On 3rd October, Johannes HAHN, from Austria, Commissioner-designate for Budget and Administration, is heard by the Committee on Budgets (BUDG) and the Committee on Budgetary Control (CONT) in association with the Committee on Legal Affairs (JURI) of the European Parliament in Brussels to test his general competences, European commitment and specific expertise related to his portfolio. On this occasion, Johannes HAHN has the opportunity to make an opening statement. The following transcription is the result of an automatic process. Check Against delivery.

Brussels

Committee on Legal Affairs

Committee on Budgets

hearing

Committee on Budgetary Control

HAHN, Johannes (AT, EC)

hearing of Commissioners

2019 Commissioners' hearings (T)

hearing of Johannes HAHN 2019 (T)

Hearing of Johannes HAHN, Commissioner-designate, Budget and Administration: Opening statement by Johannes HAHN

SOUNDBITE (Original), Johannes HAHN, Commissioner-designate, Budget and Administration: Thank you Madam Chair. Mr. Chair, honourable members, ladies and gentlemen. I wouldn't say it's a kind of coming home but it's a privilege to return to this chamber for a third time as a Commissioner-designate. And I remember my first hearing as if it would be like yesterday. It gave a start to a very fruitful cooperation with the European Parliament based on trust and mutual respect.

SOUNDBITE (Original), Johannes HAHN, Commissioner-designate, Budget and Administration: And if I am confirmed I would be very much looking forward to continuing in the same spirit of cooperation with the Parliament but especially with the three Committees present here. This time I'm standing for the position of Cmmissioner for Budget and Administration. I do so fully aware of how vital it's to deploy our financial resources and the talent of our people to the fullest to deliver on the promises we make to our citizens.

SOUNDBITE (Original), Johannes HAHN, Commissioner-designate, Budget and Administration: In this regard, I am committed to help deliver the vision set out by our President elect in her political guidelines and to turn our political priorities into results that make a real difference. The challenges we face today are manifold. Current developments on the global stage require that the European Union does not only act more self assertively. It demands that Europe takes its destiny into its own hands.

SOUNDBITE (Original), Johannes HAHN, Commissioner-designate, Budget and Administration: That's why we need a geopolitical commission that takes the lead not only to close the social and economic gaps within Europe but also to turn those challenges into tomorrow's opportunities. For me the budget is the policy cast in numbers. It's a key enabler of the political priorities and as such it is one of the most visible tools to demonstrate the principles of the European Union to its citizens and the European added value.

SOUNDBITE (Original), Johannes HAHN, Commissioner-designate, Budget and Administration: The budget is a tool to ensure Europe remains a democratic peaceful, prosperous and competitive force. It's an expression of European solidarity. It intervenes only when it is more effective to spend money at the EU level rather than within Member states. As such it's anchored in the Subsidiary Principle and it is aiming at delivering European value edit. .

SOUNDBITE (Original), Johannes HAHN, Commissioner-designate, Budget and Administration: I'm well aware that delivering on ambitious political guidelines as outlined by the President elect against a backdrop of a possible Brexit and difficult negotiations on the Multi-annual Financial Framework as it was already sketched out by the chair. This will be a challenge of my mission right from the outset. However I can promise that it will spare no efforts to facilitate a timely agreement on the Financial Framework that is fit for purpose.

SOUNDBITE (Original), Johannes HAHN, Commissioner-designate, Budget and Administration: It's vital to continue negotiations with speed and determination to avoid damaging delays in the launch of new programs. So you can rely on me to make a strong case that the impact of a budget smaller than proposed by the Commission would be damaging for policy ambitions and would compromise the Union's capacity to deliver efficiently. In this regard, the Commission's MFF proposals remain a very solid basis for an agreement.

SOUNDBITE (Original), Johannes HAHN, Commissioner-designate, Budget and Administration: The new initiative announced by the President elect need to be taken forward within the framework of disagreement. This means giving a more specific emphasis in the MFF negotiations to certain elements and identifying targeted adjustments where needed. Here, I would also like to thank the European Parliament for its very clear position which clearly illustrates your expectations for an ambitious European Union budget.

