Is the salary and aid received by your friend residing in Europe, who is able to work but refuses to, considered unlawful (haram)?

It is better for a person to eat from the labor of his own hands, like the Prophet David (peace be upon him), and due to the saying of the Prophet (peace and blessings of Allah be upon him): "For one of you to gather a bundle of firewood on his back is better for him than to ask someone who may or may not give him."

As for the ruling on accepting governmental grants and donations, it depends on the condition set by the granting authority. If the deserving individual meets the conditions without deception or fraud, then it is permissible for him to accept it; otherwise, it is not.