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En En Report European Parliament 2019-2024 Plenary sitting A9-0056/2021 14.4.2021 REPORT on discharge in respect of the implementation of the general budget of the European Union for the financial year 2019, Section II – European Council and Council (2020/2142(DEC)) Committee on Budgetary Control Rapporteur: Pascal Durand RR\1228903EN.docx PE655.987v03-00 EN United in diversityEN PR_DEC_Other CONTENTS Page 1. PROPOSAL FOR A EUROPEAN PARLIAMENT DECISION...........................................3 2. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION.........................................5 OPINION OF THE COMMITTEE ON CONSTITUTIONAL AFFAIRS...............................15 INFORMATION ON ADOPTION IN COMMITTEE RESPONSIBLE.................................20 FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE ....................................21 PE655.987v03-00 2/21 RR\1228903EN.docx EN 1. PROPOSAL FOR A EUROPEAN PARLIAMENT DECISION on discharge in respect of the implementation of the general budget of the European Union for the financial year 2019, Section II – European Council and Council (2020/2142(DEC)) The European Parliament, – having regard to the general budget of the European Union for the financial year 20191, – having regard to the consolidated annual accounts of the European Union for the financial year 2019 (COM(2020)0288 – C9-0222/2020)2, – having regard to the Council’s annual report to the discharge authority on internal audits carried out in 2019, – having regard to the Court of Auditors’ annual report on the implementation of the budget concerning the financial year 2019, together with the institutions’ replies3, – having regard to the statement of assurance4 as to the reliability of the accounts and the legality and regularity of the underlying transactions provided by the Court of Auditors for the financial year 2019, pursuant to Article 287 of the Treaty on the Functioning of the European Union, – having regard to Article 314(10) and Articles 317, 318 and 319 of the Treaty on the Functioning of the European Union, – having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/20125, and in particular Articles 59, 118, 260, 261 and 262 thereof, – having regard to Rule 100 of and Annex V to its Rules of Procedure, – having regard to the opinion of the Committee on Constitutional Affairs, – having regard to the report of the Committee on Budgetary Control (A9-0056/2021), 1. Postpones its decision on granting the Secretary-General of the Council discharge in respect of the implementation of the budget of the European Council and of the Council 1 OJ L 67, 7.3.2019. 2 OJ C 384,13.11.2020, p. 1. 3 OJ C 377, 9.11.2020, p. 13. 4 OJ C 384,13.11.2020, p. 180. 5 OJ L 193, 30.7.2018, p. 1. RR\1228903EN.docx 3/21 PE655.987v03-00 EN for the financial year 2019; 2. Sets out its observations in the resolution below; 3. Instructs its President to forward this decision and the resolution forming an integral part of it to the European Council, the Council, the Commission and the Court of Auditors, and to arrange for their publication in the Official Journal of the European Union (L series). PE655.987v03-00 4/21 RR\1228903EN.docx EN 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 2019, Section II – European Council and Council (2020/2142(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 2019, Section II – European Council and Council, – having regard to Rule 100 of and Annex V to its Rules of Procedure, – having regard to the opinion of the Committee on Constitutional Affairs, – having regard to the report of the Committee on Budgetary Control (A9-0056/2021), 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; 1. Welcomes the fact that the Court of Auditors (the ‘Court’), in its annual report for 2019 (the ‘Court’s report’), observed that no significant weaknesses had been identified in respect of the audited topics relating to human resources and procurement for the European Council and Council (the ‘Council’); 2. Notes with satisfaction that based on its audit work, the Court concluded that the payments as a whole for the year ended 31 December 2019, comprising administrative and other expenditure of the Council, were free from material error and that the examined supervisory and control systems were effective; 3. Regrets, as an general observation, that chapter 9 ‘Administration’ of the Court’s report has a rather limited scope and conclusions, notwithstanding the fact that the Multiannual Financial Framework Heading 5 ‘Administration’ is considered low risk; requests that the audit work for that chapter be more focused on issues which are of high relevance or even of critical importance for the Council; Budgetary and financial management 4. Observes that the Council’s budget is mostly administrative with a large part of it being used for expenditure in relation to persons, buildings, furniture, equipment and miscellaneous running costs; regrets that the longstanding request to divide the budget of the European Council and the Council into a separate budget for each of the two institutions for transparency reasons and to improve accountability for both institutions has not been considered and urges the Council, as it has done repeatedly in previous discharge resolutions, to prepare separate budgets for the European Council and the RR\1228903EN.docx 5/21 PE655.987v03-00 EN Council for reasons of transparency and to improve accountability and expenditure efficiency for both institutions; 5. Notes that in 2019 the Council had an overall budget of EUR 581 895 459 (compared to EUR 572 854 377 in 2018 and EUR 561 576 000 in 2017), with a global implementation rate of 92,3 % (compared to 91,9 % in 2018 and 93,8 % in 2017); notes a descending budget increase amounting to EUR 9 million (compared to EUR 11,3 million in 2018 and EUR 16,5 million in 2017), equivalent to an increase of 1,6 % (compared to 2 % in 2018 and 3 % in 2017); 6. Recalls that appropriations carried over from 2018 to 2019 amounted to a total of EUR 56 599 584, equivalent to a carry-over rate of 10,7 %, coming mainly from categories such as computer systems (EUR 19,5 million), buildings (EUR 16,0 million) and interpretation (EUR 11,9 million); welcomes the fact that the implementation of carry-overs in 2019 amounted to payments in total of EUR 49 240 654 or 87,7 %, including for computer systems (EUR 18,7 million), for buildings (EUR 12,5 million) and for interpretation (EUR 10,4 million); 7 Recognises a slight reduction in the carry-over rate which amounted to 9,8 %, from 2019 to 2020 (as compared to a carry-over of 10,7 % from 2018 to 2019 and 11,5 % from 2017 to 2018); reminds the Council, however, that carry-overs are exceptions to the principle of annuality and should reflect actual needs; calls on the Council to strengthen its efforts to avoid budget over-estimates; 8. Congratulates the Council on the successful commitment and payment rate of 100 % for the budget line ‘Delegations’ travel expenses’; notes also the 100 % commitment rate for the budget lines ‘Computer systems’ and ‘Information’ but points to these budget lines' carry-over rate to 2020 of 35,4 % and 32,9 %, respectively; 9. Is informed that the number of ‘institutional’ and ‘other’ meetings amounted to 7 668 in 2019 (compared to 6 338 in 2010); notes that the total number of meetings organised in 2019 was 0,8 % (or 65 meetings) less than in 2018 because of the reduction in legislative activity in the second semester due to European elections and the election or appointment of new members in all the Union institutions; 10. Notes that, in line with the decrease in meeting activity and despite a 2 % increase in the i-slot price (EUR 10 higher than in 2018), interpretation costs decreased by 11 % (EUR 62,2 million compared to EUR 70 million in 2018) and that these costs covered 62 480 interpreter days, a 13 % decrease compared to 2018; 11. Notes that the number of legal acts published in the Official Journal of the European Union in 2019 amounted to 1 326 (compared to 1 210 in 2018, 1 130 in 2017 and 825 in 2010); agrees that the increase in the number of legal acts is mainly explained by the need to adopt as many legal acts as possible before the 2019 European elections; 12. Reminds the Council that conducting impact assessments is one of the key factors set out in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making and of the Council’s promise to carry out impact assessments in relation to substantial amendments it makes to proposals from the Commission; regrets that the Council has so far not carried out impact assessments on any of its amendments; PE655.987v03-00 6/21 RR\1228903EN.docx EN Internal management, internal control, performance 13.
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