SOUNDBITE (Original), Johannes HAHN, Commissioner-designate, Budget and Administration: As a concrete example a priority for me in the MFF negotiations will be to include the new just transition fund. Policies to address climate change require unprecedented transformation of the way we live. That's why we have to integrate social and economic aspects of the green change from the start to make sure nobody is left behind. New budget will show the way and channel funds to regions and communities most in need.

SOUNDBITE (Original), Johannes HAHN, Commissioner-designate, Budget and Administration: The EU budget already is an instrument of green transition with 25 percent of its expenditure for the next MFF earmarked for climate related activities which is an increase by 25 percent. The EU budget also ensures solidarity towards our neighbours and external partners via humanitarian aid, migration, migration management tackling trafficking networks and many other initiatives in partnership with third countries.

SOUNDBITE (Original), Johannes HAHN, Commissioner-designate, Budget and Administration: But EU budget has also long been a vital source of growth enhancing future oriented investment for the whole of Europe. I think in particular digitalization, innovation, research and education. Having said this I would like to recall that EU budget should not be seen in isolation. Whatever the size of the budget is, 1.1 or 1.3 % of gross national income. It would not be sufficient to finance all the needs and projects with European value added.

SOUNDBITE (Original), Johannes HAHN, Commissioner-designate, Budget and Administration: The Union Budget should be seen as a crucial catalyst of public and private investments channelling them towards EU policy political priorities. Only by mobilising all sources of funding, we will be able to address the challenges facing Europe. To address climate change, to foster innovation, to generate investments, to provide social cohesion.

SOUNDBITE (Original), Johannes HAHN, Commissioner-designate, Budget and Administration: I will therefore explore how to better link EU programs and national financing deliver on our common priorities and obtain the best value for money and how to channel private funds towards projects serving our common European objectives and the interests of European citizens. The same holds true for the revenue side of the EU budget which should be in full support of EU policy priorities.

SOUNDBITE (Original), Johannes HAHN, Commissioner-designate, Budget and Administration: In agreement with the European Parliament, I am convinced that reaching an agreement on the revenue side is crucial for concluding the negotiations on the MFF. The European Parliament has made clear that own resources reform and the diversification of revenue sources is a condition for granting its consent on the future framework. I will remind the Council of that position and hope that we can achieve a closer link between EU policy priorities and the budget by introducing new own resources.

SOUNDBITE (Original), Johannes HAHN, Commissioner-designate, Budget and Administration: Sound financial management and the fight against misuse of funds need to be insured up to the highest standards while at the same time trying to maintain proportionality and cost effectiveness of controls. With all of we have a union level we have a union level as strong independent and well-respected guardian tasked to protect the financial interests of the Union. But preventive action and strong enforcement are necessary to gain trust from European taxpayers.

SOUNDBITE (Original), Johannes HAHN, Commissioner-designate, Budget and Administration: However for me it's imperative to put into place the rule of law mechanism ensuring the protection of the union's budget in case of generalized deficiencies in member states. Strenghtening the link between new funding and the respect for the rule of law should not be considered as a sanction mechanism. It is foremost a tool to protect the Union budget and ensure sound financial management.

SOUNDBITE (Original), Johannes HAHN, Commissioner-designate, Budget and Administration: I welcome the support given by the European Parliament to this proposal. Regarding conflicts of interest, I will make it my priority to oversee the broad and coordinated action the Commission is taking and take it forward. In 2018, the financial regulation has introduced reinforced rules. I will dedicate necessary resources to the coordination of the Commission's services actions as regards conflict of interest issues and cases, as well as to the setting up of a closer relationship with member states to tackle potential issues at an early stage.

SOUNDBITE (Original), Johannes HAHN, Commissioner-designate, Budget and Administration: As commissioner I would be responsible for the management of the revenue side of the budget including member states own resources contribution. The Commission has zero tolerance for infringement in this field namely for what consumers own resources and strictly pursues any irregularities. I am committed to continue this policy and to keep the Commission's impeccable track record.

