Enhancing transparency and scrutiny standards for NGOs – how can we ensure that entities receiving EU funds are held accountable?

Subject: Enhancing transparency and scrutiny standards for NGOs – how can we ensure that entities receiving EU funds are held accountable?

Recent corruption allegations have highlighted that less stringent rules seem to apply to NGOs as regards eligibility for and award of EU funds. In the interest of transparency, and to enable a better understanding of how NGOs are subject to the Commission’s internal scrutiny, can the Commission answer the following:

1. How much of the EU budget is distributed to NGOs per year, how many NGOs receive EU funds and is there a comprehensive register listing them and the amount of money they each receive?

2. How does the Commission monitor and audit the use of the money and, therefore, the implementation of the EU policy goals that are pursued with this funding?

Submitted: 20.2.2023

Answer given by Mr Hahn on behalf of the European Commission

(11 July 2023)

The Financial Transparency System (1) (FTS) is a web search engine which offers the possibility to search for beneficiaries and recipients of EU funds, including non-governmental organisations (NGOs) (2).

The NGO classification is based on self-declarations by entities receiving funding. In order to enhance transparency on recipients of EU funds, a definition of an NGO is proposed in the Commission Proposal for the Financial Regulation revision (3) (recast).

As regards the selection of grant beneficiaries, as elaborated in the Commission’s replies to questions E-006476/2020 and E- 001741/2021, the Commission implements the mechanisms provided in the Financial Regulation (4) for the award of funds. Hereby, it carries out rigorous selection processes, including several different checks on grant beneficiaries based on objective criteria.

During their lifetime, EU funded projects are closely monitored to ensure that they are implemented according to the relevant agreement. Information made available through such monitoring or through other relevant sources may lead to a decision for exclusion from EU financing under the Early Detection and Exclusion System (5). All entities implementing EU funds are also subject to EU restrictive measures (6).

In the event of incorrect implementation or in cases of fraud, irregularities, substantial errors, or serious breach of contractual obligations, including the violation of EU values, the agreement may be suspended, terminated, or reduced and funds may be recovered.

1 ∙ ⸱ https://ec.europa.eu/budget/financial-transparency-system/index.html . The annual publications are based on Article 38 of the Financial Regulation (OJ L 193,

30.7.2018, p. 1‐222), and in accordance with the third paragraph of the article, data on recipients is not disclosed for very low value contracts below EUR 15 000 and where disclosure risks threatening the rights and freedoms of the persons or entities. 2 ∙ ⸱ https://ec.europa.eu/budget/financial-transparency-system/faq.html#9

3 ∙ ⸱ https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32018R1046

4 ∙ ⸱ https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32018R1046

5 ∙ ⸱ Article 136 Financial Regulation.

6 ∙ ⸱ Article 215 of the Treaty on the Functioning of the European Union.