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EU Tightens NGO Funding Rules Following Transparency Criticism

The EU Commission introduces guidelines to curb lobbying by NGOs after an audit reveals a lack of oversight in the allocation of billions in public funds.

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Vor einem großen Gebäude wehen viele europäische Flaggen
NGO. Der Vorsitzende des Haushaltskontrollausschusses im Europaparlament, Niclas Herbst (CDU), fordert mehr Transparenz bei der Mittelvergabe. Foto: picture alliance / Hans Lucas | POOL UNION EUROPEENNE / AGENCE HANS LUCAS

Overview

  • The EU-Rechnungshof criticized the lack of transparency in distributing over €7 billion to NGOs between 2021 and 2023, with no centralized tracking system or clear NGO definitions.
  • Around 40% of the EU Commission's direct funding was concentrated among just 30 NGOs, raising concerns about accountability and undue influence.
  • The EU Commission has issued new guidelines prohibiting NGOs from directly lobbying EU Parliament members to address concerns over improper influence.
  • Auditors highlighted reliance on self-declarations by NGOs to confirm adherence to EU values, such as the rule of law and human rights, as a significant oversight gap.
  • The report has reignited debates over the governance of public funds, with calls for stricter monitoring and clearer criteria for NGO funding eligibility.