En En Amendments 1

European Parliament 2019-2024

Committee on Budgetary Control

2020/2246(INI)

28.5.2021

AMENDMENTS 1 - 132

Draft report Caterina Chinnici (PE692.684v01-00)

Protection of the EU’s financial interests - combatting fraud - annual report 2019 (2020/2246(INI))

AM\1232036EN.docx PE692.936v01-00

EN United in diversityEN AM_Com_NonLegReport

PE692.936v01-00 2/71 AM\1232036EN.docx EN Amendment 1 Katalin Cseh, Olivier Chastel, Alin Mituța, Ramona Strugariu

Motion for a resolution Recital A

Motion for a resolution Amendment

A. whereas the Member States and the A. whereas de jure the Member States Commission have shared responsibility, and the Commission have shared and must work closely together, to protect responsibility, and must work closely the Union’s financial interests and fight together, to protect the Union’s financial fraud and corruption; whereas Member interests and fight fraud and corruption; State authorities managed approximately whereas de facto Member State authorities 74 % of EU expenditure and collected the managed approximately 74 % of EU Union’s traditional own resources with expenditure and collected the Union’s regard to the Union’s budget for 2019; traditional own resources with regard to the Union’s budget for 2019;

Or. en

Amendment 2 Katalin Cseh, Olivier Chastel, Alin Mituța, Ramona Strugariu

Motion for a resolution Recital B

Motion for a resolution Amendment

B. whereas the Commission should B. whereas the Commission should fulfil its respective responsibilities under fulfil its respective responsibilities under shared management for supervision, shared management for supervision, control and audit; control and audit, however the Commission is capable of monitoring approximately 10% of all expenditures;

Or. en

Amendment 3 Caterina Chinnici

Motion for a resolution Recital B a (new)

Motion for a resolution Amendment

AM\1232036EN.docx 3/71 PE692.936v01-00 EN B a. whereas Article 310(6) of the TFEU states that ‘the Union and the Member States, in accordance with Article 325, shall counter fraud and any other illegal activities affecting the financial interests of the Union’; whereas Article 325(2) of the TFEU states that ‘Member States shall take the same measures to counter fraud affecting the financial interests of the Union as they take to counter fraud affecting their own financial interests’; whereas Article 325(3) of the TFEU states that ‘the Member States shall coordinate their action aimed at protecting the financial interests of the Union against fraud’ and that ‘they shall organise, together with the Commission, close and regular cooperation between competent authorities’; whereas under Article 325(4) of the TFEU the European Court of Auditors must be consulted on any measures to be adopted by the legislator in the fields of the prevention of and fight against fraud affecting the EU’s financial interests;

Or. en

Amendment 4 Katalin Cseh, Olivier Chastel, Alin Mituța, Ramona Strugariu

Motion for a resolution Recital D

Motion for a resolution Amendment

D. whereas the diversity of legal and D. whereas the diversity of legal and administrative systems in the Member administrative systems in the Member States needs to be adequately addressed in States is not an advantage and whereas it order to overcome irregularities and needs to be adequately addressed to be able combat fraud and corruption; to create more unified administrative and reporting systems in the EU to effectively prevent and fight irregularities and combat fraud and corruption;

Or. en

PE692.936v01-00 4/71 AM\1232036EN.docx EN Amendment 5 Caterina Chinnici

Motion for a resolution Recital D

Motion for a resolution Amendment

D. whereas the diversity of legal and D. whereas the diversity of legal and administrative systems in the Member administrative systems in the Member States needs to be adequately addressed in States needs to be adequately addressed in order to overcome irregularities and order to overcome irregularities and combat fraud and corruption; combat fraud and corruption; whereas the Commission should further strengthen its efforts to ensure that the fight against fraud and corruption is implemented effectively and produces more tangible and more satisfactory results;

Or. en

Amendment 6 Katalin Cseh, Olivier Chastel, Alin Mituța, Ramona Strugariu

Motion for a resolution Recital F

Motion for a resolution Amendment

F. whereas systematic and F. whereas systematic and institutionalised cases of corruption in institutionalised and high level cases of certain Member States seriously harm the corruption and deliberate weakening of Union’s financial interests while also the checks and balances and of the representing a threat to the rule of law; independence of the institutions responsible for monitoring and controlling finances in certain Member States seriously harm the Union’s financial interests while also representing a threat to the rule of law;

Or. en

Amendment 7 Luke Ming Flanagan

AM\1232036EN.docx 5/71 PE692.936v01-00 EN Motion for a resolution Recital F

Motion for a resolution Amendment

F. whereas systematic and F. whereas systematic and institutionalised cases of corruption in institutionalised cases of corruption in certain Member States seriously harm the certain Member States seriously harm the Union’s financial interests while also Union’s financial interests while also representing a threat to the rule of law; representing a threat to democracy, fundamental rights and the rule of law; also reminds of the detrimental impact of corruption on the trust of citizens on the institutions;

Or. en

Amendment 8 Katalin Cseh, Olivier Chastel, Alin Mituța, Ramona Strugariu

Motion for a resolution Recital G a (new)

Motion for a resolution Amendment

G a. whereas corruption affects all Member States burdens not only the EU economy, but undermines democracy and rule of law all across Europe;

Or. en

Amendment 9 Mikuláš Peksa on behalf of the Verts/ALE Group

Motion for a resolution Paragraph 1

Motion for a resolution Amendment

PE692.936v01-00 6/71 AM\1232036EN.docx EN regards to the consolidation of the regards to the consolidation of the institutional framework on the fight against institutional framework on the fight against fraud and irregularities at Union level fraud and irregularities at Union level achieved by the transposition into national achieved by the transposition into national law by 12 Member States of the measures law by 12 Member States of the measures provided for in the Directive on the fight provided for in the Directive on the fight against fraud to the Union’s financial against fraud to the Union’s financial interests by means of criminal law (‘the interests by means of criminal law (‘the PIF Directive’) with the remaining 22 PIF Directive’), while 22Member States Member States doing so by June 2020; did so by June 2020; regrets that the Commission had to send reasoned opinions to Ireland and Romania on 3 December 2020 for failing to transpose into national law the PIF Directive;

Or. en

Amendment 10 Caterina Chinnici

Motion for a resolution Paragraph 1

Motion for a resolution Amendment

1. Welcomes the 31st Annual report 1. Welcomes the 31st Annual report on the protection of the EU’s financial on the protection of the EU’s financial interests and the fight against fraud, which interests and the fight against fraud, which underlines the achievements of 2019 with underlines the achievements of 2019 with regards to the consolidation of the regards to the consolidation of the institutional framework on the fight against institutional framework on the fight against fraud and irregularities at Union level fraud and irregularities at Union level achieved by the transposition into national achieved by the transposition into national law by 12 Member States of the measures law by 18 Member States by the end of provided for in the Directive on the fight 2019 of the measures provided for in the against fraud to the Union’s financial Directive on the fight against fraud to the interests by means of criminal law (‘the Union’s financial interests by means of PIF Directive’) with the remaining 22 criminal law (‘the PIF Directive’) with a Member States doing so by June 2020; total of 22 Member States having done so by June 2020;

Or. en

Amendment 11 Ramona Strugariu, Olivier Chastel, Katalin Cseh, Alin Mituța

AM\1232036EN.docx 7/71 PE692.936v01-00 EN Motion for a resolution Paragraph 1

Motion for a resolution Amendment

1. Welcomes the 31st Annual report 1. Welcomes the 31st Annual report on the protection of the EU’s financial on the protection of the EU’s financial interests and the fight against fraud, which interests and the fight against fraud, which underlines the achievements of 2019 with underlines the achievements of 2019 with regards to the consolidation of the regards to the consolidation of the institutional framework on the fight against institutional framework on the fight against fraud and irregularities at Union level fraud and irregularities at Union level achieved by the transposition into national achieved by the transposition into national law by 12 Member States of the measures law by 12 Member States of the measures provided for in the Directive on the fight provided for in the Directive on the fight against fraud to the Union’s financial against fraud to the Union’s financial interests by means of criminal law (‘the interests by means of criminal law (‘the PIF Directive’) with the remaining 22 PIF Directive’) with 22 Member States Member States doing so by June 2020; doing so by June 2020; calls on all remaining Member States to take all necessary measures and ensure the full and correct transposition of the Directive within the shortest time possible; calls on the Commission to closely monitor the transposition process in all Member States, as well as to make use of its prerogatives for launching infringement procedures, where Member States fail to comply with the transposition process;

Or. en

Amendment 12 Monika Hohlmeier

Motion for a resolution Paragraph 1 a (new)

Motion for a resolution Amendment

1 a. Emphasises that respect for the rule of law is a precondition for sound financial management including the efficient and effective allocation and management of European funds as well as the fight against corruption and mismanagement; strongly welcomes in that regard the adoption of Regulation

PE692.936v01-00 8/71 AM\1232036EN.docx EN 2020/2092 of the European Parliament and of the Council of 16 December 2020 on a general regime of conditionality for the protection of the Union budget;

Or. en

Amendment 13 Monika Hohlmeier

Motion for a resolution Paragraph 1 b (new)

Motion for a resolution Amendment

1 b. Welcomes that the Commission has immediately started its work on a clear methodology and the analysis of potential cases; acknowledges that the Commission has clearly stated on several occasions that it will fulfil its role as “Guardian of the Treaties" and apply the regulation from the date it entered into force without undue delay, so that no case is lost during the necessary preparation work in the first half of 2021; recalls that Regulation 2020/2092 is applicable to all commitments and payments from 1 January 2021, while providing safeguards for final beneficiaries and recipients;

Or. en

Amendment 14 Luke Ming Flanagan

Motion for a resolution Paragraph 2

Motion for a resolution Amendment

2. Notes that the total number of 2. Notes that the total number of fraudulent and non-fraudulent irregularities fraudulent and non-fraudulent irregularities reported in 2019 amounted to 11 726 cases reported in 2019 amounted to 11 726 cases overall, and involved a value of overall 2% fewer than in 2018), and approximately EUR 1.6 billion, involved a value of approximately EUR 1.6

AM\1232036EN.docx 9/71 PE692.936v01-00 EN representing a decrease of 34 % with billion, representing a decrease of 34 % respect to the previous year; notes in this with respect to the previous year; notes in respect that the data regarding the number this respect that the data regarding the of cases and the value involved for each number of cases and the value involved for year are continuously assessed and updated each year are continuously assessed and and should be considered into a 5-year updated and should be considered into a average perspective at least; long term perspective;

Or. en

Amendment 15 Ramona Strugariu, Olivier Chastel, Katalin Cseh, Alin Mituța

Motion for a resolution Paragraph 3

Motion for a resolution Amendment

3. Notes that the number of detected 3. Notes that the number of detected irregularities reported as fraudulent is an irregularities reported as fraudulent is an indication of the level of detection and of indication of the level of detection and of the capacity to intercept potential fraud by the capacity to intercept potential fraud by Member States and Union bodies, and Member States and Union bodies, and recalls that it is not a direct indicator of the recalls that it is not a direct indicator of the level of fraud affecting the Union budget or level of fraud affecting the Union budget or a specific Member State; notes that the a specific Member State; recalls that in detection and reporting of an irregularity 2019, two special reports of the European implies that corrective measures have been Court of Auditors highlighted the taken in order to protect the Union’s shortcomings of the Commission with financial interests and that, whenever regards to its insight into the scale, nature relevant, criminal proceedings have been and causes of fraud, identifying launched; weaknesses in the Commission’s strategic approach towards managing risks of fraud, calling on the Commission to take more proactive measures in order to address these issues; notes that the detection and reporting of an irregularity implies that corrective measures have been taken in order to protect the Union’s financial interests and that, whenever relevant, criminal proceedings have been launched;

