What changed between the draft committee report and the plenary report

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

on the transparency and accountability of non-governmental organisations funded from the EU budget

(2023/2122(INI))

The European Parliament,

Changed:– having regard to the Treaty on European Union, in particular Articles 2, 33, and5, 11(2) and Protocol (No 2) thereof,

11 unchanged paragraphs

– having regard to the Treaty on the Functioning of the European Union, in particular Articles 322(1a) and 325(4) thereof,

– having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (the Financial Regulation),

– having regard to the Commission proposal of 16 May 2022 for a regulation of the European Parliament and of the Council on the financial rules applicable to the general budget of the Union (COM(2022)0223),

– having regard to the report of its Committees on Budgets and on Budgetary Control of 4 May 2023 on the proposal for a regulation of the European Parliament and of the Council on the financial rules applicable to the general budget of the Union,

– having regard to Regulation (EU) 2021/2116 of the European Parliament and of the Council of 2 December 2021 on the financing, management and monitoring of the common agricultural policy and repealing Regulation (EU) No 1306/2013,

– having regard to Regulation (EU) 2021/1060 of the European Parliament and of the Council of 24 June 2021 laying down common provisions on the European Regional Development Fund, the European Social Fund Plus, the Cohesion Fund, the Just Transition Fund and the European Maritime, Fisheries and Aquaculture Fund and financial rules for those and for the Asylum, Migration and Integration Fund, the Internal Security Fund and the Instrument for Financial Support for Border Management and Visa Policy,

– having regard to the Commission communication of 3 December 2020 on the European democracy action plan (COM(2020)0790),

– having regard to Special Report 35/2018 of the European Court of Auditors (ECA) of 18 December 2018 entitled ‘Transparency of EU funds implemented by NGOs: more effort needed’,

– having regard to the study entitled ‘Financing of non-governmental organisations (NGOs) from the EU Budget’, published by its Directorate-General for Internal Policies of the Union on 25 November 2010,

– having regard to the study entitled ‘Democratic accountability and Budgetary Control of non-governmental organisations funded by the EU Budget’, published by its Directorate-General for Internal Policies of the Union on 24 January 2017, and to its subsequent update of 21 January 2019,

– having regard to the study entitled ‘Transparency and accountability of EU funding for NGOs active in EU policy areas within EU territory’, published by its Directorate-General for Internal Policies of the Union on 28 September 2023 (‘transparency and accountability study’),

Added:– having regard to the Commission’s operational guidelines for recipients of EU funding on the use of the EU emblem in the context of EU programmes 2021-2027, published in March 2021,

4 unchanged paragraphs

– having regard to its resolution of 17 February 2022 with recommendations to the Commission on a statute for European cross-border associations and non-profit organisations,

– having regard to its resolution of 10 May 2023 with observations forming an integral part of the decisions on discharge in respect of the implementation of the general budget of the European Union for the financial year 2021, Section III – Commission and executive agencies,

– having regard to its resolution of 10 May 2023 with observations forming an integral part of the decision on discharge in respect of the implementation of the general budget of the European Union for the financial year 2021, Section I – European Parliament,

– having regard to its resolution of 13 July 2023 on recommendations for reform of European Parliament’s rules on transparency, integrity, accountability and anti-corruption,

Removed:– having regard to the Commission’s operational guidelines for recipients of EU funding on the use of the EU emblem in the context of EU programmes 2021-2027, published in March 2021,

Added:– having regard to the Discharge from 2021 on the EU general budget – Commission and executive agencies,

– having regard to the opinions of the Committee on Foreign Affairs and the Committee on Civil Liberties, Justice and Home Affairs,

– having regard to Rule 54 of its Rules of Procedure,

Changed:– having regard to the report of the Committee on Budgetary Control (A9-0000/2023),(A9-0446/2023),

Change 1

Changed:A. whereas the EU has designed transparency and accountability mechanisms to ensure that EU funds awarded to beneficiaries, including non-governmental organisations (NGOs) are used effectively, efficiently and in line with the EU’s objectives,values, policies and financial rules enshrined in, among other places, the Financial Regulation, which lays down transparency as one of its guiding budgetary principles, requiring the Commission to make available, in an appropriate and timely manner, information on EU funds;

Change 2

Removed:B. whereas only the funds directly awarded to NGOs have been subject to monitoring and reporting by the Commission so far;

Added:B. whereas the EU is one of the largest financial backers of civil society organisations;

Removed:C. whereas the Commission’s Financial Transparency System (FTS) is the main source of publicly available data for large-scale analysis of grants and contracts managed directly by the Commission;

