine, including through the civilian EU Advisory Mission (EUAM Ukraine) and the training of Ukrainian soldiers under the EU Military Assistance Mission (EUMAM);

30. Underlines that the Union must increase funding to reinforce the dedicated budget line within the Union’s foreign policy actions specifically for gender equality and the Women, Peace, and Security (WPS) agenda, in order to ensure consistent financing for initiatives that promote gender-responsive leadership, protect women’s rights, and combat sexual and gender-based violence (SGBV) in conflict and post-conflict settings; stresses that such funding is essential to support local civil society organisations, provide survivor-centred support, and integrate gender perspectives into Union diplomatic and security efforts.

31. Stresses that the Gender Action Plan (GAP) III dictates that 85% of new Union actions must contribute to gender equality and women and girls’ empowerment; calls on the EEAS to accelerate the progress towards the goals of GAP III by meaningfully focusing in its every day work on the GAP III’s key areas of engagement, including ending gender-based violence, promoting sexual and reproductive health and rights, economic and social rights and empowerment, equal participation and leadership; notes that GAP III will expire in 2027 and urges the EEAS, to this end, to develop a more ambitious GAP IV that will ensure a stronger connection between women’s rights and empowerment and the Union’s foreign and security policy, ready for implementation as of 2028;

32. Underlines the extremely vulnerable situation of children in the world, specifically in armed conflict; expresses serious concern about the tens of thousands of children that were affected by armed conflict across the globe and suffered abhorrent abuses and violations of their most basic rights in 2023; calls on the EEAS to put children’s rights at the centre of their efforts;

33. Recalls the dire situation of women’s rights and LGBTQI+ rights in many parts of the world; stresses the urgent need to better protect these rights; highlights the central role of the EEAS in advancing human rights around the world; calls on the EEAS to enhance their efforts in this regard;

34. Sees electoral observation mission as a practical and effective foreign policy instrument that remains central to the Union’s democracy support policies and strategies; calls on the Union to ensure adequate resources to the EU electoral observation missions, in view also of extending them to elections in candidate and neighbouring countries;

Human resources, equality and staff well-being

35. Notes that, at the end 2023, the occupation rate of the establishment plan was at 96,7 %; notes that the EEAS was employing a total of 2 812 members of staff, including 1 245 officials, 450 temporary agents, 603 contract agents and 514 seconded national experts (SNEs); notes that out of the total number of officials and temporary agents employed by the EEAS, either in its headquarters or in delegations, 62,5 % was made up of administrators, 32,8 % was made up of assistants and 4,8 % was made up of secretaries;

36. Notes that 5 252 people in total were working in the EEAS at the end of 2023, employed either directly by the EEAS or through external contractors, from which 46,2 % were working in the EEAS headquarters and 53,8 % in delegations; notes that out of the total number of people working in the EEAS, 46,5 % were non-statutory staff or external contractors; notes that the largest number of external staff employed by an external contractor but working in the premises of the EEAS provide services in the areas of information technology, security and safety and medical care;

37. Notes that, in 2023, the EEAS received 36 full-time equivalents from the budgetary authority, including 31 contract agents and five cost-shared SNEs; notes that the additional resources were allocated to crisis management functions, to the implementation of the Strategic Compass and to other EEAS priorities; notes that, at the end of 2023, the EEAS received an additional 20 cost-free SNEs for the Military Planning and Conduct Capability structures;

38. Notes that, by the end of 2023, the EEAS statutory population comprised 52,7% men and 47,3% women, reflecting a slight increase in female representation compared to 2022, when 46,8% of staff were women; welcomes the modest progress in gender balance within senior management, where the representation of women increased from 6,3% in 2022 to 7,6% in 2023, and in middle management, where it rose from 30,1% in 2022 to 30,4% in 2023; calls on the EEAS to intensify efforts to achieve a more substantial and visible gender balance across all levels of the organisation;

39. Welcomes the publication of the mid-term report on the implementation of the EU Gender Action Plan (GAP III) by the HR/VP and the Commission at the end of 2023, as well as the decision to extend its timeline to 2027 to align with the multiannual financial framework (MFF); acknowledges GAP III’s significance in promoting gender equality as a strategic priority in EU external action and enhancing its role in this area; welcomes the organisation of the first executive trainings on Gender-Responsive Leadership (GRL) for senior managers in late 2023 by the team of the Ambassador for Gender and Diversity;

40. Welcomes the first EEAS report on FIMI activities targeting LGBTIQA+ individuals, aimed at enhancing understanding of FIMI tactics and fostering cooperation, including with ENISA, to protect the LGBTIQA+ community; expresses concern about the global status of LGBTIQ+ rights and the increasing resistance to gender equality, women’s rights, and sexual and reproductive health and rights in developing countries; calls on the Commission and the EEAS to address these setbacks and prioritise targeted support for civil society organisations advocating for these rights;

41. Notes that, in its decision adopted in July 2023, the HR/VP clarified that the maximum duration of the engagement by the EEAS of temporary and contract staff was 8 years in a reference period of 13 years or, in exceptional circumstances and in the interests of the service, 10 years in a reference period of 15 years and that the minimum lapse of time between successive engagements for temporary agents seconded from national diplomatic services of the Member States was 2 years from the termination of their last contract;

42. Notes that at the end of 2023, out of 1695 officials and temporary agents, 863 (51 %) were men and 832 (49 %) were women, which represents a slight increase from 2022; notes that among contract agents 57,4% were women , which is a slight increase from 2022; however regrets that women are still notably underrepresented in senior positions, both in headquarters and in delegations, and overrepresented mainly in AST positions; calls on the EEAS to publish a gender and nationality breakdown of middle and senior management positions; asks the EEAS to address this issue, while at the same time respecting the competences and merits of the candidates; welcomes that the 2023 rotation exercise offered 42 management posts in Delegations and resulted in a 12% increase in the number of women Ambassadors, whereas in 2023 35,50 % of them were women (up from 31,70 %), which, nevertheless, is still an underrepresentation;

43. Observes that although all Member States are represented in the EEAS staff, significant imbalances persist with Belgium being the most overrepresented Member State making up 12,1 % of total staff employed by the EEAS; points out that a significant geographical imbalance is also concentrated between Western and Eastern Member States; notes also that among managers, Italy is the most overrepresented Member State, with 15 % of all managerial positions being occupied by Italians; notes that out of 141 Union Ambassadors, three Member States still do not occupy any Ambassador posts (Hungary, Luxembourg and Malta), whereas the Member States with most Ambassadors are France with 22, Spain and Italy with 16, Germany with 12 and Belgium with 10, meaning that these five countries occupy 54 % of all Ambassador posts; strongly reiterates its call on the EEAS to continue to ensure a sound geographical balance throughout its organisation and on all levels; also reiterates its concern about gender balance; notes that women are notably under-represented in senior positions, while in AST positions in particular, they are overrepresented; calls on the EEAS to publish a gender and nationality breakdown of middle and senior management positions; asks the EEAS to address this issue, while at the same time respecting the competences and merits of the candidates;

44. Notes that a major rotation exercise of 52 management posts in delegations was organised in 2023; welcomes the efforts deployed by the EEAS to raise the awareness of Member States in relation to the need to attract a wide range of candidates to the published posts and to propose qualified candidates for the Union Ambassador posts;

45. Notes with satisfaction that, in 2023, the EEAS adopted its Agenda for Diversity and Inclusion 2023-2025, a detailed action plan to promote a safe and respectful working environment and a zero tolerance approach towards harassment; notes that staff representatives, staff associations and the Joint Committee for Equal Opportunities, which was renamed as the Joint Committee on Diversity and Inclusion, were consulted on both documents; notes that the action plan contains anti-harassment preventive measures, such as a mandatory e-learning training course for all staff on “Recognising and addressing harassment at work” and a mandatory management training on “How to create an harassment free work environment”; calls on the EEAS to continue to regularly train managerial and non-managerial staff on issues regarding diversity, equity, inclusion, and belonging;

46. Notes with concern that, in 2023, the EEAS received three requests for assistance for allegations of psychological harassment involving two officials which led to two administrative enquiries, one of which is still ongoing and the other was closed with a disciplinary sanction; notes that, under the informal procedure, the EEAS mediation service dealt with 28 cases involving allegations of psychological harassment and 10 cases of sexual harassment and that the Confidential Counsellors dealt with 21 cases of allegations of psychological harassment and 6 cases of sexual harassment in 2023; notes that, in 2023, the EEAS prepared a decision on anti-harassment for local staff in delegations, which was adopted in June 2024; acknowledges the efforts made by the EEAS to strengthen its anti-harassment policies, including the introduction of mandatory e-learning modules to raise awareness and the establishment of an ‘Istanbul Convention Task Force’ aimed at identifying measures to ensure a safer workplace for all; however, expresses serious concern about the persistently high number of harassment cases; calls on the EEAS to implement stronger prevention, victim support, strict disciplinary measures to ensure zero tolerance for harassment and a safe working environment;

47. Notes that, in 2023, the EEAS took several measures to ensure the physical and mental wellbeing of its staff, including a systematic health check for all staff before being posted to a delegation, psychological support and awareness-raising actions; notes that, in October 2023, two decisions on working time and flexible working arrangements were adopted, following which flexitime became the default working time regime in the EEAS headquarters and in delegations for all staff, except managers; notes furthermore that the decisions authorise teleworking for up to two days per week in the EEAS headquarters, one day per week in delegations and 10 days per year away from the place of employment for all; notes that, exceptional teleworking for a longer period has remained possible in the event of crises, for medical or other imperative reasons;

48. Is concerned that the EEAS members of staff on long-term sick leave for more than 50 days increased from 111 members of staff in 2022 to 171 members of staff in 2023, equivalent to an increase of 54 %; notes that the medical service implemented several measures to prevent the risk of burnout, such as the recruitment of a psychiatrist in December 2023 and a more systematic follow-up of sick leave by the medical service, psychological support and guidance to both staff and managers, awareness-raising activities and the creation of a mental health first aiders network; stresses the need for managers to ensure fair task allocation and implement guidance and flexible working arrangements; calls on the EEAS to take a proactive approach to prevent long-term sickness and burnout, prioritising the mental wellbeing of its staff through effective support measures;

Ethical framework and transparency

49. Notes that, in 2023, the EEAS improved its ethical framework by issuing new instructions to prohibit or limit the missions with costs partially or totally paid by external sources to avoid risks of conflicts of interest by sending a reminder on ethics to all staff; notes that the EEAS also focused on organising specific training courses on ethics, conflicts of interest, internal control and anti-fraud targeted at and adapted to different audiences in the EEAS headquarters and in delegations; notes furthermore that the 16 ‘principles of professional behaviour’ adopted in 2022 continued to be distributed to newcomers and promoted widely, in particular during the ‘Ethics and integrity’ and ‘Anti-harassment policy’ courses; asks that Parliament be kept informed by the EEAS of any further development of its ethical framework; calls on the EEAS to provide regular mandatory trainings on ethics, including ethical usage of AI, and accountability;

50. Welcomes that, in October 2023, the EEAS adopted a new Anti-Fraud Strategy, applicable to all staff in the EEAS headquarters and in delegations, which resulted from a thorough review process of fraud-related risks and was formally endorsed by OLAF; welcomes that the EEAS devoted particular efforts to staff training and guidance, in particular through the anti-fraud cell established in December 2022; notes that the EEAS staff posted in Union delegations actively participated in a series of workshops and seminars on fraud awareness and prevention, that staff newly assigned to a Union delegation systematically received training on these issues prior to taking up posts and that the intranet page related to anti-fraud was further revamped with the aim of facilitating the reporting of potential fraud cases and providing a wider range of options for anti-fraud training; asks the EEAS to conduct mandatory regular fraud awareness and prevention trainings for all staff;

