The European Union has traditionally boasted about spreading democracy and upholding the rule of law. Yet, what occurs when this influence turns counterproductive?

For non-governmental organizations, this scenario is now reality: EU policies and statements are bolstering assaults on civil society within its borders.

Over many years, the EU has touted the so-called 'Brussels effect' - leveraging its vast market power to extend regulations abroad and accelerate democratic reforms in nearby nations.

Then, as rule-of-law challenges emerged in Hungary and Poland, pressure mounted on the EU to apply its authority more firmly inside its own territory.

Now, evidence mounts that this authority carries a more sinister tone. Our yearly civic space report, released on Wednesday (13 May), highlights a direct connection between EU and national approaches: curbs on civic liberties in member states are influencing Brussels discourse, while EU-wide actions and programs are legitimizing domestic clampdowns on civil society.

The most striking case involves baseless claims leveled against NGOs in the European Parliament.

The 'scrutiny working group' on NGO funding, comprising centre- and far-right MEPs, has turned into a partisan purge.

Even though the European Court of Auditors uncovered no misuse of grants, the group has stirred doubts about climate NGOs, labeled Muslim-led groups as 'terror-linked,' and charged migrant rights defenders with enabling 'illegal trafficking.'

This systematic bullying fosters a vicious cycle, where groundless parliamentary accusations validate biased smear campaigns and curbs, feeding back into each other.

The growing politicization and oversight of NGO funding at the EU level exacerbate trends in member states.

MEPs from the scrutiny group, tied to national parties, have targeted civil society back home.

Germany, Austria, Bulgaria

In Germany, the ruling CDU/CSU - which in Brussels challenges civil society advocacy - launched probes into NGOs' 'political neutrality' to inject misleading stories into domestic discourse.

In Austria, the far-right Freedom Party (FPÖ) bombarded over 700 groups with more than 2,000 parliamentary queries, as Bulgaria set up a special panel aimed at organizations backed by 'foreign donors.'

Such efforts cultivate soil for anti-NGO sentiments to gain traction.

At the same time, numerous European nations, both EU members and aspirants, have floated 'foreign agents' legislation that burdens overseas-funded entities and carries heavy stigma.

Some justify these with the European Commission's directive on foreign NGO financing.

In Bulgaria, a far-right lawmaker called their harsher measure 'identical' to the directive.

This trend reaches the EU's frontiers.

Supporting migrants in solidarity is facing bans, with at least 110 people confronting legal actions in 2025.

EU migration strategies that coerce compliance have forged a reinforcing dynamic: member states' tough stances are echoed in Brussels, offering the needed political and legal shield to suppress migration-focused NGOs.

It is crucial to acknowledge that civic space across Europe is not just diminishing. Our report demonstrates active constriction by anti-rights forces pursuing their objectives, muting voices, and sidelining groups whose protections they oppose.

Still, institutions hold an alternative route for those aware of the threat.

Last year, the commission outlined a plan to safeguard civil society, and the European Parliament lately approved boosted funding for democracy, rights, and equality groups in the upcoming multiyear budget.

The EU cannot straddle both sides. To stand as a beacon of democracy and rights, it must halt policies and language that facilitate breaches of civic freedoms among its members.