Or. en

Amendment 16

PE692.936v01-00 10/71 AM\1232036EN.docx EN Luke Ming Flanagan

Motion for a resolution Paragraph 3 a (new)

Motion for a resolution Amendment

3 a. Nevertheless notes that it is unclear how many fraudulent irregularities remain unreported every year, making it very difficult to evaluate the effectiveness of the anti-fraud activities put in place; calls on the Commission therefore to develop a methodology to improve the reliability and provide for more accurate estimations of the scale of fraud in the EU;

Or. en

Amendment 17 Caterina Chinnici

Motion for a resolution Paragraph 4

Motion for a resolution Amendment

4. Notes that the number of fraudulent 4. Notes that the number of fraudulent irregularities reported in 2019 (939 cases) irregularities reported in 2019 (939 cases) and their related financial amounts and their related financial amounts (approximately EUR 461.4 million) (approximately EUR 461.4 million) decreased significantly compared to 2018; decreased significantly compared to 2018; notes that in 2019, 514 irregularities notes that, looking at a5-year period reported as fraudulent relating to (2015-2019), the number of reported expenditure represented 0.3% of 2019 fraudulent irregularities was 40% less payments, and 425 reported as fraudulent than in 2015, and 25% below the 5-year on revenue corresponded to 0.3% of gross average; notes that in 2019, 514 amount of Traditional Own Resources irregularities reported as fraudulent relating collected for 2019; to expenditure represented 0.3% of 2019 payments, and 425 reported as fraudulent on revenue corresponded to 0.3% of gross amount of Traditional Own Resources collected for 2019;

Or. en

AM\1232036EN.docx 11/71 PE692.936v01-00 EN Amendment 18 Luke Ming Flanagan

Motion for a resolution Paragraph 4

Motion for a resolution Amendment

4. Notes that the number of fraudulent 4. Notes that the number of fraudulent irregularities reported in 2019 (939 cases) irregularities reported in 2019 (939 cases - and their related financial amounts 8% of all irregularities) ) and their related (approximately EUR 461.4 million) financial amounts (approximately EUR decreased significantly compared to 2018; 461.4 million - 28% of all financial notes that in 2019, 514 irregularities amounts affected by irregularities) reported as fraudulent relating to decreased significantly compared to 2018; expenditure represented 0.3% of 2019 notes that in 2019, 514 irregularities payments, and 425 reported as fraudulent reported as fraudulent relating to on revenue corresponded to 0.3% of gross expenditure represented 0.3% of 2019 amount of Traditional Own Resources payments, and 425 reported as fraudulent collected for 2019; on revenue corresponded to 0.3% of gross amount of Traditional Own Resources collected for 2019;

Or. en

Amendment 19 Monika Hohlmeier

Motion for a resolution Paragraph 5 a (new)

Motion for a resolution Amendment

5 a. Emphasises that the change of detected fraudulent or non-fraudulent irregularities represents a momentary snapshot that has to be seen in the context of other relevant factors; reported decreases in the total number of cases of both fraudulent and non-fraudulent irregularities can either be indicative of a positive development of an overall decrease in fraudulent activity or a negative development of a reduction in the level of detection of fraudulent activity;

Or. en

PE692.936v01-00 12/71 AM\1232036EN.docx EN Amendment 20 Sabrina Pignedoli

Motion for a resolution Paragraph 5 a (new)

Motion for a resolution Amendment

5a. Stresses the seriousness of the current situation concerning fraud involving the failure to pay VAT, in particular so-called carousel fraud; calls on all Member States to participate in all EUROFISC’s fields of activity so as to facilitate the exchange of information to help combat fraud;

Or. it

Amendment 21 Ramona Strugariu, Olivier Chastel, Katalin Cseh, Alin Mituța

Motion for a resolution Paragraph 5 a (new)

Motion for a resolution Amendment

5 a. Highlights that, in particular for fraudulent irregularities, detections were concentrated in a few Member States, suggesting different approaches to the use of criminal law in protecting the EU budget; calls on the Commission to address these differences and consider new harmonizing measures;

Or. en

Amendment 22 Luke Ming Flanagan

Motion for a resolution Paragraph 5 a (new)

AM\1232036EN.docx 13/71 PE692.936v01-00 EN Motion for a resolution Amendment

5 a. Deeply regrets and points to the fact that many Member States do not have specific laws against organised crime, while its involvement in cross-border activities and sectors affecting the EU’s financial interests is constantly growing;

Or. en

Amendment 23 Monika Hohlmeier

Motion for a resolution Paragraph 5 b (new)

Motion for a resolution Amendment

5 b. Recalls that deficiencies in the validity and comparability of data and reporting technologies with varying degrees of digitalisation in the Member States continue to severely hamper the quality and reliability of information available to the Commission in the IMS and OWNRES systems; regrets that the detection of misuse, fraud and embezzlement of EU funds is mostly limited to incidental discoveries by the Commission and the European Court of Auditors (ECA) during their sample- based audits or investigations by OLAF; is concerned by the ECA’s repeated findings that the work of some national authorities is considered too error-prone and therefore unreliable; emphasises that these deficiencies impact the quality of data reported by the Member States to the Commission regarding the number of detected fraudulent and non-fraudulent irregularities; notes that three Member States did not report any fraudulent irregularities in 20191a; is particularly concerned by the lack of adequate staffing and qualifications of certain national authorities and the lack of internal audits;

PE692.936v01-00 14/71 AM\1232036EN.docx EN ______1a Cyprus, Luxemburg, Malta

Or. en

Amendment 24 Ramona Strugariu, Olivier Chastel, Katalin Cseh, Alin Mituța

Motion for a resolution Paragraph 5 b (new)

Motion for a resolution Amendment

5 b. Underlines the increased risks associated to the implementation of the Union budget, incurred by the COVID -19 crisis; highlights that in 2019, fifteen Member States reported irregularities in actions related to health infrastructures, with seven reporting fraudulent irregularities; notes with concern that more than half of the fraudulent irregularities were reported by two Member States; calls on the Commission to pay particular attention to these cases, monitoring and taking action for ensuring the full protection of the EU budget, especially under exceptional crisis circumstances;

Or. en

Amendment 25 Monika Hohlmeier

Motion for a resolution Paragraph 6

Motion for a resolution Amendment

6. Urges Member States together with 6. Urges Member States together with the Commission to cooperate more closely the Commission to cooperate more closely with regard to exchanges of information, with regard to exchanges of information, improving data collection, and enhancing improving data collection, and enhancing the effectiveness of controls; the effectiveness of controls; strongly calls on the Commission to conduct a thorough

AM\1232036EN.docx 15/71 PE692.936v01-00 EN analysis of the underlying reasons and potential structural problems causing the persisting systemic weaknesses in the reliability of the work of some national authorities and pay special attention to any potential country-specific differences; calls on the Commission to address clear country-specific recommendations to the national authorities; asks the Commission to establish a structured dialogue with the national authorities and the ECA to continuously work on capacity building and exchange of best practice to improve the reliability of national authorities’ work and keep Parliament informed about the progress made; calls on the Commission to offer further support to improve the cooperation under EUROFISC;

Or. en

Amendment 26 Mikuláš Peksa on behalf of the Verts/ALE Group

Motion for a resolution Paragraph 6

Motion for a resolution Amendment

6. Urges Member States together with 6. Urges Member States together with the Commission to cooperate more closely the Commission to cooperate more closely with regard to exchanges of information, with regard to exchanges of information, improving data collection, and enhancing improving data collection, and enhancing the effectiveness of controls; the effectiveness of controls; in this regard calls on Member States to publish data on final beneficiaries in an uniform machine-readable format and ensure the interoperability with the Commission monitoring tools;

Or. en

Amendment 27 Luke Ming Flanagan

PE692.936v01-00 16/71 AM\1232036EN.docx EN Motion for a resolution Paragraph 6 a (new)

Motion for a resolution Amendment

6 a. In this regard reiterates its call on the Commission to establish a uniform system for the collection of comparable data on irregularities and cases of fraud from the Member States in order to standardise the reporting process and ensure the quality and comparability of the data provided;

Or. en

Amendment 28 Luke Ming Flanagan

Motion for a resolution Paragraph 6 b (new)

Motion for a resolution Amendment

6 b. Finds it worrisome that some Member States regularly do not report a single case of fraud; invites the Commission to investigate the situation, as it considers the likelihood that no fraudulent activities exist in those Member States to be rather low; calls on the Commission to run random spot checks in these countries;

Or. en

Amendment 29 Mikuláš Peksa on behalf of the Verts/ALE Group

Motion for a resolution Paragraph 9

Motion for a resolution Amendment

AM\1232036EN.docx 17/71 PE692.936v01-00 EN 9. Notes from the 2020 VAT Gap 9. Notes from the 2020 VAT Gap Report that in 2018 the EU VAT Gap Report that in 2018 the EU VAT Gap dropped to EUR 140 billion and could fall dropped to EUR 140 billion and could fall below EUR 130 billion in 2019; however, below EUR 130 billion in 2019; however, is concerned that the VAT Gap may reach is concerned that the VAT Gap may reach EUR 164 billion in 2020 due to the EUR 164 billion in 2020 and asks the COVID-19 pandemic; Commission for a thorough explanation on whether this increase was anyhow related to the COVID-19 pandemic;

Or. en

Amendment 30 Monika Hohlmeier

Motion for a resolution Paragraph 9 a (new)

Motion for a resolution Amendment

9 a. Is deeply concerned by the extensive impact of VAT fraud on the EU budget as well as national budgets; finds it very important to step up the fight against the biggest kind of VAT fraud, the missing trader intra-community fraud (MTIC fraud), with an estimated annual cost of 40-60billion EUR; calls on the Commission to assess the strengths and weaknesses of different potential solutions to tackle MTIC fraud, notably the introduction of a real-time digital transaction-based reporting system as developed by researchers (TX++), or a combination of the definitive VAT system with a digital, real-time transaction-based reporting;

Or. en

Amendment 31 Caterina Chinnici

Motion for a resolution Paragraph 10

PE692.936v01-00 18/71 AM\1232036EN.docx EN Motion for a resolution Amendment

10. Notes that sixteen revenue anti- 10. Notes that sixteen revenue anti- fraud measures were reported by the fraud measures were reported by the Member States in 2019, in particular eight Member States in 2019, in particular eight in the area of customs fraud, five in tax in the area of customs fraud, five in tax fraud, and three measures concerning both fraud, and three measures concerning both customs and tax fraud; customs and tax fraud; notes that an evaluation process on Regulation 515/97 started in 2019 within the Commission, to determine how useful Regulation 515/97 has been on preventing customs fraud;

