As a consequence of the corruption cases in the European Parliament, the EPP demands stronger transparency rules for Non-Governmental Organizations (NGOs). Representatives of NGOs defend themselves – and speak of a “witch hunt”. Charlotte Wirth took a closer look at the cases of the NGOs involved in the corruption scandal, No Peace Without Justice and Fight Impunity. Her conclusion: The machinations did not go unnoticed because NGOs were at work, but because the EU Commission, the European Parliament and the Belgian authorities did not sufficiently monitor compliance with the applicable rules.
To have a say in the development of global ESG standards, a strong ecosystem in Europe and a “common language” is needed. Carole Sirou, director of the French ESG rating agency Ethifinance, is convinced of this. In an interview with Claire Stam, she explains why a European player is needed to counter the American rating giants.
Ecocide, i.e. massive damage to and destruction of ecosystems, is still not recognized in European law. Green MEP Marie Toussaint wants to change that. She is campaigning for ecocide to be enshrined in the EU directive on environmental crime. This is particularly about environmental damage in armed conflicts, such as currently in Russia’s war against Ukraine. Read more in Claire Stam’s column: What’s cooking in Brussels.
“The Kaili/Panzeri corruption case could have been prevented by sufficient transparency in NGOs,” Markus Pieper said on Monday in the plenary session of the European Parliament. The CDU politician has been calling for more disclosure requirements for years – in 2017 he was rapporteur of an own-initiative report on NGO transparency. But the EPP withdrew the report due to opposition from civil society as well as the left wing in the Parliament.
Because of Qatargate, the EPP is now reviving the demands from the report. These include:
But what actually are NGOs? The question is not easy to answer because there is no internationally recognized definition. In a special report from 2018, the European Court of Auditors refers to a communication from the EU Commission from 1997, according to which they are voluntary, formalized organizations that do not distribute profits, act independently of government authorities, and whose activities at least partially serve the common good.
Markus Pieper went further in his 2017 report, targeting organizations working in the fields of health, social policy, the environment or development aid. Pieper also made a clear distinction between NGOs and lobbying organizations. NGOs, he demanded, should only receive funding if they did not spread lies, their goals were compatible with the fundamental values of the EU, and they did not act against the “strategic, trade, and security policy goals” of the EU.
The NGO status of an organization cannot be derived from its legal form either. An NGO can, for example, be a registered association (e. V.), an “a.s.b.l.” (non-profit association) under Belgian law, or a foundation. Thus, in 2018, the Court of Auditors again held that “in most cases, eligibility for funding does not depend on NGO status“. And, “The EU budget does not distinguish between beneficiaries with NGO status and other beneficiaries”.
Concrete example: Pier Antonio Panzeri’s NGO Fight Impunity was registered as a.s.b.l. under Belgian law. This can be verified via the Belgian business register. Thus, it had the same status as several lobbying associations in Brussels: The industry association Business Europe, for example, is registered as a.s.b.l..
The registration documents of Fight Impunity can be found in the Belgian commercial register. Technically, the annual balance sheets of the NGO should also be available. According to Belgian law, small associations must file them annually with the Commercial Court and large associations with the National Bank. All a.s.b.l. are subject to the control of the Commercial Court and the Ministry of Justice.
Fight Impunity lacks any balance sheet documents, as a visit to the Commercial Court shows. Annual financial statements are also missing for another organization involved in cataracts, No Peace Without Justice (NPWJ). NPWJ was founded by Niccolo Figa Talamanca, the Italian accused of corruption and money laundering. No financial statements have ever been filed for any of his numerous organizations.
The European Commission should have noticed this. It paid out around €4 million to NPWJ in recent years. In doing so, it did not respect its own rules: According to the EU Financial Regulation, for “grants for an action of more than €750,000 or for operating costs of more than €100,000, beneficiaries must submit a report drawn up by an external auditor,” including certified balance sheets for the last (up to three) years. NPWJ received amounts of more than €2 million from the Commission twice. The absence of any balance sheets should not have escaped its attention.
Panzeri’s NGO Fight Impunity regularly cooperated with the European Parliament. The latter also failed to check whether the organization complied with its transparency obligation. The organization was not in the transparency register, although stakeholders must register there if they organize or participate in events in the Parliament.
And while the Commission publishes all grants to advocacy groups, including those to NPWJ, in its financial transparency register, the Parliament does not have to account for engagements below €15,000. The cooperation with Fight Impunity cannot be traced anywhere.
If Panzeri’s bogus organization had been in the EU transparency register, it would also have had to disclose its donors. This is already mandatory for NGOs. It is, above all, the inadequate controls of the European institutions that led to Fight Impunity falling through the cracks.
The Court of Audit already pointed out similar shortcomings in 2018: It criticized the fact that the selection procedures for grants to NGOs were not always transparent and that it was not always possible to trace how the funding to NGOs was used.
What’s more: beneficiaries of EU funding who violate the Financial Regulation must actually be in a publicly accessible register called EDES. Only four entities are listed there. NPWJ is not among them until today.
It stands to reason that it was not the NGO status but the legal form of Fight Impunity that facilitated Panzeri’s machinations. Non-profit associations are poorly controlled in Belgium, explains whistleblower Claude Archer of Transparencia Belgium: “A.s.b.l. are the preferred tool for public and private structures to engage in corruption and money laundering.” The balance sheets and minutes of general meetings are not available online, he says, so people have to go to the commercial court and pay for more expensive copies to see the accounts. “Inspections by Belgian authorities are also very rare and poorly executed.”
Indeed, there are numerous examples in which Belgian a.s.b.l. have been abused. One of them is Azerigate: In 2017, two Council of Europe deputies used a Belgian election monitoring association to launder Azerbaijani bribes. German MPs Karin Strenz (CDU) and Eduard Lintner (CSU) were also implicated in the affair.
