ILO Governing Body, 356th session - EU statement - Other financial matters

ILO Governing Body, 356^th session 

23 March – 2 April 2026

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Other financial matters: The Financial position of the ILO’s regular budget in 2026-2027 and potential contingency measures in case of an income shortfall 

GB.356/PFA/4

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Geneva, 24 March 2026

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ILO Governing Body, 356^th session 

23 March – 2 April 2026

Other financial matters: The Financial position of the ILO’s regular budget in 2026-2027 and potential contingency measures in case of an income shortfall

EU statement

Chair,

I speak on behalf of the European Union and its Member States.

The candidate countries North Macedonia, Montenegro, Serbia, Albania, Ukraine, Republic of Moldova and Georgia, the EFTA countries Iceland and Norway, members of the European Economic Area, as well as the United Kingdom align themselves with this statement.

We thank the Office for the PFA/4 document and for clearly demonstrating the extent to which missing assessed contributions endanger vital and essential functions of the ILO and additionally undermine the very reform process described in INS/7.

We remain concerned about the high level of arrears. We recognize the need to define contingency measures in view of the uncertainty regarding the payment of arrears and timely payment of assessed contributions.

We reiterate the need for the contingency measures to be in line with the strategic vision of the reform.

We would welcome additional information on the financial impact, including costs of each measure as set out in paragraphs 11,12 and 13.

The contingency measures, necessary because of missing assessed contributions of members, would significantly impact the ILO´s ability to deliver on its mandate. 

We urge again all Member States to pay their arrears and assessed contributions in full and on time to avoid the implementation of contingency measures.

We note that contingency measures may include the abolition of up to 350 positions. We would welcome further clarification on the safeguards the Office intends to apply to protect normative and technical expertise, as well as on the consultations and statutory requirements involved. In particular, we seek information on the timelines for fulfilling these obligations and on how any targeted personnel reductions would ensure geographical and gender balance while preserving the Organisation’s long-term capacity. 

We request the Office to provide a document in June updating constituents on the financial position of the ILO and presenting a contingency framework for the 2026-27 biennium with guiding principles, methodology and an outline of measures for approval, which should be in line with the strategic guidance provided by the Governing Body under item INS/7. We also ask the Office to report back to the Governing Body for decisions on any contingency measures that may require its approval.

We have submitted an amendment to the decision point accordingly.

Finally, we would welcome the advance sharing with constituents, ahead of the June GB, of all information on the financial situation, including the status of internal borrowings and Working Capital Fund replenishment.

Thank you, Chair.

PROPOSED AMENDMENT PFA/4:

The Governing Body:

(a) took note of the financial implications of the reform measures for the approved Programme and Budget for 2026–27, as presented in document GB.356/PFA/4;

(b) took note of the potential contingency measures and associated budgetary implications described in the document, and requested the Office to keep the Governing Body informed of cash-flow projections and present a contingency framework for the 2026-27 biennium with guiding principles, methodology and an outline of measures for approval at its 357th Session (June 2026), which should be in line with the strategic guidance provided by the Governing Body under item INS/7 at its 355^th and 356^th Sessions;

c) requested the Office to report back to the Governing Body for decisions on any contingency measures that may require its approval;

(d) requested the Office to present updated financial information on assessed contributions and the implementation of any activated contingency measures at its 358th Session (November 2026).

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    North Macedonia, Montenegro, Serbia and Albania continue to be part of the Stabilisation and Association Process.