The investigation focuses on European subsidies intended for parliamentary activities, such as faction meetings, staff costs, and communication with citizens. Instead, in multiple cases, part of the funds was used for direct or indirect support to national political allies and ideological sister organizations. This occurred, among other ways, through sham arrangements involving associations and foundations.
In France, subsidy money was channeled to parties and politicians ideologically related to the Rassemblement National. These payments were made through organizations that ostensibly were independent from that party but proved to be closely linked in practice. The French judiciary is currently investigating such cases, but the new research shows that similar abuses occurred in other countries as well.
In Germany, EU funds officially intended for a youth organization of the AfD were used to finance actions by political allies outside parliament. In Austria, a foundation connected to the FPÖ was subsidized for "civil projects" that in reality were meant to support campaigns of like-minded movements. Such money flows came to light after cross-referencing between administrations of national organizations and EU subsidy files.
The constructions used were legally borderline in multiple cases but often went unnoticed by the administration of the European Parliament. Oversight proved inadequate, partly because the factions themselves are responsible for accounting for their expenditures. As a result, money could be funneled for years without substantive scrutiny of the final purpose of the spending.
Notably, it was precisely the parties organizing these money flows that earlier this year strongly criticized EU subsidies for environmental organizations. They accused environmental groups of using subsidies for political campaigns against European agricultural policy. Those accusations then led to intensified monitoring, while the abuse within their own factions apparently received little investigation.
The new European media investigation raises questions about the integrity of subsidy management in the European Parliament. Later this year, the annual accounts of the parliamentary factions must be approved again. The recent revelations are expected to lead to increased pressure on the discharge process and possibly stricter requirements for expenditure oversight.
It is currently unclear whether the European Parliament will take legal action against the involved parties or factions. No sanctions have been imposed yet. However, political pressure is growing to more strictly tackle misuse of EU funds. Further revelations seem not excluded, as researchers indicate they will come forward with additional material.