Or. en

Amendment 32 Mikuláš Peksa on behalf of the Verts/ALE Group

Motion for a resolution Paragraph 11

Motion for a resolution Amendment

11. Notes that between 2017 and 2019 11. Notes that between 2017 and 2019 the Commission carried out on-the-spot the Commission carried out on-the-spot inspections on the control strategy in the inspections on the control strategy in the field of customs value in all Member States field of customs value in all Member States and found that the Union’s financial and found that the Union’s financial interests were not effectively protected, interests were not effectively protected, leading to significant losses of Traditional leading to significant losses of Traditional Own Resources to the EU budget; Notes Own Resources to the EU budget; Notes that OLAF has issued investigation reports that OLAF has issued investigation reports with recommendations to six Member with recommendations to six Member States which have not fully implemented States which have not fully implemented the necessary measures to tackle the necessary measures to tackle undervaluation fraud consistently; undervaluation fraud consistently; calls on the Commission to report back to the Parliament specifically naming the Member States which could share their best practice and also those where significant challenges remain;

Or. en

Amendment 33

AM\1232036EN.docx 19/71 PE692.936v01-00 EN Mikuláš Peksa on behalf of the Verts/ALE Group

Motion for a resolution Paragraph 12

Motion for a resolution Amendment

12. Notes that solar panels were the 12. Notes that solar panels were the goods most affected by fraud and goods most affected by fraud and irregularities in monetary terms in 2019, as irregularities in monetary terms in 2019, as was also the case in 2018, and 2017; calls was also the case in 2018, and 2017; calls on the Commission and Member States to on the Commission to recognise the take action in this regard; systemic nature of such fraud, fully informs the Council and together with Member States takes strong action in this regard;

Or. en

Amendment 34 Luke Ming Flanagan

Motion for a resolution Paragraph 12 a (new)

Motion for a resolution Amendment

12 a. Notes that revenue fraud through undervaluation of goods imported in the EU is and will remain a threat to revenue, posing a significant challenge to be dealt with in the coming years;

Or. en

Amendment 35 Monika Hohlmeier

Motion for a resolution Paragraph 13

Motion for a resolution Amendment

13. Notes that serious doubts exist 13. Notes that serious doubts exist about the accuracy of the traditional own about the accuracy of the traditional own

PE692.936v01-00 20/71 AM\1232036EN.docx EN resources (custom duties) amounts resources (custom duties) amounts transferred to the Union budget by the transferred to the Union budget by the United Kingdom as a consequence of United Kingdom as a consequence of investigations carried out by OLAF on investigations carried out by OLAF on undervaluation fraud concerning textiles undervaluation fraud concerning textiles and shoes imported from China via the and shoes imported from China via the United Kingdom, and those conducted by United Kingdom, and those conducted by the Commission within the framework of the Commission within the framework of own resources management; notes that in own resources management; strongly March 2019, the Commission referred to criticises that UK still refuses to make the CJEU its infringement case against the available to the EU budget the TOR UK concerning the TOR losses due to amounts lost during the period 2011 - undervalued imports; asks the Commission 2017 amounting to EUR 2.679bn (gross); to report on any developments in this welcomes that in March 2019, the regard; Commission referred to the CJEU its infringement case against the UK concerning the TOR losses due to undervalued imports; asks the Commission to report on any developments in this regard;

Or. en

Amendment 36 Monika Hohlmeier

Motion for a resolution Paragraph 13 a (new)

Motion for a resolution Amendment

13 a. Is deeply concerned by the non- quantifiable reservation maintained for2019 by DG BUDG, stating that the undervaluation fraud partly moved to other Member States, affecting the collection of TOR to an extent pending final quantification; notes that the Commission has carried out inspections on undervaluation in all Member States and checked how Member States are organised to address issues of undervaluation, particularly concerning textiles and shoes from China; notes that the Commission will follow up and hold Member States financially responsible for any potential losses incurred; is concerned that provisional calculations

AM\1232036EN.docx 21/71 PE692.936v01-00 EN indicate that the TOR losses in 2019 would reach 1% of the 2019 total TOR; asks the Commission to promptly inform Parliament about the findings and consequences of its inspections and quantification calculations once finalised;

Or. en

Amendment 37 Mikuláš Peksa on behalf of the Verts/ALE Group

Motion for a resolution Paragraph 14

Motion for a resolution Amendment

14. Reiterates that a combination of 14. Reiterates that a combination of different detection methods (release different detection methods (release controls, post-release controls, inspections controls, post-release controls, inspections by anti-fraud services and others) is most by anti-fraud services and others) is most efficient for detecting fraud, and that the efficient for detecting fraud, and that the efficiency of each method depends on the efficiency of each method depends on the Member State concerned, the efficient Member State concerned, the efficient coordination of its administration, and the coordination of its administration, and the ability of the relevant Member State ability of the relevant Member State services to communicate with each other; services to communicate with each other; calls on the Commission to inform the Council which member States could share their 'best practice' experience and where significant challenges for improvements remain;

Or. en

Amendment 38 Luke Ming Flanagan

Motion for a resolution Paragraph 15 a (new)

Motion for a resolution Amendment

15 a. Reiterates its assessment on the importance of OLAF’s investigations and

PE692.936v01-00 22/71 AM\1232036EN.docx EN its coordination role for the protection of the EU’s financial interests and combatting fraud;

Or. en

Amendment 39 Luke Ming Flanagan

Motion for a resolution Paragraph 18

Motion for a resolution Amendment

18. Notes that regarding the Common 18. Notes that regarding the Common Agricultural Policy (CAP), detections of Agricultural Policy (CAP), detections of irregularities were concentrated in a few irregularities were concentrated in a few Member States in particular for fraudulent Member States in particular for fraudulent irregularities, suggesting that different irregularities, suggesting that different approaches to the use of criminal law to approaches to the use of criminal law to protect the EU budget or reporting protect the EU budget or reporting practices concerning suspected fraud could practices concerning suspected fraud could be significant factors leading to differences be significant factors leading to differences among Member States; notes, that in 2019, among Member States; notes, that in 2019, the overall financial amounts were the overall financial amounts were relatively stable, but amounts with respect relatively stable, but amounts with respect to direct support increased whereas rural to direct support increased whereas rural development decreased; notes in particular development decreased; notes in particular that in the area of direct support, most that in the area of direct support, most detections indicated the use of falsified detections indicated the use of falsified documents or requests for aid, and that in documents or requests for aid, and that in rural development, many detections were rural development, many detections were related to implementation; notes that the related to implementation; is worried that creation of artificial conditions for the creation of artificial conditions for receiving financial support is a common receiving financial support is a common type of fraud in direct support; notes that type of fraud in direct support indicating a there was a strong decrease in fraudulent modus operandi in the fraudulent irregularities in rural development, due to irregularities touching upon ethics and the decline in detections related to PP integrity; notes that there was a strong 2007-2013, in line with the programming decrease in fraudulent irregularities in rural lifecycle, and a slow start of detections development, due to the decline in related to PP 2014-2020, and that more detections related to PP 2007-2013, in line fraudulent and non-fraudulent irregularities with the programming lifecycle, and a slow were still detected in rural development start of detections related to PP 2014-2020, than in direct support; however market and that more fraudulent and non- measures recorded the highest Fraud fraudulent irregularities were still detected Detection Rate (FDR), at 0.87%, more than in rural development than in direct support; four-times that of rural development with however market measures recorded the

AM\1232036EN.docx 23/71 PE692.936v01-00 EN regard to fraudulent irregularities and, highest Fraud Detection Rate (FDR), at whereas for non-fraudulent irregularities 0.87%, more than four-times that of rural represented nearly double Irregularities development with regard to fraudulent Detection Rate (IDR) of that of rural irregularities and, whereas for non- development; moreover, notes from the fraudulent irregularities represented nearly Courts of Auditors’ annual report 2017 that double Irregularities Detection Rate (IDR) the manner in which expenditure is of that of rural development; moreover, disbursed has an impact on the risk of notes from the Courts of Auditors’ annual error, and that in particular errors were report 2017 that the manner in which confined mainly to cost reimbursements, expenditure is disbursed has an impact on whereas the error rate for entitlement the risk of error, and that in particular payments was below the materiality errors were confined mainly to cost threshold of 2 %; reimbursements, whereas the error rate for entitlement payments was below the materiality threshold of 2 %;

Or. en

Amendment 40 Monika Hohlmeier

Motion for a resolution Paragraph 18 a (new)

Motion for a resolution Amendment

18 a. Reiterates its call for the introduction of maximum amounts of payments that one natural person can receive from the first and second pillar of the CAP as well as for cohesion funds; is of the opinion that maximum amounts defined per natural person are much harder to circumvent; reminds that beneficiaries can artificially split up their companies or create additional companies that all can receive the maximum amount of funding to circumvent a cap defined per legal person; welcomes the intentions of the proposal for the CAP to count all companies belonging to the same group as one beneficiary, but is of the opinion that this is insufficient: opaque and highly complex company structures often involving entities in several Member States and/or third countries make it very difficult to ensure that all companies belonging to the same group are identified

PE692.936v01-00 24/71 AM\1232036EN.docx EN as such and in fact treated as one beneficiary and open other opportunities to circumvent these restrictions; calls on the Commission to include proposals for caps per natural person for CAP and cohesions funds in its proposal for the revision of the Financial Regulation;

Or. en

Amendment 41 Monika Hohlmeier

Motion for a resolution Paragraph 18 b (new)

Motion for a resolution Amendment

18 b. Repeats its concern that CAP subsidies continue to incentivise land- grabbing by criminal and oligarchic structures; reiterates its urgent call on the Commission to establish a complaint mechanism for farmers and SMEs faced with land-grabbing, severe misconduct by national authorities, irregular or biased treatment intenders or the distribution of subsidies, pressure or intimidation from criminal structures, organised crime or oligarchic structures, or another severe infringement of their fundamental rights to lodge a complaint directly with the Commission; welcomes that such a complaint mechanism has been proposed for the new CAP regulation;

Or. en

Amendment 42 Mikuláš Peksa on behalf of the Verts/ALE Group

Motion for a resolution Paragraph 19

AM\1232036EN.docx 25/71 PE692.936v01-00 EN Motion for a resolution Amendment

19. Notes the complexity of the 19. Notes the complexity of the analysis on cohesion policy’s data and the analysis on cohesion policy’s data and the different phases of PPs 2007-2013, notes different phases of PPs 2007-2013, notes that the financial amounts reported are that the financial amounts reported are significantly lower than the exceptional significantly lower than the exceptional year of 2018 but on average are trending year of 2018 but on average are trending upwards for the Cohesion Fund; underlines upwards for the Cohesion Fund; underlines the importance of cooperation with the the importance of cooperation with the judicial authorities and considers the need judicial authorities and considers the need for closer attention to the unexpected for closer attention to the unexpected downturn of fraudulent irregularities as downturn of fraudulent irregularities as well as non-fraudulent, excluding well as non-fraudulent, excluding ‘exceptional’ cases, for PP 2014-2020 in ‘exceptional’ cases, for PP 2014-2020 in 2019 of the financial amounts involved in 2019 of the financial amounts involved in fraudulent irregularities for all funds and in fraudulent irregularities for all funds and in particular regarding the ERDF; notes, particular regarding the ERDF; stresses an moreover, the Member States’ different urgent need for the Commission, the reporting patterns in terms of their OLAF and the EPPO to fully investigate tendency to detect fraudulent irregularities if Member States’ different reporting with high financial amounts involved; patterns in terms of their tendency to detect fraudulent irregularities with high financial amounts involved are somehow related to possible conflicts of interests of Member States' stakeholders or even criminal activity;