“The EPP may be right in saying that NGOs have a lot of influence in the Brussels bubble,” says John Dalhuisen of the European Stability Initiative, which uncovered Azerigate. “However, she is wrong when she claims that they are particularly vulnerable to corruption. What went wrong with Qatargate was that Parliament and the Commission didn’t enforce their own rules.”
While the EPP wants to put its transparency demands only on non-governmental organizations, the latter demand stricter rules for all stakeholders, whether they are NGOs or other interest groups. “It is a witch hunt against NGOs. The EPP is now instrumentalizing cataracts to further restrict civil society’s scope of action,” says Alberto Alemanno of The Good Lobby.
As SPD MEP René Ripasi put it on Monday, “It takes two to tango. We must consistently reject any influence.”
Movement in the silent world of green finance: At a stage when US corporations were buying up European ESG rating “nuggets,” Europeans are responding with their own activities. In February 2022, for example, Ethifinance was founded after the French company Qivalio, acquired Axesor Rating, Spain’s No. 1 credit rating company.
The goal is to become a “leading European player in research, advisory and integrated financial and ESG rating,” Ethifinance Director Carole Sirou said in an interview with Table.Media in Paris.
Carole Sirou, who had spent some thirty years at Standard & Poor’s Ratings, was hired four months after Ethifinance’s launch. Her task is to accelerate the development of this player that wants to be in the league of the big players in the field of ESG ratings while remaining independent.
A French national, she brings great knowledge of the US financial and ESG markets: She joined Standard & Poor’s Ratings in 1990 and became successively president of S&P France and head of French-speaking Europe and Africa. She then headed the six European offices before being transferred to New York in 2014 to implement the new CRA regulations. Between 2016 and 2018, she held various risk and compliance leadership positions within S&P Global Inc.
To have a say in the development of global ESG standards, Carole Sirou is convinced that a strong ecosystem is needed in Europe. For example, European investors and European agents need to be able to read European-produced analysis on companies in Europe, “which is difficult today.” That’s because currently, in the European ESG market, “there are no common tools, no common ‘language’ that allows Europe to analyze its own economic fabric, be it from a financial or non-financial point of view,” she says. To be able to develop a common language, she explains, you first have to find the points of convergence.
This is all the more true, she says, because there is “a very strong divergence of views” between ESG players from the US and Europe, especially on “the environmental and social aspects.” The director of Ethifinance even speaks of a “clash” between the two economic areas in this context. “It seems crucial and vital for us to defend a certain model, a certain way of thinking about economics and finance.”
In this context, Carole Sirou points out that the European market for ESG data is currently being structured, mainly through EFRAG‘s work on sustainability reporting standards and the implementation of the European taxonomy. “The European market for analysis is constantly improving and accelerating strongly, as there is an ever-increasing demand for quantity and quality, which we are trying to meet as best we can,” she stresses.
Ethifinance first plans to expand its activities in Southern Europe (France, Spain, Portugal). Then the company wants to turn to the Scandinavian countries and Germany, a market considered “inevitable” because of its economic weight, its potential – and its connections with France. The group aims to cover 2,300 companies by the fall. It focuses mainly on SMEs with a market capitalization of €150 million to €10 billion.
The sustainable finance expert sees this expansion as “a first important step towards building a European dual materiality agency” that could play a leading role in Europe. “To analyze a company from an ESG perspective, you need to look not only at the impact of the environment on the company, but also the impact of the company on its environment,” says Carole Sirou.
“This is one of the main points that differentiate us from our American competitors,” she adds. This strategy makes it possible to “establish a link between the concept of impact and the sustainable development goals,” she explains. The Ethifinance director points to the example of the fires in California. Much of it, she says, was caused by the national operator’s failure to maintain this infrastructure.
The decarbonization of companies is Ethifinance’s other strategic pillar. Even if the climate issue “remains central,” the director calls declining biodiversity an “inevitable” issue to which answers must be found. “We are convinced that the financial sector has a role to play in implementing environmental and energy change,” Carole Sirou continues, adding that through financing and investment, finance can “bring about behavioral change.”
Feb. 20, 2023; 9:30 a.m.
Council of the EU: Foreign Affairs
Topics: Exchange of views on Russian aggression against Ukraine, exchange of views on Afghanistan, exchange of views on climate and energy diplomacy. Provisional agenda
Feb. 21, 2023; 10 a.m.
Council of the EU: General Affairs
Topics: Preparation for the European Council meeting on March 23-24, 2023. Provisional agenda
Feb. 22, 2023
Weekly commission meeting
Topics: Orientation debate on competitiveness (follow-up to the European Council meeting). Provisional agenda
The Commission intends to present its proposal for an Independent Ethics Authority in March. This was announced by EU Commissioner Věra Jourová in the European Parliament. The Brussels authority is responding to the corruption scandal known as Qatargate, which has rocked the Parliament since December and damaged trust in the EU.
MEPs welcomed the move, but called for more speed and greater ambition. Commission President Ursula von der Leyen had promised proper enforcement of ethics rules and independent oversight as early as 2019, said Daniel Freund (Greens), the Parliament’s rapporteur. But she has not delivered so far.
If the bill comes in March as announced, negotiations with the Parliament would have to be concluded before the summer break, according to the resolution adopted on Thursday. The new authority should play a key role in the protection of whistleblowers and work closely with other EU authorities such as OLAF or the European Public Prosecutor’s Office.
In another resolution, MEPs call for better implementation of the existing Code of Conduct in EU institutions. The list of penalties must be expanded, and there must also be fines for violations. Expensive luxury trips to distant countries at the expense of the hosts should no longer be allowed, they say, alluding to past invitations from Qatar.
Qatargate has shown that a single misstep can be enough to discredit the EU, said Stéphane Séjourné, leader of the liberal Renew Group. An independent ethics authority is the “answer to these unacceptable missteps,” he said. At stake is “one of the most important anti-corruption measures in the EU institutions,” Daniel Freund added.
