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DRAFT REPORT (2023/2122(INI))

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

CONT-PR-751681

Committee on Budgetary Control · Rapporteur: Markus Pieper

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This draft report by Parliament's Committee on Budgetary Control calls for stronger transparency and accountability for non-governmental organisations (NGOs) funded from the EU budget. It asks for a common EU definition of an NGO, better monitoring of funds passed to final beneficiaries, and an NGO regulation by 1 June 2024. It wants the Commission to publish grant data within 6 months, harmonise its databases, and require NGOs to disclose other funding sources and lobbying contacts. It also calls for a public blacklist of NGOs that misuse EU funds or spread false information. The report asks the European Court of Auditors to produce a follow-up special report by 1 December 2024 and calls on the European Anti-Fraud Office (OLAF) to compile data on fraud cases involving NGOs.

Committee position. The rapporteur proposes that Parliament call for stronger transparency and accountability rules for EU-funded NGOs, including a common EU definition, an NGO regulation by 1 June 2024, better data publication and a public blacklist.

Key points

  1. Welcomes the role of NGOs in linking civil society with political decision-making and in implementing the EU budget, and praises volunteers and aid agencies.
  2. Says laws often neglect smaller local and regional NGOs while favouring large NGOs, and that smaller groups do much of the work.
  3. Calls for a common EU definition of an NGO, especially for those receiving EU funding, with minimum conditions on form, objectives, accountability and independence.
  4. Is concerned about fraud, conflicts of interest, double funding and money laundering involving NGOs, and asks OLAF to compile data on fraud cases and list NGOs that broke the law.
  5. Calls on the Commission to verify re-allocation of funds to final beneficiaries and to require NGOs to publish details of other funding received over a five-year period.
  6. Calls on national authorities to make it easier for the Commission to exclude illegal organisations from EU funding through the Early Detection and Exclusion System (EDES).
  7. Regrets that Financial Transparency System (FTS) data is published with a delay of 6 to 18 months and calls for publication no later than 6 months after a grant is awarded.
  8. Calls on the Commission to harmonise its databases, use a common unique entity code, and provide NGOs with code to extract five years of funding data from the FTS.
  9. Requests that the Commission prepare a proposal for further administrative action by 1 June 2024 and disclose money flows related to a platform on the Nature Restoration Law by 1 February 2024.
  10. Calls for all EU-funded NGOs to publish meetings with MEPs and EU officials on legislative affairs or EU financing, and for a transparency officer in each committee secretariat.
  11. Reiterates the call for an NGO regulation by 1 June 2024 with harmonised minimum requirements, a clear definition and categorisation, and simplified procedures for small NGOs.
  12. Calls for a public blacklist of NGOs that engage in hate speech, incitement to terrorism, or misuse EU funds, with a Commission proposal by 1 July 2024.

Who is affected

  • NGOs receiving EU funds: must disclose other funding sources, lobbying contacts and meetings with MEPs, and face possible exclusion.
  • The Commission: must publish grant data faster, harmonise databases, and propose an NGO regulation and a blacklist.
  • Member states: must take legal and administrative measures to help exclude illegal organisations from EU funding.
  • The European Court of Auditors: asked to produce a follow-up special report by 1 December 2024.
  • OLAF: asked to compile and provide data on fraud cases involving NGOs to Parliament and the ECA.

Figures and deadlines

  • at least EUR 2.6 billion in 2022: grants awarded from the EU budget to NGOs under direct management.
  • 3 377 entities: registered in the EU Transparency Register under the category 'NGOs, platforms and networks and similar'.
  • between 6 and 18 months: delay in publication of data in the FTS.
  • no later than 6 months: deadline for the Commission to publish information about EU grants awarded to NGOs.
  • by 1 June 2024: deadline for the Commission to prepare a proposal for further administrative action.
  • by 1 February 2024: deadline for the Commission to disclose timing and amount of money flows related to a platform on the Nature Restoration Law.
  • by 1 June 2024: deadline for adopting an NGO regulation.
  • by 1 July 2024: deadline for a Commission proposal on a public blacklist of NGOs.

Legal basis: Articles 2, 3 and 11(2) of the Treaty on European Union; Articles 322(1a) and 325(4) of the Treaty on the Functioning of the European Union.