Or. en

Amendment 43 Luke Ming Flanagan

Motion for a resolution Paragraph 19

Motion for a resolution Amendment

PE692.936v01-00 26/71 AM\1232036EN.docx EN downturn of fraudulent irregularities as downturn of fraudulent irregularities as well as non-fraudulent, excluding well as non-fraudulent, excluding ‘exceptional’ cases, for PP 2014-2020 in ‘exceptional’ cases, for PP 2014-2020 in 2019 of the financial amounts involved in 2019 of the financial amounts involved in fraudulent irregularities for all funds and in fraudulent irregularities for all funds and in particular regarding the ERDF; notes, particular regarding the ERDF; notes with moreover, the Member States’ different concern, moreover, the Member States’ reporting patterns in terms of their different reporting patterns in terms of their tendency to detect fraudulent irregularities tendency to detect fraudulent irregularities with high financial amounts involved; with high financial amounts involved;

Or. en

Amendment 44 Monika Hohlmeier

Motion for a resolution Paragraph 19 a (new)

Motion for a resolution Amendment

19 a. Is very concerned by media reports about European co-financed infrastructure investments which were repurposed after the minimum required period of three or five years; regrets allegations of fraud and personal enrichment from this repurposing; regrets that the Commission has not been able to provide additional information to dispel remaining doubts; welcomes the intention of the Commission to properly follow-up on these allegations and calls on the Commission to report its findings to Parliament; further calls on the Commission to analyse in which Member States severe problems exist regarding the repurposing of EU-co-financed infrastructure projects;

Or. en

Amendment 45 Monika Hohlmeier

Motion for a resolution

AM\1232036EN.docx 27/71 PE692.936v01-00 EN Paragraph 19 b (new)

Motion for a resolution Amendment

19 b. Considers the legal minimum durability requirement of three to five years too short given the significant amounts of co-financing and the longevity of such projects; regrets that the co- legislators did not decide to introduce longer durability requirements during the revision of the Common Provisions Regulation; notes that significant differences exist across Member States in the national rules on durability of infrastructure investments and premature repurposing;

Or. en

Amendment 46 Monika Hohlmeier

Motion for a resolution Paragraph 19 c (new)

Motion for a resolution Amendment

19 c. Calls on the Commission to conduct a thorough analysis on the different national rules on the durability of appropriation requirements of co- financed investments and premature repurposing both for infrastructure and equipment with a particular focus on whether national rules go beyond the European minimum requirements; calls on the Commission to report its findings to Parliament;

Or. en

Amendment 47 Mikuláš Peksa on behalf of the Verts/ALE Group

PE692.936v01-00 28/71 AM\1232036EN.docx EN Motion for a resolution Paragraph 20

Motion for a resolution Amendment

20. Reiterates the transparency 20. Reiterates the transparency requirements for CAP and cohesion requirements for CAP and cohesion policies, which oblige the responsible policies, which oblige the responsible authorities of the Member States to authorities of the Member States to maintain a publicly available list of final maintain a publicly available list of final beneficiaries; calls on Member States to beneficiaries; strongly calls on Member publish such data in an uniform machine- States to publish such data in an uniform readable format and ensure the machine-readable format and ensure the interoperability of the information; calls on interoperability of the information; the Commission to collect and aggregate demands that the Commission collects and the data and publish lists of the largest aggregates the data and publish lists of the beneficiaries from each fund in each largest beneficiaries from each fund in Member State; each Member State;

Or. en

Amendment 48 Mikuláš Peksa on behalf of the Verts/ALE Group

Motion for a resolution Paragraph 21

Motion for a resolution Amendment

21. Notes that in 2019 actions related to 21. Notes that in 2019 actions related to health infrastructure were affected by health infrastructure were affected by breaches of public procurement rules; breaches of public procurement rules; among the fraudulent irregularities the among the fraudulent irregularities the most common issues detected concerned most common issues detected concerned supporting documents; fifteen Member supporting documents; fifteen Member States reported irregularities in actions States reported irregularities in actions related to health infrastructures; seven of related to health infrastructures; seven of these also detected fraud; notes that non- these also detected fraud; notes that non- reporting of irregularities in this area by reporting of irregularities in this area by other Member States is not an indication other Member States is not an indication that they are not affected by such risks; that they were not affected by such risks and calls on the Commission, the OLAF and the EPPO that fraudulent activities, especially those related to fighting the COVID-19 pandemic do not remain unresolved;

AM\1232036EN.docx 29/71 PE692.936v01-00 EN Or. en

Amendment 49 Monika Hohlmeier

Motion for a resolution Paragraph 21 a (new)

Motion for a resolution Amendment

21 a. Is concerned about continued reports by ECA and the Commission about persisting weaknesses in public procurement in several Member States; calls on the Commission to conduct a thorough analysis of the Member States with noticeable weaknesses about the underlying reasons and specify precisely to what extend these weaknesses are due to formal errors or systemic fraud and corruption; is of the opinion that minor formal errors need to be treated differently and that the Commission should focus more on the more severe issues, such as intentional manipulations in the tender criteria to favour the application of certain or single bidders, corruption in relation to bidder selection, conflicts of interest and other fraudulent misuse;

Or. en

Amendment 50 Sabrina Pignedoli

Motion for a resolution Paragraph 21 a (new)

Motion for a resolution Amendment

21a. Points out that complete transparency in accounting for expenditure is essential, especially as regards infrastructure works financed directly through EU funds or financial

PE692.936v01-00 30/71 AM\1232036EN.docx EN instruments; calls on the Commission to provide for EU citizens to have full access to information on co-financed projects;

Or. it

Amendment 51 Luke Ming Flanagan

Motion for a resolution Paragraph 21 a (new)

Motion for a resolution Amendment

21 a. Shares the view of the Commission, that countering fraud and irregularities is of the utmost importance in particular in period of crisis;17a ______17a Chapter 10.2 of the 31st Annual Report on the protection of the European Union’s financial interests - Fight against fraud - 2019

Or. en

Amendment 52 Sabrina Pignedoli

Motion for a resolution Paragraph 21 b (new)

Motion for a resolution Amendment

21b. Stresses the need for complete transparency in accounting for the transfers and loans provided for under the Recovery and Resilience Facility (RRF) and calls on the Commission to provide for the European Parliament to have full access to information;

Or. it

AM\1232036EN.docx 31/71 PE692.936v01-00 EN Amendment 53 Luke Ming Flanagan

Motion for a resolution Paragraph 21 b (new)

Motion for a resolution Amendment

21 b. Invites the Commission to step up its fraud prevention and detection work to ensure that EU money continues to reach the intended beneficiaries and produce effective and measurable effects on citizen’s lives;

Or. en

Amendment 54 Monika Hohlmeier

Motion for a resolution Subheading 4 a (new)

Motion for a resolution Amendment

Digitalisation as a means to protect the EU financial interests

Or. en

Amendment 55 Monika Hohlmeier

Motion for a resolution Paragraph 21 b (new)

Motion for a resolution Amendment

21 b. Emphasises that a greater degree of digitalisation, interoperability and harmonisation of the European reporting, monitoring and audit is overdue and indispensable given the cross-border nature of misuse, fraud, misappropriations, conflicts of interest, double-funding and other systemic

PE692.936v01-00 32/71 AM\1232036EN.docx EN problems; regrets that under current rules, the lack of information about the ownership structures and beneficial owners of companies and groups of companies significantly contributes to the opaqueness of the current distribution of funds and hamper a more efficient detection of irregularities; emphasises again the crucial importance of comprehensive, reliable and comparable data for the efficient, effective and timely control of European spending and the protection of European tax-payers’ money;

Or. en

Amendment 56 Monika Hohlmeier

Motion for a resolution Paragraph 21 c (new)

Motion for a resolution Amendment

21 c. Reiterates Parliament’s urgent call on the Commission to propose a legal base in the Financial Regulation for the creation of an interoperable digital reporting and monitoring system to allow timely, uniform and standardised reporting by Member State’s authorities in the area of shared management; encourages a mandatory use of existing data-mining and risk-scoring tools, such as ARACHNE, as one element of the envisaged reporting and monitoring system; underlines that the envisaged interoperable reporting and monitoring system should not only allow for an earlier and more efficient detection of misuse, fraud, misappropriations, conflicts of interest, double-funding and other systemic problems but would also allow for a comprehensive overview of the true distribution of EU funds and potentially unintended concentrations in the hands of few oligarchic or even

AM\1232036EN.docx 33/71 PE692.936v01-00 EN criminal ultimate beneficiaries;

Or. en

Amendment 57 Monika Hohlmeier

Motion for a resolution Paragraph 21 d (new)

Motion for a resolution Amendment

21 d. Recalls that this system should not result in a bureaucratic overburdening of the national authorities and avoid creating a data congestion; calls on the Commission to determine which indicators and data are truly relevant, necessary and proportionate for audit and control purposes as well as for reaching the intended programming goals and to decrease the number of indicators and milestones that need to be entered into the system;

Or. en

Amendment 58 Monika Hohlmeier

Motion for a resolution Paragraph 21 e (new)

Motion for a resolution Amendment

21 e. Notes that the Early Detection and Exclusion System (EDES),established by Art 135 Financial Regulation should ensure effective sanctions on unreliable persons or entities, through an exclusion from award and procurement procedures funded under the EU budget and the imposition of financial penalties; regrets that the database only lists very few economic operators (six as per May 2021); calls on the Commission to review

PE692.936v01-00 34/71 AM\1232036EN.docx EN the criteria with a view to decreasing complexity and increase applicability of EDES in practice;

Or. en

Amendment 59 Monika Hohlmeier

Motion for a resolution Paragraph 21 f (new)

Motion for a resolution Amendment

21 f. Asks the Commission to consider the extension of EDES to application on funds under shared management with respect for the principles of proportionality and appropriateness when proposing the revision of the Financial Regulation; urges Member States and the Commission to guarantee an increased interoperability of the existing European and national databases and data-mining tools; acknowledges that the EDPS sees no general data protection issues on establishing such interoperability as long as they are established on a clear legal basis;

Or. en

Amendment 60 Monika Hohlmeier

Motion for a resolution Paragraph 21 g (new)

Motion for a resolution Amendment

21 g. Welcomes existing rules on e- procurement, which stipulate that tender opportunities must be published on Tenders Electronic Daily (TED), procurement documents must be accessible electronically and a link must

AM\1232036EN.docx 35/71 PE692.936v01-00 EN be included in the TED notices, economic operators must submit tenders electronically and contracting authorities must accept electronic invoices;

Or. en

Amendment 61 Monika Hohlmeier

Motion for a resolution Paragraph 21 h (new)

