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EU funding allocated to NGOs incriminated in the recent corruption revelations and the protection of EU financial interests (debate)
In 2018, the European Court of Auditors (ECA) released a report about the lack of financial transparency of NGOs. In this report, the ECA remarks that the EU delegates 1.7% of its budget to NGOs, including 6.8% of the European Development Fund. That is a total amount of 11.3 billion euros over the 2014-17 budget that is attributed to NGOs. According to the ECA, the lack of a European legal framework for NGOs hampers an effective oversight of the use of the funds. The report states that ‘the European Commission does not have sufficiently detailed information on how the money is spent’, and asks for the establishment of an EU-wide definition of NGOs to improve transparency and oversight. The ECJ has consistently annulled any attempt by Member States to improve transparency of NGOs, as a violation of the free movement of capital guaranteed by Article 63(1) TFEU. Yet, increased transparency requirements for citizens and undertakings are systematically upheld. Despite reports from FATF, Europol, Eurojust, Moneyval, and various reports from national competent authorities, clearly showing that NGOs are often used as fronts for terrorist financing, the EU won’t make a move on NGOs. This appalling policy of NGOcracy must end now.