Debate contributions by Niclas HERBST

Mr President, dear Commissioner, the Minister, who already had to leave, said status quo is not an option. And that is true, we all agree: more of the same is not the answer, we do agree. But we should not make the same mistakes that we already made, and during the RRF we made a lot of mistakes and we witnessed a lot of mistakes. I know that you are eager to say that the MFF is not the RRF 2.0. That might be true, but on the other hand, we replicate a lot of principles from the RRF. That is, the 'financing not linked to costs' principle, that is the 'milestones and targets' principle, and that leads to less traceability, to less Parliamentary scrutiny. We know that, not because it's our own opinion – during the discharge process we took a very close look at it – but we also hear it from the European Court of Auditors, we hear it from EPPO, we hear it from OLAF. So we are very sure we should not make the same mistakes again. So, yes, status quo is not an option, but this status quo from the RRF is also not an option for us as a Parliament, and we will follow that very closely.

Mr President, Commissioner, ladies and gentlemen. I am, of course, particularly pleased – and warmly welcome him – about Tony Murphy, but also about Jan Gregor and everyone else from the European Court of Auditors, because we have worked excellently together over the past months. I would like to thank you very much for that. I think you have provided a good template for our work with the 2024 annual report. A heartfelt thank you for that, too. Of course, we're talking about the error rate. The error rate is not everything, but it is of course an important indicator. I am pleased, Commissioner, that you have also described the need for action here. We urgently need reforms to further reduce the error rate. There are too many errors in EU spending and the Court warns that persistent errors and growing debt obligations could jeopardise the financial sustainability of the Union in the long term. In the annual report, the Court of Auditors confirms that, although the overall level of errors – as you have already heard – has decreased in expenditure, it remains above acceptable limits. And it is also true – as the President of the Court of Auditors has pointed out – that these are all errors that should have already been discovered. If we also continue to think about the reliability of the national audit systems for the next MFF and the ideas that exist there, then we are concerned. There is an ongoing discussion on the calculation method – which we always have – and, of course, we as Parliament hope that there will soon be uniform calculation methods – I would like to say this for completeness here – on the RRF. Of course, we need improvements, we need more flexibility in the design of future performance-based instruments. However, in 2024, the Court also notes that the Commission made payments despite the fact that Targets and Milestones were insufficiently met. These funds should not have been disbursed. In addition, the implementation of the RRF has problems with budgetary commitment and, most severely, a lack of transparency. I say very clearly: Of course, these problems must not arise in the future multiannual financial framework. Traceability – traceability – the RRF budget has also been mentioned. That worries us a lot. And a central reminder from the Court of Auditors reads: Such instruments should only be used if funding is directly linked to measurable results and can be traced back to actual costs in a comprehensible manner. This is what we hope for in the next Multiannual Financial Framework.

You have basically already given the answer yourself: because it is about people and because we have standards that should apply to everyone; this applies to the audit area, this applies to the audit. And if we have the rules for everyone, then this is not only fair, but it also serves the goal. We want to achieve something, for example with agricultural policy, with cohesion policy; It is in the interests of the people to achieve these European goals. And that is precisely why the reasoning of the self-proclaimed patriots is not correct, because we want to reduce social disparities in the area of cohesion policy, for example, which is good for the people. This not only creates security for the people, but that is what we want to achieve at European level. As you have rightly said, we support the sovereignty of the local people and, in fact, of the nation-states.

