Funding of political parties

The funding of political parties has always been a hot potato in most developed countries. It appears, however, that in Malta this issue has been conveniently sidelined. The funding of political parties has so many ramifications that we cannot continue to postpone this important discussion. We all talk about transparency but in reality the funding of political parties is opaque.

Recently the European parliament adopted the report on the statute and financing of European political parties. This is an important step in making European Union democracy better as it creates an independent basis for the funding of political parties.

The financing of political parties has been made conditional on their respect for the principles of democracy, human rights and the rule of law. It will be the responsibility of the European parliament to ensure that the political parties meet this standard. A committee of three intellectuals will give its opinion as to whether political parties are adhering to this standard. If political parties fail to adhere to these democratic principles, the European parliament can exclude them from funding.

In order to be eligible for funding a political party must have expressed a clear commitment to participate in European elections and is amply represented in national parliaments and in member states. Private donations to political parties will be allowed up to €12,000 per donor per year. Moreover, any donation of more than €500 must be made public with the name of the donor.

Democracy requires that political parties can operate from a firm basis. A first important step is the regulation of financing, but more has to follow. It is being proposed to give political parties a legal personality to be able to operate on an equal footing in all EU member states.

The recent developments in the European Union will enable political parties to apply for financing from the EU budget from the next European elections in June 2004. Political parties should benefit from these developments and adopt their structures adequately to benefit from the new system when it starts functioning. This is an opportunity which Maltese political parties cannot afford to lose. Perhaps we can start to put into practice the rhetoric of transparency.