The European Ombudsman has opened an investigation into the European Commission's "Early Warning System" (EWS). This computerised information system lists companies, NGOs, associations or other parties which, according to the Commission, are deemed to pose a threat to the financial interests of the European Union. All EU institutions and bodies may block or suspend contracts or payments to entities listed under certain EWS warning levels.

Currently, participants in EU projects or applicants are not systematically informed if they are included in the Early Warning System (EWS). It is also unclear how stakeholders can appeal against such a listing. In Mr Diamandouros, European Ombudsman, oppinnin “it is undoubtedly very important that the Commission should make every effort to protect the EU's financial interests. However, companies, NGOs, and other associations must also be treated fairly and with due respect to the fundamental legal principle of the presumption of innocence."

Early Warning System (EWS) and EU Projects Applicants Fundamental Rights

In recent years, the Ombudsman has received several complaints about the EWS. In one case, a Spanish environmental organisation saw its application for an EU programme rejected because it was subject to a preliminary judicial inquiry in Spain and had, as a result, been included in the EWS. The Ombudsman criticised the Commission for failing to show that it had struck a fair balance between the need to pursue sound financial management of its grants and the fundamental rights of the organisation.

In the current investigation, the Ombudsman asks the Commission to provide details of the number of stakeholders included in the EWS, as well as of the legal basis for the various EWS warning categories. He also asks the Commission to clarify its information policy towards concerned parties and the available appeals mechanisms against a listing in the EWS.

At present, the EWS can be accessed by the Commission. Certain access is also given to other EU institutions and, depending on the EU project, the Member State involved. The Ombudsman has asked the Commission for its views regarding the potential damage which the current system may imply to the reputation of a stakeholder included in the EWS.

The Ombudsman has asked the Commission to respond by February, 28th, 2009.