2024 Budget Review of the European Economic and Social Committee

Budget Review Overview

The European Parliament reviewed the European Economic and Social Committee's (EESC) 2024 budget and spending. This review, known as a "discharge," is a standard check to ensure that EU institutions use their money correctly.

Overall, the Parliament found that the Committee followed the rules and spent the money properly.

Key Financial Findings

• Budget Size: The EESC's 2024 budget was €164.9 million, representing a 3.9% increase from 2023.
• Spending Compliance: The Committee showed a very high level of compliance, spending 99% of the money that was actually paid and 98.7% of the money that was approved.
• Budget Allocation: The Committee reallocated about €2.5 million (1.5% of the budget) to cover rising costs for staff and buildings.
• EU Share: The Committee's share of the total EU budget was 1.5% in 2024, up from 1.3% in 2023.

Operational and Internal Findings

Spending and Auditing

• The Court of Auditors examined 70 administrative transactions, finding 16 errors, but the overall error rate was below the level considered a major risk.
• The Committee's internal audit found 14 recommendations in 2024, most of which are still open.
• A notable decline was observed in internal control effectiveness, which dropped from 78% in 2023 to 66% in 2024.

Staffing and Human Resources

• The Committee employed 713 staff in 2024 (up from 707).
• Staff turnover decreased to 5.6% (down from 7% in 2023).
• The workforce remained diverse, with 62.7% of staff and 52% of management positions held by women.

Digitalization and Security

• The IT budget increased by 7.9% to €13.7 million.
• Cybersecurity spending was €760k, which is still significantly below the 10% target set by EU law.
• The Committee is developing a multi-year digital strategy (2024–2026) that includes AI pilots and cloud migration.
• A major cybersecurity upgrade requires €1.18 million, which the Committee has not yet secured.

Sustainability and Operations

• The Committee upgraded all six elevators in its main building to ensure full accessibility.
• Energy consumption saw reductions: 19% less electricity, 13% less gas, and 12% less water.
• Waste decreased by 12%, while paper use increased by 1%.

Collaboration and Outreach

• The Committee saved approximately €16 million in 2024 by sharing services (like IT and translation) with the European Committee of the Regions.
• The communication budget was €2.5 million.
• The Committee's social media following grew by 18% in 2024.

Areas for Improvement

The Parliament highlighted several areas where the Committee needs to strengthen its performance:

• Internal Control: Improve risk awareness, communication, and modernize document management.
• Cybersecurity: Increase spending on cybersecurity to meet the 10% target and secure the missing €1.18 million for a major upgrade.
• Performance Measurement: Add clear, measurable indicators to show how the Committee's opinions influence EU policy.
• Staff Support: Collect data on burnout and provide tools to measure work-related stress.
• Skills Training: Expand digital skills training, particularly regarding AI and cybersecurity.

Broader context

The European Economic and Social Committee (EESC) is an advisory body of the European Union (EU). Its main role is to represent the interests of civil society—such as workers, employers, farmers, consumers, and other social groups—in the EU decision-making process. The EESC provides opinions and recommendations on EU laws, policies, and strategies to ensure they reflect the needs and concerns of citizens and organizations across Europe.

The discharge procedure is a yearly check by the European Parliament to ensure that EU institutions, like the EESC, have spent their budgets correctly and transparently. This process helps maintain accountability and trust in how EU funds are used.

The EESC’s budget is part of the EU’s Multiannual Financial Framework (MFF), which sets the long-term spending priorities for the EU. The EESC’s share of the budget is relatively small (1.5% in 2024), but its work influences policies that affect millions of people in areas like employment, social rights, and sustainable development.

Impact on people living in the EU

The EESC’s work and the Parliament’s approval of its 2024 budget have indirect but meaningful effects on EU citizens:

• Stronger civil society voice: The EESC ensures that the concerns of workers, businesses, and communities are heard when the EU creates new laws. This helps policies better reflect the real-world needs of people across Europe.

• Improved transparency and ethics: The EESC’s commitment to ethics, anti-harassment policies, and transparency sets a standard for other EU institutions. This builds public trust in how decisions are made and how money is spent.

• Digital and cybersecurity advancements: The EESC’s focus on digitalization, AI, and cybersecurity helps modernize EU institutions. This can lead to better online services, safer data handling, and more efficient communication between the EU and its citizens.

• Environmental benefits: The EESC’s efforts to reduce energy use, waste, and paper consumption contribute to the EU’s climate goals. These actions, though small in scale, support broader initiatives to make Europe greener and more sustainable.

• Cost-saving measures: By sharing services with other EU bodies (like the Committee of the Regions), the EESC saves money. These savings can be reinvested in programs that benefit citizens, such as education, social projects, or economic development.

• Outreach and engagement: Events like Civil Society Week and the growth of the EESC’s social media presence help inform and involve citizens in EU affairs. This makes it easier for people to understand and participate in shaping EU policies.