Added:C. whereas civil society ranges from low-key community activities to NGOs; whereas the spectrum of NGOs receiving EU funding covers a wide range of structures, ways of functioning, sources of financing and focus areas, which translates into a variety of projects that are financed with EU funds; whereas the Treaties require the EU institutions and Member States to maintain an open, transparent and regular dialogue with representative associations and civil society; whereas the EU and its Member States should provide adequate funding to programmes aimed at protecting and promoting the rights and values enshrined in the EU Treaties; whereas NGOs and civil society organisations (CSOs) play an important role in implementing these programmes; whereas, in some cases, public authorities are outsourcing tasks to NGOs and CSOs; whereas the Commission manages EU funds directly, indirectly or in a shared way; whereas in line with the principle of subsidiarity, the funds directly awarded to beneficiaries, including NGOs, are subject to monitoring and reporting by the Commission;

Removed:D. whereas an analysis of FTS data shows that grants awarded from the EU budget to NGOs, after excluding EU programmes in the field of education and research, amounted to at least EUR 2.6 billion in 2022, under direct management, across all EU programmes and funds; whereas the total amount of grants awarded to NGOs is likely to be higher owing to the absence of a definition of an NGO or of clear differentiation between NGOs and not-for-profit organisations (NFPOs) in the FTS;

Added:D. whereas the Treaties require the EU institutions and Member States to maintain an open, transparent and regular dialogue with representative associations and civil society; whereas it is important for EU Member States and EU institutions to provide adequate funding to programmes aimed at protecting and promoting the rights and values enshrined in the EU Treaties; whereas NGOs and CSOs play an important role in implementing these programmes;

Removed:E. whereas 3 377 entities are registered in the EU Transparency Register under the category ‘NGOs, platforms and networks and similar’;

Added:E. whereas the Commission’s Financial Transparency System (FTS) is the main source of publicly available data for large-scale analysis of grants and contracts managed directly by the Commission; whereas a clear distinction should be made between public transparency and transparency for the purpose of legitimate budgetary control, given the sensitive contexts and issues NGOs work with;

Removed:F. whereas NGOs are required to maintain accurate and transparent financial records, including on the use of EU funds, as they are accountable to their members, donors, partners and beneficiaries regarding the actions they take, the sources of their financing, including EU funds, and the decisions they take on behalf of their stakeholders;

Added:F. whereas an analysis of FTS data shows that EU financial commitments to NGOs, excluding EU programmes in the field of education and research, amounted to at least EUR 2.6 billion in 2022, under direct management, across all EU programmes and funds;

Added:G. whereas EU transparency and accountability requirements and controls should apply to all interest representatives benefiting from EU funds; whereas 3 377 entities are registered in the EU Transparency Register under the category ‘NGOs, platforms and networks and similar’; whereas the nature of requirements and controls has to conform with the categorisation established in the Transparency Register, with a view to taking into account all judicial forms of entities and not only NGOs; whereas EU requirements and controls do not solely have to be linked to the Transparency Register as some entities granted with EU funds might prefer to stay out of this register to avoid putting their existence at risk;

Added:H. whereas EU transparency and accountability requirements and controls should apply to all beneficiaries of EU funds, including NGOs, that are required to maintain accurate and transparent financial records on the use of EU funds and the origin of financial sources used for their functioning, as they are accountable to their members, donors, partners and beneficiaries regarding the actions they take, the sources of their financing, including EU funds, and the decisions they take on behalf of their stakeholders; whereas the Member States lay the legal basis for NGOs, which have their status registered at national level;

Added:I. whereas the exploitation of EU funds against EU rules, principles and values is on the rise; whereas individuals and front organisations, most often under foreign influence, seek to obtain EU financial support and the respectability that results from it, whatever the amount, but in reality use EU funds for activities that undermine fundamental EU principles and values and our attachment to democracy;

Added:J. whereas the Commission has the responsibility to ensure the implementation of the EU budget and to respect EU regulations and values; whereas, in this regard, all ex ante and ex post controls have to ensure that only NGOs and entities working in respect of EU rules, principles and values will be granted EU funds;

Added:K. whereas the 2021 Discharge on the general budget of the EU and the Commission underlines the deep concern regarding the funding of projects carried out by or involving NGOs with links to radical religious and political organisations; calls on the Commission to guarantee that EU funds only finance organisations that strictly respect all Union values and urges the Commission to set up ex ante mechanisms that clearly identify NGOs operating on Union territory and abroad that have acknowledged ties to religious fundamentalist networks and that push forward an agenda that undermines Union values;

Added:L. whereas the same high standards for accountability and the same transparency rules should apply to all NGOs that receive EU funding, regardless of whether the place they operate is within or outside the European Union;

Added:M. whereas some considerations set out hereafter are based on some of the findings of the transparency and accountability study that address further transparency weaknesses concerning the information on the use of EU funds by the Commission, the Member States and beneficiaries, including NGOs;

General remarks

Change 3

Removed:1. Welcomes the vital role played by NGOs in linking civil society with political decision-making in all EU policy areas; highlights, in particular, their role in implementing the EU budget and representing civil society;