However, the Commission’s announcements are still vague. Jourová did commit herself to common and high ethical standards in all institutions. However, she let it be known that the Commission does not want to replace the current self-regulation of politicians with independent experts. In doing so, she would fall short of the demands of the Parliament, Freund warns. ebo
Following the vote on a resolution on competitiveness, representatives of the other political groups have sharply criticized EPP Group leader Manfred Weber. The negotiator for the liberal Renew Group in the European Parliament, Valérie Hayer, described the adoption of the text as a “major defeat” for Weber. He had tried to inflict a defeat on Commission President Ursula von der Leyen at the expense of domestic industry.
The resolution was adopted yesterday with votes from Social Democrats, Liberals, Greens and Left. 78 Christian Democrat deputies voted against the resolution, 38 in favor, and 22 abstained, as requested by the group’s leadership. “The final text had good aspects, but these were obscured by Green and Red rhetoric,” said Christian Ehler (CDU), the EPP Group’s industrial policy spokesman, explaining the decision. As reported, the rejection had also caused intense discussions in the EPP Group meeting on Wednesday evening.
In the resolution, the Parliament advocates, among other things, taking action against certain regulations in the US Inflation Reduction Act before the World Trade Organization if necessary. It also advocates more flexible state aid rules and faster approval procedures for renewable energy projects. For the European Sovereignty Fund announced by the Commission, the text calls for a needs analysis.
In the other groups, the voting behavior of the Christian Democrats is seen as part of a power struggle between Weber and von der Leyen. The CDU politician presented her response to the US Inflation Reduction Act at the beginning of February, and many of the elements are taken up in the EP resolution.
Weber, however, was not even followed by his own parliamentary group, Hayer said. “No one will follow a group leader anymore who puts his own political interests above those of the industry, of Europeans,” she wrote on Twitter.
In an interview at the end of January, Weber had described von der Leyen and Parliament Speaker Roberta Metsola both as “excellent top candidates”. Many party friends accuse the EPP leader of having thereby de facto declared a competition between the two Christian Democratic politicians more than a year before the election and of creating unnecessary unrest.
Weber justified himself internally by pointing out that von der Leyen was controversial in parts of the party: She lacked a clear Christian Democratic profile on core issues such as migration or industrial policy. Even CDU and CSU parliamentarians who are critical of von der Leyen concede, however: The Commission President would be the EPP’s top candidate if she were willing. The 64-year-old has not yet decided whether she will seek a second term. tho
Bundesbank (German Federal Bank) President Joachim Nagel does not think it would be a good idea for Europe to engage in a subsidy race with the United States on green technologies. “Europe can also become more attractive as a location through a deepened internal market,” Nagel said at his Europe Lecture at the German Institute for Economic Research in Berlin. So far, he said, the EU is far from fully utilizing the potential of the single market. The Bundesbank President sees a need for expansion, for example, in the area of trade in services, in the Capital Markets Union and in the digital sphere.
In the discussion about new subsidies, Nagel pointed out what was already available in terms of funding: The EU’s NextGenerationEU program, for example, could allocate a total of €800 billion by 2027. More than a third of this is to flow into the green transition. In addition, there would be around €100 billion in EU cohesion spending for the years 2021 to 2027. By way of comparison, the Inflation Reduction Act (IRA) in the USA has a volume of $369 billion until 2032.
In strengthening the single market, it is important “that the state keeps up with the pace of digital change,” Nagel said. This is what citizens and businesses also expect when dealing with public administration. “Public authorities should offer their information and services as completely online as possible,” he demanded.
Nagel also sees financial services as an industry with strategic importance. “On the one hand, for the future development of the European financial industry; on the other, for European sovereignty in an increasingly global, digital world.” However, he said, there is no single, pan-European solution built on European infrastructure. “This creates dependencies in an area that counts as critical infrastructure,” Nagel warned. “Europe should also be able to stand on its own two feet here.”
The digital euro project could make a contribution to this. The decision has not yet been made. Should the digital euro come about, it could contribute to efficiency gains and reduce dependencies. “It would increase European sovereignty,” Nagel said. And in the longer term, it could drive innovative business processes in the European economy. vis
During his visit to the Federal Institute for Geosciences and Natural Resources (BGR) in Hanover yesterday, Chancellor Olaf Scholz emphasized the importance of closer coordination of raw materials strategies between Germany and Japan. He said the German government wants to work closely with Japan in the area of the supply of strategically important raw materials.
“When we have our government consultations, it will be about raw material security and linking our different strategies on this issue,” Scholz said. He said it was important to act in close coordination with the European Union and to make cooperation credible.
The government consultations between the two countries are to take place this year for the first time and regularly thereafter. Scholz announced this during his visit to Tokyo last April together with Japanese Prime Minister Fumio Kishida.
Japan has been pursuing an active raw materials strategy for some time and is often cited as a role model in the course of preparing a German and European raw materials strategy. In a joint non-paper in the Council, Germany and France proposed the establishment of an EU authority similar to the state raw materials agency Japan Oil, Gas and Metals National Corporation (JOGMEC). JOGMEC coordinates with companies on raw material requirements for crisis situations, purchasing and storage. It also explores new raw material deposits in order to sell the licenses to Japanese companies. leo
Italy wants to soften the EU’s plans for a phase-out of new gasoline and diesel vehicles from 2035, according to Foreign Minister Antonio Tajani. Instead of reducing CO2 emissions from new cars with combustion engines by 100 percent in twelve years, as planned by the EU, it should only be 90 percent, Tajani was quoted as saying by “Corriere della Sera” on Thursday.
Italy will submit a corresponding counter-proposal. This should give the industry the opportunity to adapt, he said. “I am a great supporter of the electric car, but ambitious targets must be achieved in reality, not just on paper,” Tajani said. “We need to protect our car industry.”
