REPORT on discharge in respect of the implementation of the budget of the European Monitoring Centre for Drugs and Drug Addiction for the financial year 2018

4.3.2020 - (2019/2069(DEC))

Committee on Budgetary Control
Rapporteur: Ryszard Czarnecki
PR_DEC_Agencies

Procedure : 2019/2069(DEC)

Document stages in plenary

Document selected :

A9-0073/2020

Texts tabled :

A9-0073/2020

Debates :

Votes :

PV 13/05/2020 - 20
PV 14/05/2020 - 17
CRE 14/05/2020 - 17

Texts adopted :

P9_TA(2020)0081

1. PROPOSAL FOR A EUROPEAN PARLIAMENT DECISION
2. PROPOSAL FOR A EUROPEAN PARLIAMENT DECISION
3. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION
OPINION OF THE COMMITTEE ON CIVIL LIBERTIES, JUSTICE AND HOME AFFAIRS
INFORMATION ON ADOPTION IN COMMITTEE RESPONSIBLE
FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE

1. PROPOSAL FOR A EUROPEAN PARLIAMENT DECISION

on discharge in respect of the implementation of the budget of the European Monitoring Centre for Drugs and Drug Addiction for the financial year 2018

(2019/2069(DEC))

The European Parliament,

– having regard to the final annual accounts of the European Monitoring Centre for Drugs and Drug Addiction for the financial year 2018,

– having regard to the Court of Auditors’ annual report on EU agencies for the financial year 2018, together with the agencies’ replies [1],

– having regard to the statement of assurance [2] as to the reliability of the accounts and the legality and regularity of the underlying transactions provided by the Court of Auditors for the financial year 2018, pursuant to Article 287 of the Treaty on the Functioning of the European Union,

– having regard to the Council’s recommendation of 18 February 2020 on discharge to be given to the Centre in respect of the implementation of the budget for the financial year 2018 (05761/2020 – C9‑0036/2020),

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

– having regard to Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 [3], and in particular Article 208 thereof,

– having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 [4], and in particular Article 70 thereof,

– having regard to Regulation (EC) No 1920/2006 of the European Parliament and of the Council of 12 December 2006 on the European Monitoring Centre for Drugs and Drug Addiction [5], and in particular Article 15 thereof,

– having regard to Commission Delegated Regulation (EU) No 1271/2013 of 30 September 2013 on the framework financial regulation for the bodies referred to in Article 208 of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council [6], and in particular Article 108 thereof,

– having regard to Commission Delegated Regulation (EU) 2019/715 of 18 December 2018 on the framework financial regulation for the bodies set up under the TFEU and Euratom Treaty and referred to in Article 70 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council [7], and in particular Article 105 thereof,

– having regard to Rule 100 of and Annex V to its Rules of Procedure,

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

– having regard to the report of the Committee on Budgetary Control (A9-0073/2020),

1. Grants the Director of the European Monitoring Centre for Drugs and Drug Addiction discharge in respect of the implementation of the Centre’s budget for the financial year 2018;

2. Sets out its observations in the resolution below;

3. Instructs its President to forward this decision, and the resolution forming an integral part of it, to the Director of the European Monitoring Centre for Drugs and Drug Addiction, the Council, the Commission and the Court of Auditors, and to arrange for their publication in the Official Journal of the European Union (L series).

2. PROPOSAL FOR A EUROPEAN PARLIAMENT DECISION

on the closure of the accounts of the European Monitoring Centre for Drugs and Drug Addiction for the financial year 2018

(2019/2069(DEC))

The European Parliament,

– having regard to the final annual accounts of the European Monitoring Centre for Drugs and Drug Addiction for the financial year 2018,

– having regard to the Court of Auditors’ annual report on EU agencies for the financial year 2018, together with the agencies’ replies [8],

– having regard to the statement of assurance [9] as to the reliability of the accounts and the legality and regularity of the underlying transactions provided by the Court of Auditors for the financial year 2018, pursuant to Article 287 of the Treaty on the Functioning of the European Union,

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

– having regard to Regulation (EC) No 1920/2006 of the European Parliament and of the Council of 12 December 2006 on the European Monitoring Centre for Drugs and Drug Addiction [12], and in particular Article 15 thereof,

– having regard to Rule 100 of and Annex V to its Rules of Procedure,

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

– having regard to the report of the Committee on Budgetary Control (A9-0073/2020),

1. Approves the closure of the accounts of the European Monitoring Centre for Drugs and Drug Addiction for the financial year 2018;

2. Instructs its President to forward this decision to the Director of the European Monitoring Centre for Drugs and Drug Addiction, the Council, the Commission and the Court of Auditors, and to arrange for its publication in the Official Journal of the European Union (L series).

3. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

with observations forming an integral part of the decision on discharge in respect of the implementation of the budget of the European Monitoring Centre for Drugs and Drug Addiction for the financial year 2018

(2019/2069(DEC))

The European Parliament,

– having regard to its decision on discharge in respect of the implementation of the budget of the European Monitoring Centre for Drugs and Drug Addiction for the financial year 2018,

– having regard to Rule 100 of and Annex V to its Rules of Procedure,

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

– having regard to the report of the Committee on Budgetary Control (A9-0073/2020),

A. whereas, according to its statement of revenue and expenditure [15], the final budget of the European Monitoring Centre for Drugs and Drug Addiction (the ‘Centre’) for the financial year 2018 was EUR 16 174 200,21, representing an increase of 2,18 % compared to 2017; whereas the budget of the Centre derives mainly from the Union budget [16];

B. whereas the Court of Auditors (the ‘Court’), in its report on the Centre’s annual accounts for the financial year 2018 (the ‘Court's report’), states that it has obtained reasonable assurances that the Centre's annual accounts are reliable and that the underlying transactions are legal and regular;

Budget and financial management

1. Welcomes the fact that the budget monitoring efforts during the financial year 2018 resulted in a budget implementation rate of 100 %, the same rate as in 2017; notes that the payment appropriations execution rate was 98,02 %, representing an increase of 3,31 % compared to the previous year;

Performance

2. Notes that the Centre measures the achievement of its 66 annual targets with 50 key performance indicators (KPIs), which are divided into eight strategic objectives, to assess the added value provided by its activities, and to improve its budget management; notes that, starting from 2019, the Centre put in place a new performance model based on ten KPIs, which will be used to measure the Centre’s effectiveness in delivering the desired outputs and its efficiency in using the resources allocated to that end;

3. Notes that the Centre has reached 85 % of the applicable outputs and results planned in the 2018 work programme and that it successfully implemented the first year of its Strategy 2025;

4. Encourages the Centre to pursue the digitalisation of its services;

5. Notes with satisfaction that the Centre continues to share synergies with the European Maritime Safety Agency in corporate and support services, and in the management of common premises in Lisbon, and that those synergies also relate to ICT, telecommunications and internet-based infrastructure and services; notes that operational synergies have been put in place with other Union agencies in the areas of justice and home affairs and health; commends the agencies for this form of cohabitation and holds it to be an example worth following;

6. Highlights the important role of the Centre in providing policy-makers and practitioners with analyses and information concerning drugs and drug addiction as well as emerging trends, with a view to effectively countering illicit drug use and trafficking, and recalls that drug trafficking has been identified as one of the main sources of profit and a channel of recruitment for organised crime and terrorism; recalls the fact that the Centre’s mandate was expanded in 2018, inter alia, to include new responsibilities and formal partnerships with other Union agencies, such as Europol;

7. Considers that the adoption of the Centre’s 2019-2021 programming document, which is fully grounded in the EMCDDA Strategy 2025 [17], represents an important step in the strategic and operational planning framework of the Centre;

Staff policy

8. Notes that, on 31 December 2018, the establishment plan was 96,05 % executed, with 9 officials and 64 temporary agents appointed out of 10 officials and 66 temporary agents authorised under the Union budget (compared with 77 authorised posts in 2017); notes that, in addition, 29 contract agents and 1 seconded national expert worked for the Centre in 2018;

9. Notes that the Centre has reported a good gender balance within the management board for 2018, namely 15 male members and 14 female members;

10. Notes with satisfaction that the Centre has general provisions in place on building and sustaining a working culture, based on dignity and respect, to prevent and fight against harassment; observes that it makes confidential counselling available;

Procurement

11. Welcomes the fact that the Centre put in place a procurement plan in line with the Centre’s management plan, which was successfully executed in close collaboration with all units;

12. Notes that, according to the Court’s report, the Centre did not attract a reasonable number of tenderers in low-value procurement procedures and that in five of those procedures only one candidate submitted a tender, and two tenders were submitted in one procedure; notes that, according to the Centre’s reply, it duly invited the number of tenderers required by the applicable financial rules to ensure the necessary level of competition; calls on the Centre to pursue its ongoing efforts to ensure that all public procurement procedures are compliant with the principle of fair competition and to facilitate participation in its procurement procedures for low-value contracts;