Added:1. Welcomes the vital role played by NGOs in representing civil society and in promoting and defending the rights and values enshrined in the Treaties and the fundamental rights under the EU Charter of Fundamental Rights (EU Charter); stresses that only NGOs whose actions respect these rights and values should be entitled to EU funding; urges all stakeholders to increasingly place EU principles and values at the heart of EU funding and acknowledges the diversity of NGOs as regards their size, resources and staff;

Removed:2. Underlines that areas of social policy, environmental policy and development assistance require public support beyond private donations;

Added:2. Highlights, in particular, the role of beneficiaries, including NGOs, in implementing the EU budget and the obligation to carry out this role in full respect of the EU financial rules and principles for the protection of the EU’s financial interests; recalls that NGOs operating within EU territory are required to comply with the national law applicable in each Member State concerned by their activity, as well as with Union law and international law; reiterates that EU transparency and accountability are essential to strengthen a favourable and fair European system based on democracy, fundamental freedoms, inclusion and diversity;

Removed:3. Highlights that volunteer and civil society organisations deserve the utmost respect and gratitude for the daily work they do in helping others in our society, particularly if they are supporting, for example, social work, cultural engagement, sports education, emergency aid; recognises the millions of hours of unpaid volunteer work done by thousands of volunteers across Europe on a daily basis and affirms that these volunteer NGOs deserve the highest praise and support;

Added:3. Underlines that NGOs rely both on public financial support and on private donations, in a non-mutually exclusive way; recalls that the ability to seek, secure and use resources other than EU funds or public funds at national or local level is essential for the existence and operation of NGOs;

Change 4

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Change 5

Removed:5. Recognises the important role that NGOs play as a cornerstone of society in Europe in providing much needed support to communities in various areas, including in social support, education, charity work, integration work, in providing health support for elderly and disabled people, in cultural fields, in cleaning, protecting and restoring the environment, in research and innovation and in many others;

Added:5. Commends the crucial role of NGOs in EU and non-EU countries in defending the rule of law and democratic values, fighting corruption and promoting human rights and democracy; reiterates that in countries with authoritarian or non-democratic regimes, NGOs often represent the last line of defence of democracy that authoritarian regimes worldwide try to silence, including through adopted legislation and discriminatory obligations, and are thus in need of support and protection; calls on the Commission to consider safeguard clauses and mechanisms in this respect; stresses the importance of securing adequate and transparent EU funding for NGOs and entities active in these fields;

Removed:6. Points out that laws and the legislative process often neglect the voices of local, regional and national NGOs, while favouring the priorities of large NGOs, that the priorities and needs of smaller local and regional NGOs are often ignored or have less attention paid to them, despite the fact that these smaller and regional groups often do the majority of the work; emphasises that the work of small and regional organisations is to be paid the highest respect, as they represent the true diversity and variety of volunteer work performed across Europe;

Added:6. Applauds the activity of NGOs in areas of conflict in ensuring that humanitarian aid reaches the civilian population and those in need in a rapid and effective manner; recognises the importance of NGOs in ensuring that the EU, as the largest donor of development aid in the world, continues to contribute to promoting stability, overcoming poverty and advancing global development;

Removed:7. Commends the crucial role of NGOs in the EU and elsewhere in defending the rule of law and promoting respect for human rights and democracy; reiterates that in countries with authoritarian or non-democratic regimes, NGOs often represent the last line of defence of democracy; insists on the importance of adequate EU funding for NGOs active in these fields;

Added:7. Points out that, in practice, the legislative processes could neglect the voices of local, regional and national NGOs; considers that small NGOs often face difficulties in accessing EU funding because of cumbersome administrative procedures; calls on the Commission to further simplify and streamline the procedures, so as to enable smaller NGOs, including at the local level, to apply and benefit from EU funding; highlights that the priorities and needs of smaller NGOs are often ignored or receive less attention, despite the fact that they often know the situation best and accomplish a huge amount of work; emphasises that the work of small organisations should be paid the highest respect and that EU funding should be made more accessible to them, as they represent an important element that reinforces diversity and variety across Europe and beyond; recognises that NGOs in Europe play a crucial supportive role in complementing public services;

Removed:8. Is convinced that public transparency is vital for NGOs to showcase their valuable work, be recognised and build their credibility;

Added:8. Remains deeply concerned by threats to and unjustified attacks on NGOs in some Member States, including by proposing and adopting legislation that imposes discriminatory obligations on NGOs that restrict or ban their activities, and through online and offline intimidation and harassment against their staff, negative public statements and smear campaigns, verbal threats and legal and physical attacks; stresses that some NGOs also face excessive administrative controls or audits, politically motivated funding cuts and overly strict legal requirements for their formation and registration; insists that NGOs must be protected and should receive adequate funding and support;