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OPINION (2023/2122(INI))

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

LIBE-AD-754691

Committee on Civil Liberties, Justice and Home Affairs · Rapporteur: Clare Daly

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The Committee on Civil Liberties, Justice and Home Affairs gives the Committee on Budgetary Control suggestions for its motion for a resolution on transparency and accountability of EU-funded non-governmental organisations (NGOs). It stresses civil society's role in democracy and calls for adequate, transparent funding and clear, non-discriminatory procedures. It warns against unjustified attacks, restrictive funding rules and excessive reporting requirements on NGOs, and says reporting must be necessary, proportionate and applied to all EU funding beneficiaries without discrimination. It asks the Commission to streamline databases and improve the Financial Transparency System, and welcomes the Citizens, Equality, Rights and Values (CERV) Programme for 2021-2027 while calling for its budget to be increased in the next multiannual financial framework.

Committee position. The Committee on Civil Liberties, Justice and Home Affairs calls on the Committee on Budgetary Control to incorporate its suggestions into its motion for a resolution. It proposes protecting civil society, ensuring adequate and transparent funding, and keeping reporting requirements proportionate and non-discriminatory.

Key points

  1. Emphasises civil society's role in promoting democratic values, equality, the rule of law and fundamental rights, and in ensuring civic participation and government accountability.
  2. Stresses that civil society is broader than NGOs and that NGOs differ in size, resources, staff and activities, so they should not be treated as a single bloc.
  3. Says NGOs must be protected and given access to adequate, transparent funding at all levels, public and private, domestic and foreign.
  4. Recalls that the Treaties require EU institutions and member states to maintain open, transparent and regular dialogue with civil society and to fund fundamental rights programmes.
  5. Remains concerned by attacks on NGOs, including crackdowns on political speech, discriminatory legislation, harassment, smear campaigns and excessive audits or funding cuts.
  6. Calls on member states and the EU to improve the legal environment for civil society, ensure any funding restriction meets legitimate aims and fundamental rights, and provide legal remedies.
  7. Calls for clear, transparent and non-discriminatory procedures for NGO access to funding and other resources, without undue impediments.
  8. Says reporting requirements for NGOs must apply to all EU funding beneficiaries without discrimination and be necessary, proportionate and justified, taking account of the beneficiary's size and resources.
  9. Considers current EU legislation on scrutiny, due diligence and transparency likely sufficient with minor adjustments, and warns against disproportionate increases in reporting requirements.
  10. Calls on the Commission to streamline databases, make the Financial Transparency System more user-friendly and searchable for all beneficiary types, and improve support for applicants.
  11. Warns that new burdensome rules, financial pre-screening or a centralised certification system for NGOs would create obstacles and may hinder smaller NGOs from receiving funds.
  12. Welcomes enhanced access for the European Anti-Fraud Office (OLAF) to information on financial misconduct of NGOs, and calls for a strengthened EU Transparency Register with more budget and staff.

Who is affected

  • Non-governmental organisations and civil society organisations, which the committee says need adequate funding and proportionate reporting.
  • EU member states, which are urged to improve the legal environment and avoid restrictive funding rules and excessive monitoring.
  • The European Commission, which is asked to streamline databases, improve the Financial Transparency System and assess possible EU lobbying transparency legislation.
  • Smaller NGOs, which the committee says may be hindered by new rules or a centralised certification system.

Figures and deadlines

  • CERV Programme for the period 2021-2027, which provides direct funding to civil society organisations from the EU budget.
  • Multiannual financial framework (MFF) 2021-2027, in whose negotiations Parliament secured an increased CERV budget.
  • List of operations selected for support must be updated at least every four months.

Legal basis: Article 11 of the Treaty on European Union (TEU).