Madam President, Let me say in advance: I accept the blue card that comes right away, that's fine. The Committee on Budgetary Control and its mission have been mentioned on several occasions. We were in Slovakia. You may not have read the report at all, but it is quite balanced. I believe that the position of the Slovak authorities is reproduced there quite correctly. Nor do we go into the current scandal coverage of the guesthouses and other things, but it is about structural problems; this is the task of the Committee on Budgetary Control, which we have followed up on. There are indeed problems. Concerns about this Fact-finding mission They have not diminished. In particular, it also concerns the equipment of the Slovak authorities. If the staffing and powers are not sufficient there, then this is a problem for us, because then we only have the EPPO, and the EPPO does not want to do this alone. We need the Slovak authorities on the ground, and if they are not independent and not adequately equipped, then we have a structural problem. This needs to be addressed. It's about two things: It is about the Slovak Republic being a very important part of our European Union. And the money that is made available belongs to the people there, and not to a few, but to everyone, including in the field of agricultural policy. That's what it's about. And this is a structural task that we, as a Parliament, have to carry out, in every European Member State. And the second, of course, is: We must safeguard the financial interests of the European Union, the interests of the people who pay taxes in Europe. And it surprises me that especially self-proclaimed patriots are not so to speak committed to ensuring that these interests of the hard-working people are perceived, that the money does not go to oligarchs or individuals, but to the people who really deserve it.

Mr President! Well, who would have thought that there should be a new case of misappropriation and misuse of funds. Of all those who often complain about the - let's say - waste of taxpayers' money at European level. First of all, I would like to thank the administration of our Parliament, which has meticulously and persistently and over a long period of time collected interesting things that read like a crime novel. It is about the abusive use of around 4.3 million euros. If you read carefully what the administration has collected so far, then it is essentially a matter of sampling. So it is quite possible that the sum that stands in the room is even higher. Of course, the presumption of innocence applies, and it is foreseeable that there will also be a legal assessment, both in court and in Parliament. We will, of course, also take up this matter in the Committee on Budgetary Control. We were officially informed on Friday. Coordinators are now informed and we will make recommendations for the administration very quickly in a timely process. Of course, it is foreseeable that this will also involve EPPO and OLAF. At least the European Public Prosecutor's Office (EPPO) has reportedly already started work here. We will pursue it objectively hard, but also fairly. We will focus on: Are there really intentional abuses? We will also have to talk about how to better prevent this in the future. Nevertheless, I want to say that there must be no distraction. At the end of the day, the crucial question for me is: There was individual misconduct, because this is also decisive for the question: Can we get the money back? How will we judge this criminally? This is about taxpayers' money and therefore, ladies and gentlemen, it is also a central statement that we hope to be able to represent together: The dissolution of a political group must not protect against prosecution. I look forward to working together on this interesting case in the Committee on Budgetary Control.

Madam President, Thank you for the debate. I would particularly like to thank you for the preparatory work, the months of preparatory work, because we have prepared all the reports over many hearings and many meetings. Personally, I would also like to thank the shadow rapporteurs in my report. You may not believe it if you have followed the debate today, but we have worked very constructively together, and I also believe – regardless of how some points were called for today – that we have indeed managed to find balanced compromises. And that's what it's all about. Because, despite all the heated debate, we have very, very many important points here that should unite us as a Parliament: in particular our stance on the high error rates, in particular our stance on the RRF’s erroneous statements, in particular the impact on the next multiannual financial framework. These are points that are very, very important, and they will also decide what role we as a Parliament will still play in the future. That is why I believe it is important that tomorrow in the final vote we know our responsibility in this area, that we take discharge seriously and that together we also take the role of Parliament seriously. As I said, I would like to thank all those who have not only taken part in this debate, but have also done the important preparatory work. Parliament's right to discharge will remain not only one of our strongest weapons, but also one of our most important rights. Let us defend this together, please. I look forward to the vote tomorrow.

