Council of the EU takes steps towards more transparent funding of European political parties
Today the EU’s general affairs ministers reached political agreement (a partial general approach) on the recast of the regulation on the statute and funding of European political parties and European political foundations.
This revision aims to enhance the transparency of European political parties and bolster the framework for their funding, in particular to counter the risks of foreign interference and manipulation, while seeking to limit the administrative burden that European political parties might have to bear. It will also facilitate action by and the visibility of European political parties, which are a vehicle for EU citizens to express their will, in the member states, and thus for European democracy. Lastly, it will help to strengthen the confidence of European citizens in their European institutions and political parties.
The transparency of political campaigns and elections is vital to protect the democratic process. Citizens have a right to know where party funding comes from. The regulation will help increase transparency and limit foreign interference.
Clément Beaune, French Minister of State with responsibility for European Affairs
Main changes introduced by the Council
The Council proposed some amendments to the Commission’s initial proposal, mainly to:
- Restrict the participation and contributions of European political parties and European political foundations to members from European Union countries, while retaining the possibility for parties to maintain cooperation with their political partners beyond the borders of the Union
- Preserve the current regime, which provides for co-financing of 10 % for European political parties and 5 % for European political foundations to obtain European subsidies
- Require European political parties and European political foundations to submit every year a written declaration on their compliance and their members’ compliance with EU values
- Monitor the new accounting category introduced by the Commission linked to the financial income generated by the activities of the parties or foundations (‘self-generated resources’) This source of revenue will be limited to 2 % of their annual budget
- Specify the type of activities (other than referendum campaigns) that European political parties may organise jointly with their member parties, with a view to contributing to the formation of European political awareness
- Increase the transparency of the new donation regime by lowering the annual threshold per donor from EUR 3 000 to EUR 1 500, from which donors will have to provide the required information for their proper identification. In case of suspected violation of the provisions of the donation regulation, the Authority for European Political Parties and European Political Foundations will be able to carry out checks
- Ensure strong measures on gender equality in parties and on candidate lists for European Parliament elections
Background
The Commission adopted the proposal for a recast of the regulation on the statute and funding of European political parties and European political foundations on 25 November 2021 with a view to its implementation one year before the European Parliament elections in 2024.
This proposal is part of the ‘European Elections’ Democracy and Integrity Package’, which also includes a legislative proposal on the transparency and targeting of political advertising and two legislative proposals on the electoral rights of citizens residing in a Member State of which they are not nationals in European and municipal elections, as well as a communication announcing a joint mechanism for electoral resilience.
Next steps
The Council will now have to reach an agreement on the other proposals in the package and will continue discussions with the European Parliament in 2022.
