BRUSSELS — Europe’s non-governmental organizations (NGOs) are increasingly concerned about their future.
The NGO sector, which boasts the second-largest army of lobbyists in Brussels, trailing only behind business interests, has been engaged in a heated struggle with conservative lawmakers over the allocation of European Union (EU) grant money for lobbying purposes.
Recent setbacks have tilted the scales in favor of members of the European Parliament (MEPs), prompting NGOs to issue warnings about a potential campaign to defund them, reminiscent of tactics seen during the Donald Trump era.
The situation escalated earlier this month when the European Commission acknowledged that certain funding contracts with NGOs involved what it deemed “undue lobbying activities,” validating claims made by the center-right European People’s Party.
A critical report from the EU’s financial watchdog, the European Court of Auditors, was released last Monday, condemning the Commission for its “opaque” financing system and inadequate oversight regarding how EU grants to NGOs are utilized. On Tuesday, MEPs adopted amendments demanding increased scrutiny over NGO spending of EU funds.
This troubling week follows months of aggressive criticism directed towards civil society organizations from right-wing MEPs, who have accused the Commission of misusing taxpayer money to fund NGOs for lobbying on its behalf.
“It’s been stressful and, frankly, frustrating,” stated Faustine Bas-Defossez, director at the European Environmental Bureau. “NGOs across Europe, many already under significant strain, have spent months addressing what is clearly a politically motivated and fabricated scandal.”
Nicholas Aiossa, director of Transparency International EU, emphasized the gravity of the situation, stating that the center-right and far right “are launching MAGA-inspired attacks on NGOs,” referring to Trump’s “Make America Great Again” slogan.
“With the far right and some members of the EPP feeling emboldened by figures like Trump and [Elon] Musk, it’s evident that the ultimate goal of this unfounded smear campaign is to defund NGOs,” he added. Earlier this year, the Trump administration dismantled the $20 billion annual USAID foreign aid program, a crucial source of funding for NGOs worldwide.
If the fears of the NGO sector materialize, it could significantly diminish the influence of civil society groups in Brussels, many of which depend on the EU for up to 50% of their funding.
MEPs spearheading this initiative assert that their aim is not to cut funding to NGOs but to enhance transparency. “We are not here to attack NGOs — most do commendable work,” remarked Tomas Zdechovsky, a Czech MEP from the EPP group who leads the budgetary control committee on this issue.
The objective is to foster an “open dialogue” regarding “how we can collaborate for greater transparency,” he added.
Concerns Over Budget Cuts
However, NGOs remain skeptical of such reassurances, fearing that these incremental measures could ultimately lead to budget reductions.
Evidence suggests their concerns may be justified. Last Wednesday, POLITICO reported that health NGOs were informed by Commission officials not to anticipate any operating grants from its health directorate this year. This prompted 28 health NGOs to send a letter to Commission President Ursula von der Leyen, urgently requesting a funding update.
In the meantime, some environmental NGOs dependent on operating grants from the EU’s environmental funding arm, LIFE, have had to retract mentions of advocacy work in order to secure funding.
Central to the NGOs’ apprehensions are the forthcoming budget negotiations in Brussels, which will dictate EU funding priorities for the next seven years.
The initial round of discussions regarding the EU budget — referred to in Brussels as the Multiannual Financial Framework — indicates that allocated funds for research or climate initiatives may be redirected to align with the EU’s new financial focuses on defense and industrial growth.
The EU committed approximately €7.4 billion in funding to NGOs from 2021 to 2023, either directly or through national governments, with many organizations heavily reliant on this source.
NGOs, including those receiving EU funding, have established a substantial presence in Brussels. Over 3,800 NGOs are currently registered in the EU Transparency Register, which identifies groups actively lobbying EU institutions. This number is only slightly less than that of companies and significantly exceeds that of industry associations.
The significant presence of NGOs in Brussels has resulted in vigorous advocacy for numerous causes that are often unpopular with conservative and pro-business factions, such as stringent environmental regulations. NGOs caution that a reduction in public funding would silence these voices, thereby amplifying the lobbying power of commercial interests.
Restricted Movements
The Commission has already informed NGOs that they can no longer allocate grant money explicitly for lobbying activities, yet this has not satisfied conservative MEPs, who continue to advocate for stricter measures.
“This entire campaign serves as a precursor to an assault on funding for civil society in the next MFF,” asserted Carlotta Besozzi, director of Civil Society Europe, highlighting a “much more challenging climate” wherein far-right political groups, buoyed by their increased representation in the last EU election, are antagonistic towards civil society.
Besozzi warned that attempts by right-wing factions to eliminate funding for civil society in the upcoming budget would create an environment where only those with wealth could have their voices heard at the EU level.
“This will also hinder civil society and independent media from holding EU institutions accountable and combating corruption,” she added.
The center-right EPP maintains that this is not an initiative aimed at cutting funds for civil society organizations.
“We are not orchestrating any revolution to halt financing for NGOs,” Zdechovsky of the EPP reassured. Instead, the party is pursuing “specific examples” of “around 20-25 NGOs [that] we need to investigate” to determine if funding has been mismanaged.
Nevertheless, NGOs remain unconvinced. “Yes, we are worried,” remarked Bas-Defossez from the EEB. “The stakes are simply too high for us to remain indifferent.”
