European Parliament sets up working group to review Commission funding of NGOs

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Jun 19, 2025
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The European Parliament will establish a working group to scrutinise how the European Commission funds non-governmental organisations, following controversy over payments to environmental groups.

On Thursday, the European Parliament’s political leaders agreed to form a working group within the Committee on Budgetary Control (CONT) to examine how the European Commission provides funding to non-governmental organisations (NGOs). The group will consist of 13 MEPs, chaired by German lawmaker Niclas Herbst, with two co-rapporteurs from the European People’s Party (EPP) and the European Conservatives and Reformists (ECR).

The decision follows a dispute over the Commission’s financing of environmental NGOs, after German newspaper Welt Am Sonntag accused the Commission of secretly paying up to €700,000 to promote EU climate policy. The Commission denied signing “secret contracts” and stated it maintains a high level of transparency in funding NGOs.

While right and far-right groups in the Parliament had pressed for an inquiry committee, their request was voted down during the Conference of Presidents (CoP), the Parliament’s assembly of political group leaders. Instead, the CoP approved the working group proposed by the EPP and backed by ECR and Patriots for Europe (PfE), despite opposition from the Socialists, liberals, and Greens. These groups were outvoted by a coalition of EPP and right-wing parties, referred to by some as the “Venezuela majority.”

Working groups in the European Parliament are temporary structures designed to follow up on implementation, conduct investigations, or study specific, time-limited issues. This group will have a six-month mandate and will publish a final report that could recommend changes to the rules.

ECR lawmaker Carlo Fidanza stated the group will review every contract between the Commission and NGOs to determine if any included lobbying activities targeting MEPs. He noted the group is “less invasive” than an inquiry committee, but still a satisfactory solution.

According to EPP sources, a working group was preferred because it focuses on scrutinising the Commission’s future behavior rather than investigating historical issues.

Additionally, the CoP decided to end negotiations on the “Green claims directive,” a law intended to protect consumers from greenwashing by requiring companies to substantiate their environmental claims. The directive, adopted by Parliament in March 2024, will now be withdrawn at Parliament’s request, a move supported by the EPP and far-right groups.

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