51. Notes that the EEAS did not receive any whistleblowing cases in 2023; notes with satisfaction that, in 2023, the EEAS started to develop a dedicated whistleblower protection policy in line with the new Anti-Fraud Strategy; asks that Parliament be kept informed about its adoption, scheduled for 2025, and its implementation across the service;

52. Notes that, in 2023, the EEAS received five declarations of conflicts of interest, which were handled in accordance with the applicable rules; notes that, in a case related to a member of an evaluation committee in a procurement procedure, the authorising officer by subdelegation concluded that there was a potential conflict of interest and relieved the member of staff from the duty of member of the evaluation committee;

53. Notes with concern that OLAF opened eight investigations in 2023, which are still ongoing, concerning potential misconduct in the context of procurement procedures and implementation of contracts, grant agreements or potential irregularities related to human-resource matters; notes that the open cases in 2023 concerned officials, temporary agents and local agents both in the EEAS headquarters and in delegations; asks that Parliament be kept informed regarding the follow-up to those investigations; notes that eight older cases involving former and current staff were closed, with recommendations to take further action in five cases; notes that the EEAS is in regular contact with OLAF through its anti-fraud cell and ensures the timely follow-up of OLAF recommendations; asks that the Parliament is kept informed on the implementation of the recommendations;

54. Notes that, in 2023, the EEAS handled ten requests from the Ombudsman, nine of which related to administrative files and one to a request for access to documents; notes that the Ombudsman found no instances of maladministration or partial maladministration and did not issue any recommendation to the EEAS;

55. Takes note of all activities undertaken to raise awareness on outside activities; reminds the Parliament’s request to adopt self-standing implementation provisions on outside activities and assignments, in order to protect the image and reputation of the Union in particular in case of Heads of Delegations;

56. Notes that, in his/her capacity as Vice-President of the Commission, the HR/VP is bound by the rules of the Transparency Register; stresses that while the EEAS is not an Institution within the meaning of Article 13 of the Treaty on European Union and does not have a direct role in Union law, it does, however, have an important role in Union law with regard to decisions concerning sanctions and the negotiation of international trade agreements, which have a considerable regulatory impact; notes that it would be of great relevance for the EEAS to adopt transparency measures, notify them to the management board of the Transparency Register and join the Register; invites the EEAS to publish all meetings with all types of lobby organisations, including those of Heads of Union Delegations, in order to improve transparency; asks that Parliament be kept informed of any new initiative taken by the EEAS to improve transparency; reiterates the importance of further strengthening the democratic scrutiny of the Union and of upholding high standards of accountability and transparency when engaging with civil society organisations; asks Union delegations to ensure that Union funds awarded to civil society organisations and social partners in third countries are used in line with the Union values, policies, and financial rules;

57. Urges the EEAS to join the EU Transparency Register to align its practices with the European Parliament and Commission, ensuring full disclosure of lobbying activities and financial interests related to defense and diplomatic matters;

Digitalisation, cybersecurity and data protection

58. Notes that the expenditures for IT projects, equipment and cybersecurity increased from EUR 19,7 million in 2022 to EUR 29,9 million in 2023, corresponding to an increase of 52 %; notes that, in 2023, the EEAS launched important digitalisation projects, such as its collaborative platform ‘HIVE’ for all users at headquarters and delegations and deployed its Corporate Classified Communications and Information System (EC3IS) at the EEAS headquarters, before its progressive rolling out in sensitive delegations and interconnecting it with the corresponding systems at the Commission and at the Council;

59. Notes that, in 2023, the EEAS started to host and control an AI environment so that a complete AI governance model could be put in place; notes that this technical step established the grounds for the adoption of guidelines on the use of generative AI and of an AI Strategy in 2024, as well as running proofs of concept; asks that the Parliament be kept informed of the development of the AI Strategy;

60. Notes that, as part of the implementation of the Strategic Compass for Security and Defence adopted in 2022, the EEAS was involved in the adoption of major policy documents and toolboxes related inter alia to cyber defence, cyber diplomacy, hybrid threats, foreign interference and information manipulation; notes that, internally, the EEAS continued to improve its cybersecurity capabilities via the recruitment of specialised staff and to provide cyber-awareness activities to different audiences including the Security Management Team, members of the delegations, newcomers and managers; asks that the EEAS provides regular mandatory cybersecurity training to all staff; calls further for enhanced Union support for Moldova in combating disinformation, hybrid threats, and cyberattacks; calls on the EU Delegation to Moldova to enhance its efforts to promote a more proactive and effective communication strategy regarding the European perspective, including outreach in the Russian language;

61. Welcomes the establishment of EU Partnership Mission in Moldova (EUPM Moldova); highlights the essential role of the EUPM Moldova and calls the EU and its Member States to extend the mission’s mandate beyond May 2025 while increasing resources to enhance its effectiveness;

62. Notes with concern that, in 2023, the EEAS recorded over 29 623 cyber alerts via the Security Incident and Event Monitoring – SIEM, out of which 92 incidents were confirmed as cyberattacks; notes that four cyberattacks had an impact on EEAS operations and only one had significant consequences; warns that the EEAS is a highly likely target for well-resourced actors, including those sponsored by foreign states, seeking to disrupt Union Institutions; notes that the EEAS Security Operations Centre (SOC) is a key actor in dealing with real time threat monitoring and identification of system vulnerabilities; requests the EEAS to continue to consider the need for users’ cyber discipline and cyber awareness as key elements in its cyber security framework; emphasises the importance of the EEAS continuing to prioritise cybersecurity and hybrid threat mitigation while collaborating closely with other Union Institutions and Member States to identify and counter such threats;

63. Notes that the EEAS followed up on one European Data Protection Supervisor enquiry in 2023, following a request from a member of staff concerning the publication of his/her personal data on the EU online directory; notes that a case pending since 2018 was dealt with in 2023 and closed in 2024 with a positive outcome for the EEAS; notes the awareness-raising activities and guidance issued by the EEAS to ensure a level playing field in the area of data protection across its network, notably the Joint Guide on the use of third party AI tools from the double perspective of data protection and cybersecurity;

64. Notes that the fight against FIMI remained a priority for the EEAS in 2023; welcomes that the FIMI toolbox was endorsed by the European Council in December 2023 based on the pillars of situational awareness, resilience building, disruption and diplomatic responses; notes that, in 2023, the EEAS scaled up its analytical capacity to collect FIMI evidence and build responses to the increasing number of incidents and threats, in particular in the run up to the 2024 European elections; notes that the EEAS also launched new flagship projects to raise awareness and counter Russian disinformation, such as the EUvsDisinfo initiative which reached approximately 20,3 million people in 2023, and to create sustainable partnerships to counter FIMI globally; calls on the EEAS, together with the Commission to dedicate adequate resources to effectively combat FIMI; supports the pledged establishment of a “European Democracy Shield” to detect, track and delete deceitful online content, hereby strengthening the Union’s ability to counter FIMI and enhancing its support for protecting democracies in third countries, especially within the Union’s neighbourhood; calls on the EEAS and EU Delegations in third countries to further strengthen their respective capacities in fighting and countering disinformation and propaganda linked to the Union’s CFSP and; calls on the EEAS to scale up its efforts to empower citizens from across the Union to fight against foreign information manipulation and interference;

Buildings and security

65. Notes that, in the course of 2023, the budget line 3003 on buildings and associated costs was reinforced by EUR 19 million but that important maintenance works were nevertheless deferred; is deeply concerned that the accumulation of maintenance and security needs poses significant challenges to the EEAS with regard to how to operate the delegations’ network safely and effectively, and ensure the duty of care towards delegations staff; requests the EEAS to develop multi-annual contingency plans for buildings maintenance and security;

66. Notes that the EEAS occupies and manages real estate covering about 87 618 sqm in the EEAS headquarters and 379 300 sqm around the world with 174 office buildings and 152 residences for Ambassadors; notes that, in 2023, the EEAS presented a working document outlining its purchase policy to the budgetary authority, which currently stands at 22 % of office buildings and 20 % of residences for Ambassadors, thereby achieving the best value for money;

67. Notes that the purchase policy of real estate for Union delegations of April 2023 and the working document on the real estate policy of the EEAS for 2024 aims to achieve the most advantageous long term solution for the Union budget; highlights that none of these documents include any ideas with regard to reducing the number of delegations or creating regional hubs; urges the EEAS to keep Parliament informed of any possible future developments in that direction;

68. Invites the EEAS to maintain its important network of Delegations around the world with sufficient staff in order to improve its ability to reach out to third countries;

69. Notes with concern that these budgetary constraints could lead to excessive closures of EU embassies and postponing security installations in a number of EU Delegations hampering the EEAS’ ability to fulfil its mandate and defend EU values and properly ensure the duty of care to all staff in Delegations; urges the Members States to provide enough financing to the EEAS and the Commission to ensure that the EU maintains its network of Delegations untouched as a signal of its global engagement;

70. Notes that, since 2020, the EEAS has been developing its office management policy towards collaborative and flexible office concepts both at the EEAS headquarters and in delegations; notes that the EEAS started to renovate the Schuman building complex, starting with the 6th and 7th floors, with a view to achieving more efficient use of office space; notes furthermore that the EEAS crisis response centre in the Schuman building was finalised in 2023; notes that, in delegations, the collaborative space concept was implemented in the new premises of 6 delegations;

71. Welcomes that the EEAS is focused on ensuring that its buildings are accessible to people with disabilities and reduced mobility; notes that the Belmont building in Brussels already fulfils the legal requirements for barrier-free buildings and that the refurbishment of the NEO building complex also accommodates the needs of users with disabilities and reduced mobility; welcomes that, for delegations, the EEAS selection procedures envisage barrier-free construction as a key selection criteria for new office buildings;

Environment and sustainability

72. Welcomes that, in 2023, the EEAS continued to implement the Eco-management and Audit Scheme (EMAS/EMS), notably by setting up an Environment Steering Committee and by adopting an Environmental Policy and a relevant communication strategy highlighting the EEAS commitment to environmental sustainability in real estate management; notes that the EMAS Steering Committee worked on new objectives in 2023, the aim of which is to further reduce its carbon footprint by 2030; notes that the measures approved include the reduction of the use of natural gas by 35 %, the reduction of the use of paper, water and waste production by half, an increase in the share of short to medium distance flights for missions in economic class and the better use of green public procurement;

73. Welcomes that the EEAS started to introduce sustainability clauses in the new co-location agreements, including both compulsory actions and voluntary practices; notes that, as regards the co-location agreements already in force, instead of including explicit environmental sustainability clauses, such agreements mention as an overarching principle that any co-location hosted partners adhere to procedures and practices applicable within the local context of Union office premises;

74. Notes that, in 2023, the EEAS continued to work on the implementation of a policy towards greener commuting and more sustainable travel for staff, which led to the adoption of important measures in 2024, such as the increase of the reimbursement rate for public transport subscriptions to 90 % for all staff relinquishing parking access and the objective of at least 60 % of the kilometres travelled by plane during missions should be in economy class;