The auto industry in Italy, which is largely focused on traditional internal combustion technology, directly or indirectly employs more than 270,000 people and accounts for more than five percent of gross domestic product, according to the industry association Anfia. According to the report, sales of all-electric cars fell by 27 percent in Italy last year, accounting for just 3.7 percent of total new registrations. rtr
Several human rights organizations have spoken out against the resumption of the human rights dialogue between China and the EU. It should remain suspended until the conditions for “tangible results and progress” are met, the organizations wrote in an open letter to EU Foreign Affairs Chief Josep Borrell. The EU and China plan to meet again on Friday for a human rights dialogue for the first time in four years. The dialogues had been suspended since 2019.
Signatories to the open letter include Amnesty International, Human Rights Watch and the World Uyghur Congress. “The eagerness to resume these dialogues despite their proven ineffectiveness may signal that the EU is willing to put human rights aside to secure closer trade ties and cooperation with Beijing,” said Philippe Dam, EU director at Human Rights Watch. There is no prospect of concrete progress in the dialogue, he said.
Meanwhile, human rights organizations called for the EU to commit to following up on the UN report on the situation in Xinjiang. In addition, Brussels and member states should advocate for a regular monitoring and reporting process at the UN Human Rights Council. The EU should also publicly call for an end to “China’s repression in Xinjiang, Tibet, and Hong Kong, and the release of arbitrarily detained human rights defenders and activists” and sanction those responsible. ari
A new, pro-European government has been sworn in in the Republic of Moldova. The parliament in Chişinău voted on Thursday with 62 of the 101 votes for Dorin Recean as the new head of government. Earlier, the 48-year-old presented his government’s guidelines. “We want to live in a secure world, where international treaties are respected, where problems between states are solved through dialogue, where small states are respected,” the government program reads, referring to the Russian invasion of Ukraine.
The former Soviet republic borders western Ukraine. Similar to the neighboring country, Transnistria, a part of Moldova that is dominated by pro-Russian separatists and where Russian soldiers are stationed, has also seceded. Since the start of the Russian invasion of Ukraine, fears have grown in Chişinău that Russia wants to destabilize the country. President Maia Sandu on Monday accused Russia of planning a coup. The government in Moscow rejected the accusations.
A week ago, Prime Minister Natalia Gavrilița resigned after only 18 months in office against the backdrop of economic turmoil. There had been several protests against inflation-related price increases. Energy costs and higher food prices were the main factors affecting the country’s approximately 2.5 million inhabitants. The country is dependent on Russian gas supplies. In addition, there is a wave of refugees from Ukraine.
Because of the tense economic situation, President Sandu had asked allies for help at the World Economic Summit in Davos in January. Last November, Germany provided the country with around €30 million to avoid an energy crisis in the winter.
One of the main tasks of the new Prime Minister Recean will be to push ahead with EU accession. The former interior minister has already pushed through various reforms that have brought Moldova closer to European standards. Nevertheless, it will be years before Moldova is ready to join the EU. Recean has promised strong and transparent authorities and an economic environment that promotes competition. rtr
Ecocide is broadly defined as massive damage to and destruction of ecosystems – that is, widespread or long-term serious damage to nature.
“When I came to the European Parliament in 2019, the concept was completely unknown to the European institutions,” says French MEP Marie Toussaint, who is taking the ecocide fight to Brussels. In the meantime, she says, “things have moved quickly,” thanks to the persistent work of numerous lawyers, advocates, judges and academics, as well as the increasing mobilization of civil society. “Today, the recognition of ecocide could well be recognized in the Environmental Crimes Directive, which is currently being revised,” she says.
Toussaint is referring to a proposal she is introducing on behalf of her group – which is about enshrining ecocide in the Environmental Crime Directive. The Greens base this on the definition of the Stop Ecocide Foundation, which describes ecocide as “unlawful or indiscriminate acts committed with the knowledge that there is a substantial likelihood of serious and either widespread or long-term damage to the environment (…)”.
Toussaint’s initiative specifically addresses environmental damage in armed conflicts, such as Russia’s current war against Ukraine. As a result of Russian attacks, Ukraine has suffered great environmental damage in many ways: Forests have been destroyed, agricultural fields ruined, and rivers polluted.
The prospects that the bill will be passed by the Parliament are good: there is currently no veto from the European Parliament. Four out of five committees (PETI, DEVE, LIBE and ENVI) that were supposed to give their opinion on the Environmental Crime Directive have already supported the recognition of ecocide and also follow the definition of the Stop Ecocide Foundation.
The last parliamentary committee, the Legal Affairs Committee, which is responsible for the dossier, is expected to give its opinion at the end of March – “negotiations are still underway.” The vote in plenary will then take place in April and “we are confident that the European Parliament will officially support the inclusion of ecocide in the law there,” says Toussaint.
However, the negotiations will not end there, as the text will then be discussed in trilogue with the Commission and the European Council. “The Commission had not included recognition of this crime in its original proposal, but is increasingly using the term in its communications.”
The member states will probably be the most difficult to convince, “but with a strong position of the Parliament, everything is possible”. In this context, Marie Toussaint emphasizes that the situation in the member states is different:
So does this mean that Ukraine can sue Russia for environmental crimes? Marie Toussaint points out that both Ukraine and Russia have recognized the crime of ecocide. But the question arises as to which courts can even deal with this crime.
“For this to happen, the crime of ecocide must be recognized internationally,” says the MEP. It is true that the Rome Statute of the International Criminal Court contains an article on war crimes that explicitly deals with environmental protection. But it is complicated to invoke, she says, and it has never been used by the ICC. That’s why they are fighting to have the crime of ecocide recognized in the Rome Statute, in both wartime and peacetime, Toussaint says.
At the last General Assembly of the ICC, the recognition of ecocide had been an important topic of discussion. In the context of the war in Ukraine, he says, the Parliamentary Assembly of the Council of Europe called for its urgent recognition. “Overall, we are seeing a real upsurge for ecocide recognition,” Toussaint says. It is urgent, she explained, “because the survival of humanity is at stake.”