Mr President, Commissioner, dear colleagues, I would especially like to welcome Tony Murphy, President of the Court of Auditors, because the Court of Auditors has really been a source of inspiration and information for this report. Let me just start by seizing the opportunity to stress that the Commission's discharge is a really important issue for us as the Parliament. It is not like any other resolution – it is a very important resolution. We are bound by treaty to give recommendations to the Commission, and it is about democratic accountability, it is about transparency, about trust in institutions. It is an important political signal and our refusal to grant discharge could highlight serious concerns. I'm not expecting this, Commissioner, but it shows its importance, and it is about budgetary discipline. Therefore, I think it is the best tool at our disposal as the Parliament in general during the term to show our importance. So we should not mess this up. We should be ready to make compromises and seize the opportunity to show that we can be united as Parliament on the important things. Talking about the important things, I would like to refer to the main findings. The first one is, of course, the error rate. The EU requires urgent reforms to address rising error rates. There are too many errors made in EU spending. Currently, it is 5.6 % for the spending affected by error, while for cohesion it is extremely high at 9.3 %. Of course, we know that there is an ongoing dispute about the method of the error rate. We know that the Commission with their 'risk at payment' approach sees a much lower error rate. But we as the Parliament, we agree that there should be one common calculation method and, also, there has been an increase in error rate for the last three years. This has to stop, ladies and gentlemen, both for the spending in the regular MFF and for the RRF. Speaking about the RRF, we need major improvements in oversight and flexibility when designing performance-based instruments in the future. Also in 2023, the Court found errors in the Commission's payment as milestones and targets were not satisfactorily fulfilled and funds should not have been paid out. In addition, the implementation of the RRF also struggles with absorption and, most importantly, a lack of transparency. The Commission reports on the 100 largest recipients in the RRF is totally inadequate, as public authorities that further disrepute the funds are included in the list. Let me be very clear: the RRF is not a blueprint for the next MFF. Let me also stress that subsidiarity is not an outdated idea. We also have to talk about the reste à liquider, record high unpaid commitments and mounting EU debt sparks warnings over long-term effects, slow absorption of cohesion and RRF funds keep pushing the reste à liquider up. Over EUR 543 billion have been contracted, but still need to be paid out. We risked an avalanche of decommitments, which would mean a loss of EU added value. I know that there are other important issues as well, like NGO and other beneficiaries' financing that will play a major role in the debate, of course. But let me repeat: it is extremely important that we are ready to find compromise, and therefore I count on your responsibility. Thank you very much for the cooperation so far.

Mr President! A heartfelt thank you also to the rapporteur for the hard work: It's not easy to get the different points under one roof. I believe that this has been well done, and we must now also look ahead in a united way. I would also like to thank you for the fact that many of the points from budgetary control and also from our audit have been included in the report. This is very, very important, also for the future. I know, of course, that there are also individual points which distinguish us and which we must also address, which must also be clarified in Parliament. Be it the question: How will we deal with UNRWA in the future? Be it the question: What about Mercosur? Be it the question: Do we still want to tolerate certain examples of incitement of hatred in Palestinian textbooks, or do we also take financial action against it? These are things that need to be clarified here in Parliament. But it should also be in the foreground – and that is why I hope that there will be little key votes and few red lines – that together we see what we need to achieve here with the budget. I believe that Parliament's control rights are also in jeopardy and that we have always done well here, even if we have shown unity. I also wish for less in the future. key votesMore unity: This is more necessary now than ever.

I have heard once again in this debate that it is a question of cancelling funds for the NGOs. Can you give me a name for the current EPP Group from a colleague who has called for the funding in the LIFE programme for NGOs to be reduced or cancelled? A name?

Madam President, Commissioner! Personally, I find it really hard to listen to this debate because there are so many phantom discussions going on here that I am slowly getting upset. It would be nice if perhaps the Social Democrats would also send someone who has already dealt with the subject and, for example, has looked past the Committee on Budgetary Control. Maybe you write this down so that it's completely clear: It's not about specific NGOs. You said that too, Mr von der Renew. For example, we also reviewed the Horizon programme, so we just couldn't find anything. If you have any information about other areas – outside LIFE – where we have similar problems, tell us. I am chairman of the Committee on Budgetary Control. I like to follow it. But just pretending to have phantom debates is really not conducive to the matter. In addition, ladies and gentlemen, rules only make sense if they apply to everyone. And what you do: They are defending a practice that we hope we all believe is not right. You defend it because it comes from your network area, and that's not okay, ladies and gentlemen. Otherwise you have to say: We think it is okay that in the Commission people who are paid by European taxpayers pay NGOs of European tax money, who then lobby MEPs who are paid by European tax money, so that laws are implemented by other people who are also paid by European tax money. If you think that's right, stand up and say that. Otherwise, it is completely clear: We must not give this impression that there is public-funded contract lobbying. We all have a responsibility, as well as politicians, but damn it the NGOs. And perhaps the NGOs will question themselves so that we can continue to support civil society and these NGOs in a reasonable way. Otherwise, unfortunately, this will be called into question in the future.