75. Stresses the importance of strong political engagement, bilateral leverage, public and cultural diplomacy to promote Union values and combat disinformation; emphasises the need for a robust and resilient external service with clear political leadership to address current challenges and ensure coherence in the Union’s foreign policy; urges Union delegations to strengthen support for genuine democratic actors and civil society in the Western Balkans, while firmly and publicly condemning actions by illiberal and undemocratic actors that undermine the Union’s interests, and to ensure that IPA III funding is implemented in line with the Union’s objectives; calls on the EU Delegations in the region to apply a more credible and merit-based approach based on the Copenhagen criteria, notably on the rule of law, democracy and the protection of human rights, especially given the limited progress made by some countries in the Western Balkans;

76. Welcomes the EEAS’s excellent cooperation with bodies such as OLAF, the EPPO, the Court, and the EDPS, reflected in regular meetings and exchanges of information; notes the conclusion of dedicated working arrangements in June 2024; calls nevertheless on the EEAS to institutionalise structured cooperation with those bodies, ensuring systematic fraud detection mechanisms for the Union’s external action funding, particularly in high-risk conflict zones and fragile states;

Interinstitutional cooperation

77. Notes that, in 2023, the Parliament, the Council and the EEAS continued their technical discussions regarding the replacement of the 2002 Institutional Agreement between Parliament and the Council in the field of Common Foreign and Security Policy; regrets that a single technical meeting took place in 2023 following which the Council was not able to find an agreement on the compromise solutions put forward;

78. Notes that, in 2023, the EEAS opened the negotiation process for a working arrangement with the European Public Prosecutor’s Office, which was signed in 2024; notes that the working arrangement take into account the special context in which the EEAS operates, putting emphasis on the protection of information, the confidentiality of information and the protection of immunity of staff;

79. Notes that, in its 2023 budget, the EEAS earmarked EUR 990,5 million for a pilot project to launch the European Diplomatic Academy, whereby 50 junior diplomats from Member States and the Union institutions are trained on Union foreign and security policies with the aim of building a true European Diplomatic corps to promote Union foreign policy and external interest; encourages this initiative as a step towards fostering a cohesive and well-trained European diplomatic corps that can effectively represent and defend the Union’s values and interests on the global stage; underlines the necessity to improve the visibility of the European Diplomatic Academy across all Member States and to strengthen its role and capacities;

80. Welcomes that the EEAS scaled up its cooperation with the European Ombudsman in 2023 to improve awareness amongst its staff of the principles of good administration; notes that the new layer of cooperation involves inviting the European Ombudsman Office to present their work at the EEAS pre-posting seminars and in the EEAS annual staff seminars;

Communication

81. Notes that the EEAS has a budget allocation of EUR 22,2 million, spread over different budget lines covering publications, events, strategic communication, outreach activities and press; welcomes that standing up for democracy and the rule of law remained a priority for the EEAS, also by targeting Foreign Information Manipulation and Interference via strengthened policies and instruments;

82. Points to the rise in the number of violations of freedom of religion worldwide; calls on the EEAS to adequately equip its staff in view of this in countries where there is no religious freedom or where religious freedom is under pressure (including by means of training courses); with a view to entering into discussions on this topic with the relevant authorities at all levels in countries where freedom of religion is being violated; and make this a key focus of its external action;

83. Notes that, as part of its communication activities, the EEAS reaches out to the general public via public events, open days and the reception of visitors’ groups; notes that, in 2023, the EEAS launched several thematic communication campaigns across different channels on the support to Ukraine, the consequences of Russia’s war of aggression against Ukraine and the respect for Union values; welcomes that Ukraine remained a top priority for the EEAS; notes that, in 2023, the EEAS consolidated its presence on social media and increased the number of its followers by 41,5 % on LinkedIn, by 13,8 % on Instagram, by 5,4 % on Twitter and by 4,7 % on Facebook; urges the EEAS to enhance its communication of Union policies to citizens in third countries and to strengthen coordination efforts aimed at increasing the visibility of Union-funded projects, particularly in candidate countries, in order to counter the attempts of malicious actors to undermine the Union’s efforts;

84. Welcomes the involvement of the EEAS in the institutional communication campaign of Parliament for the 2024 European elections, in particular the information campaign targeting the 25 to 30 million European citizens living in third countries on the possible ways to vote in the European elections, in particular via the delegation’ network; notes that this campaign reached out to 11 million recipients, via 26 video campaigns and over 2 000 posts on social media;

85. Highlights the EEAS’s contribution to the Union’s overarching efforts to demonstrate steadfast support for Ukraine with initiatives like the #StandWithUkraine campaign and targeted communication projects such as Faces of Ukraine, Art vs War, and Share Your Light;

86. Continues to encourage Union Delegations to promote and engage with local actors, civil society organisations and social partners in third countries to stimulate social dialogue and dialogue regarding the rule of law, fundamental rights and the fight against corruption; notes that, in 2023, under the thematic programme for civil society organisations, based on which Union partnerships are concluded with accountable and transparent organisations, EUR 50 million was allocated to the Union System for an Enabling Environment for Civil Society, which monitors and promotes civic space in 86 partner countries.

OPINION OF THE COMMITTEE ON FOREIGN AFFAIRS (31.1.2025)

for the Committee on Budgetary Control

on discharge in respect of the implementation of the general budget of the European Union for the financial year 2023, Section X – European External Action Service

(2024/2024(DEC))

Rapporteur for opinion: Michael Gahler

OPINION

The Committee on Foreign Affairs calls on the Committee on Budgetary Control, as the committee responsible, to incorporate the following into its motion for a resolution:

1. Highlights that recent events, notably Russia’s full-scale invasion of Ukraine and the former’s hostile attempts to influence democratic processes in Europe as well as growing instability in the Middle East, have brought EU foreign policy and its implementation to the forefront of concerns among the EU Member States and institutions; underlines the central role played by the European External Action Service (EEAS) and its delegations in conducting the Union’s external policy and in fighting foreign information manipulation and interference (FIMI); stresses the importance of the EEAS for the EU’s relations with the 25 to 30 million EU citizens living outside the Union; acknowledges that the EEAS budget, already structurally underfunded, was disproportionately affected in comparison to other EU institutions by the higher inflation rates and subsequent energy crisis caused by Russia’s war of aggression in Ukraine, and is concerned of these negative consequences for the EEAS and the performance of the EU institutions and the lack of action to rectify the current budgetary situation that can severely impact the EU’s relations with third countries;

2. Emphasises the need for the European External Action Service (EEAS) to play a central role in promoting peace and stability in the Middle East, to increase funding to ensure humanitarian aid in Lebanon, Gaza, and Syria, and to strengthen human rights monitoring.

3. Highlight financial support for the European External Action Service (EEAS) delegations deployed in the Middle East, Gulf countries, and Africa to ensure they can continue implementing the EU’s External Action in the region.

4. Insists on the budgetary increase for CFSP actions and other appropriate peace, conflict and crisis response instruments, as well as IT and security protocols, in order to fully match EU’s activities and capabilities with current challenges and conflicts worldwide;

5. Highlights the EEAS’s contribution to the EU’s overarching efforts to demonstrate steadfast support for Ukraine with initiatives like the #StandWithUkraine campaign and targeted communication projects such as Faces of Ukraine, Art vs War, and Share Your Light;

6. Reminds that is crucial to further strengthening our support to human rights, democracy and development in third countries through the NDICI – Global Europe, as a world of democracies is a safer world; underlines that resources to the EU’s Digital Diplomacy should be further increased given the current context of rapid technological advancements and geopolitical competition; insists that “green diplomacy” and the green transition, as one of the EU’s priorities, should be enhanced towards third countries through the EU’s External Action;

7. Acknowledges the EEAS’s role in gathering evidence against EU-sanctioned Russian state-backed outlets and individuals involved in spreading disinformation and manipulating information to justify Russia’s war of aggression;

8. Regrets that the European Court of Auditors in its Annual Report for the financial year 2023 observes that they found quantifiable error in one of the 13 payments examined, concerning the absence of a valid procurement procedure and six non-quantifiable findings concerning procurement at EU Delegations, including weaknesses in the methodology for selecting tenderers and evaluating tenders, as well as entering into a legal commitment before making the budgetary commitment;

9. Notes that the Special Report 14/2023 of the European Court of Auditors found deficiencies in the methodologies used by the Commission and the EEAS for allocating funding to partner countries and in the setup of the monitoring framework and recommended that the Commission and the EEAS notably improve the methodology for allocating funding and the assessment of the impact of EU support, focus the scope of the programming process and simplify and consistently use the indicators in the multiannual indicative programmes.

10. Welcomes the Court of Auditors’ Special Report regarding the coordination role of the EEAS and its conclusions that coordination is mostly effective, allowing the service to properly support the High Representative/Vice-President to deliver their mandate; notes that nevertheless some weaknesses in information management, staffing and reporting remain; calls on the EEAS to prioritise the implementation of the recommendations of the Special Report by the deadline in 2025 as timely action is important in reinforcing its operational capacity and enhancing its contribution to the EU foreign policy objectives.

11. Notes that that the EEAS is committed to make itself more cost-effective while continuing to face significant budgetary constraints in 2023 despite increasing geopolitical challenges; acknowledges that the EEAS has substantially cut its mission and representation budget, which impacts the core functions of a Diplomatic service, and has reduced non-compulsory expenditure and freezing and postponing building maintenance, infrastructure and IT projects; notes with concern that these budgetary constraints could lead to excessive closures of EU embassies and postponing security installations in a number of EU Delegations hampering the EEAS’ ability to fulfil its mandate and defend EU values and properly ensure the duty of care to all staff in Delegations; urges the Members States to provide enough financing to the EEAS and the Commission to ensure that the EU maintains its network of Delegations untouched as a signal of its global engagement; underlines the negative impact cuts may have on the implementation of the external affairs instruments, such as NDICI and Global Gateway; underlines the need to provide adequate resources to the Strategic Communication and Foresight division of the European External Action Service (EEAS) to continue to effectively combat disinformation campaigns deployed as strategic tools by authoritarian and illiberal regimes; welcomes in this regard the announcement of the creation of the Task Force for Strategic Communication and Countering Information Manipulation in DG COMM of the Commission;

12. Welcomes the steadfast support provided to Ukraine, including through the civilian EU Advisory Mission (EUAM Ukraine) and the training of Ukrainian soldiers under the EU Military Assistance Mission (EUMAM);

13. Welcomes the appointment of the first EU Special Representative for the Gulf region;

14. Underlines that the EU must increase funding to reinforce the dedicated budget line within EU foreign policy actions specifically for gender equality and the Women, Peace, and Security (WPS) agenda, in order to ensure consistent financing for initiatives that promote gender-responsive leadership, protect women’s rights, and combat sexual and gender-based violence (SGBV) in conflict and post-conflict settings; stresses that such funding is essential to support local civil society organisations, provide survivor-centered support, and integrate gender perspectives into EU diplomatic and security efforts.