As a consequence of the corruption cases in the European Parliament, the EPP demands stronger transparency rules for Non-Governmental Organizations (NGOs). Representatives of NGOs defend themselves – and speak of a “witch hunt”. Charlotte Wirth took a closer look at the cases of the NGOs involved in the corruption scandal, No Peace Without Justice and Fight Impunity. Her conclusion: The machinations did not go unnoticed because NGOs were at work, but because the EU Commission, the European Parliament and the Belgian authorities did not sufficiently monitor compliance with the applicable rules.
To have a say in the development of global ESG standards, a strong ecosystem in Europe and a “common language” is needed. Carole Sirou, director of the French ESG rating agency Ethifinance, is convinced of this. In an interview with Claire Stam, she explains why a European player is needed to counter the American rating giants.
Ecocide, i.e. massive damage to and destruction of ecosystems, is still not recognized in European law. Green MEP Marie Toussaint wants to change that. She is campaigning for ecocide to be enshrined in the EU directive on environmental crime. This is particularly about environmental damage in armed conflicts, such as currently in Russia’s war against Ukraine. Read more in Claire Stam’s column: What’s cooking in Brussels.
“The Kaili/Panzeri corruption case could have been prevented by sufficient transparency in NGOs,” Markus Pieper said on Monday in the plenary session of the European Parliament. The CDU politician has been calling for more disclosure requirements for years – in 2017 he was rapporteur of an own-initiative report on NGO transparency. But the EPP withdrew the report due to opposition from civil society as well as the left wing in the Parliament.
Because of Qatargate, the EPP is now reviving the demands from the report. These include:
But what actually are NGOs? The question is not easy to answer because there is no internationally recognized definition. In a special report from 2018, the European Court of Auditors refers to a communication from the EU Commission from 1997, according to which they are voluntary, formalized organizations that do not distribute profits, act independently of government authorities, and whose activities at least partially serve the common good.
Markus Pieper went further in his 2017 report, targeting organizations working in the fields of health, social policy, the environment or development aid. Pieper also made a clear distinction between NGOs and lobbying organizations. NGOs, he demanded, should only receive funding if they did not spread lies, their goals were compatible with the fundamental values of the EU, and they did not act against the “strategic, trade, and security policy goals” of the EU.
The NGO status of an organization cannot be derived from its legal form either. An NGO can, for example, be a registered association (e. V.), an “a.s.b.l.” (non-profit association) under Belgian law, or a foundation. Thus, in 2018, the Court of Auditors again held that “in most cases, eligibility for funding does not depend on NGO status“. And, “The EU budget does not distinguish between beneficiaries with NGO status and other beneficiaries”.
Concrete example: Pier Antonio Panzeri’s NGO Fight Impunity was registered as a.s.b.l. under Belgian law. This can be verified via the Belgian business register. Thus, it had the same status as several lobbying associations in Brussels: The industry association Business Europe, for example, is registered as a.s.b.l..
The registration documents of Fight Impunity can be found in the Belgian commercial register. Technically, the annual balance sheets of the NGO should also be available. According to Belgian law, small associations must file them annually with the Commercial Court and large associations with the National Bank. All a.s.b.l. are subject to the control of the Commercial Court and the Ministry of Justice.
Fight Impunity lacks any balance sheet documents, as a visit to the Commercial Court shows. Annual financial statements are also missing for another organization involved in cataracts, No Peace Without Justice (NPWJ). NPWJ was founded by Niccolo Figa Talamanca, the Italian accused of corruption and money laundering. No financial statements have ever been filed for any of his numerous organizations.
The European Commission should have noticed this. It paid out around €4 million to NPWJ in recent years. In doing so, it did not respect its own rules: According to the EU Financial Regulation, for “grants for an action of more than €750,000 or for operating costs of more than €100,000, beneficiaries must submit a report drawn up by an external auditor,” including certified balance sheets for the last (up to three) years. NPWJ received amounts of more than €2 million from the Commission twice. The absence of any balance sheets should not have escaped its attention.
Panzeri’s NGO Fight Impunity regularly cooperated with the European Parliament. The latter also failed to check whether the organization complied with its transparency obligation. The organization was not in the transparency register, although stakeholders must register there if they organize or participate in events in the Parliament.
And while the Commission publishes all grants to advocacy groups, including those to NPWJ, in its financial transparency register, the Parliament does not have to account for engagements below €15,000. The cooperation with Fight Impunity cannot be traced anywhere.
If Panzeri’s bogus organization had been in the EU transparency register, it would also have had to disclose its donors. This is already mandatory for NGOs. It is, above all, the inadequate controls of the European institutions that led to Fight Impunity falling through the cracks.
The Court of Audit already pointed out similar shortcomings in 2018: It criticized the fact that the selection procedures for grants to NGOs were not always transparent and that it was not always possible to trace how the funding to NGOs was used.
What’s more: beneficiaries of EU funding who violate the Financial Regulation must actually be in a publicly accessible register called EDES. Only four entities are listed there. NPWJ is not among them until today.
It stands to reason that it was not the NGO status but the legal form of Fight Impunity that facilitated Panzeri’s machinations. Non-profit associations are poorly controlled in Belgium, explains whistleblower Claude Archer of Transparencia Belgium: “A.s.b.l. are the preferred tool for public and private structures to engage in corruption and money laundering.” The balance sheets and minutes of general meetings are not available online, he says, so people have to go to the commercial court and pay for more expensive copies to see the accounts. “Inspections by Belgian authorities are also very rare and poorly executed.”
Indeed, there are numerous examples in which Belgian a.s.b.l. have been abused. One of them is Azerigate: In 2017, two Council of Europe deputies used a Belgian election monitoring association to launder Azerbaijani bribes. German MPs Karin Strenz (CDU) and Eduard Lintner (CSU) were also implicated in the affair.