Motion for a resolution Amendment

21 h. Observes that public procurement is undergoing a digital transformation; welcomes the process of rethinking public procurement with digital technologies in mind; is of the opinion that this reform should go beyond simply moving to electronic tools and should include various pre-award and post-award phases; insists, that the reform should also allow for the integration of data- based approaches at various stages of the procurement process; calls on the Commission to pay particular attention to framework agreements awarded through public procurement procedures, as fraud and corruption related to them represent an increased risk for the financial interests of the Union;

Or. en

Amendment 62 Monika Hohlmeier

Motion for a resolution Paragraph 21 i (new)

Motion for a resolution Amendment

21 i. Observes that the increasing digitalisation of public services and

PE692.936v01-00 36/71 AM\1232036EN.docx EN enhanced transparency rules result in additional information related to EU public finances being available in electronic formats; notes furthermore, that the computing capacity and the software availability allows for complex processing of large amount of data in relatively short time, which creates new potential for the detection of fraud using specialized data analytics techniques such as big data, data mining, and AI technologies on open data; believes that the abundance of open data represents an opportunity to support the creation of reliable "reputation systems", which can help to prevent criminal activities; asks the Commission to carry out a systemic analysis to investigate how the new technologies are being used in the field of fraud detection and prevention, assess their limitations, and make proposals on how to improve their use;

Or. en

Amendment 63 Katalin Cseh, Olivier Chastel, Alin Mituța, Ramona Strugariu

Motion for a resolution Paragraph 22

Motion for a resolution Amendment

22. Welcomes the adoption of the New 22. Welcomes the adoption of the New Commission Anti-Fraud Strategy on 29 Commission Anti-Fraud Strategy on 29 April 2019; welcomes the zero tolerance April 2019; welcomes the zero tolerance policy towards fraud; welcomes the policy towards fraud; welcomes the reintroduction of the Commission’s reintroduction of the Commission’s corporate oversight of fraud issues by corporate oversight of fraud issues by giving OLAF a stronger advisory and giving OLAF a stronger advisory and supervisory role; supervisory role reminds that the CAFS foresees actions only to the Commission, while the majority of responsibilities lie with the Member States; calls for a unified approach for the European Fraud Strategy, which includes the Member States as well;

AM\1232036EN.docx 37/71 PE692.936v01-00 EN Or. en

Amendment 64 Monika Hohlmeier

Motion for a resolution Paragraph 23

Motion for a resolution Amendment

23. Stresses the importance of 23. Stresses the importance of prioritising the development and prioritising the development and establishment of National Anti-Fraud establishment of National Anti-Fraud Strategies (NAFSs) by all Member States, Strategies (NAFSs) by all Member States, also in the light of the new challenges of also in the light of the new challenges of the COVID-19 crisis and the Recovery and the COVID-19 crisis and the Recovery and Resilience Plans; calls on Member States Resilience Plans; regrets that the follow- who have not yet adopted a NAFS to do so up for 2018 showed that only 10 Member without delay; States reported that they have adopted or updated a NAFS and communicated it to OLAF, whereas 17 Member States have still not adopted a NAFS1a; calls on those Member States who have not yet adopted a NAFS to do so without any further undue delay; ______1a Belgium, Denmark, Germany, Estonia, Ireland, Spain, Croatia, Cyprus, Luxembourg, Lithuania, Netherlands, Poland, Portugal, Romania, Slovenia, Finland, Sweden

Or. en

Amendment 65 Ramona Strugariu, Olivier Chastel, Katalin Cseh, Alin Mituța

Motion for a resolution Paragraph 23

Motion for a resolution Amendment

PE692.936v01-00 38/71 AM\1232036EN.docx EN also in the light of the new challenges of also in the light of the new challenges of the COVID-19 crisis and the Recovery and the COVID-19 crisis and the Recovery and Resilience Plans; calls on Member States Resilience Plans; deplores that only ten who have not yet adopted a NAFS to do so Member States have adopted a national without delay; anti-fraud strategy (NAFS); calls on all Member States who have not yet adopted a NAFS to do so without delay; calls on the Commission to push the remaining Member States to advance their adoption of NAFS;

Or. en

Amendment 66 Luke Ming Flanagan

Motion for a resolution Paragraph 23

Motion for a resolution Amendment

23. Stresses the importance of 23. Stresses the importance of prioritising the development and prioritising the development and establishment of National Anti-Fraud establishment of National Anti-Fraud Strategies (NAFSs) by all Member States, Strategies (NAFSs) by all Member States, also in the light of the new challenges of also in the light of the new challenges of the COVID-19 crisis and the Recovery and the COVID-19 crisis and the Recovery and Resilience Plans; calls on Member States Resilience Plans; is extremely worried that who have not yet adopted a NAFS to do so a total of 16 Member States do not have without delay; any NAFS in place with only four considering adopting or preparing a new NAFS; calls on Member States who have not yet adopted a NAFS to do so without delay;

Or. en

Amendment 67 Katalin Cseh, Olivier Chastel, Alin Mituța, Ramona Strugariu

Motion for a resolution Paragraph 23

Motion for a resolution Amendment

23. Stresses the importance of 23. Stresses the importance of

AM\1232036EN.docx 39/71 PE692.936v01-00 EN prioritising the development and prioritising the development and establishment of National Anti-Fraud establishment of National Anti-Fraud Strategies (NAFSs) by all Member States, Strategies (NAFSs) by all Member States, also in the light of the new challenges of also in the light of the new challenges of the COVID-19 crisis and the Recovery and the COVID-19 crisis and the Recovery and Resilience Plans; calls on Member States Resilience Plans; calls on Member States who have not yet adopted a NAFS to do so who have not yet adopted a NAFS to do so without delay; without delay; calls on the Commission to assess the already existing NAFSs and assess the reasons why Member States have not done that so far;

Or. en

Amendment 68 Mikuláš Peksa on behalf of the Verts/ALE Group

Motion for a resolution Paragraph 23

Motion for a resolution Amendment

Or. en

Amendment 69 Katalin Cseh, Olivier Chastel, Alin Mituța, Ramona Strugariu

Motion for a resolution Paragraph 23

Motion for a resolution Amendment

23. Stresses the importance of 23. Stresses the importance of

PE692.936v01-00 40/71 AM\1232036EN.docx EN prioritising the development and prioritising the development and establishment of National Anti-Fraud establishment of National Anti-Fraud Strategies (NAFSs) by all Member States, Strategies (NAFSs) by all Member States, also in the light of the new challenges of also in the light of the new challenges of the COVID-19 crisis and the Recovery and the COVID-19 crisis and the Recovery and Resilience Plans; calls on Member States Resilience Plans; reminds that still 16 who have not yet adopted a NAFS to do so Member States have not prepared their without delay; own NAFSs; calls on Member States who have not yet adopted a NAFS to do so without delay;

Or. en

Amendment 70 Monika Hohlmeier

Motion for a resolution Paragraph 24 a (new)

Motion for a resolution Amendment

24 a. Welcomes the entry into force of the revised regulation (2020/2223), which significantly strengthens the role of OLAF and paves the way for smooth collaboration with EPPO; notes that the new rules include a clear definition of the complementary roles of the two offices, clear rules on reporting of cases and improve the way OLAF can conduct its own investigations; acknowledges that the amended legal framework makes OLAF more effective by streamlining the rules for on-the-spot checks and inspections, allowing OLAF’s access to bank account information via the national competent authorities, reinforcing the rules governing the work of the anti-fraud coordination services in the Member States and by providing stronger guarantees for persons concerned by OLAF investigations through the creation of a controller;

Or. en

AM\1232036EN.docx 41/71 PE692.936v01-00 EN Amendment 71 Monika Hohlmeier

Motion for a resolution Paragraph 24 b (new)

Motion for a resolution Amendment

24 b. Considers that the reinforced powers for the OLAF, the arrival of the EPPO and the coordination of work across the entire EU-anti fraud architecture to identify, investigate and prosecute fraudsters are a major step forward in protecting the EU's financial interests; welcomes in this regard the conclusion of working arrangements between EPPO and Eurojust and Europol, which establish the rules of cooperation and implement the modalities of their collaboration in the fight against crimes affecting the financial interests of the European Union;

Or. en

Amendment 72 Monika Hohlmeier

Motion for a resolution Paragraph 24 c (new)

Motion for a resolution Amendment

24 c. Recalls that OLAF was created not only for internal investigations but also for supporting Member States in external investigations; recalls that the subsidiarity principle prevents OLAF from launching investigations where Member States are in a better position to act, but this does not exclude OLAF from conducting analyses of recurring cases, trends and patterns and on how its ability to detect these phenomena has resulted in enhanced cooperation and successful actions;

Or. en

PE692.936v01-00 42/71 AM\1232036EN.docx EN Amendment 73 Monika Hohlmeier

Motion for a resolution Paragraph 24 d (new)

Motion for a resolution Amendment

24 d. Reminds that OLAF’s remit is to contribute to the design and development of methods of preventing and combating fraud, corruption and any other illegal activity affecting the financial interests of the Union; recalls that one of the key element of OLAF’s mandate is to promote and coordinate, with and among the Member States, the sharing of operational experience and best procedural practices in the field of the protection of the financial interests of the Union; regrets therefore, that no assessment of OLAF’s investigative results on expenditure is explicitly incorporated in the PIF Report; invites OLAF to provide tangible guidance and advice to Member states and to the Commission, as input built on the analysis of its investigative experience;

Or. en

Amendment 74 Ramona Strugariu, Olivier Chastel, Katalin Cseh, Alin Mituța

Motion for a resolution Paragraph 25 a (new)

Motion for a resolution Amendment

25 a. Stresses that after the creation of the EPPO, OLAF will remain the sole office responsible for protecting EU financial interests in the Member States that decided not to join the EPPO; highlights that according to opinion 8/2018 of the European Court of

AM\1232036EN.docx 43/71 PE692.936v01-00 EN Auditors, the Commission proposal amending the OLAF regulation does not resolve the issue of low effectiveness of OLAF’s administrative investigations; underlines the importance of ensuring that OLAF remains a strong and fully functioning partner to the EPPO;

Or. en

Amendment 75 Katalin Cseh, Olivier Chastel, Alin Mituța, Ramona Strugariu

Motion for a resolution Paragraph 25 a (new)

Motion for a resolution Amendment

25 a. Is strongly of the opinion that OLAF needs to be strengthened with budgetary means and positions in order to be fully capable to exercise its duties regarding prevention and investigation; especially regarding those Member States, which are not participating in the EPPO;

Or. en

Amendment 76 Ramona Strugariu, Olivier Chastel, Katalin Cseh, Alin Mituța

Motion for a resolution Paragraph 25 b (new)

Motion for a resolution Amendment

25 b. Welcomes the agreement between OLAF and the co-legislators, in close cooperation with the Commission services, towards including standard provisions on the protection of the financial interests of the Union in all post-2020 spending programmes legislation harmonised by area;

Or. en

PE692.936v01-00 44/71 AM\1232036EN.docx EN Amendment 77 Ramona Strugariu, Olivier Chastel, Katalin Cseh, Alin Mituța

