democratic processes, for instance through tar­geted disinformation and malign interference in elections. It also includes a shrinking civic space, a restriction of individual freedoms and growing institutionalised violence and discrimi­nation against minorities. These trends have been accompanied by a deg­radation of the funding environment for civil so­ciety organisations, including political founda­tions, media organisations and cultural institu­tions. The US Trump administration has im-­plemented significant funding cuts, which have affected the global funding ecosystem, with re­percussions for civil society organisations in Eu­rope. 1 For example, in Central and Eastern Eu­rope, the termination of US assistance resulted in an immediate loss of$30–35 million in annual funding to support democracy and rights initia­tives. 2 In addition, the Trump administration has had a»chilling effect« on private philanthropy; several important foundations have decided to cut their funding to Europe. At the same time, the corporate sector is increasingly cutting fund­ing in response to the turbulent economic situa­tion. Finally, public funding at national level re­mains relatively modest in scale and many EU member states have declined to make sufficient resources available, in stark contrast to ring­fenced budget lines such as defence. 3 Rather than step up their efforts to counter those developments, several EU member states have exacerbated the fragile environment for civil society. Public funding has been cut or sub­stantially reduced for political reasons, for ex­ample, in the Netherlands. 4 Proposed»foreign agent« legislation has increased bureaucratic burdens and increased governmental scrutiny of civil society; some EU countries have even crimi­nalised NGO activities, such as those of refugee support organisations in Hungary. At EU level as well, the conservatives and the far-right in the European Parliament are working towards cut­ting civil society funding and are fostering pub­lic scepticism about the legality of their activi­ties, for example, by calling into question LIFE programme funding, directed at climate NGOs. 5 Given these multiple challenges, defending de­mocracy within Europe requires more than just institutional resilience or legal safeguards. Sus­tainable support for democratic values, civil soci­ety and a democratic public sphere hinges on ad­equate and consolidated funding for civil society, and especially for activities aimed at cultivating civic engagement and democratic education. 2. Democracy support is a strategic, long-term investment In view of the current challenges, democracy needs to be considered a strategic asset and the foundation for every other EU policy priority, se­curity, trade, climate and migration. Without this »democratic infrastructure« the rest of the EU cannot function. Democracy therefore requires adequate financial support through the next MFF. The EU should invest in a twofold approach to supporting de­mocracy within its borders: defend democratic institutions and processes to avoid democratic backsliding; and invest in democratic reform and innovation, as the status quo has clearly led to growing frustrations among citizens. Outside EU borders, support for democracy also has a strategic value. Investing in the rule of law, 1  Sarah Repucci/Zselyke Csaky(2025): Filling the USAID Gap: How Europe Can Step Up to Support Democracy, European Democracy Hub (March). 2  Daniel Hegedüs(2025): The Implications of the Termination of US Government Assistance for Civil Society in Central Europe – Part I, Rev­Dem(May). 3  Richard Youngs(2024): A call to defend democracy: Reviving democracy support under the EU’s incoming leadership, European Endowment for Democracy (June). 4  Vince Chadwick(2024):‘Unprecedented’ cuts leave Dutch civil society organizations reeling, Devex(November). 5  Robert Hodgson(2025): Commission denies singling out NGOs in green funding row, Euronews(April). 4 Friedrich-Ebert-Stiftung e.V.