15. Stresses that the Gender Action Plan (GAP) III dictates that 85% of new EU actions must contribute to gender equality and women and girls’ empowerment; calls on the EEAS to accelerate the progress towards the goals of GAP III by meaningfully focusing in its every day work on the GAP III’s key areas of engagement, including ending gender-based violence, promoting sexual and reproductive health and rights, economic and social rights and empowerment, equal participation and leadership; notes that GAP III will expire in 2027 and urges the EEAS to this end to develop a more ambitious GAP IV that will ensure a stronger connection between women’s rights and empowerment and the EU’s foreign and security policy, ready for implementation as of 2028;

16. Underlines the extremely vulnerable situation of children in the world, specifically in armed conflict; expresses serious concern about the tens of thousands of children that were affected by armed conflict across the globe and suffered abhorrent abuses and violations of their most basic rights in 2023; calls on the EEAS to put children’s rights at the centre of their efforts;

17. Continues to encourage the EEAS and Union delegations to promote and engage with local actors and civil society organisations in third countries to stimulate dialogue about the rule of law, fundamental human rights and the fight against corruption and the misuse of EU funds;

18. Calls on the EU Delegations to enhance support to genuine democratic actors and civil society in the Western Balkans, go strongly and publicly denounce actions by illiberal and undemocratic actors that go against the Union’s interest and to ensure that the implementation of the Instrument for Pre-accession Assistance (IPA) III funding is in line with the EU’s objectives; calls on the EU Delegations in the region to apply a more credible and merit-based approach based on the Copenhagen criteria, notably on the rule of law, democracy and the protection of human rights, especially given the limited progress made by some countries in the Western Balkans;

19. Calls for enhanced EU support for Moldova in combating disinformation, hybrid threats, and cyberattacks; calls the EU Delegation to Moldova to enhance its efforts to promote a more proactive and effective communication strategy regarding the European perspective, including outreach in the Russian language;

20. Recalls the dire situation of women’s rights and LGBTQI+ rights in many parts of the world; stresses the urgent need to better protect these rights; highlights the central role of the EEAS in advancing human rights around the world; calls on the EEAS to enhance their efforts in this regard;

21. Sees electoral observation mission as a practical and effective foreign policy instrument that remains central to the EU’s democracy support policies and strategies; calls on the EU to ensure adequate resources to the EU electoral observation missions, in view also of extending them to elections in candidate and neighbouring countries.

22. Welcomes the establishment of EU Partnership Mission in Moldova (EUPM Moldova); highlights the essential role of the EUPM Moldova and calls the EU and its Member States to extend the mission’s mandate beyond May 2025 while increasing resources to enhance its effectiveness;

23. Urges the EEAS and the EU Delegations to closely monitor the state of democracy in the different countries and to provide logistical and technological support to human rights defenders and indigenous persons, in particular women;

24. Emphasises that freedom of religion and belief is a fundamental value of the free world and the European Union; urges the European External Action Service to incorporate faith diplomacy into its actions, recognising religion as a part of the solution to global challenges; underlines that this approach should include actively safeguarding the rights of Christians and other religious groups especially in countries where they are a minority, as well as promoting tolerance, and ensuring that religious freedom is part of all relevant external engagements and policies of the EU;

ANNEX: ENTITIES OR PERSONS
FROM WHOM THE RAPPORTEUR FOR THE OPINION HAS RECEIVED INPUT

The rapporteur for opinion declares under his exclusive responsibility that he did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

MIL OSI Europe News –

April 24, 2025
MIL-OSI Europe: REPORT on the 2023 and 2024 Commission reports on Türkiye – A10-0067/2025

Source: European Parliament

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

on the 2023 and 2024 Commission reports on Türkiye

(2025/2023(INI))

The European Parliament,

– having regard to the European Council conclusions of 17 and 18 April 2024, 30 June 2023, 23 June 2022, 24 June 2021 and 12 December 2019, and to all relevant previous Council and European Council conclusions,

– having regard to Türkiye’s membership of the Council of Europe and NATO,

– having regard to the Agreement between the European Union and the Republic of Turkey on the readmission of persons residing without authorisation [1] (EU-Turkey Readmission Agreement),

– having regard to the statement of the members of the European Council of 25 March 2021 on Türkiye,

– having regard to the ‘EU-Turkey statements’ of 18 March 2016 and 29 November 2015,

– having regard to the ‘Turkey Negotiating Framework’ of 3 October 2005,

– having regard to the declaration issued by the European Community and its Member States on 21 September 2005 following the declaration made by Turkey upon its signature of the Additional Protocol to the Ankara Agreement on 29 July 2005,

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

– having regard to the Council conclusions on Enlargement of 17 December 2024 and of 12 December 2023,

– having regard to the International Law of the Sea and the United Nations Convention on the Law of the Sea (UNCLOS),

– having regard to the Commission communication of 30 October 2024 on EU enlargement policy (COM(2024)0690) and to the accompanying Türkiye 2024 Report (SWD(2024)0696),

– having regard to the Commission communication of 8 November 2023 on EU enlargement policy (COM(2023)0690) and to the accompanying Türkiye 2023 Report (SWD(2023)0696),

– having regard to Special report 06/2024 of the European Court of Auditors of 24 April 2024 entitled ‘The Facility for Refugees in Turkey – Beneficial for refugees and host communities, but impact and sustainability not yet ensured’,

– having regard to the joint communications from the Commission and the High Representative of the Union for Foreign Affairs and Security Policy to the European Council of 29 November 2023 (JOIN(2023)0050) and of 22 March 2021 (JOIN(2021)0008) on the state of play of EU-Türkiye political, economic and trade relations,

– having regard to the Commission communication of 19 December 2024 entitled ‘Eighth Annual Report of the Facility for Refugees in Turkey’ (COM(2024)0593),

– having regard to the fundamental principles of international law and to the Charter of the United Nations, the 1977 and the 1979 High-Level Agreements between the leaders of the two communities, and the relevant resolutions of the UN Security Council on Cyprus, including Resolution 186 (1964) of 4 March 1964, which reaffirms the sovereignty of the Republic of Cyprus, Resolution 550 (1984) of 11 May 1984 on secessionist actions in Cyprus, Resolution 789 (1992) of 25 November 1992, and Resolution 2537 (2020) on the UN Peacekeeping Force in Cyprus (UNFICYP),

– having regard to Article 46 of the European Convention on Human Rights (ECHR), which states that the contracting parties undertake to abide by the final judgment of the European Court of Human Rights (ECtHR) in any case to which they are parties, and to the ensuing obligation of Türkiye to implement all judgments of the ECtHR,

– having regard to the relevant resolutions of the Committee of Ministers of the Council of Europe,

– having regard to the 2025 Freedom in the World report published by Freedom House,

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

– having regard to the January 2025 prison statistics report published by the Civil Society in the Penal System Association (CISST) and to the 2024 country profile for Türkiye published by Prison Insider,

– having regard to the Global Gender Gap Report 2024 published by the World Economic Forum,

– having regard to recent reports of the We Will Stop Femicide Platform (Kadın Cinayetlerini Durduracağız Platformu),

– having regard to the UNESCO statement on Hagia Sophia of 10 July 2020, and to the relevant UNESCO World Heritage Committee decisions 44 COM 7B.58 (2021) and 45 COM 7B.58 (2023), adopted in its 44th and 45th sessions respectively,

– having regard to its previous resolutions on Türkiye, in particular those of 13 September 2023 on the 2022 Commission Report on Türkiye [2], of 7 June 2022 on the 2021 Commission Report on Turkey [3], and of 26 November 2020 on escalating tensions in Varosha following the illegal actions by Türkiye and the urgent need for the resumption of talks [4],

– having regard to its resolution of 29 February 2024 on deepening EU integration in view of future enlargement [5],

– having regard to its resolution of 15 April 2015 on the centenary of the Armenian Genocide [6],

– having regard to its resolutions of 5 May 2022 on the case of Osman Kavala in Turkey [7], of 10 October 2024 on the case of Bülent Mumay in Türkiye [8] and of 13 February 2025 on recent dismissals and arrests of mayors in Türkiye [9],

– having regard to European Commission President Ursula von der Leyen’s visit to Ankara in December 2024,

– having regard to Rule 55 of its Rules of Procedure,

– having regard to the report of the Committee on Foreign Affairs (A10-0067/2025),

A. whereas Türkiye remains a candidate for EU accession, and EU membership remains the repeatedly declared political goal of the Turkish Government, although the gap with the values and interests of the EU is growing; whereas EU accession negotiations have effectively been at a standstill since 2018, owing to the deterioration of the rule of law and democracy in Türkiye;

B. whereas any accession country is expected to respect democratic values, the rule of law and human rights, and to abide by EU law; whereas Türkiye needs to credibly demonstrate its commitment to closer relations and alignment with the European Union in order to reinvigorate its European perspective; whereas being a candidate country presumes a willingness to progressively approach and align with the EU in all aspects, including values, interests, standards and policies, inter alia with its common foreign and security policy, to respect and uphold the Copenhagen criteria, and to pursue and maintain good neighbourly relations with the EU and all of its Member States without discrimination; whereas the tensions between the EU and Türkiye in relation to the situation in the Eastern Mediterranean have de-escalated but not ceased; whereas Türkiye has repeatedly been asked to refrain from all actions which violate the sovereignty and sovereign rights of all EU Member States and are in breach of international and EU law;

C. whereas the 2023 Commission progress report on Türkiye painted a picture of continued backsliding, while its latest progress report of 2024 appears to present a slightly more positive overall picture of progress on enlargement-related reforms in Türkiye, such as in the area of economic and monetary policies; whereas this cannot, however, be applied to the core matters related to democracy and fundamental rights, which have deteriorated even further since the release of the Commission’s latest report; whereas the gap between Türkiye and the EU’s values and normative framework has therefore remained unaddressed during the recent period with the persistent use of laws and measures aimed at curtailing the rule of law and human rights, fundamental freedoms and civil liberties;

D. whereas the joint communication on the state of play of EU-Türkiye relations of 29 November 2023 struck a more positive note, putting forward a set of recommendations on cooperating in areas of joint interest in a phased, proportionate and reversible manner and based on the established conditionalities; whereas only a few concrete steps in line with the commitments therein have been taken so far; whereas the April 2024 European Council mandated Coreper to advance in the implementation of this joint communication; whereas nevertheless this joint communication has not yet received a clear political endorsement by the Council;

E. whereas Türkiye is a member of the Council of Europe and is therefore bound by the judgments of the ECtHR; whereas owing to its failure to apply landmark ECtHR rulings, Türkiye is currently facing historical infringement proceedings; whereas Türkiye consistently ranks among the countries most frequently found in violation of the human rights and fundamental freedoms protected by the European Convention on Human Rights; whereas as of late November 2024, Türkiye had the highest number of pending cases before the ECtHR, with 22 450 applications, representing 36.7 % of the Court’s total caseload of 61 250 applications;

F. whereas Türkiye is classified as ‘not free’ by Freedom House and has experienced one of the worst declines in the level of freedom in the world in the past 10 years; whereas Türkiye ranks 158th out of 180 countries in the 2024 World Press Freedom Index; whereas the Turkish Government has closed dozens of media outlets, routinely blocks online articles, is reported to control 85 % of national media and uses its state agency Anadolu as an organ of propaganda;

G. whereas the Turkish constitution provides for sufficient protection of fundamental rights, but the practice of the institutions and the critical state of the judiciary, including the lack of respect for Constitutional Court rulings, are the main reasons for the dire situation of the rule of law and human rights in the country, issues repeatedly described in the reports of the EU, the Council of Europe and international organisations;

H. whereas Türkiye has the highest incarceration rate and the largest prison population of all Council of Europe Member States, with an overcrowded prison population that has grown by 439 % between 2005 and 2023 and currently represents more than a third of all inmates of Council of Europe countries;

I. whereas Türkiye is ranked 127th out of 146 countries in the 2024 Global Gender Gap Index, underscoring severe gender inequality and systemic failures in protecting women’s rights; whereas according to the 2024 report of the We Will Stop Femicide Platform (Kadın Cinayetlerini Durduracağız Platformu), 394 women were murdered by men and 259 women were found dead in suspicious circumstances in Türkiye in 2024, the highest number recorded since the civil society group started collecting data in 2010; whereas in its 2023 report, the platform noted that 315 women were killed by men, and 248 women were found dead in suspicious circumstances;