Motion for a resolution Paragraph 26

Motion for a resolution Amendment

26. Welcomes the appointment of Ms. 26. Welcomes the appointment of Ms. Laura Codruța Kövesi as European Chief Laura Codruța Kövesi as European Chief Prosecutor and the progress achieved by Prosecutor in 2019 and launch of the setting up of the European Public operations of the European Public Prosecutor’s Office (‘the EPPO’); Prosecutor’s Office (‘the EPPO’) on June 1st 2021;

Or. en

Amendment 78 Ramona Strugariu, Olivier Chastel, Katalin Cseh, Alin Mituța

Motion for a resolution Paragraph 27

Motion for a resolution Amendment

27. Notes that the procedure for the 27. Notes that the procedure for the appointment of the European prosecutors appointment of the European prosecutors was launched in 2019, and the discussion was launched in 2019 and has been on national preparations to integrate completed in 2020, but regrets the lack of European delegated prosecutors into nominations of European delegated national systems; notes that by the end of prosecutors by Finland and Slovenia, as 2019, 18 Member States had notified the well as the considerable delays in many Commission that they had incorporated other Member States; notes that by the end Directive (EU) 2017/1371 into national of 2019, 18 Member States had notified the law; Commission that they had incorporated Directive (EU) 2017/1371 into national law;

Or. en

Amendment 79 Mikuláš Peksa on behalf of the Verts/ALE Group

AM\1232036EN.docx 45/71 PE692.936v01-00 EN Motion for a resolution Paragraph 27 a (new)

Motion for a resolution Amendment

27 a. Urges the five Member States that have not yet joined the EPPO to do so without undue delay; regrets that Finland and Slovenia have so far failed to put forward suitable European prosecutors to join the Office; recalls that the prosecutors must be independent from national influence; is concerned that the Council decided not to follow the recommendations by the European selection panel when appointing several prosecutors;

Or. en

Amendment 80 Monika Hohlmeier

Motion for a resolution Paragraph 27 a (new)

Motion for a resolution Amendment

27 a. Notes that the European Chief Prosecutor and 22 European Prosecutors took their oath before Court of Justice of the European Union on 28 September 2020;welcomes that EPPO will become fully operational in June 2021 and start launching investigations;

Or. en

Amendment 81 Ramona Strugariu, Olivier Chastel, Katalin Cseh, Alin Mituța

Motion for a resolution Paragraph 27 a (new)

Motion for a resolution Amendment

PE692.936v01-00 46/71 AM\1232036EN.docx EN 27 a. Stresses that the future cooperation between OLAF and the EPPO should be based on close cooperation, efficient exchange of information and complementarity, while avoiding duplications or conflicted competences;

Or. en

Amendment 82 Katalin Cseh, Olivier Chastel, Alin Mituța, Ramona Strugariu

Motion for a resolution Paragraph 27 a (new)

Motion for a resolution Amendment

27 a. Calls on the Commission to do its utmost to incentivise all Member States to join the EPPO;

Or. en

Amendment 83 Monika Hohlmeier

Motion for a resolution Paragraph 27 b (new)

Motion for a resolution Amendment

27 b. Regrets that the date for EPPO to become operational had to be postponed several times due to lack of financial and human resources and severe delays in the appointment of European and delegated prosecutors in a few Member States;

Or. en

Amendment 84 Mikuláš Peksa on behalf of the Verts/ALE Group

AM\1232036EN.docx 47/71 PE692.936v01-00 EN Motion for a resolution Paragraph 27 b (new)

Motion for a resolution Amendment

27 b. Asks the Commission to increase the EPPO’s financial and staff resources to enable it to tackle the challenges that will arise from the spending of the exceptionally large recovery fund;

Or. en

Amendment 85 Monika Hohlmeier

Motion for a resolution Paragraph 27 c (new)

Motion for a resolution Amendment

27 c. Recalls that according to Council implementing decision 2018/1696, the European selection panel evaluates the candidates and provides Council with a ranking which Council shall take into consideration; recalls that regarding the candidates nominated by Belgium, Bulgaria and Portugal, the Council did not follow the order of preference of the selection panel; recalls that on 27 July2020, Austria, Estonia, Luxembourg and the Netherlands published a statement that “a competition between rankings of national selection panels and the ranking of the European selection panel must be avoided, at the risk of eroding the European component of the appointment procedure.”;

Or. en

Amendment 86 Monika Hohlmeier

PE692.936v01-00 48/71 AM\1232036EN.docx EN Motion for a resolution Paragraph 27 d (new)

Motion for a resolution Amendment

27 d. Highlights with great concern Malta’s failure to nominate three suitable candidates for the College of European Prosecutors thereby causing a delay in the completion of the College of European prosecutors; is also very concerned about media reports that the Portuguese government provided Council with wrongful information about the title and experience of the candidate ranked second by the European selection panel leading to his appointment as Portuguese European prosecutor; is also concerned by the fact that one of the unsuccessful Belgian candidates filed a complaint about the selection procedure before the CJEU; regrets that these issues overshadowed the formation of the College of European prosecutors and calls on the Member States involved to provide Parliament with all necessary information and documentation to fully assess the rightfulness of the selection process;

Or. en

Amendment 87 Monika Hohlmeier

Motion for a resolution Paragraph 27 e (new)

Motion for a resolution Amendment

27 e. Is also concerned by recent public expressions by Chief Prosecutor Kövesi about "manifest lack of sincere cooperation" of Slovenia following delays in the recruitment of delegated prosecutors;

Or. en

AM\1232036EN.docx 49/71 PE692.936v01-00 EN Amendment 88 Monika Hohlmeier

Motion for a resolution Paragraph 27 f (new)

Motion for a resolution Amendment

27 f. Recalls that the European and delegated prosecutors must be independent and any suspicion of an intervention by a national government in favour of a candidate against the recommendation by the European selection panel would have a severe negative impact on the reputation, integrity and independence of the EPPO as an institution;

Or. en

Amendment 89 Ramona Strugariu, Olivier Chastel, Katalin Cseh, Alin Mituța

Motion for a resolution Paragraph 28

Motion for a resolution Amendment

28. Welcomes to the adoption of 28. Welcomes to the adoption of Directive (EU) 2019/1937 (‘the Directive (EU) 2019/1937 (‘the Whistleblowing Directive’) noting the Whistleblowing Directive’) noting the deadline for transposition on 17 December deadline for transposition on 17 December 2021; highlights the importance of 2021; calls on the Commission to closely independent media and investigative monitor and assist the Member States, journalists and reiterates the need to ensuring the complete, correct and timely protect them including through anti-slapp transposition of the Directive; legislation;

Or. en

Amendment 90 Sabrina Pignedoli

PE692.936v01-00 50/71 AM\1232036EN.docx EN Motion for a resolution Paragraph 28

Motion for a resolution Amendment

28. Welcomes to the adoption of 28. Welcomes to the adoption of Directive (EU) 2019/1937 (‘the Directive (EU) 2019/1937 (‘the Whistleblowing Directive’) noting the Whistleblowing Directive’) noting the deadline for transposition on 17 December deadline for transposition on 17 December 2021; highlights the importance of 2021; highlights the importance of independent media and investigative independent media and investigative journalists and reiterates the need to protect journalists; calls on the Commission to them including through anti-slapp provide for proper legal protection in legislation; keeping with that introduced for whistle- blowers and reiterates the need to protect them including through anti- SLAPP legislation;

Or. it

Amendment 91 Katalin Cseh, Olivier Chastel, Alin Mituța, Ramona Strugariu

Motion for a resolution Paragraph 28

Motion for a resolution Amendment

28. Welcomes to the adoption of 28. Welcomes to the adoption of Directive (EU) 2019/1937 (‘the Directive (EU) 2019/1937 (‘the Whistleblowing Directive’) noting the Whistleblowing Directive’) noting the deadline for transposition on 17 December deadline for transposition on 17 December 2021; highlights the importance of 2021; highlights the importance of independent media and investigative independent media and investigative journalists and reiterates the need to protect journalists and reiterates the need to protect them including through anti-slapp them including through anti-slapp legislation; legislation; calls on the Commission to start assessing the implementation by the Member States as soon as the deadline has passed;

Or. en

Amendment 92 Ramona Strugariu, Olivier Chastel, Katalin Cseh, Alin Mituța

AM\1232036EN.docx 51/71 PE692.936v01-00 EN Motion for a resolution Paragraph 28 a (new)

Motion for a resolution Amendment

28 a. Highlights the importance of independent media and investigative journalists and reiterates the need to protect them; calls therefore on the Commission to develop comprehensive measures for the protection and financing of independent investigative journalism, including a rapid response mechanism for journalists in distress and effective anti- SLAPP legislation;

Or. en

Amendment 93 Ramona Strugariu, Olivier Chastel, Katalin Cseh, Alin Mituța

Motion for a resolution Paragraph 29

Motion for a resolution Amendment

29. Stresses the importance of the 29. Stresses the importance of the progress made on the Commission’s progress made on the Commission’s legislative and policy initiatives to prevent legislative and policy initiatives to prevent and fight corruption, as well as the regular and fight corruption, as well as the regular monitoring and evaluation of the Member monitoring and evaluation of the Member States’ legal framework under the newly States’ legal framework under the newly established Rule of Law Report; established Rule of Law Report; recalls however the highly descriptive nature of the newly established Rule of Law report;calls on the Commission to strengthen this instrument by issuing recommendations in situations where deficiencies are identified;

Or. en

Amendment 94 Monika Hohlmeier

Motion for a resolution

PE692.936v01-00 52/71 AM\1232036EN.docx EN Paragraph 29 a (new)

Motion for a resolution Amendment

29 a. Is very concerned by the findings of the 2020 Rule of Law annual report, which notes that there are concerns about the effectiveness of the investigation, prosecution and adjudication of corruption cases, including high-level corruption cases, in several Member States, such as for example in Bulgaria, Croatia, Czech Republic, Hungary, Malta and Slovakia; insists that high-level corruption must be pursued systematically with consistent and determined action to start criminal investigations and prosecute corruption cases involving high-level officials or their immediate circle when serious allegations arise;

Or. en

Amendment 95 Luke Ming Flanagan

Motion for a resolution Paragraph 29 a (new)

Motion for a resolution Amendment

29 a. Reiterating its regrets that the Commission no longer deems it necessary to publish a specific anti-corruption report, takes note that the prevention and fight against corruption will be subject to regular monitoring and assessment of members states legal framework under the newly established RoL mechanism, which entered into force on 1st January 2021; highlight s that via this new instrument the Commission will monitor the RoL situation in the Member States covering 4 pillars, including the anti-corruption framework;

Or. en

AM\1232036EN.docx 53/71 PE692.936v01-00 EN Amendment 96 Monika Hohlmeier

Motion for a resolution Paragraph 29 b (new)

Motion for a resolution Amendment

29 b. Stresses that the institutions entrusted with enforcement of criminal law must work in an effective and impartial manner, and in order to be able to carry out their tasks, they should be equipped with adequate funding, human resources, technical capacity and specialised expertise;

Or. en

Amendment 97 Luke Ming Flanagan

Motion for a resolution Paragraph 29 b (new)

Motion for a resolution Amendment

29 b. Highlights that the connection between corruption and fraud in the EU may have a negative impact on the EU budget; calls on the Commission to consider establishing a network of corruption prevention authorities within the European Union;