Mr President, first of all, I would like to express my gratitude to Tony Murphy and Jan Gregor and everyone else involved at the Court of Auditors for their independent, high quality work in preparing the annual report. Considerable resources are dedicated to this report, and I can assure you that, in this House, it is well used as an invaluable source of information on the way the Commission has to implement the EU budget. There's a lot of talk about the error rates and a lot of things have already been said. And there's also a dispute in methodology. I know about it, but still, we can agree that the Commission has to look into the root causes of this increase and the way forward to address it, and also making sure that the root causes are addressed and fewer errors will be made in the future. Another issue that draws our attention is the rising difference between funds that have been committed but have not been paid out yet. This is known as reste à liquider, pardon my French, or in short the RAL. For 2023, it's EUR 542 billion. Never before has this figure been so high. This requires the Commission and Member States to carefully plan the amounts that need to be paid in the future, and for both of them to make serious progress with implementation, so that all this money reaches the real economy, the SMEs and the farmers who need it. I would also like to say that if you read carefully, you can also see a lot of things that work well and that a lot of money is spent very well also in cohesion policy. So we have to take into account the whole report. Thank you very much for your listening to me.

Madam President, Secretary of State, dear Commissioner, dear colleagues, the challenges of the budget have been sufficiently described. You heard about it. Still, I would like to highlight some issues that are important for the European Parliament and for heading seven. As the rapporteur for the 2023 budget, I have strongly advocated for cybersecurity. And there was a tough discussion then, I remember it very well. It is clear from the requests and of the other institutions, as well as the Council's own budget, that it remains a pressing concern also in 2025. I believe cybersecurity should be addressed across all institutions in a spirit of cooperation, because we all have significant needs across the institutions. So I hope that we will have successful negotiations which will lead to the European Parliament and the other institutions acknowledging the critical importance of providing additional resources to covering cybersecurity needs. I think this is more important than ever, looking at the overall situation. We must provide our colleagues across institutions with adequate resources, and we consider ourselves as a Parliament to be the advocate of the other institutions as well. This is our part in this procedure. Both Council and Parliament have agreed to give them, sufficient means to protect the interests of Europeans. This is why I have to point out that stable staffing is a very good idea, but has in some institutions reached its limit. There is an urge to extend for the institutions, especially smaller ones, such as the EDPS. They face severe staff shortages compared to their workload. And of course, if we give them new tasks, we have to also give them the adequate resources. Also, we cannot allow our colleagues to struggle with security issues, as the EEAS, for example, does while being located in the remote areas of this world. So we must fulfil the security needs to prevent any accidents. Or let me just rather say, incidents. We should not wait for this to happen. Another critical issue is that the staff situation in Luxembourg must be finally changed. We've been talking a lot about this issue. It has been known for years and extensive conversations among institutions already took place. So Luxembourg institutions must have enough housing allowance to attract qualified staff and work properly for the future of the European Union. Still, I have to seize the opportunity and stress that we did not take into account the shortcomings of heading seven in the MFF provisions, and we are now having a very difficult situation because of that. Nevertheless, still, I am confident that we budgetary, responsible institutions can work together in the coming months in order to reach a satisfactory result for all institutions and as a result, for the EU citizens. And if we can't save money, at least we can save some time, at least 10 seconds.