“The EPP may be right in saying that NGOs have a lot of influence in the Brussels bubble,” says John Dalhuisen of the European Stability Initiative, which uncovered Azerigate. “However, she is wrong when she claims that they are particularly vulnerable to corruption. What went wrong with Qatargate was that Parliament and the Commission didn’t enforce their own rules.”
While the EPP wants to put its transparency demands only on non-governmental organizations, the latter demand stricter rules for all stakeholders, whether they are NGOs or other interest groups. “It is a witch hunt against NGOs. The EPP is now instrumentalizing cataracts to further restrict civil society’s scope of action,” says Alberto Alemanno of The Good Lobby.
As SPD MEP René Ripasi put it on Monday, “It takes two to tango. We must consistently reject any influence.”
Movement in the silent world of green finance: At a stage when US corporations were buying up European ESG rating “nuggets,” Europeans are responding with their own activities. In February 2022, for example, Ethifinance was founded after the French company Qivalio, acquired Axesor Rating, Spain’s No. 1 credit rating company.
The goal is to become a “leading European player in research, advisory and integrated financial and ESG rating,” Ethifinance Director Carole Sirou said in an interview with Table.Media in Paris.
Carole Sirou, who had spent some thirty years at Standard & Poor’s Ratings, was hired four months after Ethifinance’s launch. Her task is to accelerate the development of this player that wants to be in the league of the big players in the field of ESG ratings while remaining independent.
A French national, she brings great knowledge of the US financial and ESG markets: She joined Standard & Poor’s Ratings in 1990 and became successively president of S&P France and head of French-speaking Europe and Africa. She then headed the six European offices before being transferred to New York in 2014 to implement the new CRA regulations. Between 2016 and 2018, she held various risk and compliance leadership positions within S&P Global Inc.
To have a say in the development of global ESG standards, Carole Sirou is convinced that a strong ecosystem is needed in Europe. For example, European investors and European agents need to be able to read European-produced analysis on companies in Europe, “which is difficult today.” That’s because currently, in the European ESG market, “there are no common tools, no common ‘language’ that allows Europe to analyze its own economic fabric, be it from a financial or non-financial point of view,” she says. To be able to develop a common language, she explains, you first have to find the points of convergence.
This is all the more true, she says, because there is “a very strong divergence of views” between ESG players from the US and Europe, especially on “the environmental and social aspects.” The director of Ethifinance even speaks of a “clash” between the two economic areas in this context. “It seems crucial and vital for us to defend a certain model, a certain way of thinking about economics and finance.”
In this context, Carole Sirou points out that the European market for ESG data is currently being structured, mainly through EFRAG‘s work on sustainability reporting standards and the implementation of the European taxonomy. “The European market for analysis is constantly improving and accelerating strongly, as there is an ever-increasing demand for quantity and quality, which we are trying to meet as best we can,” she stresses.
Ethifinance first plans to expand its activities in Southern Europe (France, Spain, Portugal). Then the company wants to turn to the Scandinavian countries and Germany, a market considered “inevitable” because of its economic weight, its potential – and its connections with France. The group aims to cover 2,300 companies by the fall. It focuses mainly on SMEs with a market capitalization of €150 million to €10 billion.
The sustainable finance expert sees this expansion as “a first important step towards building a European dual materiality agency” that could play a leading role in Europe. “To analyze a company from an ESG perspective, you need to look not only at the impact of the environment on the company, but also the impact of the company on its environment,” says Carole Sirou.
“This is one of the main points that differentiate us from our American competitors,” she adds. This strategy makes it possible to “establish a link between the concept of impact and the sustainable development goals,” she explains. The Ethifinance director points to the example of the fires in California. Much of it, she says, was caused by the national operator’s failure to maintain this infrastructure.
The decarbonization of companies is Ethifinance’s other strategic pillar. Even if the climate issue “remains central,” the director calls declining biodiversity an “inevitable” issue to which answers must be found. “We are convinced that the financial sector has a role to play in implementing environmental and energy change,” Carole Sirou continues, adding that through financing and investment, finance can “bring about behavioral change.”
Feb. 20, 2023; 9:30 a.m.
Council of the EU: Foreign Affairs
Topics: Exchange of views on Russian aggression against Ukraine, exchange of views on Afghanistan, exchange of views on climate and energy diplomacy. Provisional agenda
Feb. 21, 2023; 10 a.m.
Council of the EU: General Affairs
Topics: Preparation for the European Council meeting on March 23-24, 2023. Provisional agenda
Feb. 22, 2023
Weekly commission meeting
Topics: Orientation debate on competitiveness (follow-up to the European Council meeting). Provisional agenda
The Commission intends to present its proposal for an Independent Ethics Authority in March. This was announced by EU Commissioner Věra Jourová in the European Parliament. The Brussels authority is responding to the corruption scandal known as Qatargate, which has rocked the Parliament since December and damaged trust in the EU.
MEPs welcomed the move, but called for more speed and greater ambition. Commission President Ursula von der Leyen had promised proper enforcement of ethics rules and independent oversight as early as 2019, said Daniel Freund (Greens), the Parliament’s rapporteur. But she has not delivered so far.
If the bill comes in March as announced, negotiations with the Parliament would have to be concluded before the summer break, according to the resolution adopted on Thursday. The new authority should play a key role in the protection of whistleblowers and work closely with other EU authorities such as OLAF or the European Public Prosecutor’s Office.
In another resolution, MEPs call for better implementation of the existing Code of Conduct in EU institutions. The list of penalties must be expanded, and there must also be fines for violations. Expensive luxury trips to distant countries at the expense of the hosts should no longer be allowed, they say, alluding to past invitations from Qatar.
Qatargate has shown that a single misstep can be enough to discredit the EU, said Stéphane Séjourné, leader of the liberal Renew Group. An independent ethics authority is the “answer to these unacceptable missteps,” he said. At stake is “one of the most important anti-corruption measures in the EU institutions,” Daniel Freund added.