Or. en

Amendment 98 Monika Hohlmeier

Motion for a resolution Paragraph 30 a (new)

Motion for a resolution Amendment

PE692.936v01-00 54/71 AM\1232036EN.docx EN 30 a. Notes that the appropriate legal basis for the EU to become a full member of GRECO is Art. 83 TFEU, in conjunction with Art. 218 TFEU; notes that a full EU membership of GRECO would require an invitation from the Council of Europe’s Committee of Ministers and the conclusion of an Agreement between the Council of Europe and the EU on the modalities of membership; notes that the applicable decision-making procedure is laid down in Art. 218 TFEU for the conclusion of international agreements: Council, acting on recommendation of the Commission, would need to authorise the Commission to negotiation the modalities of a membership in GRECO with the Council of Europe and request the consent of the European Parliament; Council may adopt a final decision to conclude the agreement after it has obtained the consent of the European Parliament;

Or. en

Amendment 99 Caterina Chinnici

Motion for a resolution Paragraph 30 a (new)

Motion for a resolution Amendment

30 a. Notes that in the area of enhancing transparency, fighting corruption and preventing conflicts of interest in public procurement, eight measures of legislative, organisational and administrative nature were reported by the Member States in 2019;

Or. en

Amendment 100 Luke Ming Flanagan

AM\1232036EN.docx 55/71 PE692.936v01-00 EN Motion for a resolution Paragraph 30 a (new)

Motion for a resolution Amendment

30 a. Reiterates that the ‘revolving door’ effect can be detrimental to relations between the institutions and interest representatives; calls for the EU institutions to develop a systematic approach to this challenge;

Or. en

Amendment 101 Monika Hohlmeier

Motion for a resolution Paragraph 30 b (new)

Motion for a resolution Amendment

30 b. Notes that following a full EU membership in GRECO, the EU institutions may be monitored and evaluated by GRECO; underlines that the GRECO evaluation system should take into account the specific nature of the EU, as a Union based on the principle of conferred competences, and its institutions, as well as the special features of EU law; emphasises that the EU’s rights and obligations in GRECO and the practical arrangements for its membership as a distinct legal entity, alongside all its Member States, should be clarified in advance in the Agreement on the modalities of membership;

Or. en

Amendment 102 Luke Ming Flanagan

Motion for a resolution

PE692.936v01-00 56/71 AM\1232036EN.docx EN Paragraph 30 b (new)

Motion for a resolution Amendment

30 b. Reiterates its call to the Commission to set up an internal evaluation mechanism of corruption for the EU institution;

Or. en

Amendment 103 Monika Hohlmeier

Motion for a resolution Paragraph 30 c (new)

Motion for a resolution Amendment

30 c. Is concerned about the Czech Chief Prosecutor General citing permanent pressure by the Justice Minister as reasons for his recent resignation; asks the commission to look into vulnerabilities of the Czech judicial system and carefully examine whether any other cases involving members of the Czech government have been withdrawn or prematurely closed potentially following pressure or unjustified interference; calls on the Commission to conduct such an analysis for all other Member States as well and keep Parliament informed about its findings and conclusions;

Or. en

Amendment 104 Monika Hohlmeier

Motion for a resolution Paragraph 31

Motion for a resolution Amendment

AM\1232036EN.docx 57/71 PE692.936v01-00 EN 31. Reiterates its call on the 31. Reiterates its call on the Commission to establish a uniform system Commission to establish a digital and for the collection of comparable data on interoperable uniform system for the irregularities and cases of fraud from the collection of comparable data on Member States in order to standardise the irregularities and cases of fraud from the reporting process and ensure the quality Member States in order to standardise the and comparability of the data provided and reporting process and ensure the quality underlines the importance of harmonising and comparability of the data provided and definitions to obtain comparative data underlines the importance of harmonising across the EU; definitions to obtain comparative data across the EU;

Or. en

Amendment 105 Katalin Cseh, Olivier Chastel, Alin Mituța, Ramona Strugariu

Motion for a resolution Paragraph 32

Motion for a resolution Amendment

32. Calls on the Commission to ensure 32. Calls on the Commission to ensure the full transparency and quality of data the full transparency and quality of data reported by Member States in the reported by Member States in the Irregularity Management System (IMS); Irregularity Management System (IMS); urges Member States to report complete urges Member States to report complete data in a timely manner; data in a timely manner; calls on the Commission and the Member States to link IMS with EDES and ARACHNE and provide access to all Member States and the Commission;

Or. en

Amendment 106 Sabrina Pignedoli

Motion for a resolution Paragraph 32 a (new)

Motion for a resolution Amendment

32a. Considers it advisable for Member States to cooperate more closely with regard to exchanges of information, in

PE692.936v01-00 58/71 AM\1232036EN.docx EN order both to improve data collection and enhance the effectiveness of controls;

Or. it

Amendment 107 Katalin Cseh, Olivier Chastel, Alin Mituța, Ramona Strugariu

Motion for a resolution Paragraph 33

Motion for a resolution Amendment

33. Stresses the importance of the 33. Emphasizes that the Early Early Detection and Exclusion System Detection and Exclusion System (EDES), (EDES); invites the Commission to as the EU’s Blacklist, has a huge analyse the impact of a possible extension potential flagging people and companies of EDES to shared management; that misuse EU funds; invites the Commission to initiate the change of the Financial Regulation in order to allow EDES to be operational not only in direct management but also in indirect and shared management;

Or. en

Amendment 108 Mikuláš Peksa on behalf of the Verts/ALE Group

Motion for a resolution Paragraph 33

Motion for a resolution Amendment

33. Stresses the importance of the Early 33. Stresses the importance of the Early Detection and Exclusion System (EDES); Detection and Exclusion System (EDES); invites the Commission to analyse the invites the Commission to request an impact of a possible extension of EDES to extension of EDES to shared management shared management; in the upcoming review of the Financial Regulation; asks the Commission to provide this system with the necessary financial and staff resources to operate on a full time basis;

Or. en

AM\1232036EN.docx 59/71 PE692.936v01-00 EN Amendment 109 Monika Hohlmeier

Motion for a resolution Paragraph 33

Motion for a resolution Amendment

33. Stresses the importance of the Early 33. Stresses the importance of the Early Detection and Exclusion System (EDES); Detection and Exclusion System (EDES); invites the Commission to analyse the invites the Commission to include the impact of a possible extension of EDES to extension of EDES to shared management shared management; in its proposal for the revision of the Financial Regulation;

Or. en

Amendment 110 Caterina Chinnici

Motion for a resolution Paragraph 33

Motion for a resolution Amendment

33. Stresses the importance of the Early 33. Stresses the importance of the Early Detection and Exclusion System (EDES); Detection and Exclusion System (EDES); invites the Commission to analyse the notes the Judgment of the General Court impact of a possible extension of EDES to of 13 May 2020 in Case T-290/18, shared management; "AGMIN" v Commission, in which the Court of Justice has confirmed the validity of the respective roles of the panel and the authorising officers, and that the adversarial procedure led by the panel had fully respected the right to be heard of the entity concerned; invites the Commission to analyse the impact of a possible extension of EDES to shared management;

Or. en

Amendment 111 Katalin Cseh, Olivier Chastel, Alin Mituța, Ramona Strugariu

PE692.936v01-00 60/71 AM\1232036EN.docx EN Motion for a resolution Paragraph 33 a (new)

Motion for a resolution Amendment

33 a. Deplores the fact that there are more than 290 monitoring and reporting systems for the CAP and the Cohesion Fund which makes it impossible to verify the final beneficiaries of those funds, to prevent and effectively investigate fraud and corruption; calls on the Commission and the Member States to establish a harmonised or unified reporting system with timely and accurate data in order to remedy the situation;

Or. en

Amendment 112 Caterina Chinnici

Motion for a resolution Paragraph 34

Motion for a resolution Amendment

34. Recalls the need for a more incisive 34. Recalls the need for a more incisive and effective response and coordination at and effective response and coordination at both Union and national level in the fight both Union and national level in the fight against corruption and organised crime against corruption and organised crime with particular focus on transnational and with particular focus on transnational and cross-border aspects, in order to tackle, cross-border aspects, in order to tackle, also through the use of Artificial also through the use of Artificial Intelligence tools, fraudsters’ constant Intelligence tools, while respecting the ability to adapt to new technologies and protection of personal data, fraudsters’ scenarios; constant ability to adapt to new technologies and scenarios;

Or. en

Amendment 113 Monika Hohlmeier

Motion for a resolution

AM\1232036EN.docx 61/71 PE692.936v01-00 EN Paragraph 34

Motion for a resolution Amendment

34. Recalls the need for a more incisive 34. Recalls the need for a more incisive and effective response and coordination at and effective response and coordination at both Union and national level in the fight both Union and national level in the fight against corruption and organised crime against corruption and organised crime with particular focus on transnational and with particular focus on transnational and cross-border aspects, in order to tackle, cross-border aspects, in order to tackle, also through the use of Artificial also through the use of Artificial Intelligence tools, fraudsters’ constant Intelligence tools, data-mining and other ability to adapt to new technologies and relevant digitalised tools, fraudsters’ scenarios; constant ability to adapt to new technologies and scenarios;

Or. en

Amendment 114 Sabrina Pignedoli

Motion for a resolution Paragraph 34

Motion for a resolution Amendment

34. Recalls the need for a more incisive 34. Recalls the need for a more incisive and effective response and coordination at and effective response and coordination at both Union and national level in the fight both Union and national level in the fight against corruption and organised crime against corruption and organised crime, with particular focus on transnational and including mafia-style crime, with cross-border aspects, in order to tackle, particular focus on transnational and cross- also through the use of Artificial border aspects, in order to tackle, also Intelligence tools, fraudsters’ constant through the use of Artificial Intelligence ability to adapt to new technologies and tools, fraudsters’ constant ability to adapt scenarios; to new technologies and scenarios;

Or. it

Amendment 115 Sabrina Pignedoli

Motion for a resolution Paragraph 34 a (new)

PE692.936v01-00 62/71 AM\1232036EN.docx EN Motion for a resolution Amendment

34a. Points out that many Member States do not have specific laws against organised, mafia-style crime, while its involvement in cross-border activities and sectors affecting the EU’s financial interests is constantly growing;

Or. it

Amendment 116 Ramona Strugariu, Olivier Chastel, Katalin Cseh, Alin Mituța

Motion for a resolution Paragraph 35

Motion for a resolution Amendment

35. Recalls the importance of 35. Emphasises the particular supporting and strengthening cooperation importance of EU and national anti-fraud among the EU institutions, the EPPO, institutions and bodies in the context of OLAF, the EU agencies, in particular increased EU resources through the Europol and Eurojust, and national Recovery and Resilience fund; recalls the authorities, in order to detect and tackle importance of supporting and fraud and corruption more effectively; strengthening cooperation among the EU reiterates its call to ensure adequate institutions, the EPPO, OLAF, the EU resources for the EPPO, OLAF and agencies, in particular Europol and relevant EU agencies in this regard; Eurojust, and national authorities, in order to detect and tackle fraud and corruption more effectively; reiterates its call to ensure adequate resources for the EPPO, OLAF and relevant EU agencies in next years’ budgets, and that the EPPO be able to use the financial resources in the 2021 budget for additional staff recruitment, as requested by Parliament;

