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Democratic Accountability and Budgetary Control of Non-Governmental Organisations Funded by the EU Budget

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Democratic Accountability and Budgetary Control of Non-Governmental Organisations Funded by the EU Budget DIRECTORATE GENERAL FOR INTERNAL POLICIES POLICY DEPARTMENT D: BUDGETARY AFFAIRS Democratic accountability and budgetary control of non-governmental organisations funded by the EU budget STUDY Abstract This study follows up on a 2010 European Parliament study, ‘Financing of Non- Governmental Organisations (NGO) from the EU budget’. Difficulties identified in that study relating to fragmented European Commission systems still exist today. This constrains policy analysis and transparency and accountability. The existence of multiple, complex, overlapping NGO networks presents significant challenges to accountability and transparency, as does the emergence of new and innovative funding mechanisms that do not involve large institutional donors. 24/01/2017 PE 572.704 EN This document was requested by the European Parliament's Committee on Budgetary Control. It designated Mr Markus Pieper, MEP, to follow the study. AUTHOR(S) Blomeyer & Sanz Ltd: Mr. Roderick Ackermann Ms. Elsa Perreau Ms. Malin Carlberg RESPONSIBLE ADMINISTRATOR Ms Beata Grzebieluch Policy Department on Budgetary Affairs European Parliament B-1047 Brussels E-mail: [email protected] LINGUISTIC VERSIONS Original: EN Executive summaries: DE, FR, ES, IT, PL ABOUT THE EDITOR Policy Departments provide in-house and external expertise to support European Parliament's committees and other parliamentary bodies in shaping legislation and exercising democratic scrutiny over EU policies. To contact the Policy Department or to subscribe to its newsletter please write to: [email protected] Manuscript completed in November 2016. Brussels, ©European Union, 2016. This document is available on the Internet at: http://www.europarl.europa.eu/studies DISCLAIMER The opinions expressed in this document are the sole responsibility of the author and do not necessarily represent the official position of the European Parliament. Reproduction and translation for non-commercial purposes are authorized, provided the source is acknowledged and the publisher is given prior notice and sent a copy. Democratic accountability and budgetary control of non-governmental organisations funded by the EU budget __________________________________________________________________________________________ CONTENTS CONTENTS 3 LIST OF ABBREVIATIONS 5 LIST OF TABLES 7 LIST OF FIGURES 7 EXECUTIVE SUMMARY 8 1 INTRODUCTION 13 1.1 Objectives 13 2 DEFINITION OF NGO 15 3 TOP NGO RECIPIENTS OF EU GRANTS 18 4 ANALYSIS OF NGO INFLUENCE INDICATORS 26 5 CASE STUDIES - -- NGOS THAT ENGAGE WITH EU INSTITUTIONS AND/ OR RECEIVE EC GRANT FUNDING 34 5.1 Eurodad - -- The European Network on Debt and Development 35 5.2 European Environmental Bureau 46 5.3 The European Consumer Organisation (BEUC) 54 6 CASE STUDIES - NGOS THAT INFLUENCE POLICY IN THE EU BUT DO NOT ENGAGE WITH EU INSTITUTIONS 57 6.1 WeMove.eu 57 6.2 Attac International 61 7 REGULATORY FRAMEWORKS OF DIFFERENT JURISDICTIONS APPLICABLE TO NGOS OPERATING IN THE EU 68 7.1 Comparison between jurisdictions in EU and non-EU states 68 7.2 Other rules applying to NGOs funded from the EU budget 74 8 MONITORING AND CONTROL OF EU-FUNDED NGOS 82 8.1 Monitoring and control mechanisms of the Commission 82 9 TRANSPARENCY STANDARDS APPLICABLE TO NGOS 88 9.1 The Transparency Register 88 9.2 Specific EU transparency requirements 90 9.3 NGO transparency and accountability frameworks 90 10 CONCLUSIONS AND RECOMMENDATIONS 94 10.1 Definition of NGO 94 10.2 Influential NGOs 94 10.3 Management and control of EC grant funding 95 10.4 Transparency and accountability 96 REFERENCES 100 ANNEX 1: RANKING OF NGOS BY INTENSITY OF LOBBYING ACTIVITIES 108 3 Policy Department D: Budgetary Affairs __________________________________________________________________________________________ ANNEX 2: DG BUDG NGO FUNDING DATA - -- 2015 COMMITMENTS TO MOST-FUNDED NGOS, OCTOBER 2016 113 ANNEX 3: OXFAM GB FEEDBACK ON THE PRE-RELEASE STUDY REPORT & AUTHORS’ RESPONSES 117 ANNEX 4: HOW ECHO AWARDS FUNDING 127 4 Democratic accountability and budgetary control of non-governmental organisations funded by the EU budget __________________________________________________________________________________________ LIST OF ABBREVIATIONS ABAC The EC’s accrual based accounting system AISBL Association Internationale Sans But Lucratif ASBL Association Sans But Lucratif BEUC The European Consumer Organisation BTSF Better Training for Safer Food CFP Call for Proposals Chafea Consumer, Health, Agriculture and Food Executive Agency CSO Civil Society Organisation DG BUDG European Commission Directorate General for Budget DG DEVCO European Commission Directorate General for International