J. whereas in recent months, Türkiye has taken steps towards the resumption of a process for a peaceful resolution of the Kurdish question; whereas on 27 February 2025 jailed militant leader Abdullah Öcalan called on his Kurdistan Workers’ Party (PKK) to disarm and disband, providing a historic opportunity to end the Turkish-Kurdish conflict; whereas these efforts have been accompanied by increasing repression and the curtailment of the powers of democratic local governments, including the dismissal of elected Kurdish and other opposition mayors;

K. whereas, alongside being a candidate for EU accession, Türkiye is a NATO ally and a key partner in the areas of trade, economic relations, security, the fight against terrorism, and migration; whereas Türkiye continues to play a key role in the region, acts as a bridge between Europe and Asia, and remains a key partner for the stability of the wider East Mediterranean region; whereas Türkiye continues to play a significant role in the Syrian conflict and maintains a military presence in northern Syria;

L. whereas Türkiye has not aligned with EU sanctions against Russia; whereas trade between Türkiye and Russia has nearly doubled since the EU’s imposition of sanctions against Russia; whereas despite some steps taken, Türkiye has not prevented its territory from being used to circumvent EU sanctions against Russia;

M. whereas the 2024 Commission progress report on Türkiye states that, as at 30 September 2024, the country maintained a very low alignment rate of 5 % with relevant statements of the High Representative on behalf of the EU and with relevant Council decisions, compared to 9 % in 2023;

N. whereas Türkiye is the EU’s fifth largest trade partner, and the EU is Türkiye’s largest trading partner by far, as well as its primary source of foreign direct investment;

O. whereas in the past year, the level of engagement between the EU and Türkiye has increased in terms of both technical and high-level meetings in sectoral areas;

P. whereas Türkiye has applied for membership of BRICS+ and shown interest in joining the Shanghai Cooperation Organisation (SCO);

Q. whereas following a period of unorthodox economic policy, Türkiye has implemented a tighter monetary policy over the past year leading to a reduction in external imbalances and a moderation of inflationary pressures;

R. whereas Türkiye hosts the largest refugee population in the world, with around 3.1 million registered refugees, mainly from Syria, Iraq and Afghanistan; whereas since 2011 the EU has directed more than EUR 10 billion to assisting refugees and host communities in Türkiye; whereas according to a credible investigative report by Lighthouse Reports and eight media partners, the EU is funding removal centres in Türkiye implicated in the detention, abuse and forced deportations of refugees under the guise of voluntary return;

S. whereas in addition to the emergency assistance coordinated via the EU Civil Protection Mechanism, with an estimated financial value of EUR 38 million, the EU provided EUR 78.2 million in humanitarian aid for the earthquake response in 2023, and EUR 26 million in humanitarian aid in 2024; whereas the EU signed an additional EUR 400 million in assistance under the EU Solidarity Fund to finance recovery operations following the devastating earthquake;

T. whereas Türkiye has systematically misused counterterrorism laws to target elected officials, opposition politicians and human rights defenders, among others;

Commitment to EU accession

1. Recognises the long-standing aspirations of Turkish civil society regarding accession to the European Union; welcomes the Turkish Government’s recent statements reiterating its commitment to EU membership as a strategic goal amid an effort to revitalise EU-Türkiye relations in line with relevant European Council conclusions in a phased, proportionate and reversible manner; recognises the EU’s commitment to fostering this engagement through enhanced dialogue and cooperation;

2. Stresses that EU membership is contingent on fulfilling the accession (Copenhagen) criteria, which require stable institutions that guarantee democracy, the rule of law, human rights, respect for and the protection of minorities, good neighbourly relations, respect for international law and alignment with the EU CFSP; further notes that these are absolute criteria, not issues subject to transactional strategic considerations and negotiations; stresses that recognition of all Member States is a necessary component of the accession process;

3. Regrets, in this regard, that the aforementioned positive statements have not been accompanied by any concrete actions by the Turkish authorities to close the persistent and vast gap between Türkiye and the EU on values and standards, particularly with regard to the fundamentals of the accession process; reiterates its previously adopted conclusion that the Turkish Government continues to show, as it has done for the past few years, a clear lack of political will to carry out the necessary reforms to reactivate the accession process and continues to pursue a deeply entrenched authoritarian understanding of the presidential system;

4. Acknowledges the strategic and geopolitical importance of Türkiye, and its increasing presence and influence in areas critical to international security, such as the Black Sea region, including Ukraine, and the Middle East; reiterates that Türkiye is a strategic partner and NATO ally, and a country with which the EU has close relations in the areas of security, trade, economy and migration; welcomes closer cooperation between Türkiye and the EU, to which the Turkish Government has made frequent reference, but stresses that this cannot in any way be a substitute for the necessary real progress which Türkiye, as a candidate country, needs to make with regard to meeting the fundamental requirements for accession; highlights, in this regard, that there are no shortcuts in the accession process and that no argument can be put forward to avoid discussing the democratic principles which are at the core of the accession process;

5. Notes that the Commission’s Türkiye report 2024 paints a more positive picture of reform implementation in the context of Türkiye’s accession process than the Türkiye report 2023, shifting from further deterioration to ‘no progress’ with regard to the rule of law and human rights issues; is of the opinion, however, that at least in key areas such as democracy, rule of law and fundamental rights, this is due to the fact that a very low point had already been reached and this situation has remained unchanged;

6. Further takes note of a nuanced shift in focus of the Türkiye report 2024, by contrast with the 2023 report, away from the accession process towards a strategic partnership between the European Union und Türkiye; is of the opinion that the critical state of the accession process is driving the Commission and the Council to focus merely on the partnership dimension of the EU’s relations with Türkiye, as is also reflected in the joint communication on the state of play of EU-Türkiye relations of 29 November 2023, and of 22 March 2021; highlights the increasing shift towards a different framework for the relationship, which might come at the expense of the accession process;

The core of the accession process: democracy, the rule of law and fundamental rights

7. Considers that, in terms of human rights and the rule of law, Parliament’s recent resolutions on the matter remain valid in light of the continued dire human rights situation and democratic backsliding in Türkiye over the last year; fully endorses the latest resolutions of the Parliamentary Assembly of the Council of Europe and the related report by its Monitoring Committee, as well as the resolutions adopted by the Committee of Ministers of the Council of Europe, which depict in detail the wide range of serious shortfalls in human rights constantly reported by locally and internationally renowned human rights organisations;

8. Notes the Turkish Government’s stated commitment to judicial reform and the introduction of measures of an organisational nature; highlights, however, the need to introduce structural measures ensuring judicial independence; deeply regrets that, despite a reform strategy with nine judicial reform packages, the state of independence of the judiciary in Türkiye remains desolate following systematic government interference in and political instrumentalisation of the judicial system; deplores, in this regard, the weakening of remaining constitutional review mechanisms, particularly individual applications, and the frequent violations of due process;

9. Is dismayed by the persecution of legal professionals, including most recently the lawsuit filed by the Istanbul Chief Public Prosecutor’s Office that resulted in the removal of the leadership of the Istanbul Bar Association on charges of ‘making propaganda for a terrorist organization’ and ‘publicly disseminating misleading information’ for having asked for an investigation into the murders of two Kurdish journalists in Syria, and in the imprisonment of one of the members of the Istanbul Bar Association’s executive board following his trip to Strasbourg to hold meetings with Council of Europe institutions;

10. Is alarmed by the blatant lack of implementation of decisions by the Constitutional Court, including in the case of MP Can Atalay, which has turned into a serious judicial crisis, with the Court of Cassation filing a criminal complaint against nine judges of the Constitutional Court; is worried by the recent decision of the Court of Cassation to overturn the sentences of and release the terrorists involved in the ISIS attack at Istanbul’s Atatürk Airport, which claimed 45 lives in 2016;

11. Calls on Türkiye to strengthen its commitment to democratic governance, especially through reforms that ensure an independent judiciary; takes notes of the recent announcement of the Fourth Judicial Reform Strategy, spanning 2025-2029; calls on the Turkish Government to move from the superficial changes made so far through the recurrent reform packages and action plans to a profound and long overdue reform that will address, through real political will, the serious and structural shortcomings of Türkiye’s judiciary; stresses that putting an end to political interference in the judiciary requires no strategy or reform package but merely the political will to do so;

12. Remains deeply concerned by the continued deterioration of democratic standards and relentless crackdown by the Turkish authorities on any critical voices by means of a growing battery of repressive laws, the regular misuse of counterterrorism laws, including their application in relation to minors (as in the ‘Kız Çocukları Davası’ trial), the disproportionate use of the crime of insulting a public official, the extensive use of secret witnesses and dormant cases in flawed judicial proceedings, and the recurrent practice of exaggerated night arrests and home raids to portray targeted persons as extremely dangerous;

13. Welcomes the withdrawal in November 2024 of the draft amendment to Türkiye’s espionage laws, known as the ‘agent of influence’ law; urges the Turkish authorities to refrain from reintroducing a similar overly broad and vague law in the future, given the serious risk that it would be used as a tool to further criminalise the legitimate activities of civil society organisations within the country; calls on the Turkish authorities to ensure that the recently approved cybersecurity bill will serve its legitimate purpose of protecting data privacy and national security without giving way to potential infringements of fundamental rights or becoming another tool for further repression; stresses that the judicial apparatus remains heavily restrictive, with a complex web of legislation serving as a tool to systematically control and silence any critical voice, such as the 2020 social media law, the 2021 anti-money laundering law and the 2022 disinformation law;

14. Is concerned by the recent approval of legal provisions granting extraordinary powers to the State Supervisory Council (DDK) and the Savings Deposit Insurance Fund (TMSF), including the possibility for the former to dismiss public officials of all types and levels and appoint trustees, which could be used in an arbitrary manner;

15. Urges the Turkish authorities to put an end to the current serious restrictions on fundamental freedoms, in particular of expression, of assembly and of association, and to the constant attacks on the fundamental rights of members of the opposition, human rights defenders, lawyers, trade unionists, members of minorities, journalists, academics, artists and civil society activists, among others; strongly condemns the recent waves of mass arrest and imprisonment on politically motivated charges, and on the grounds of suspected terror links, affecting political figures, academics and journalists, including the arrests of Elif Akgül, independent journalist, Yıldız Tar, editor in chief of LGBT+ news site Kaos GL, and Ender İmrek, columnist of Evrensel daily, all well known for their work on human rights issues;

16. Deplores the continued prosecution, censorship and harassment of journalists and independent media, denying them the freedom to carry out their professional duties and inform the public, which is essential to a functioning democratic society; calls on the Turkish authorities to refrain from further attacks on independent media and to uphold fundamental rights and civil liberties such as freedom of speech and of the press; remains deeply concerned by the existing legislation that prevents an open and free internet, with lengthy prison sentences imposed for social media posts, scores of access blocks and content removal orders, and by the continued use of the Radio and Television Supreme Council (RTÜK) to crack down on media criticism and even on outlets deemed to spread ‘pessimism’ instead of positive news;

17. Acknowledges the positive developments in relation to the partial lifting by the minister of the interior of restrictions on the weekly vigils of the Saturday Mothers, Cumartesi Anneleri, in Istanbul’s Galatasaray Square, and the recent acquittal of all 46 people prosecuted for more than 6 years in the case surrounding the organisation’s 700th gathering in August 2018; calls for the complete removal of all restrictions on their peaceful protest, in full compliance with the relevant Constitutional Court ruling, and for an end to the ongoing judicial case against several of its members and sympathisers; is concerned by the ongoing trial against prominent human rights defender Nimet Tanrıkulu, who was released on 4 March 2025 after spending 94 days in pre-trial detention; urges the Turkish authorities to ensure the immediate release of all individuals detained for exercising their fundamental freedoms;

