WRITTEN QUESTION E-1193/01

by Robert Goebbels (PSE) to the Commission

(19 April 2001)

Subject: Dependence of civil society organisations on Community funding

In December 2000, in an audit report on the CLONG, the liaison committee of development NGOs vis-à-vis the EU, doubts were expressed concerning the sound management of funds provided by the Commission.

The same report showed that the CLONG's past activities were financed as to 85 % by funds from the Community budget. One is entitled to wonder how objective are the opinions of a civil society body which is almost entirely dependent on the institution it is supposed to monitor critically.

Are there other civil society organisations (liaison committees, etc) receiving assistance from the Commission? Which ones? Are these organisations dependent to the same degree as the CLONG?

Answer given by Ms Schreyer on behalf of the Commission

(31 July 2001)

In Part A of the budget, various lines in Chapter A-30 finance organisations or projects which aim to promote the concept of the European civil society. At the end of May each year, the Commission sends to Parliament a report on these organisations, and in particular the level of co-financing. In line with the Remarks on Article A-302, A-303 and A-304, the Commission requires these organisations to be co-financed externally at the rate of 20 %.

In addition, a number of European level networks of non-governmental organisations receive funding on the basis of other lines in the Community budget, especially in the social field. This funding is provided on the basis that many such networks have experience and expertise in contributing to the development of European policies in particular by ensuring that the opinions of members of disadvantaged or discriminated groups are properly taken into account in their design, implementation and evaluation. Given the lack of alternative sources of funding for European level networks (as opposed to national level non-governmental organisations (NGOs), a contribution to the running costs of such networks can constitute a valuable asset in promoting effective social policy developments as this allows transnational exchange of information and best practice and thereby also contributes to the development of a truly European civil society.

Thus, on the basis of an amendment proposed by the Parliament (Cashman Report, A5-0259/2000, amendment 67) and accepted by the Commission and the Council, the Community Action Programme to combat discrimination (2001-2006) (Community Budget line B5-803) provides for the funding of the running costs of European networks of NGOs involved in the fight against discrimination up to a limit of 90 % of the total eligible costs. Such networks are required to compete for funds, with funding decisions being based both on the quality of their work programmes and their potential to contribute to policy development and on their ability to administer Community funds. Networks which receive Community subsidies are required to provide detailed accounts to the Commission on the use of the funds and are subject to regular audits.

Similarly, contributions are made to the running costs of network organisations dealing with the fight against Social Exclusion in the framework of the preparatory actions under Budget Line B3-4105.

Moreover, in its proposal of 26 July 2000 for recasting the Financial Regulation(1), the Commission proposed that the grants should be monitored. The proposal sets out in particular, the principles of co-financing and degressiveness which are designed precisely to reduce as far as possible the dependence of beneficiaries on Community funding (Articles 1 and 2). Exceptions to these principles should be possible under the legal basis or the budgetary Remarks for organisations whose purpose is of general European interest and international organisations.

With regard to the Honourable Member's question about future relations with the Liaison Committee of European Development NGOs (CLONG) (financed by line B7-6000, see page 1251 of the 2001 General Budget), it must be stated that Parliament itself wished to see a high level of co-financing. In September 2001, Parliament's Committee on Budgets introduced an amendment to the 2001 Budget increasing co-financing to 85 % which the Committee adopted. The Commission wanted to reduce co-financing for precisely the same reasons as those given by the Honourable Member. In a decision of 27 April 2001, the Commission, following an independent audit and in return for a reorganisation of CLONG's operational methods, waived part of the amount to be recovered from CLONG. However, one of the conditions for this waiver is that CLONG will prepare a plan to reduce the Community co-financing level of its operating costs to 70 % in 2004. The purpose is to reduce CLONG's dependence on Community financing and to increase its independence. The plan is expected in October 2001.

(1) COM(2000) 461 final.