Prevention and management of conflicts of interest, and transparency

13. Acknowledges the Centre’s existing measures and ongoing efforts to secure transparency, prevent and manage conflicts of interest, and provide whistleblower protection; notes with satisfaction that the CVs and declarations of interest of the director and the members of the scientific committee are published on its website;

14. Stresses that a recent study commissioned by the European Parliament Committee on Petitions [18] found that, given the fact that the Centre uses experts and particularly that the scientific committee takes decisions by itself, there is a potential risk of conflicts of interest;

Internal controls

15. Notes that, following the Commission’s Internal Audit Service (IAS) report on the analysis of the need to support data collection, validation and quality assurance processes, and the review of its data quality management framework and its alignment with the Centre’s Strategy 2025, all of the necessary recommendations from the adopted action plan were implemented in 2018;

16. Notes with concern that, according to the Centre, several recommendations included in the 2015 IAS audit on IT project management have been only partly implemented and that, at the end of 2018, two recommendations were still outstanding; notes, however, that those two recommendations were expected to be implemented by mid-2019; calls on the Centre to report to the discharge authority on the progress achieved by June 2020;

17. Notes that, according to the Court’s report, pursuant to Directive 2008/104/EC [19] and Portuguese labour law, interim workers should work under the same working conditions as workers employed directly by the user undertaking; notes, however, that the relevant contracts did not explicitly require the temporary work agencies to respect those conditions and that there is no evidence that the Centre itself carried out any comparison between the working conditions of its own staff and those of interim staff, which undermines safe and predictable working conditions for the staff and causes a risk of litigation and risks for the Centre’s reputation; notes that, according to the Centre’s reply, the contract between the Centre and the temporary work agency refers to the obligation of the Centre to comply with all aspects of the applicable legislation and that, pursuant to that contract, the temporary work agency is the party exposed to the risks of litigation; highlights, however, that this type of situation still carries high reputational risks for the Centre; welcomes the fact that the Centre is reassessing its policy for the use of temporary workers to base that policy more on the law of the Member State in which the Centre is located, in line with its operating needs and the legal framework; calls on the Centre to analyse the working conditions of its interim staff and ensure that those conditions are in line with Union and national labour law; calls on the Centre to report to the discharge authority on the progress achieved by June 2020;

18. Notes that the Union signed an agreement with Norway in 2006 that defines the formula to calculate Norway’s financial contribution to the Centre as well as the minimum contribution threshold which should be subject to an annual adjustment based on price trends and gross national income in the Union; notes with concern that, while the Union budget subsidy increased by 24 % between 2007 and 2018, Norway’s contribution remained almost the same; notes that, according to the Centre’s reply, there is no linear correlation between the increase of the Union subsidy and Norway’s contribution and that the Centre does not have the required legal capacity to claim a different formula/method for the adjustment of the minimum contribution by Norway; calls on the Centre with the parties concerned to adjust the minimum contribution by Norway in accordance with the agreed terms;

19. Calls upon the Centre to focus on disseminating the results of its research to the public, and to reach out to the public via social media and other media outlets;

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20. Refers, for other observations of a cross-cutting nature accompanying its decision on discharge, to its resolution of … March 2020 [20] on the performance, financial management and control of the agencies.

OPINION OF THE COMMITTEE ON CIVIL LIBERTIES, JUSTICE AND HOME AFFAIRS (21.1.2020)

for the Committee on Budgetary Control

on discharge in respect of the implementation of the budget of the European Monitoring Centre for Drugs and Drug Addiction for the financial year 2018

(2019/2069(DEC))

Rapporteur for opinion: Roberta Metsola

SUGGESTIONS

The Committee on Civil Liberties, Justice and Home Affairs calls on the Committee on Budgetary Control, as the committee responsible, to incorporate the following suggestions into its motion for a resolution:

1. Highlights the important role of the European Monitoring Centre for Drugs and Drug Addiction (the 'Centre’) in providing policy-makers and practitioners with analyses and information concerning drugs and drug addiction as well as emerging trends with a view to effectively countering illicit drug use and trafficking and recalls that drug trafficking has been identified as a main source of profit and a channel of recruitment for organised crime and terrorism; recalls the fact that the Centre’s mandate was expanded in 2018, inter alia, to include new responsibilities and formal partnerships with other Union agencies, such as Europol;