18. Continues to be appalled by the Turkish authorities’, in particular the Turkish judiciary’s, continuous disregard for and failure to apply landmark ECtHR rulings; reiterates its condemnation of Türkiye’s blatant misuse of the judicial system and the refusal to release from detention human rights defender Osman Kavala and opposition politicians Selahattin Demirtaş and Figen Yüksekdağ,for which Türkiye is facing historical infringement proceedings in the Council of Europe, with long-awaited consequences yet to be determined; calls on Türkiye to fully comply with the ECtHR judgements related to missing persons and properties (inter alia in the Fokas case) in Cyprus; deplores the politically motivated nature of these prosecutions, which form part of a broader pattern of judicial harassment; calls on Türkiye to fully implement all judgments of the ECtHR in line with Article 46 of the ECHR and in line with the unconditional obligations derived from Article 90 of the Turkish constitution; calls on the European Commission and Member States to use all diplomatic channels to urge Türkiye to implement relevant ECtHR rulings and consider implementing relevant funding conditionality in relation to compliance with ECtHR rulings;

19. Expresses its deep concern about the dire situation in Turkish prisons owing to severe overcrowding and poor living conditions, with reports, including by the Council of Europe, of torture and ill-treatment being widespread, and access to basic needs such as hygiene and information being severely limited; is particularly worried by the conditions of imprisonment of elderly and seriously ill prisoners; is concerned by the continued use of humiliating strip searches in prisons and other places of detention and by the persisting harassment of MP Ömer Faruk Gergerlioğlu, who is currently facing six proceedings for the removal of his parliamentary seat and immunity, among other reasons for his having denounced this very practice;

20. Strongly condemns the Turkish Government’s decision to dismiss, following the March 2024 local elections, the democratically elected mayors of at least 13 municipalities and districts (Hakkari, Mardin, Batman, Halfeti, Tunceli, Bahçesaray, Akdeniz, Siirt, Van and Kağızman, won by the DEM Party; and Esenyurt Ovacık and Şişli, won by CHP Party) and to replace them with government trustees appointed by the interior ministry; regards this long-standing practice of appointing trustees as a blatant attack on the most basic principles of local democracy; urges the Turkish authorities to immediately cease and reverse repression of political opposition and to respect the rights of voters to elect their chosen representatives in line with the recommendations of the Congress of Local and Regional Authorities of the Council of Europe and the Venice Commission; reiterates its call on the VP/HR to consider restrictive measures under the EU Global Human Rights Sanctions Regime against Turkish officials assuming the role of trustee and those appointing them; denounces the severe repression of protests against the removal of elected mayors, including the arbitrary arrest of hundreds of protesters, some of whom were minors; regards the decision of the Turkish Government to return to this practice after the last local elections of March 2024 as a clear sign of its lack of commitment to addressing the democratic shortcomings within the country and in clear contradiction to the declared willingness to revitalise the accession process, as such actions undermine the prospects for a stronger, more comprehensive partnership with the EU and are detrimental to long-term progress towards closer cooperation;

21. Deplores the permanent targeting of political parties and members of the opposition, who continue to suffer increasing pressure; is extremely concerned by the recent arrest and removal from office of the Istanbul Metropolitan Municipality CHP Mayor Ekrem İmamoğlu, along with the mayors of Şişli and Beylikdüzü, in the framework of two separate investigations on alleged corruption and terrorist-related charges involving a total of 106 suspects; highlights that theses last cases, which are part of a long list of 42 administrative and 51 judicial investigations since İmamoğlu’s election in 2019, were launched just a few days before the internal party election to nominate him presidential candidate and the day after the controverted decision by Istanbul University to revoke his diploma, a requisite for his eligibility to be President; is appalled by the decision to temporarily ban all demonstrations in Istanbul and other provinces across the country, the slowdown on social media, the detention of journalists and the crackdown on peaceful protesters; considers that this is a politically motivated move aimed at preventing a legitimate challenger from standing in the upcoming elections and that with these actions the current Turkish authorities are further pushing the country towards a fully authoritarian model;

22. Further expresses its concern about the recent separate cases against Istanbul’s Beşiktaş district CHP Mayor Rıza Akpolat, Istanbul’s Beykoz district CHP Mayor Alaattin Köseler, CHP Youth Branch Chair Cem Aydın, and Zafer Party Chair Ümit Özdag; is appalled by the brutal and relentless crackdown on any kind of criticism to which all sectors of Turkish society have recently been subjected by the Turkish authorities, as illustrated, among others, by the case of Ayşe Barım, a well-known talent manager imprisoned since 27 January 2025 for alleged involvement in the Gezi Park protest 12 years ago, the investigation launched against Orhan Turan and Ömer Aras, the president and an executive of TÜSIAD, the country’s main business group, and the indictment, with the aim of imposing hefty prison sentences, of Halk TV Editor-in-Chief Suat Toktaş and journalists Seda Selek, Barış Pehlivan, Serhan Asker and Kürşad Oğuz, who have been provisionally acquitted; is concerned by the involvement in these and other cases of recently appointed Istanbul Chief Public Prosecutor Akın Gürlek, who has a long record of involvement, in different positions, in high-profile cases against political figures, and which may give grounds for considering the application of restrictive measures under the EU Human Rights sanction regime; is also concerned by the growing financial pressure on opposition municipalities and controversial announcements, such as that made in relation to day-care centres run by opposition municipalities;

23. Expresses its deep concern at the deterioration in women’s rights, at gender-based violence and at the increase in the incidence of femicide in Türkiye in 2024, which has been the highest since 2010, the year before the signing of the Istanbul Convention; reiterates its strong condemnation of Türkiye’s withdrawal, by presidential decree, from this international agreement and reiterates its call to reverse this decision; urges the Turkish authorities to improve the legislative framework and its implementation, including by fully applying Protection Law no. 6284, in order to effectively tackle all forms of violence against women and the practice of so called ‘honour killings’, end the persistent policy of impunity by holding abusers to account, and advance towards gender equality, particularly with regard to the participation of women in decision-making and policymaking processes;

24. Strongly condemns the ongoing violations and lack of protection of the fundamental rights of LGBTI+ persons in Türkiye, including the increased incidence of hate speech, hate crimes and discriminatory rhetoric, as well as continued media stereotyping based on sexual orientation and gender identity; deplores the fact that this continued discrimination is often sanctioned by the authorities, as evidenced by the mass arrests made during the Pride March in 2023 and the banning of the march in 2024, while anti-LGBTI+ marches were permitted; urges the Turkish authorities to stop banning activities against homophobia, including Pride marches, with immediate effect;

25. Welcomes the increased dialogue with Christian minorities, but stresses that no significant progress has been registered with regard to the protection of the rights of ethnic and religious minorities, in particular as regards their legal personality, including those of the Greek Orthodox population of the islands of Gökçeada (Imvros) and Bozcaada (Tenedos); calls for Türkiye to implement the Venice Commission recommendations and all relevant ECtHR rulings in this regard; notes with concern that representatives of different confessions, including non-Muslim and Alevi communities, continue to face bureaucratic obstacles when attempting to register places of worship; highlights that this is a violation of the right to freedom of religion and belief; calls on Türkiye to adopt the long-awaited regulation on the election of board members in non-Muslim minority foundations controlling community hospitals; reiterates its call on Türkiye to respect the role of the Ecumenical Patriarchate for Orthodox Christians all over the world and to recognise its legal personality and the public use of the ecclesiastical title of Ecumenical Patriarch; calls on Türkiye to fully respect and protect the outstanding universal value of Hagia Sophia and the Chora museum, which are inscribed on UNESCO’s World Heritage List; notes with concern that Türkiye has still not implemented two decisions of the UNESCO World Heritage Committee of 2021 and 2023 regarding its obligations to undertake special measures to protect these monuments; deplores the lack of protection of Panagia Soumela Monastery, which has been put forward for inclusion in the UNESCO World Heritage Monuments list; stresses the need to eliminate restrictions on the training, appointment and succession of clergy; welcomes the envisaged reopening of the Halki Seminary and calls for the lifting of all obstacles to its proper functioning; calls on the Turkish authorities to effectively investigate and prosecute people responsible for any hate crimes, including hate speech, committed against minorities; condemns the antisemitic statements made in the media and by high-level officials following the Hamas terrorist attacks against Israel on 7 October 2023; notes that all of these practices against any religious minority are incompatible with EU values;

26. Welcomes Abdullah Öcalan’s recent call on the PKK to lay down arms and dissolve, and to engage in a peace process, as a historic and long-awaited step that could help end a period of 40 years of violence that has caused more than 40 000 deaths; praises the efforts made by all stakeholders involved to facilitate these developments, including the constructive approach of different political leaders that was started by MHP leader Devlet Bahçeli, the visits to Imrali prison granted to a delegation of the DEM Party, and the broad consultations that this party has led with other political parties; underlines that this represents a significant opportunity and must be followed by an inclusive political process, with a prominent role for the Turkish Parliament, aimed at the peaceful and sustainable resolution of the Kurdish issue in its political, social, democratic and security-related aspects; stresses the need to uphold human rights, political pluralism, and civil rights for all citizens, including Kurds; regrets the continued political repression, judicial harassment and restrictions on cultural and linguistic rights faced by Kurdish citizens, which undermine democratic principles and social cohesion;

Regional cooperation and good neighbourly relations

27. Continues to commend Türkiye for hosting around 3.1 million refugees, including 2.9 million Syrians under temporary protection in 2024, down from 3.2 million in 2023; reiterates the importance of Türkiye’s collaboration for the effective and orderly management of migration flows; further welcomes the fact that since 2011 the EU has contributed close to EUR 10 billion to assist Türkiye in hosting refugees; notes that some EU funding has been allocated to strengthening Turkish border control and containment capabilities; welcomes the EU’s decision to allocate an additional EUR 1 billion in December 2024 to further support the healthcare, education, and integration of refugees in Türkiye since the fall of the Assad regime; at the same time, notes that these funds had already been pledged in May 2024, and therefore do not constitute new funds; calls on the Commission to ensure utmost transparency and accuracy in the allocation of funds and that EU-funded projects, particularly those related to removal centres and border control, comply with all relevant human rights standards; is alarmed by credible reports uncovering grave human rights violations at EU-funded removal centres in Türkiye and calls on the Commission to launch a transparent and independent review into the matter; notes with concern that a continuing increase in asylum applications has been registered in the Republic of Cyprus over recent years; recalls Türkiye’s obligation to take all necessary measures to halt the existing illegal migration routes and prevent the creation of new sea or land routes for illegal migration from Türkiye to the EU, particularly to Greece and the Republic of Cyprus; points out the risks related to any possible instrumentalisation of migrants by the Turkish Government; underlines the need to ensure the protection of all refugees’ and migrants’ rights and freedoms; calls on Türkiye to ensure the full and non-discriminatory implementation of the EU-Turkey Statement of 2016 and the EU-Türkiye Readmission Agreement vis-à-vis all Member States, including the Republic of Cyprus; expresses cautious hope that developments in Syria will gradually allow an increasing number of refugees to return home; reiterates that returns should only be carried out on a voluntary basis and under conditions of safety and dignity; condemns repeated violent attacks against refugees and migrants fuelled by xenophobic rhetoric among politicians and host communities; calls on the European Commission and the EU Member States to increase their efforts to preserve humanitarian and protection space for Syrian refugees in Türkiye and to uphold the principle of non-refoulement as a cornerstone of EU policies;

