Proposal for a Regulation on the statute and funding of European political parties and European political foundations (recast)

Summary:

Legislative initiative tabled by the European Commission on 25 November 2021, aiming to revise the rules on funding of European political parties and foundations. This is a recast of the existing legislation.

Further information:

Regulation No 1141/2014 governs the statute and funding of European political parties and European political foundations. Following the assessments carried out in accordance with this Regulation's revision clause, a number of loopholes were identified. It is also thought that the existing legal framework does not address sufficiently the need for transparency of political advertising. This was highlighted, among others, in the European Commission's report on the 2019 European Parliament elections.

The proposed amendments aim to:

• increase the financial viability of European political parties and foundations;
• facilitate their interactions with their national member parties;
• close the remaining loopholes regarding sources and transparency of financing;
• cut excessive administrative burden;
• increase legal certainty.

Further amendments are introduced to address transparency in the framework of the emerging environment of online political campaigning and the risk of foreign interference and the infringement of data protection rules in political advertising. The proposal builds on the relevant experience and cooperation between the European Union (EU) and its Member States to promote free and fair elections in the EU, and combat disinformation and other forms of information manipulation.

The draft law was tabled by the European Commission on 25 November 2021 as part of a legislative package aimed at protection election integrity and promoting democratic participation. The Council of the European Union adopted a (partial) general approach regarding this file on 22 March 2022. The plenary of the European Parliament confirmed its negotiating position on 15 September.

Official

EUR-LEX: SWD(2021)359: Staff Working Document accompanying the Proposal - Impact Assessment Report https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2021:359:FIN

EUR-LEX: SWD(2021)360: Staff Working Document accompanying the Proposal - Executive Summary of the Impact Assessment Report https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2021:360:FIN

European Parliament: Legislative Observatory: Procedure File for Proposal on Statute and funding of European political parties and foundations (2021/0375(COD)) https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?reference=2021/0375(COD)

European Parliament: Legislative Train Schedule: Revision of the Regulation on the statute and funding of the European political parties and European political foundations https://www.europarl.europa.eu/legislative-train/theme-a-new-push-for-european-democracy/file-statute-and-funding-of-the-european-political-parties-and-foundations

European Parliament: Contracts and Grants: European political parties https://www.europarl.europa.eu/contracts-and-grants/en/political-parties-and-foundations/european-political-parties

European Commission: Press Release, 25/11/2021: European Democracy: Commission sets out new laws on political advertising, electoral rights and party funding https://ec.europa.eu/commission/presscorner/detail/en/ip_21_6118

European Commission: Questions & Answers: Reinforcing democracy and integrity of elections (25 November 2021) https://ec.europa.eu/commission/presscorner/detail/en/qanda_21_6212

European Commission: Speech by Vice-President Jourová on proposals to reinforce democracy and the integrity of elections (25 November 2021) https://ec.europa.eu/commission/presscorner/detail/en/speech_21_6309

Council of the European Union: Press Release, 22/03/2022: Council of the EU takes steps towards more transparent funding of European political parties https://www.consilium.europa.eu/en/press/press-releases/2022/03/22/the-council-of-the-eu-moves-towards-more-transparent-funding-of-european-political-parties/

European Court of Auditors (ECA): Opinion 1/2022 concerning the Commission’s proposal for a Regulation on the statute and funding of European political parties and European political foundations (13 April 2022) https://www.eca.europa.eu/en/Pages/DocItem.aspx?did=61068

European Parliament: Press Release, 13/07/2022: European political parties and foundations: MEPs assess draft new rules https://www.europarl.europa.eu/news/en/press-room/20220711IPR35025/

European Parliament: Press Release, 15/09/2022: European political parties and foundations: MEPs ready to negotiate new rules https://www.europarl.europa.eu/news/en/press-room/20220909IPR40141/

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News

EurActiv, 14/07/2022: MEPs seek to extend funding for political parties beyond EU https://www.euractiv.com/section/future-eu/news/meps-seek-to-extend-funding-for-political-parties-beyond-eu/

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Commentary and Analysis

EPRS: Briefing, March 2022: Amending the rules governing the statute and funding of European political parties (recast) - Initial Appraisal of a European Commission Impact Assessment https://www.europarl.europa.eu/thinktank/en/document/EPRS_BRI(2022)699504

EPRS: At a Glance, September 2022: Recasting the rules applicable to European political parties and foundations https://www.europarl.europa.eu/thinktank/en/document/EPRS_ATA(2022)733620

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