Over the past months, environmental NGOs found themselves in the eye of a political storm. The legitimacy of their EU funding was questioned. The next biggest battle will be about preserving their funding from the EU multi-annual budget which risks being heavily skewed towards competitiveness and military spending. What does this shifting European political landscape reveal? And how can civil society respond effectively in the face of such hostility?
Today, over 100 leading academics signed an open letter calling for an end to the crackdown initiated by European politicians on their EU funding and stress their essential role in upholding democratic principles in policy-making. They also demand that the LIFE programme be maintained in the next EU multi-annual budget (MFF) and warn against the latest Commission proposal to subsume environmental priorities into a ‘’Competitiveness Fund.” A leaked draft suggests this would involve repealing the LIFE Programme altogether. Another group of scientists also called for a closing of the biodiversity funding gap in the next MFF.
NGOs under fire
Since November 2024, environmental NGOs in Brussels have been at the forefront of a carefully orchestrated scandal targeting their EU funding via the LIFE programme. This flagship EU fund has, for decades, supported environmental and climate action, including partial operating grants for NGOs working to facilitate democratic dialogue and policy engagement. Contrary to accusations, LIFE funding is subject to stringent transparency rules and legal scrutiny, as all grants are publicly disclosed and NGOs are obliged to meet strict criteria under EU financial regulation.
Nonetheless, the attacks, originating in the European Parliament’s Budgetary Control (CONT) Committee, quickly spread. They were spearheaded by members of the centre-right EPP group, alleging that the Commission was funding NGOs to act as its mouthpiece for the Green Deal. This narrative was soon weaponised by far-right actors and echoed in sensationalist media coverage.
A brief respite came in early May when the European Parliament voted down a key amendment threatening NGO funding. Yet the threats are far from over. On June 19th, the Conference of Presidents will vote on the conservative ECR group’s proposal to establish a committee of inquiry into NGO funding. Such a procedure is typically reserved for serious institutional wrongdoings. Its use here is both disproportionate and politically motivated.
Looking ahead, the next critical front for NGOs is the upcoming multi-annual EU budget (MFF) proposal, set for release on July 16th. Leaks indicate that climate and nature funding, including LIFE, could be undermined in favour of a sweeping new “Competitiveness Fund.” The risk is that social and environmental priorities will be deprioritised just as the EU enters a period of intensified geopolitical and ecological instability. More than 60 MEPs from across various EU political groups have signed a letter raising concern at this new proposal.
In parallel, the controversy around NGO funding reignited in Germany. Outlets like WELT and Tagesschau republished claims about “secret contracts” between the European Commission and NGOs such as ClientEarth and Friends of the Earth Europe (FoEE). The Commission, this time, responded more assertively, dismissing these claims and reiterating that all LIFE-funded NGO activities are legally compliant and transparent. Nonetheless, the accusations continue to spread such as via a new German group, Transparent Democracy, and politicians like Oliver Luksic.
The resurgence of these narratives, including in Brussels media via Euractiv and Euronews, appears timed to influence public opinion ahead of the Commission’s MFF announcement.
One wonders why such a disproportionate reaction when NGOs’ EU funding represents a fraction of the resources big oil and big tech are channelling towards EU political lobbying? Why wasting so much energy on the least powerful? The answer may lie in the failure of a liberal political project attempting to deflect attention to their inability to address real issues by targeting those least culpable.
A deeper malaise in the European project
President Trump’s bulldozer approach, heavily slashing civil society funding and restricting civic rights, may seem a world away from Europe. Yet disturbingly similar dynamics are unfolding here, as foundational democratic freedoms once taken for granted are increasingly under pressure. This new political reality reflects not just a backlash against progressive values, but a deeper malaise in our economic and political system.
What triggered it? For many, it is evident that the failures of neoliberal economic policies would start to bite back. The Gilets Jaunes movement in France was one sign of a crack in a system prioritising market-driven reforms and preserving capital at the expense of the working class. Covid-19 was another one. The reshuffling of the geopolitical order added further instability for the European project, which for decades aligned closely with the U.S. on trade and foreign policy.
While liberals in power saw their popularity dwindle in the last European elections – losing ground to the far right and parts of the radical left – they still cling to the same policy discourse that signalled their downfall. To admit that their policies have helped fuel today’s cost of living crisis – with one in five Europeans at risk of poverty and social exclusion – and contributed to the collapse of ecosystems would be to question the very foundation of their political project: profit-seeking based on the fallacy of economic growth.
This ideology’s fallback, when growth stalls, is austerity for the many and continued profits for the few. Public services are squeezed, while corporate interests remain protected. Addressing these crises effectively would require bold structural change: redistribution through wealth and profit taxation, the reorientation of our economies away from the primacy of markets, and the prioritisation of public governance structures and control over our public goods. But such proposals remain absent from the programmes of liberal forces in power.
Instead, the new mandate of the European Commission is centered on large-scale military investment, a competitiveness agenda that rolls back social and environmental safeguards, deep cuts to public budgets, tighter borders, and public guarantees for private markets. This agenda is not only economically shortsighted and socially-environmentally regressive, but it misidentifies security as a purely defense-related issue, when our most urgent threats are ecological and economic. And Europe remains dangerously unprepared to face them.
Building a common vision: forging new alliances
In the face of these converging crises, civil society’s role is more vital than ever. For decades, it has led efforts to sketch the contours of a fairer, more sustainable European economy. In 2023, thousands gathered in the European Parliament under the Beyond Growth banner to imagine an alternative future. Though political momentum for systemic change has waned, clinging to the European Commission’s competitiveness mantra – even under a “green” or “social label” – would be a mistake.
Our task is to put the real concerns of Europeans at the heart of policy-making: guarateeing access to essential needs like housing, clean energy, nutritious food, public transport and a healthy and safe environment. Besides, Europe is not an island. Its trade, migration and foreign policies must shift toward solidarity, cooperation, and justice – not toward exploitation, securitisation and isolation.
Civil society needs a renewed and unifying narrative – one that reflects the interconnected challenges and presents a compelling vision for change. Our advocacy must both engage policymakers with rigorous evidence and remain grounded in the lived experiences of communities, social movements, and ordinary people.
This moment demands more than resilience against the everyday attacks NGOs are being faced with. It calls for solidarity across civil society actors, including environmental, social and trade union organisations. The far-right thrives on division and fragmentation. Our strength lies in unity and by playing offense through shared messages, coordinated action, and unwavering demands for bold, systemic change.
This is not just a battle over NGO funding. It is a fight to defend democracy, peace, social cohesion and environmental protection, which should remain at the heart of the European project.