28. Reiterates its strong interest in stability and security in the Eastern Mediterranean; welcomes the continued de-escalation and positive momentum in the region and the recent climate of re-engagement between Türkiye and Greece, albeit that unresolved issues continue to affect bilateral relations; deplores the fact that Türkiye continues to violate the sovereignty and sovereign rights of EU Member States, such as Greece and the Republic of Cyprus, including through the promotion of the Blue Homeland doctrine; underlines that, although Turkish violations of Greek airspace have drastically decreased, violations of Greek territorial waters have risen compared to 2023, and systematic illegal fishing activities have been conducted by Turkish vessels within Greek territorial waters; deeply regrets that Türkiye also continues to uphold a formal threat of war against Greece (casus belli) at 12 nautical miles; calls on Türkiye to fully respect the sovereignty of all EU Member States over their territorial sea and airspace, and their other sovereign rights, including the right to explore and exploit natural resources in accordance with EU and international law, including the United Nations Convention on the Law of the Sea (UNCLOS), which is part of the EU acquis; reiterates its view that the memorandum of understanding between Türkiye and Libya on delimitation of the maritime jurisdiction areas in the Mediterranen infringes upon the sovereign rights of third States, does not comply with the Law of the Sea and cannot produce any legal consequences for third States;

29. Regrets the fact that the Cyprus problem remains unresolved, and calls for serious reengagement and the political will of all parties involved to bring about peaceful UN-led negotiations, with a view to achieving real progress in the Cyprus settlement talks; welcomes the resumption of informal talks under the auspices of the UN Secretary-General on 18 and 19 March 2025, which were held in a constructive atmosphere in which both sides showed a clear commitment to making progress and continuing dialogue; welcomes the agreement between both sides on opening four crossing points, demining, establishing a youth affairs committee and launching environmental and solar energy projects, as part of a new set of confidence-building measures; encourages all sides to use this momentum to move towards the resumption of negotiations;

30. Strongly reaffirms its view that the only solution to the Cyprus problem is a fair, comprehensive, viable and democratic settlement, including of its external aspects, within the agreed UN framework, on the basis of a bi-communal, bi-zonal federation with a single international legal personality, single sovereignty, single citizenship and political equality, as set out in the relevant UN Security Council resolutions, the agreed areas of convergence and the Framework of the UN Secretary General, as well as in accordance with international law and the principles and values on which the Union is founded; calls, as a matter of urgency, for the resumption of negotiations on the reunification of Cyprus under the auspices of the UN Secretary-General as soon as possible, from the point at which they were interrupted in Crans-Montana in 2017; calls on Türkiye to abandon the unacceptable proposal for a two-state solution in Cyprus and to return to the agreed basis for a solution and the UN framework; further calls on Türkiye to withdraw its troops from Cyprus and refrain from any unilateral action which would entrench the permanent division of the island and from action altering the demographic balance;

31. Calls on Türkiye to respect the status of the buffer zone and the mandate of the UN Peacekeeping Force in Cyprus (UNFICYP); reiterates its call for cooperation among the Republic of Cyprus, Türkiye, the United Kingdom and the UN to implement concrete measures for a demilitarisation of the buffer zone, and to improve security on the island; urges Türkiye and the Turkish Cypriot leadership to reverse all unilateral actions and violations within and in the vicinity of the buffer zone and refrain from any further such actions and provocations; condemns the ongoing ‘opening’ of Varosha by Türkiye, as this negatively alters the situation on the ground, undermines mutual trust and negatively impacts the prospects for the resumption of direct talks on the comprehensive solution of the Cyprus problem; calls on Türkiye to reverse its illegal actions in violation of UN Security Council resolutions 550(1984) and 789(1992) on Varosha, which call on Türkiye to transfer the area of Varosha to its lawful inhabitants under the temporary administration of the UN, and to withdraw from Strovilia and facilitate the full implementation of the Pyla Understanding;

32. Reiterates its call on Türkiye to give the Turkish Cypriot community the necessary space to act in accordance with its role as a legitimate community of the island, which is a right guaranteed by the constitution of the Republic of Cyprus; reiterates its call on the Commission to step up its efforts to engage with the Turkish Cypriot community, with a view to facilitating the resolution of the Cyprus problem and recalling that its place is in the European Union; calls for all parties involved to demonstrate a more courageous approach to bringing the communities together; stresses the need for the EU body of law to be implemented across the entire island following a comprehensive resolution of the Cyprus problem;

33. Takes note of the significant work of the Committee on Missing Persons in Cyprus (CMP) and calls for improved access to military zones by the Turkish army, access to its military archives and information as to the relocation of remains from former to subsequent burial sites; remains deeply concerned about the education and religious restrictions and impediments faced by the enclaved Greek Cypriots; calls on Türkiye to step up its cooperation with the Council of Europe and its relevant bodies and institutions, to address their key recommendations, to fully implement the European Convention of Human Rights with regard to respecting the freedom of religion and the freedom of opinion and expression, and the right to access and enjoy cultural heritage, and to stop the deliberate destruction of cultural and religious heritage; condemns the repeated attempts by Türkiye to intimidate and silence Turkish Cypriot journalists, trade unionists, human rights defenders and progressive citizens in the Turkish Cypriot community, thus violating their right to freedom of opinion and expression; calls on Türkiye to halt its proclaimed aggressive policy of the sale and exploitation of Greek Cypriot properties, a policy designed to create irreversible effects on the ground and which completely disregards the European Code of Human Rights ruling on this issue;

34. Regrets Türkiye’s continuing refusal to comply with aviation law and establish a channel of communication between air traffic control centres in Türkiye and the Republic of Cyprus, the absence of which entails real safety risks and dangers as identified by the European Union Aviation Safety Agency and the International Federation of Air Line Pilots’ Associations; regrets, too, its denial of access to vessels under the flag of one Member State to the Straits of Bosporus and the Dardanelles; takes the view that these could be areas where Türkiye can prove its commitment to confidence building measures and calls on Türkiye to collaborate by fully implementing EU aviation law; regrets that Türkiye has continued its attempts to impede the implementation of the Great Sea Interconnector, an EU project of common interest, and has persisted in its plans for an illegal electricity interconnector with the occupied area of Cyprus;

35. Regrets that for 20 years Türkiye has refused to implement the obligations assumed towards the EU, including those in relation to Cyprus, as per the Negotiating Framework of October 2005; stresses that recognition of all Member States is a necessary component of the accession process; reiterates its call on Türkiye to fulfil its obligation of full, non-discriminatory implementation of the Additional Protocol to the Ankara Agreement in relation to all Member States, including the Republic of Cyprus; further calls on Türkiye to ensure that the human and political rights of all Cypriots are fully respected and that compliance with the fundamental principles of the European Union and the European acquis is guaranteed;

36. Affirms its support for a free, secure and stable future for Syria and its citizens and highlights the need for an inclusive and peaceful political transition process that is Syrian-led and Syrian- owned, including the protection and inclusion of religious and ethnic communities; expresses its commitment to constructive cooperation between the EU and Türkiye to that end, on humanitarian aid, promoting a sustainable political solution in Syria, and the fight against DAESH, given that Türkiye has a key role in promoting stability in the region; recalls that Syria’s sovereignty must be restored; acknowledges the importance of rebuilding Syria’s economy as a pillar of long-term stability and prosperity for the region; calls on Türkiye to respect Syria’s territorial integrity and sovereignty and immediately cease all attacks and incursions on and occupation of Syrian territory in full compliance with international law; condemns the attacks carried out in recent weeks, taking advantage of the collapse of the Assad regime, by Turkish-backed militias against Syrian Kurdish forces in the north of Syria; expresses deep concern, as these attacks increase the number of internally displaced persons but also threaten the efficiency and continuity of the fight against Daesh; notes that its ongoing presence risks further destabilising and undermining efforts towards a sustainable political resolution in Syria; further notes that, citing security concerns, Türkiye also illegally occupies areas in Iraq; reiterates that civilian populations should never be the victim of military self-defence; calls for the necessary investigation into the cases in which there have been civilian casualties and to stop the crackdown on journalists working in the area; calls on Türkiye to support the process of implementing the agreement between the Syrian transitional government and the Kurdish-led SDF and refrain from any interference in Syria’s internal processes;

37. Supports the normalisation of relations between Armenia and Türkiye in the interests of reconciliation, good neighbourly relations, regional stability and security and socio-economic development, and welcomes the progress achieved so far; welcomes the continued efforts to restore links between the two countries; urges Türkiye to ensure the speedy implementation of agreements reached by the Turkish and Armenian Governments’ special representatives, such as the opening of the airspace and the border between the two countries for the third country nationals, and, subsequently, for holders of diplomatic passports; welcomes the temporary opening of the Margara-Alican border crossing between Armenia and Türkiye to facilitate the delivery of humanitarian aid to Syria; expresses the hope that these developments may give impetus to the normalisation of relations in the South Caucasus region, also in terms of security and socio-economic development, and stresses the EU’s interest in supporting this process; encourages Türkiye to play a constructive role in promoting regional stability by facilitating the swift conclusion of the peace process between Armenia and Azerbaijan, inter alia by exerting its influence on Azerbaijan and by deterring Azerbaijan from any further military action against Armenian sovereignty; encourages Türkiye once again to acknowledge the Armenian genocide in order to pave the way for genuine reconciliation between the Turkish and Armenian peoples and to fully respect its obligations to protect Armenian cultural heritage;

38. Notes that Türkiye’s stance in relation to Russia’s war of aggression against Ukraine continues to affect EU-Türkiye relations, as Türkiye attempts to maintain ties with both the West and Russia simultaneously; notes Türkiye’s diplomatic attempts to mediate between Russia and Ukraine, particularly regarding the Black Sea Grain Initiative, as well as its continued support for the territorial integrity and sovereignty of Ukraine, including its vote in favour of UN General Assembly resolutions condemning the Russian aggression against Ukraine; regrets that, on the other hand, trade between Türkiye and Russia has risen sharply since the start of the war in Ukraine, making Türkiye Russia’s second largest trading partner despite EU sanctions against Russia, and that Türkiye is the only NATO member state not having imposed any sanctions on Russia; further notes that the European Union’s anti-fraud office, OLAF, has initiated an investigation into a loophole that enables countries like Türkiye to rebrand sanctioned Russian oil and export it to the EU; welcomes, however, positive steps such as Türkiye’s blocking of exports to Russia for certain dual use goods, as well as products originating in the United States and the United Kingdom that are of benefit to Russian military action; reiterates its call on the Turkish Government to halt its plans for the Akkuyu Nuclear Power Plant, which will be built, operated and owned by Russia’s state atomic energy corporation, Rosatom; expresses concern at Türkiye’s ongoing discussions with Russia to establish a gas-trading hub in Istanbul, scheduled to begin operations in 2025;

39. Welcomes Türkiye’s participation in various crisis management missions and operations (within the framework of the common security and defence policy); regrets, however, the further deterioration in the level of alignment on common foreign and security policy positions, including on sanctions and countering the circumvention of sanctions, which has fallen to a historically low rate of 5 %, the lowest rate for any accession country; recalls that EU candidate countries are required to progressively align with the common foreign and security policy of the European Union and comply with international law; regrets that Türkiye has not undertaken any steps in this regard, notably by failing to align with EU sanctions against Russia, and that in many areas of mutual interest the foreign policies of the EU and Türkiye are worryingly divergent; urges Türkiye to align with and fully implement the EU sanctions against Russia, including on anti-circumvention measures and to cooperate closely with the EU’s Sanctions Envoy;

