Finances – Political Parties

finance-of-politics

Political Parties Act

The financing of political parties has come under repeated criticism in recent decades because questionable practices had crept in or even violated applicable law. Basic Law is unmistakable on this point: Precisely because the parties play a privileged role in the political system, it must not happen that they are influenced by large donors without being recognized. Article 21, therefore, obliges the parties to disclose their income. The Political Parties Act contains more detailed provisions. According to this, the party executives have to submit an annual report to the President of the Bundestag, which lists the funds received in full, lists the names of major donors, and provides information on the use of the funds.

 

Three Main sources: Contributions, Donations, and Government grants

The parties are funded from three main sources: contributions, donations, and government grants. In addition, there is income from events, publications, business activities, and assets, as well as loans. Although the state funding of political parties has assumed a considerable amount, the contributions of the members and the fees of the elected officials still form the reliable basis of the party budgets. See accident lawyer Los Angeles ca – Of the € 510.9 million that the seven parties represented in the Bundestag received in 2018, € 206.3 million (40%) came from contribution payments. the LINKE (47%), the SPD (46%), and the GRUNEN (44%) recorded above-average contributions. Income from donations totaled € 54.8 million (10%) for all parties. The parties closely related to the economy – i.e. CDU, CSU, and FDP – are usually particularly favored. On the other hand, the SPD (5%) and the LINKE (6%) posted significantly below-average donations.

 

Government grants covered a third (36%) of the total income of the seven parties in 2018 with € 185.5 million. With its ruling of April 1992, the Federal Constitutional Court prevented even stronger support. This not only set an absolute upper limit for state subsidies but also laid down the principle that the parties must remain politically, organizationally, and economically dependent on the citizens. The legislature then reorganized the financing of parties in 1994. After various party donation affairs became known, the regulations were supplemented in 2002, including a penal provision for violations of the political party law. The ceiling for state party grants was raised to 190 million in 2018.