Or. en

Amendment 117 David Lega

Motion for a resolution Paragraph 35

AM\1232036EN.docx 63/71 PE692.936v01-00 EN Motion for a resolution Amendment

35. Recalls the importance of 35. Recalls the importance of supporting and strengthening cooperation supporting and strengthening cooperation among the EU institutions, the EPPO, among the EU institutions, the EPPO, OLAF, the EU agencies, in particular OLAF, the EU agencies, in particular Europol and Eurojust, and national Europol and Eurojust, and national authorities, in order to detect and tackle authorities, in order to detect and tackle fraud and corruption more effectively; fraud and corruption more effectively; reiterates its call to ensure adequate reiterates its call to ensure adequate resources for the EPPO, OLAF and resources for the EPPO, OLAF and relevant EU agencies in this regard; relevant EU agencies, especially in view of the increased workload arising from the adoption of the EU’s new long-term budget, NextGenerationEU and other cost-driven projects;

Or. sv

Amendment 118 Katalin Cseh, Olivier Chastel, Alin Mituța, Ramona Strugariu

Motion for a resolution Paragraph 35

Motion for a resolution Amendment

35. Recalls the importance of 35. Recalls the importance of supporting and strengthening cooperation supporting and strengthening cooperation among the EU institutions, the EPPO, among the EU institutions, the EPPO, OLAF, the EU agencies, in particular OLAF, the EU agencies, in particular Europol and Eurojust, and national Europol and Eurojust, and national authorities, in order to detect and tackle authorities, in order to detect and tackle fraud and corruption more effectively; fraud and corruption more effectively; reiterates its call to ensure adequate reiterates its call to ensure further resources for the EPPO, OLAF and strengthened resources for the EPPO, relevant EU agencies in this regard; OLAF and relevant EU agencies in this regard;

Or. en

Amendment 119 Sabrina Pignedoli

Motion for a resolution Paragraph 35

PE692.936v01-00 64/71 AM\1232036EN.docx EN Motion for a resolution Amendment

35. Recalls the importance of 35. Recalls the importance of supporting and strengthening cooperation supporting and strengthening cooperation among the EU institutions, the EPPO, among the EU institutions, the EPPO, OLAF, the EU agencies, in particular OLAF, the EU agencies, in particular Europol and Eurojust, and national Europol and Eurojust, and national authorities, in order to detect and tackle authorities, in order to detect and tackle fraud and corruption more effectively; fraud and corruption more effectively, reiterates its call to ensure adequate avoiding overlapping of roles and resources for the EPPO, OLAF and promoting the exchange of information; relevant EU agencies in this regard; reiterates its call to ensure adequate resources for the EPPO, OLAF and relevant EU agencies in this regard;

Or. it

Amendment 120 Ramona Strugariu, Olivier Chastel, Katalin Cseh, Alin Mituța

Motion for a resolution Paragraph 35 a (new)

Motion for a resolution Amendment

35 a. Calls on the Commission to consider updating its anti-fraud strategy in order to fully reflect the operationalisation of the EPPO and its role in fighting fraud;

Or. en

Amendment 121 Ramona Strugariu, Olivier Chastel, Katalin Cseh, Alin Mituța

Motion for a resolution Paragraph 35 b (new)

Motion for a resolution Amendment

35 b. Urges the Commission to strictly monitor the Member States that have not yet nominated the European Delegated Prosecutors or have not adapted their

AM\1232036EN.docx 65/71 PE692.936v01-00 EN national legislation for the operationalisation of the EPPO, where necessary, by suspending their funding on the basis of article 63.2 and 8 of the Financial Regulations and the sector specific rules, and/or by launching infringement proceedings;

Or. en

Amendment 122 Monika Hohlmeier

Motion for a resolution Paragraph 36

Motion for a resolution Amendment

36. Highlights the importance of 36. Highlights the importance of structured information exchange among structured information exchange among competent authorities for the cross- competent authorities for the cross- checking of accounting records for checking of accounting records for transactions between two or more Member transactions between two or more Member States, in order to prevent cross-border States, in order to prevent cross-border fraud in respect of the structural and fraud in respect of the structural and investment funds; reiterates its request to investment funds; reiterates its request to the Commission for including in its the Commission for including in its working programme a legislative proposal working programme a legislative proposal for an horizontal Regulation on mutual for an horizontal Regulation on mutual administrative assistance in the area of EU administrative assistance in the area of EU expenditures; expenditures; emphasises that the exchange of information should occur in a digital format and through interoperable or shared IT systems and tools to facilitate a more timely and efficient cooperation;

Or. en

Amendment 123 Mikuláš Peksa on behalf of the Verts/ALE Group

Motion for a resolution Paragraph 37

PE692.936v01-00 66/71 AM\1232036EN.docx EN Motion for a resolution Amendment

37. Notes that only 13 Member States 37. Regrets that only 13 Member States made use of ARACHNE during their risk made use of ARACHNE during their risk analysis; reiterates the importance of this analysis; reiterates the importance of this tool, as well as of interoperability of IT tool, as well as of interoperability of IT systems and databases for fraud risk systems and databases for fraud risk analysis and fraud detection purposes; analysis and fraud detection purposes; reiterates its call on the Commission to reiterates its call on the Commission to consider making the use of ARACHNE make the use of ARACHNE mandatory; mandatory;

Or. en

Amendment 124 Katalin Cseh, Olivier Chastel, Alin Mituța, Ramona Strugariu

Motion for a resolution Paragraph 37

Motion for a resolution Amendment

37. Notes that only 13 Member States 37. Notes that only 13 Member States made use of ARACHNE during their risk made use of ARACHNE during their risk analysis; reiterates the importance of this analysis; reiterates the importance of this tool, as well as of interoperability of IT tool, as well as of interoperability of IT systems and databases for fraud risk systems and databases for fraud risk analysis and fraud detection purposes; analysis and fraud detection purposes; reiterates its call on the Commission to reiterates its call on the Commission to consider making the use of ARACHNE make use of ARACHNE mandatory for mandatory; Member States; calls on Member States to provide the system with timely and reliable data; is of the opinion that the Commission and OLAF need to have access to these data;

Or. en

Amendment 125 Monika Hohlmeier

Motion for a resolution Paragraph 37

Motion for a resolution Amendment

AM\1232036EN.docx 67/71 PE692.936v01-00 EN 37. Notes that only 13 Member States 37. Notes that only 13 Member States made use of ARACHNE during their risk made use of ARACHNE during their risk analysis; reiterates the importance of this analysis; reiterates the importance of this tool, as well as of interoperability of IT tool, as well as of interoperability of IT systems and databases for fraud risk systems and databases for fraud risk analysis and fraud detection purposes; analysis and fraud detection purposes; reiterates its call on the Commission to reiterates its call on the Commission and consider making the use of ARACHNE particularly, the Member States in the mandatory; Council, to move towards Parliament’s position of making the use of ARACHNE mandatory;

Or. en

Amendment 126 Ramona Strugariu, Olivier Chastel, Katalin Cseh, Alin Mituța

Motion for a resolution Paragraph 37 a (new)

Motion for a resolution Amendment

37 a. Notes that 16 Member States have strengthened risk analysis to detect fraud and irregularities via the use of IT tools; calls on the Commission to facilitate exchanges of good practices between these countries and Member States without experience;

Or. en

Amendment 127 Caterina Chinnici

Motion for a resolution Paragraph 38

Motion for a resolution Amendment

38. Notes with concern that no 38. Notes with concern that no information is provided on the analysis of information is provided on the analysis of cases of conflicts of interest, despite the cases of conflicts of interest, despite the relevance of the new provision adopted in relevance of the new provision adopted in 2018 in the Financial Regulation and the 2018 in the Financial Regulation and the well-known importance and impact of this well-known importance and impact of this

PE692.936v01-00 68/71 AM\1232036EN.docx EN phenomenon and calls on the Commission phenomenon and calls on the Commission to fill this gap in the next PIF Report; to fill this gap in the next PIF Report, as well as to pay further attention to frauds related to public procurement;

Or. en

Amendment 128 Sabrina Pignedoli

Motion for a resolution Paragraph 38 a (new)

Motion for a resolution Amendment

38a. Expresses concern regarding checks relating to financial instruments managed by intermediaries and weaknesses revealed in verification of beneficiaries’ registered offices; reiterates the need to make the disbursement of direct and indirect funds conditional on the disclosure of information on beneficial ownership by the beneficiaries and financial intermediaries involved in financing operations;

Or. it

Amendment 129 Caterina Chinnici

Motion for a resolution Paragraph 38 a (new)

Motion for a resolution Amendment

38 a. Highlights that, with a view to effectively counter corruption, in order to protect the EU’s financial interests, the Commission should adopt a holistic and coherent approach, fostering enhanced rules on transparency, incompatibilities and conflicts of interest, internal control mechanisms, lobbying and revolving doors;

AM\1232036EN.docx 69/71 PE692.936v01-00 EN Or. en

Amendment 130 Caterina Chinnici

Motion for a resolution Paragraph 39

Motion for a resolution Amendment

39. Invites the Commission to explore 39. Invites the Commission to explore new avenues for the PIF report to be shared new avenues for the PIF report to be shared and analysed alongside other annual and analysed alongside other annual reports and sources of information, reports, including the Rule of law report, including through an enhanced dialogue and sources of information, including between Europol, Eurojust and EPPO, to through an enhanced dialogue between help identify trends in fraudulent and non- Europol, Eurojust and EPPO, to help fraudulent irregularities, to detect identify trends in fraudulent and non- weaknesses and to provide useful lessons fraudulent irregularities, to detect learnt to enhance the adoption of fraud- weaknesses and to provide useful lessons proofing measures by all stakeholders; learnt to enhance the adoption of fraud- proofing measures by all stakeholders;

Or. en

Amendment 131 Ramona Strugariu, Olivier Chastel, Katalin Cseh, Alin Mituța

Motion for a resolution Paragraph 39 a (new)

Motion for a resolution Amendment

39 a. Welcomes the specific events organised by OLAF in 2019 in support of non-EU countries; strongly encourages the Commission, OLAF and all the other institutions and bodies of the Union entrusted with the protection of the financial interests of the Union to actively engage and collaborate with partner authorities in candidate, potential candidate and EaP countries, promoting measures to effectively address possible fraud cases; calls on the Commission to develop specific and regular mechanisms

PE692.936v01-00 70/71 AM\1232036EN.docx EN to effectively prevent and combat fraud with EU funds in these states;

Or. en

Amendment 132 Monika Hohlmeier

Motion for a resolution Paragraph 39 a (new)

Motion for a resolution Amendment

39 a. Regrets that Parliament repeatedly has to address several of its recommendations without receiving any clear response by the Commission; notes that on some observations and recommendations, Commission regrettably has not taken any tangible action or measures; asks the Commission to provide a clear explanation to Parliament whenever it decides to not follow one of its recommendations;

Or. en

AM\1232036EN.docx 71/71 PE692.936v01-00 EN