However, the Commission’s announcements are still vague. Jourová did commit herself to common and high ethical standards in all institutions. However, she let it be known that the Commission does not want to replace the current self-regulation of politicians with independent experts. In doing so, she would fall short of the demands of the Parliament, Freund warns. ebo
Following the vote on a resolution on competitiveness, representatives of the other political groups have sharply criticized EPP Group leader Manfred Weber. The negotiator for the liberal Renew Group in the European Parliament, Valérie Hayer, described the adoption of the text as a “major defeat” for Weber. He had tried to inflict a defeat on Commission President Ursula von der Leyen at the expense of domestic industry.
The resolution was adopted yesterday with votes from Social Democrats, Liberals, Greens and Left. 78 Christian Democrat deputies voted against the resolution, 38 in favor, and 22 abstained, as requested by the group’s leadership. “The final text had good aspects, but these were obscured by Green and Red rhetoric,” said Christian Ehler (CDU), the EPP Group’s industrial policy spokesman, explaining the decision. As reported, the rejection had also caused intense discussions in the EPP Group meeting on Wednesday evening.
In the resolution, the Parliament advocates, among other things, taking action against certain regulations in the US Inflation Reduction Act before the World Trade Organization if necessary. It also advocates more flexible state aid rules and faster approval procedures for renewable energy projects. For the European Sovereignty Fund announced by the Commission, the text calls for a needs analysis.
In the other groups, the voting behavior of the Christian Democrats is seen as part of a power struggle between Weber and von der Leyen. The CDU politician presented her response to the US Inflation Reduction Act at the beginning of February, and many of the elements are taken up in the EP resolution.
Weber, however, was not even followed by his own parliamentary group, Hayer said. “No one will follow a group leader anymore who puts his own political interests above those of the industry, of Europeans,” she wrote on Twitter.
In an interview at the end of January, Weber had described von der Leyen and Parliament Speaker Roberta Metsola both as “excellent top candidates”. Many party friends accuse the EPP leader of having thereby de facto declared a competition between the two Christian Democratic politicians more than a year before the election and of creating unnecessary unrest.
Weber justified himself internally by pointing out that von der Leyen was controversial in parts of the party: She lacked a clear Christian Democratic profile on core issues such as migration or industrial policy. Even CDU and CSU parliamentarians who are critical of von der Leyen concede, however: The Commission President would be the EPP’s top candidate if she were willing. The 64-year-old has not yet decided whether she will seek a second term. tho
Bundesbank (German Federal Bank) President Joachim Nagel does not think it would be a good idea for Europe to engage in a subsidy race with the United States on green technologies. “Europe can also become more attractive as a location through a deepened internal market,” Nagel said at his Europe Lecture at the German Institute for Economic Research in Berlin. So far, he said, the EU is far from fully utilizing the potential of the single market. The Bundesbank President sees a need for expansion, for example, in the area of trade in services, in the Capital Markets Union and in the digital sphere.
In the discussion about new subsidies, Nagel pointed out what was already available in terms of funding: The EU’s NextGenerationEU program, for example, could allocate a total of €800 billion by 2027. More than a third of this is to flow into the green transition. In addition, there would be around €100 billion in EU cohesion spending for the years 2021 to 2027. By way of comparison, the Inflation Reduction Act (IRA) in the USA has a volume of $369 billion until 2032.
In strengthening the single market, it is important “that the state keeps up with the pace of digital change,” Nagel said. This is what citizens and businesses also expect when dealing with public administration. “Public authorities should offer their information and services as completely online as possible,” he demanded.
Nagel also sees financial services as an industry with strategic importance. “On the one hand, for the future development of the European financial industry; on the other, for European sovereignty in an increasingly global, digital world.” However, he said, there is no single, pan-European solution built on European infrastructure. “This creates dependencies in an area that counts as critical infrastructure,” Nagel warned. “Europe should also be able to stand on its own two feet here.”
The digital euro project could make a contribution to this. The decision has not yet been made. Should the digital euro come about, it could contribute to efficiency gains and reduce dependencies. “It would increase European sovereignty,” Nagel said. And in the longer term, it could drive innovative business processes in the European economy. vis
During his visit to the Federal Institute for Geosciences and Natural Resources (BGR) in Hanover yesterday, Chancellor Olaf Scholz emphasized the importance of closer coordination of raw materials strategies between Germany and Japan. He said the German government wants to work closely with Japan in the area of the supply of strategically important raw materials.
“When we have our government consultations, it will be about raw material security and linking our different strategies on this issue,” Scholz said. He said it was important to act in close coordination with the European Union and to make cooperation credible.
The government consultations between the two countries are to take place this year for the first time and regularly thereafter. Scholz announced this during his visit to Tokyo last April together with Japanese Prime Minister Fumio Kishida.
Japan has been pursuing an active raw materials strategy for some time and is often cited as a role model in the course of preparing a German and European raw materials strategy. In a joint non-paper in the Council, Germany and France proposed the establishment of an EU authority similar to the state raw materials agency Japan Oil, Gas and Metals National Corporation (JOGMEC). JOGMEC coordinates with companies on raw material requirements for crisis situations, purchasing and storage. It also explores new raw material deposits in order to sell the licenses to Japanese companies. leo
Italy wants to soften the EU’s plans for a phase-out of new gasoline and diesel vehicles from 2035, according to Foreign Minister Antonio Tajani. Instead of reducing CO2 emissions from new cars with combustion engines by 100 percent in twelve years, as planned by the EU, it should only be 90 percent, Tajani was quoted as saying by “Corriere della Sera” on Thursday.
Italy will submit a corresponding counter-proposal. This should give the industry the opportunity to adapt, he said. “I am a great supporter of the electric car, but ambitious targets must be achieved in reality, not just on paper,” Tajani said. “We need to protect our car industry.”
