The ‘Democratic Propaganda’ Machine: How the EU Spends Billions Financing NGOs

As European governments grapple with inflation and the energy crisis, Brussels is secretly building an alternative power infrastructure: a network of NGOs and think tanks that, alongside direct funding from the EU budget, promote a federalist agenda and attack critics as a ‘threat to European values’.

According to exclusive data from a think tank analysis by MCC Brussels, authored by Thomas Fazi, the EU has allocated €1.55 billion through the Citizens, Equality, Rights and Values (CERV) program for the years 2021–2027 for projects that ‘strengthen European identity’ and ‘combat disinformation’, which critics label as a soft-power mechanism for lobbying for federalism. This program is officially intended to protect democracy, but analyses show that funds are often used to promote political objectives.

Through the same CERV program, Croatia received €6.8 million in 2021 for projects related to ‘protecting democracy’ and ‘promoting values’. From the Europe for Citizens program (2014–2020): Croatian organizations received €2.1 million for 42 projects, while in 2023, CERV announced a call for Croatian NGOs with an allocation of €4.2 million. Among the largest beneficiaries is the Center for Peace Studies (CMS), from which many members of the Možemo party originate, followed by the Society for Sustainable Development, the Slagalica association, the Solidarna association, Gong…

Federalism at the State’s Breast

The largest recipients of EU funds are organizations and associations with explicit political goals, the report continues. The Union of European Federalists (UEF), advocates for the creation of a European federation, received €2.4 million in the last four years while their youth branch, Young European Federalists, receives funding for ‘educating’ students about the ‘dangers of nationalism’. Additionally, the European Movement International (EMI), led by former Belgian Prime Minister Guy Verhofstadt, receives over €3 million annually to promote the ‘necessity of strengthening supranational institutions’. EMI published a report in 2023 advocating for ‘complete political union by 2030’.

– This is not support for civil society, but funding for political actors working for the interests of Brussels. NGOs have become an extended arm of the Commission. Instead of representing citizens, they lobby for the interests of Brussels – emphasizes Thomas Fazi, the report’s author.

Money for the ‘Transformation’ of Youth

In countries like Poland and Hungary, the EU aims to change public opinion through projects like RevivEU (€645,000), which is promoted as a fight against ‘eurosceptical narratives’. In Romania, the Blue4EU project (€375,300) trains students to ‘recognize the dangers of anti-EU movements’. In Hungary, the NGO Ökotárs (€3.3 million) is involved in legal battles against Orbán’s government over laws limiting funding for foreign NGOs. According to internal documents, Ökotárs paid €500,000 in 2022 to an American law firm for lobbying in the European Parliament. The Polish Res Publica received funding for ‘monitoring democratic threats’ during the rule of the Law and Justice party.

Ironically, the EU froze €137 billion for Poland and €47 billion for Hungary in 2023 due to alleged rule of law violations. However, when Donald Tusk’s pro-EU coalition took power in Warsaw, the funds were urgently unlocked – despite Tusk’s dismantling of judicial independence, writes the report’s author. Tusk’s government dismissed 1,300 judges and took control of public television, which many experts see as a direct attack on judicial independence.

According to analysts, this double standard undermines the credibility of the EU.

– If the rules depend on who is in power, markets will lose confidence in the stability of regulations – warns an economist from ING Bank.

Lack of Transparency: Who Tracks the Money?

According to data from the European Court of Auditors, in 2022 the EU allocated €2.6 billion to NGOs, but detailed tracking of where the money ends up is lacking. For example, The Good Lobby, an organization positioning itself as an advocate for the green transition, used €100,000 from EU funds for a ‘sustainable development’ campaign against right-wing parties in Germany and France. The media giant Euronews, which receives €25 million annually from the Commission, has been criticized for biased reporting in favor of federalist policies despite its apparent bias.

The revelations raise two key questions for investors. The first concerns political instability, the author writes, noting that if countries like Hungary or Slovakia begin to block EU Council decisions as a protest, it could slow down the adoption of key regulations, from digitalization to energy. For instance, Hungary blocked a decision on joint borrowing for pipelines in 2024, delaying projects worth €12 billion. It also points to reputational risks as companies collaborating with Brussels-funded NGOs risk losing public trust if these partners are perceived as part of the ‘political machine’. For example, Deutsche Bank ended its partnership with a think tank after media revealed that the organization received €600,000 from the Commission to promote eurobonds.

– When citizens lose trust in institutions, markets react with instability. This is not just a moral dilemma – it is an economic interest – concludes Fazi.

– Investors seek predictability. If the EU continues to interfere in the internal politics of member states, long-term business plans will become unfeasible – concludes a Goldman Sachs analyst.