European auditors call for major overhaul of NGO funding system

The European Union’s funding of nongovernmental organizations (NGOs) is in need of significant reform, says a new report from the European Court of Auditors (ECA).

The auditors have criticized the EU for a lack of transparency in how billions of euros are distributed annually to NGOs, warning that funds may not always go to legitimate organizations and may be used in ways that are unclear or misaligned with EU values, Caliber.Az reports via foreign media.

The report, which examines EU funding between 2021 and 2023, highlights issues such as inadequate monitoring of how money is spent and concerns about lobbying. The ECA found the funding process to be “opaque” and “hazy,” with EU funds sometimes being used to influence EU policymaking.

“The picture of EU funding for NGOs remains hazy, as information on EU funding — including lobbying — is neither reliable nor transparent,” said Laima Andrikienė, the ECA member in charge of the report. She called for an overhaul of the grant process, emphasizing that “Improvements are absolutely necessary. We cannot continue this business as usual.”

The auditors pointed out that while the Commission has issued new guidelines to prevent EU funds from being used for lobbying, they found that the Commission has not been transparent in disclosing information about NGO advocacy activities funded by EU grants. Despite this, the ECA found no evidence that NGOs used EU funds in a manner that breached EU law or values. However, the lack of transparency increases the risk of misuse, the report stated.

The criticism could fuel political debates within the European Parliament, especially among conservative lawmakers who have long criticized the way EU money is allocated to NGOs. Some MEPs claim the funds are being misused to promote political agendas, particularly around the European Green Deal.

Meanwhile, NGOs such as the European Environmental Bureau have welcomed the report but stress that the issue is one of transparency, not scandal. "The bottom line is that there is no scandal. Only a clear need to strengthen transparency," said Patrizia Heidegger, policy director at the Bureau.

The ECA has called on the European Commission to implement reforms, including clearer definitions of what constitutes an NGO and regular updates on how funds are spent. The Commission has agreed to adopt these recommendations while ensuring that any changes minimize administrative burdens.

By Vafa Guliyeva