2. Welcomes the fact that the Court of Auditors (the ‘Court’) has declared the transactions underlying the annual accounts of the Centre for the financial year 2018 to be legal and regular in all material respects and that its financial position on 31 December 2018 is fairly represented; notes that, despite the Centre’s expanded mandate, its final budget in 2018 remained stable at EUR 16 million and its staff was decreased from 111 to 103;

3. Acknowledges the Centre’s efforts to adopt a more agile work culture, including a greater orientation towards project management; notes that the Centre has used four interim workers provided by a temporary work agency to compensate for the reduction of its statutory staff; deplores the fact that the relevant framework contract did not explicitly require the full respect of Union law and relevant national law and that the temporary workers were paid significantly less than the statutory staff; takes note that in its reply, the Centre states that the applicable Union and Portuguese law have been respected and that the lower salary was due to a lower level of responsibilities; welcomes the Centre’s intention to nevertheless reassess its policy for the use of temporary workers to rationalise further the latter in line with its operating needs and the relevant legal framework; urges the Centre to employ as many permanent staff as possible;

4. Notes that the Court has identified a horizontal trend across agencies in the use of external staff hired in IT consultancy roles; calls for the dependency on external recruitment in this important area to be addressed;

5. Notes that, in the case of five low-value procurement procedures below EUR 60 000, only one candidate submitted a tender; acknowledges the challenges in attracting tenderers for low-value contracts but urges the Centre to undertake greater efforts to ensure competitive procurement procedures irrespective of their value with a view to guaranteeing the best price-quality ratio procurements without prejudice to the principles of proportionality and equal treatment of all potential tenderers;

6. Deplores the fact that Norway’s financial contribution to the Centre no longer reflects the minimum contribution formula agreed in 2006; urges the Commission and Norway to swiftly clarify and confirm the method used to calculate Norway’s minimum contribution with a view to applying it as soon as possible;

7. Welcomes the fact that all observations of the Court have been acted upon and completed;

8. Considers that the adoption of the Centre’s 2019-2021 programming document, which is fully grounded in the EMCDDA Strategy 2025 [21], represents an important step in the strategic and operational planning framework of the Centre.

INFORMATION ON ADOPTION IN COMMITTEE ASKED FOR OPINION

Date adopted	13.1.2020
Result of final vote	+: –: 0:	53 3 1
Members present for the final vote	Konstantinos Arvanitis, Malik Azmani, Pietro Bartolo, Nicolas Bay, Vladimír Bilčík, Vasile Blaga, Saskia Bricmont, Damien Carême, Caterina Chinnici, Tudor Ciuhodaru, Clare Daly, Lena Düpont, Cornelia Ernst, Sylvie Guillaume, Balázs Hidvéghi, Evin Incir, Sophia in ‘t Veld, Patryk Jaki, Fabienne Keller, Moritz Körner, Alice Kuhnke, Jeroen Lenaers, Juan Fernando López Aguilar, Roberta Metsola, Javier Moreno Sánchez, Maite Pagazaurtundúa, Kostas Papadakis, Nicola Procaccini, Emil Radev, Paulo Rangel, Terry Reintke, Ralf Seekatz, Michal Šimečka, Birgit Sippel, Sylwia Spurek, Tineke Strik, Ramona Strugariu, Tom Vandendriessche, Bettina Vollath, Ann Widdecombe, Elena Yoncheva, Javier Zarzalejos
Substitutes present for the final vote	Damian Boeselager, Patrick Breyer, Delara Burkhardt, Lucia Ďuriš Nicholsonová, Monika Hohlmeier, Beata Kempa, Ondřej Kovařík, Kris Peeters, Robert Roos, Miguel Urbán Crespo, Loránt Vincze, Petar Vitanov, Axel Voss, Maria Walsh
Substitutes under Rule 209(7) present for the final vote	Lukas Mandl

FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION

53	+
PPE	Vladimír Bilčík, Vasile Blaga, Lena Düpont, Balázs Hidvéghi, Monika Hohlmeier, Jeroen Lenaers, Lukas Mandl, Roberta Metsola, Kris Peeters, Emil Radev, Paulo Rangel, Ralf Seekatz, Loránt Vincze, Axel Voss, Maria Walsh, Javier Zarzalejos
S&D	Pietro Bartolo, Delara Burkhardt, Caterina Chinnici, Tudor Ciuhodaru, Sylvie Guillaume, Evin Incir, Juan Fernando López Aguilar, Javier Moreno Sánchez, Birgit Sippel, Sylwia Spurek, Petar Vitanov, Bettina Vollath, Elena Yoncheva
RENEW	Malik Azmani, Sophia in 't Veld, Fabienne Keller, Moritz Körner, Ondřej Kovařík, Maite Pagazaurtundúa, Michal Šimečka, Ramona Strugariu
VERTS/ALE	Damian Boeselager, Patrick Breyer, Saskia Bricmont, Damien Carême, Alice Kuhnke, Terry Reintke, Tineke Strik
ECR	Lucia Ďuriš Nicholsonová, Patryk Jaki, Beata Kempa, Nicola Procaccini, Robert Roos
GUE/NGL	Konstantinos Arvanitis, Clare Daly, Cornelia Ernst, Miguel Urbán Crespo

3	-
ID	Nicolas Bay, Tom Vandendriessche
NI	Ann Widdecombe

1	0
NI	Kostas Papadakis

Key to symbols:

+ : in favour

- : against

0 : abstention

INFORMATION ON ADOPTION IN COMMITTEE RESPONSIBLE

Date adopted	19.2.2020
Result of final vote	+: –: 0:	20 2 0
Members present for the final vote	Matteo Adinolfi, Olivier Chastel, Caterina Chinnici, Lefteris Christoforou, Ryszard Czarnecki, Luke Ming Flanagan, Daniel Freund, Isabel García Muñoz, Monika Hohlmeier, Jean-François Jalkh, Joachim Kuhs, Sabrina Pignedoli, Michèle Rivasi, Angelika Winzig, Lara Wolters, Tomáš Zdechovský
Substitutes present for the final vote	Maria Grapini, David Lega, Mikuláš Peksa, Ramona Strugariu
Substitutes under Rule 209(7) present for the final vote	Peter Pollák, József Szájer

FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE

20	+
ECR	Ryszard Czarnecki
GUE/NGL	Luke Ming Flanagan
ID	Jean-François Jalkh
NI	Sabrina Pignedoli
PPE	Lefteris Christoforou, Monika Hohlmeier, David Lega, Peter Pollák, József Szájer, Angelika Winzig, Tomáš Zdechovský
RENEW	Olivier Chastel, Ramona Strugariu
S&D	Caterina Chinnici, Isabel García Muñoz, Maria Grapini, Lara Wolters
VERTS/ALE	Daniel Freund, Mikuláš Peksa, Michèle Rivasi

2	-
ID	Matteo Adinolfi, Joachim Kuhs

0	0

Key to symbols:

+ : in favour

- : against

0 : abstention

[1] OJ C 417, 11.12.2019, p. 1.
[2] OJ C 417, 11.12.2019, p. 1.
[3] OJ L 298, 26.10.2012, p. 1.
[4] OJ L 193, 30.7.2018, p. 1.
[5] OJ L 376, 27.12.2006, p. 1.
[6] OJ L 328, 7.12.2013, p. 42.
[7] OJ L 122, 10.5.2019, p. 1.
[8] OJ C 417, 11.12.2019, p. 1.
[9] OJ C 417, 11.12.2019, p. 1.
[10] OJ L 298, 26.10.2012, p. 1.
[11] OJ L 193, 30.7.2018, p. 1.
[12] OJ L 376, 27.12.2006, p. 1.
[13] OJ L 328, 7.12.2013, p. 42.
[14] OJ L 122, 10.5.2019, p. 1.
[15] OJ C 29, 23.1.2019, p. 3.
[16] OJ C 29, 23.1.2019, p. 2.
[17] European Monitoring Centre for Drugs and Drug Addiction, “EMCDDA Strategy 2025”, Lisbon, March 2017; http://www.emcdda.europa.eu/publications/work-programmes-and-strategies/strategy-2025_en.
[18] https://www.europarl.europa.eu/RegData/etudes/STUD/2020/621934/IPOL_STU(2020)621934_EN.pdf
[19] Directive 2008/104/EC of the European Parliament and of the Council of 19 November 2008 on temporary agency work (OJ L 327, 5.12.2008, p. 9).
[20] Texts adopted, P9_TA-PROV(2020)0000.
[21] EMCDDA, “EMCDDA Strategy 2025”, Lisbon, March 2017; http://www.emcdda.europa.eu/publications/work-programmes-and-strategies/strategy-2025_en.

Last updated: 18 March 2020

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