MEPs evaluated the “anti-fraud architecture” set up to protect the EU’s financial interests and pointed to the loopholes in control of the EU funds awarded to non-governmental organizations.
In a resolution adopted on Thursday by 446 votes to 48 and 66 abstentions, the Parliament regrets the low rate of recovery of the abused EU funds from the Member States (only 48% in 2022, compared with 54% in 2021) and asks the Commission to put greater efforts into the swift recovery.
Analysing specific cases, MEPs regret the lack of transparency in spending of public money during the COVID-19 pandemic, with the Commission not having published a report on COVID-19-related expenditure up to this day.
They warn that resources allocated for Europe’s response to the war in Ukraine are not adequately monitored and call for more thorough checks, as well as for a fraud-proof design of future funding foreseen for Ukraine under the Instrument for Pre-Accession Assistance and Horizon Europe.
Regarding Hungary, Parliament complains that the Commission did not request sufficient safeguards before lifting the suspension measures in exchange for the government’s endorsement of aid for Ukraine.
EU funds being used in a fraudulent or irregular way amounted to €1.77 billion in 2022 (down from €2.05 billion), a figure that MEPs consider extremely high.
Transparency of civil society organisations
In a separate resolution, adopted on Wednesday by 397 votes in favour, 134 against and 72 abstentions, MEPs highlight the shortcomings in transparency and accountability in the way certain NGOs are using EU funds. They raise concerns of EU funds being used to promote false narratives and disinformation, as allegedly happened on “Qatargate”.
They encourage the Member States to establish national lobby and transparency registry laws, which require to disclose the donors, including international ones, and sources of funding.
Finally, Parliament calls for all EU-funded beneficiaries, including NGOs, to publish online all meetings with MEPs, MEPs’ assistants or representatives of other EU institutions if those meetings relate to ongoing EU legislative files or to the EU financing.