The auto industry in Italy, which is largely focused on traditional internal combustion technology, directly or indirectly employs more than 270,000 people and accounts for more than five percent of gross domestic product, according to the industry association Anfia. According to the report, sales of all-electric cars fell by 27 percent in Italy last year, accounting for just 3.7 percent of total new registrations. rtr
Several human rights organizations have spoken out against the resumption of the human rights dialogue between China and the EU. It should remain suspended until the conditions for “tangible results and progress” are met, the organizations wrote in an open letter to EU Foreign Affairs Chief Josep Borrell. The EU and China plan to meet again on Friday for a human rights dialogue for the first time in four years. The dialogues had been suspended since 2019.
Signatories to the open letter include Amnesty International, Human Rights Watch and the World Uyghur Congress. “The eagerness to resume these dialogues despite their proven ineffectiveness may signal that the EU is willing to put human rights aside to secure closer trade ties and cooperation with Beijing,” said Philippe Dam, EU director at Human Rights Watch. There is no prospect of concrete progress in the dialogue, he said.
Meanwhile, human rights organizations called for the EU to commit to following up on the UN report on the situation in Xinjiang. In addition, Brussels and member states should advocate for a regular monitoring and reporting process at the UN Human Rights Council. The EU should also publicly call for an end to “China’s repression in Xinjiang, Tibet, and Hong Kong, and the release of arbitrarily detained human rights defenders and activists” and sanction those responsible. ari
A new, pro-European government has been sworn in in the Republic of Moldova. The parliament in Chişinău voted on Thursday with 62 of the 101 votes for Dorin Recean as the new head of government. Earlier, the 48-year-old presented his government’s guidelines. “We want to live in a secure world, where international treaties are respected, where problems between states are solved through dialogue, where small states are respected,” the government program reads, referring to the Russian invasion of Ukraine.
The former Soviet republic borders western Ukraine. Similar to the neighboring country, Transnistria, a part of Moldova that is dominated by pro-Russian separatists and where Russian soldiers are stationed, has also seceded. Since the start of the Russian invasion of Ukraine, fears have grown in Chişinău that Russia wants to destabilize the country. President Maia Sandu on Monday accused Russia of planning a coup. The government in Moscow rejected the accusations.
A week ago, Prime Minister Natalia Gavrilița resigned after only 18 months in office against the backdrop of economic turmoil. There had been several protests against inflation-related price increases. Energy costs and higher food prices were the main factors affecting the country’s approximately 2.5 million inhabitants. The country is dependent on Russian gas supplies. In addition, there is a wave of refugees from Ukraine.
Because of the tense economic situation, President Sandu had asked allies for help at the World Economic Summit in Davos in January. Last November, Germany provided the country with around €30 million to avoid an energy crisis in the winter.
One of the main tasks of the new Prime Minister Recean will be to push ahead with EU accession. The former interior minister has already pushed through various reforms that have brought Moldova closer to European standards. Nevertheless, it will be years before Moldova is ready to join the EU. Recean has promised strong and transparent authorities and an economic environment that promotes competition. rtr
Ecocide is broadly defined as massive damage to and destruction of ecosystems – that is, widespread or long-term serious damage to nature.
“When I came to the European Parliament in 2019, the concept was completely unknown to the European institutions,” says French MEP Marie Toussaint, who is taking the ecocide fight to Brussels. In the meantime, she says, “things have moved quickly,” thanks to the persistent work of numerous lawyers, advocates, judges and academics, as well as the increasing mobilization of civil society. “Today, the recognition of ecocide could well be recognized in the Environmental Crimes Directive, which is currently being revised,” she says.
Toussaint is referring to a proposal she is introducing on behalf of her group – which is about enshrining ecocide in the Environmental Crime Directive. The Greens base this on the definition of the Stop Ecocide Foundation, which describes ecocide as “unlawful or indiscriminate acts committed with the knowledge that there is a substantial likelihood of serious and either widespread or long-term damage to the environment (…)”.
Toussaint’s initiative specifically addresses environmental damage in armed conflicts, such as Russia’s current war against Ukraine. As a result of Russian attacks, Ukraine has suffered great environmental damage in many ways: Forests have been destroyed, agricultural fields ruined, and rivers polluted.
The prospects that the bill will be passed by the Parliament are good: there is currently no veto from the European Parliament. Four out of five committees (PETI, DEVE, LIBE and ENVI) that were supposed to give their opinion on the Environmental Crime Directive have already supported the recognition of ecocide and also follow the definition of the Stop Ecocide Foundation.
The last parliamentary committee, the Legal Affairs Committee, which is responsible for the dossier, is expected to give its opinion at the end of March – “negotiations are still underway.” The vote in plenary will then take place in April and “we are confident that the European Parliament will officially support the inclusion of ecocide in the law there,” says Toussaint.
However, the negotiations will not end there, as the text will then be discussed in trilogue with the Commission and the European Council. “The Commission had not included recognition of this crime in its original proposal, but is increasingly using the term in its communications.”
The member states will probably be the most difficult to convince, “but with a strong position of the Parliament, everything is possible”. In this context, Marie Toussaint emphasizes that the situation in the member states is different:
So does this mean that Ukraine can sue Russia for environmental crimes? Marie Toussaint points out that both Ukraine and Russia have recognized the crime of ecocide. But the question arises as to which courts can even deal with this crime.
“For this to happen, the crime of ecocide must be recognized internationally,” says the MEP. It is true that the Rome Statute of the International Criminal Court contains an article on war crimes that explicitly deals with environmental protection. But it is complicated to invoke, she says, and it has never been used by the ICC. That’s why they are fighting to have the crime of ecocide recognized in the Rome Statute, in both wartime and peacetime, Toussaint says.
At the last General Assembly of the ICC, the recognition of ecocide had been an important topic of discussion. In the context of the war in Ukraine, he says, the Parliamentary Assembly of the Council of Europe called for its urgent recognition. “Overall, we are seeing a real upsurge for ecocide recognition,” Toussaint says. It is urgent, she explained, “because the survival of humanity is at stake.”