SOUNDBITE (Original), Johannes HAHN, Commissioner-designate, Budget and Administration: To be successful in my mission neutral trusting constructive dialogue with you is key. I am committed to having this dialogue with the Committees, the groups and individual members in a spirit of openness and trust. I will do my utmost to provide open, honest and impartial facilitation between the two arms of the budgetary authority. Therefore interaction and exchanges are important and you can count on me to honour my allegations and I think I have proven in the past 10 years to do this in practice.

SOUNDBITE (Original), Johannes HAHN, Commissioner-designate, Budget and Administration: I am committed to improve the link between spending program performance and budgetary planning implementation and reporting. I also agreed that any such budgetary framework should be clearly policy treatment at low a true readjustment of programs in line with political priorities on the basis of performance information and its assessment. And while member states continue to be responsible for shared management I will also work towards ensuring a more comprehensive overview of expenditure in key data.

SOUNDBITE (Original), Johannes HAHN, Commissioner-designate, Budget and Administration: The Commission proposal for common provision regulation for post 2020 also reinforces the requirements for transparency and communication. We have take note of your recommendations to improve and streamline the commission's reporting. I will make specific efforts to address this with regard to the annual activity reports of each Director General the program statements accompanying the draft budget and the annual management and performance report.

SOUNDBITE (Original), Johannes HAHN, Commissioner-designate, Budget and Administration: The commission staff will be at the forefront of the delivery of the President elect's priorities for the next five years. If the union is to lead the transition to a healthy planet and the new digital world while upgrading our social market economy and asserting its global leadership it needs highly skilled and dedicated civil servants. In this context I would like to lay out key elements of my vision for a diverse, value dream and future proof European public administration. I will make sure this vision is translated into a human resource strategy for the Commission.

SOUNDBITE (Original), Johannes HAHN, Commissioner-designate, Budget and Administration: I intend in particular to act on several aspects. First the EU institutions are required to include staff from the broadest possible geographical basis. Currently the nationalities is from the pre 2004 member states are significantly underrepresented among the junior grade administrators in the Commission. I will do my utmost to reverse this trend using this term. This is not only a matter of credibility for the administration but also a matter of trust in the Institution.

SOUNDBITE (Original), Johannes HAHN, Commissioner-designate, Budget and Administration: Second appointed has probably not come out strong enough in my written reply and I regret this. I am committed to deliver on gender equality as set out by the presidency elect's commitment. Gender equality has always been important for me. When serving my country as a Minister for science and research I introduced I think it was already 12 years ago a legally binding quota in committees at universities.

SOUNDBITE (Original), Johannes HAHN, Commissioner-designate, Budget and Administration: As commission in charge of European Neighbourhood Policy and Enlargement Negotiations they wanted my department to lead by example by going beyond the target assigned to it. Sure I believe that transparency, integrity,accountability, professionalism and commitment to public interest should remain tenants of our administration. If Europeans are to have faith in our union.

SOUNDBITE (Original), Johannes HAHN, Commissioner-designate, Budget and Administration: If confirmed I will make sure that the Commission leads the way in setting high standards for members and staff. Fourth I am committed to deliver on a digitally transformed Commission and user focussed and data driven public administration. This means building and operating digital government solutions in support of policy and administrative processes.

SOUNDBITE (Original), Johannes HAHN, Commissioner-designate, Budget and Administration: The challenge is to modernize the infrastructure and tools in a secure way. I want the commission to lead by example, working alongside its member states in transforming the public sector for Europe fit for the digital age. Finally I will therefore ensure that the European Commission has the right tools and capabilities to achieve its digital transformation without exposing itself to new risks.

SOUNDBITE (Original), Johannes HAHN, Commissioner-designate, Budget and Administration: In conclusion I look forward to working closely with you as a Commissioner for budget and administration to deliver together with the European Parliament our ambitious political agenda and therefore I am looking forward to your questions and the hopeful interesting and fruitful discussion. Thank you very much.