Cooperation and Development DG ECHO European Commission Directorate General for Humanitarian Aid and Civil Protection DG ENV European Commission Directorate General for Environment DG JUST European Commission Directorate General Justice and Consumers DG NEAR European Commission Directorate-General for Neighbourhood and Enlargement Negotiations EACEA Education, Audiovisual and Culture Executive Agency EACI Executive Agency for Competitiveness and Innovation EASME Executive Agency for Small and Medium Enterprises EC European Commission EDES Early Detection and Exclusion System EEA European Economic Area EEB European Environmental Bureau EP European Parliament EU European Union Eurodad European Network on Debt and Development EWS Early Warning System FPA Framework Partnership Agreement FPI European Commission Service for Foreign Policy Instruments FRSB Fundraising Standards Board FTS Financial Transparency System GRI Global Reporting Initative IATI International Aid Transparency Initiative 5 Policy Department D: Budgetary Affairs __________________________________________________________________________________________ IMS Irregularities Management System INGO International Non-governmental Organisation MSF Medicins Sans Frontieres NGO Non-governmental organisation NPO Not for profit organisation OLAF European Commission Anti-Fraud Office PHEA Public Health Executive Agency - -- now Chafea PRAG Practical Guide on Procurement and Grants for European Union External Actions SCE European Cooperative Society SGA Specific Grant Agreement 6 Democratic accountability and budgetary control of non-governmental organisations funded by the EU budget __________________________________________________________________________________________ LIST OF TABLES Table 1: Sample of incomplete data on NGO recipients of EU grants (2015 commitments) .................. 22 Table 2: 28 top NGO recipients of EU funding (2015 commitments) ....................................................... 24 Table 3: EC bodies responsible for awarding grants to the top 28 NGO recipients ................................ 25 Table 4: Location of head office for NGOs registered in the Transparency Register .............................. 29 Table 5: Location of head office for the 40 NGOs identified as very active around EU policy-making . 30 Table 6: Fields of interest declared by the 40 NGOs identified as the most active around EU policy- making ................................................................................................................................................ 31 Table 7: EC-funded actions co-ordinated by Eurodad 2008-2012 ........................................................... 39 Table 8: Beneficiaries of EUR 5 million grant commitment position SCR.CTR.338179.01.1 .................. 42 Table 9: EU grants to ActionAid in 2015 .................................................................................................... 44 Table 10: Country locations of Attac’s national chapters ........................................................................ 63 Table 11: Funding of Attac chapters according to the Transparency Register (2014 data) ................... 65 Table 12: Attac national chapter structure and activities (self-reported) ............................................... 66 Table 13: Summary of the NGO legal framework in six countries ........................................................... 69 LIST OF FIGURES Figure 1: LIFE project data organisational typology ................................................................................ 16 Figure 2: FTS screenshot showing DG DEVCO grant SCR.CTR.338179.01.1 (BGUE) ............................... 20 Figure 3: Proportion of NGOs belonging to networks.............................................................................. 32 Figure 4: Eurodad network ........................................................................................................................ 36 Figure 5: FTS screenshot showing zero search results for EASME ........................................................... 48 Figure 6: FTS screenshot of grant SI2.703921.1 (BGUE) ........................................................................... 49 Figure 7: FTS screenshot showing distribution of grant JAG.45009.1 (BGUE) ....................................... 50 7 Policy Department D: Budgetary Affairs __________________________________________________________________________________________ EXECUTIVE SUMMARY Introduction The overall aim of this study is to understand: • Which non-governmental organisations (NGO) are most influential in policy-making in the European Union (EU) through engagement with European institutions; • Which NGOs receive the most grant funding from the European Commission (EC); • To what extent ‘big NGO players’ comply with rules, regulations, and standards; • Transparency
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