The European Union allocates billions of euros to non-governmental organizations (NGOs) every year without ensuring effective control over how the funds are spent — or even whether they actually go to authentic NGOs. This is the main conclusion of a report by the European Court of Auditors (ECA), quoted by Politico, reports News.bg.
The report uses terms such as "opaque" and "hazy" to describe the funding process, and calls for urgent reform in the way grants are allocated, monitored and disclosed.
„The picture of EU funding for NGOs remains unclear, as information — including on advocacy activities — is neither reliable nor transparent“, said Laima Andrikienė, an ECA member and former EPP MEP.
The report will provide arguments to conservative MEPs who insist that EU funds are being used to finance lobbying activities, including in support of initiatives such as the European Green Deal. The ECA finds that the European Commission has failed to clearly disclose information on advocacy activities funded with EU money.
While it has not found evidence of breaches of EU law or values, the ECA stresses that the lack of transparency creates a significant reputational risk. The Commission has acknowledged that in some cases projects submitted by NGOs contain "concrete advocacy activities and illegal lobbying activities".
The report comes at a sensitive time when the priorities for the next long-term EU budget are being discussed. There are concerns that funding for environment and climate-related programmes could be cut in favour of defence and competitiveness. At international level, funding is further reduced following US President Donald Trump’s decision to freeze USAID’s external programmes.
Despite the criticism, some NGOs welcomed the report. "The bottom line is that there is no scandal — just a clear need for increased transparency", said Patricia Heidegger of the European Environmental Bureau.
The ECA examined 90 organisations that received a total of €7.4 billion between 2021-2023. The funds come from programmes such as "Horizon Europe", the European Social Fund+, "Erasmus+" and LIFE. It found that while the Commission checks formal criteria, it does not actively investigate whether recipients of funds act in line with EU values.
The ECA recommends a clear definition of what constitutes an NGO, stricter checks on links to governments and commercial interests, and public disclosure of EU-funded advocacy activities. The Commission said it would accept the recommendations by introducing "proportionate measures" without increasing the administrative burden.