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DRAFT OPINION (2023/2122(INI))

On the transparency and accountability of non-governmental organisations funded from the EU budget

AFET-PA-752946

Committee on Foreign Affairs · Rapporteur: Deirdre Clune

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The Committee on Foreign Affairs suggests amendments to a resolution on transparency and accountability of EU-funded non-governmental organisations (NGOs). It stresses the role of NGOs in human rights and democracy, warns of risks they face, and calls for clearer public information on EU funding beneficiaries while protecting confidentiality. It asks for identical transparency and accountability rules for all human rights NGOs receiving EU funds, harmonised visibility of EU support, and registration in the EU Transparency Register as a condition for EU grants. It raises concerns about funding of EU-based entities by non-EU countries and the use of government-organised NGOs (GONGOs) to spread disinformation, and calls for disclosure of financial sources of lobbying entities.

Committee position. The Committee on Foreign Affairs proposes that the Committee on Budgetary Control incorporate its suggestions into the motion for a resolution, focusing on the role of NGOs, risks they face, transparency of EU funding, and registration in the EU Transparency Register.

Key points

  1. The Committee on Foreign Affairs calls on the Committee on Budgetary Control to incorporate its suggestions into the motion for a resolution.
  2. It stresses that NGOs and civil society organisations (CSOs) promoting human rights, democracy and the rule of law play an important role, including by informing vulnerable people, countering disinformation and holding governments accountable.
  3. It highlights serious risks faced by human rights NGO workers, such as threats, harassment, abusive legal proceedings, arbitrary detention, violence, torture, disappearances and killings.
  4. It is alarmed that some governments adopt legislation based on security, counter-terrorism and foreign interference to impose discriminatory obligations on human rights NGOs, stigmatise, restrict or ban them, close them, freeze assets, deter donors or cut funding.
  5. It underlines the need for more transparent and accessible public information on beneficiaries of EU external action funds for human rights and democracy, while ensuring confidentiality and data protection for those at risk.
  6. It calls on the Commission to improve the clarity and organisation of information in the Financial Transparency System on beneficiaries of EU-funded projects in human rights and democracy support.
  7. It recommends that legal obligations on transparency and financial accountability apply identically to all human rights NGOs receiving EU funding, whether they are coordinators or consortium members.
  8. It calls for harmonised approaches to make EU funding for human rights and democracy support more transparent and visible to the public.
  9. It denounces the use of government-organised NGOs (GONGOs) to spread disinformation and false narratives on human rights, and considers there is a public interest in knowing the financial sources of lobbying or advocacy stakeholders.
  10. It welcomes progress in the use of the EU Transparency Register and notes that since 12 July 2023 invited active guests at Parliament's events must be registered, except for safety or confidentiality reasons.
  11. It recognises that EU institutions, including Parliament, should have been more diligent on transparency, integrity and accountability in their interaction with entities in the EU Transparency Register, and that further resources are needed.
  12. It recommends that legal entities engaging in lobbying, including NGOs, be required to register in the EU Transparency Register to apply for EU grants, and calls on the Commission to propose enhanced transparency and sanctions for false declarations.

Who is affected

  • Human rights NGOs and civil society organisations receiving or seeking EU funding, which would face identical transparency rules and a registration condition for grants.
  • The Commission, which is asked to improve the Financial Transparency System and propose enhanced transparency rules and sanctions.
  • Legal entities engaging in lobbying or advocacy, including NGOs, which would have to register in the EU Transparency Register and disclose funding sources.
  • Human rights defenders and NGOs in non-EU countries, whose confidentiality and data protection must be ensured.

Figures and deadlines

  • 12 July 2023: date from which invited active guests at Parliament's events must be registered in the EU Transparency Register.
  • 16 May 2022: date of the Commission proposal for a regulation on financial rules (COM(2022)0223).
  • 2021-2027: period of the EU external action budget referred to for human rights NGOs funded by the EU.

Legal basis: Article 15 of the Treaty on the Functioning of the European Union (TFEU) and Article 300(1) TFEU.