After a year-long investigation, auditors are finalizing a report on the subject. At the heart of public transparency is the principle of providing citizens with the necessary information to hold decision-makers accountable.
This means not only disclosing who receives EU funds, for what purpose, and why, but also how the funds are spent, the amounts involved, and whether recipients comply with EU values. Public interest in strengthening transparency requirements for EU-funded NGOs has grown significantly since the 2022 Qatargate scandal, with renewed political debate bringing the issue back into focus.
The term "NGO" has been widely used for years, yet there has been no universally accepted definition at the international level. In an effort to enhance transparency, the EU officially defined an NGO in 2024 as "a voluntary, independent from government, non-profit organization, which is not a political party or a trade union." However, definitions still vary across EU member states.
Auditors have been assessing the transparency of EU funding granted to NGOs across key internal policy areas, including cohesion, research, migration, and the environment, for the 2021-2023 period. Their main focus has been on whether the European Commission, its implementing partners, and member states have collected and disclosed reliable data on NGO funding. In addition to evaluating whether transparency requirements have been properly assessed, auditors have also examined whether NGO recipients have adhered to EU values.
The renewed audit comes at a critical time for three main reasons. The European Parliament has been pushing for greater transparency and accountability regarding EU funding. NGOs play an increasingly important role in shaping democratic policy, making it essential to ensure their funding is handled transparently. Furthermore, the EU’s 2024 Financial Regulation aims to improve oversight of NGO recipients of EU funds.
NGOs receive most of their EU funding through grants and must comply with transparency regulations that apply to all recipients. Auditors have examined the European Commission, selected EU and national agencies, and managing authorities in Germany, Spain, and Sweden.
The final report is set to be published on April 7 on the European Court of Auditors (ECA) website.