40. Stresses the importance of reinforcing EU-Türkiye cooperation in global security matters, particularly in light of the changing geopolitical landscape and potential shifts in US foreign policy; expresses cautious hope that recent informal engagement, such as the participation of the Turkish Foreign Minister in the informal meeting of EU foreign affairs ministers in 2024, may provide an impetus towards better relations; acknowledges Türkiye’s key role as an ally in NATO and welcomes the Turkish Parliament’s decision to ratify Sweden’s NATO accession in January 2024; recalls, in this regard, that Türkiye has a key responsibility to foster stability at both regional and global levels and is expected to act in line with its NATO obligations, especially given the current geopolitical upheavals; encourages constructive engagement in a more structured and frequent political dialogue on foreign, security and defence policy to seek collaboration on convergent interests while working to reduce divergences, particularly with regard to removing persistent obstacles to the enhancement of a genuine relationship between the EU and NATO, including the acquisition from Russia of the S-400 air defence system; remains duly concerned that Türkiye continues to exclude a Member State from cooperation with NATO;

41. Welcomes Türkiye’s long-standing position in favour of a two-state solution for the Israeli-Palestinian conflict, its calls for a ceasefire in the Israel-Hamas war, and its ongoing efforts to supply humanitarian aid to Gaza throughout the conflict; deeply regrets, at the same time, the Turkish authorities’, including the President’s, active support for the EU-listed terror group Hamas and their stance on the attack against Israel on 7 October 2023, which the Turkish Government failed to condemn; points out that Türkiye’s open support for Hamas and its refusal to designate it a terrorist organisation is not compatible with the EU’s foreign and security policy; calls, therefore, for a revision of this position;

42. Notes with concern that Türkiye has asked to be a member of BRICS+ and been offered ‘partner country’ status, and is considering the same for the Shanghai Cooperation Organisation (SCO), where it holds the status of a dialogue partner; expresses serious concern over Türkiye’s increasing interest in an alternative partnership framework, which is fundamentally incompatible with the EU accession process; insists that Türkiye’s new status as a BRICS partner country must not affect Türkiye’s responsibilities within NATO; notes that Türkiye has been cultivating cooperation formats, partnerships and regional alliances beyond the EU; is concerned by Türkiye’s tendency to use this multi-vector approach to advance its interests without committing to a full-fledged cooperation with any of these alliances;

43. Remains concerned by the Turkish Government’s use of the Turkish diaspora as an instrument for occasional meddling in EU Member States’ domestic policies;

Socio-economic and sustainability reforms

44. Welcomes Türkiye’s return to a more conventional economic and monetary policy, while maintaining robust growth and a moderate budget deficit; regrets, however, that the cost of this is yet again being borne by citizens in the form of higher interest rates; highlights that social vulnerabilities have increased, particularly among children and older people, primarily due to the absence of a comprehensive poverty reduction strategy and income inequalities; underlines the necessity for the Turkish authorities to implement comprehensive social protection measures, strengthen collective bargaining rights and ensure that economic reforms prioritise reducing inequality and creating decent work opportunities;

45. Regrets the fact that despite the progress observed in economic and monetary policies, other actions by the Turkish Government affecting the rule of law continue to undermine basic principles such as legal certainty, which impacts negatively on Türkiye’s potential capacity to receive investments; welcomes the removal of Türkiye from the grey list of the Financial Action Task Force (FATF) in June 2024, following significant progress in improving its anti-money laundering regime and combating the financing of terrorism;

46. Welcomes Türkiye’s increased investment activity in the green energy sector and calls on Türkiye to continue improving the compatibility of its energy policy with the EU acquis, exploiting Türkiye’s enormous potential in renewable energy; expresses concern about the lack of any significant progress on climate action, in particular owing to the absence of a comprehensive climate law, a domestic emissions trading system, and a long-term low-emission development strategy, which undermines its 2053 climate neutrality target; highlights the need for a robust legal framework and stricter enforcement mechanisms to safeguard environmental and natural resources; urges Türkiye to align its environmental policies with the EU acquis, including respecting natural habitats when conducting mining projects, and underlines the importance of Türkiye’s adherence to the Aarhus Convention; commends the work of environmental rights defenders in Türkiye and warns against the dire environmental impact of extensive government projects, such as the expansion of its copper mining activities in Mount Ida (Kaz Daglari);

47. Highlights the fact that Türkiye has taken steps to diversify energy supplies and increase its renewable energy share; notes that the country is the seventh largest LNG market and highlights its potential as a regional energy hub; takes note that Türkiye has subscribed to the global goals on energy efficiency and renewable energy capacity by 2030; calls on the Commission to take into account Türkiye’s potential as a regional energy hub in initiatives to increase the installed renewable capacity in the Mediterranean region and in the development of the New Pact for the Mediterranean, and calls for energy cooperation to be part of the common agenda;

48. Observes some improvements in labour market conditions and points out a number of pending critical challenges, such as informal employment, the gender gap, and income inequality; is worried about the low coverage of collective bargaining and the lack of recognition of trade union rights for certain public sector employees; believes that more efforts are needed to enhance social dialogue mechanisms and address emerging occupational safety challenges; recalls that trade union freedom and social dialogue are crucial to the development and prosperity of a pluralistic society; deplores, in this regard, the recent detentions of trade unionists including Remzi Çalişkan, vice-president of the DISK confederation, and president of Genel-Iş, who was released after a month in prison, Kemal Göksoy, President of the Mersin Branch of Genel-İş, who remains in prison, and Mehmet Türkmen, chair of the textile sector union BİRTEK SEN, who was detained on 14 February 2025;

Wider EU-Türkiye relations

49. Reiterates its firm conviction that, beyond the currently frozen accession process, Türkiye is a country of strategic relevance, a key partner for the stability of the wider region and plays an important role in addressing security challenges, migration management, counterterrorism, and energy security; stresses the importance of maintaining constructive dialogue and deepening cooperation in areas of mutual strategic interest; points to a number of policy areas for future engagement, whether it be the green transition, trade, energy, a modernised customs union and visa liberalisation, among others; reaffirms that the EU is committed to pursuing the best possible relations with Türkiye, based on dialogue, respect and mutual trust, in line with international law and good neighbourly relations;

50. Stresses the importance of encouraging deeper partnership in all economic sectors, to the benefit of the EU and all of its Member States and Türkiye; notes in particular the importance of cooperation in the fields of energy, innovation, artificial intelligence, health, security and migration management, among others; in this regard, welcomes various high-level dialogues (HLDs) held recently, including the HLD on trade, and the plans for an HLD on economy, as positive steps towards pragmatic forms of cooperation in areas of mutual importance; calls again for the resumption of all relevant HLDs and for the establishment of structured HLDs on sectoral cooperation, to address common challenges and explore opportunities for joint initiatives in fields such as security, climate change, research and innovation; stresses that trade between the EU and Türkiye hit a record high last year and that the EU remains Türkiye’s largest trade and investment partner; calls for the removal of all existing trade barriers and irritants;

51. Stands ready to support an upgraded customs union with a broader, mutually beneficial scope, which could encompass a wide range of areas of common interest, including digitalisation, Green Deal alignment for green energy policies, public procurement, sustainable development commitments, and due diligence, contributing to the economic security of both sides; supports accompanying this upgraded customs union with an efficient and effective dispute settlement mechanism; underlines the fact that for Parliament to give its consent at the end of the process, such a modernisation would need to be based on strong conditionality related to human rights and fundamental freedoms, respect for international law and good neighbourly relations, including Türkiye’s full implementation of the Additional Protocol on extending the Ankara Agreement to all Member States without exception and in a non-discriminatory fashion;

52. Notes with deep regret that no progress has been made by Türkiye towards meeting the required benchmarks for visa liberalisation; reiterates its willingness to start the visa liberalisation process as soon as the Turkish authorities fully fulfil the six clearly outstanding benchmarks in a non-discriminatory manner vis-à-vis all EU Member states while aligning with EU visa policy; regrets that Turkish citizens are facing problems with visa requests/applications to EU Member States owing to a marked increase in demand and fears of abuse of the system; recognises, however, the political commitment to improving access to visas and calls for intensified efforts on both sides to address the remaining technical and administrative barriers; calls on the EU Member states to increase the resources allocated to this matter; supports measures on visa facilitation, particularly with regard to business activities and Erasmus students; deeply regrets the constant attempts by the Turkish authorities to blame the EU for not making progress on this dossier, while not taking any necessary steps to comply with the remaining benchmarks; reminds Türkiye that the lack of tangible and cumulative progress on the pending conditions has a direct impact on business activities and Erasmus students; appreciates the invaluable contribution of Erasmus+ exchanges in providing rich cross-cultural educational opportunities;

The way forward for EU-Türkiye relations

53. Considers, in view of the above, that the Turkish Government has failed to take the necessary steps to address the existing fundamental democratic shortcomings within the country and therefore reiterates its view that Türkiye’s EU accession process cannot be resumed in the current circumstances, despite the democratic and pro-European aspirations of a large part of Turkish society; recalls that, as in the case of any other candidate, the accession process is contingent on full compliance with the Copenhagen criteria and on the normalisation of relations with all EU Member States;

54. Urges the Turkish Government and the EU institutions and Member States to continue working, beyond the currently frozen accession process, on the basis of the relevant Council and European Council conclusions and the established conditionality, towards a closer, more dynamic and strategic partnership with particular emphasis on climate action, energy security, counter-terrorism cooperation and regional stability; insists on the need to begin a process of reflection on how this new constructive and progressive framework for EU-Türkiye relations can encompass the interests of all parties involved, for example by modernising and enhancing the current Association Agreement;

55. Considers the joint communication of 29 November 2023 on the state of play of EU-Türkiye relations a good basis on which to move forward in the overall relations between the EU and Türkiye; regrets the lack of a clear political endorsement of this joint communication so far by the Council; reiterates that recognition of all EU Member States is a necessary component of any agreement between the EU and Türkiye; stresses that Türkiye’s constructive engagement, including in relation to the Cyprus problem, remains key to advancing closer cooperation between the EU and Türkiye;

56. Warns, nevertheless, that a further drift towards authoritarianism by the Turkish authorities, such as we have been witnessing recently, will ultimately have a severe impact on all dimensions of EU-Türkiye relations, including trade and security cooperation, as it prevents the trust and reliability needed between partners and antagonises both sides in the current geopolitical scene;

57. Continues to acknowledge and commend the democratic and pro-European aspirations of the majority of Turkish society (particularly among Turkish youth), whom the EU will not forsake; regards these aspirations as a major reason for keeping Türkiye’s accession process alive; calls therefore on the Commission to uphold and increase its political and financial support to the vibrant and pro-democratic civil society in Türkiye, whose efforts can contribute to generating the political will necessary for deepening EU-Türkiye relations; highlights, nevertheless, that the resumption of the accession process depends on the unwavering political will of Türkiye’s authorities and society to become a full-fledged democracy, which cannot be forced upon it by the EU;

58. Reiterates its call to strengthen and deepen mutual knowledge and understanding between our societies, promoting cultural growth, socio-cultural exchanges and combating all manifestations of social, religious, ethnic or cultural prejudice; encourages Türkiye and the EU to promote shared values, particularly by supporting young people; reiterates its utmost commitment to sustaining and increasing support for Türkiye’s independent civil society;

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59. Instructs its President to forward this resolution to the President of the European Council, the Council and the Commission; asks that this resolution be translated into Turkish and forwarded to the President, Government and Parliament of the Republic of Türkiye.

MIL OSI Europe News –

April 24, 2025

Category: Middle East

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