Explanatory Memorandum to COM(2007)364 - Amendment of Regulation (EC) No 2004/2003 on the regulations governing political parties at European level and the rules regarding their funding - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2007)364 - Amendment of Regulation (EC) No 2004/2003 on the regulations governing political parties at European level and the rules ... |
|---|---|
| source | COM(2007)364  |
| date | 27-06-2007 |
- Ground for and objectives of the proposal
Article 191 of the EC Treaty recognises the crucial role played by political parties at European level, and provides the legal basis for the Regulation on political parties adopted by the European Parliament and the Council in 2003. With a view to strengthening and optimising the democratic infrastructure of the Union, this proposal aims at improving and adjusting the existing Regulation in light of the experience gained in the past four years i.
The Regulation has shown itself to be successful in providing the necessary framework for the activities and the funding of political parties at European level. The number of political parties at European level receiving funding via the Regulation has increased from eight to a total of ten, representing a very broad spectrum of political forces in Europe. Funding is provided by Budget line 402 under Chapter 40 of Title IV, in Section I (Parliament) of the EU Budget. Despite the success of the Regulation thus far, it is only natural that there is a need to adjust the framework in the light of experience. The purpose of this proposal is thus to introduce a limited number of changes to Regulation (EC) No 2004/2003 on the regulations governing political parties at European level and the rules regarding their funding, which was adopted in June 2003.
- General context
It remains a firm political objective of the European Union to promote a European public sphere to stimulate an informed participation of citizens in the democratic life of the Union. One of the important lessons of the Commission's promotion of democracy, dialogue and debate through 'Plan D' is that there is both a demand and an opportunity for measures to strengthen and expand political dialogue.
In its White Paper on a European Communication Policy, the Commission emphasised the important role of political parties in developing a European Public Sphere. The consultation on the White Paper confirmed the importance of a greater involvement of political parties at the European level generating cross-border public debates across Europe. This could also contribute to support an increase in the levels of participation in the European elections. Likewise, the Communication of the Commission 'European elections 2004' highlighted that European political parties may also play a role in promoting an enhanced participation of EU citizens in the democratic process at the European and national level i.
There is no simple way – and certainly not one single solution – to meet the democratic and participatory aspirations of citizens. It remains clear that these aspirations must be promoted by a very wide range of initiatives and measures, with a particular value in bottom-up initiatives driven by the active involvement of citizens. It is important to ensure the broadest possible participation of citizens - including not least young people - in the democratic life of the Union, to ensure that all voices are heard.
The European level can help to stimulate and facilitate the achievement of these objectives. This was and remains the underlying reason for the establishment of political parties at European level, playing a crucial role in bridging the gap between politics at national and European level and in giving voice to the peoples of Europe.
Article 12 of the Regulation called for the European Parliament to publish a report evaluating the application of the Regulation. Article 12 stated that the report should "…indicate, where appropriate, possible amendments to be made to the funding system". The European Parliament adopted a Resolution drawing its conclusions on 23 March 2006 i.
The European Parliament's Resolution identified a number of problems concerning the functioning of the Regulation and included recommendations for amendments to be made.
The recommendations can be divided into three categories:
a) Recommendations to revise the financial provisions of the Regulation in order to align them with the special needs of the political parties at European level
This category covers in particular allowing the building up of financial reserves, on the basis of funding deriving from sources outside the EU Budget; easing restrictions on the transfer of funding between the different budget categories; ensuring the financial security needed for long-term planning; and allowing the carrying-over of a certain percentage of appropriations from one year to the first quarter of the following year.
b) Recommendations for the Commission to submit proposals on supporting European political foundations that are affiliated with the political parties at European level
This recommendation focuses on the need to stimulate the development of European political foundations to underpin and facilitate the European political parties' efforts to promote political information and debate and specifically calls on the Commission to present a proposal on how to support European political foundations.
c) Various recommendations to revise further aspects of the Regulation in line with the recommendations of relevant stakeholders
This includes notably the problems arising from the absence of a uniform legal status for the European political parties. In addition, the report raises the lack of clarity concerning the rules governing the participation of political parties at European level in election campaigns. Furthermore, Parliament's Report calls for European political youth organisations to be considered in this context.
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Contents
- LEGAL ELEMENTS OF THE PROPOSAL
- 2) EVALUATION OF THE CURRENT REGULATION BY THE EUROPEAN PARLIAMENT
- a) Recommendations to revise the financial provisions of the Regulation in order to align them with the special needs of the political parties at European level
- b) Recommendations for the Commission to submit proposals on supporting European political foundations that are affiliated with the political parties at European level
- c) Various recommendations to revise further aspects of the Regulation in line with the recommendations of relevant stakeholders
- Summary of the proposed action
The Commission has carefully considered the European Parliament's recommendations in drawing up this proposal.
It should be emphasised that Parliament itself has taken a number of initiatives to address the shortcomings identified in Parliament's Resolution, by amending on 1 February 2006 the Bureau Decision of 29 March 2004 laying down the procedures for implementing Regulation (EC) No 2004/2003 i. This implies that this proposal to modify the Regulation is aimed at addressing exclusively those shortcomings which require changes to the Regulation itself, and which cannot be undertaken by Parliament on its own. As mentioned before the relevant Budget line is included in the Parliament section of the EU Budget and the Parliament is the Authorising Officer.
The modifications proposed by the Commission can be divided into three main points. On the issue of improving the financial provisions governing the funding of the political parties at European level, it is proposed to modify those provisions in two respects. Firstly, it is proposed to allow the political parties to carry over by way of derogation from the no-profit rule laid down in Article 109 of the Financial Regulation a certain percentage (25%) of the annual total income from one year to the first quarter of the following year. This provision will enable the parties to better respond to changing political circumstances and priorities, difficult to predict when preparing the annual budgets and work programmes of the parties.
Secondly, it is proposed to allow the political parties at European level to build financial reserves by saving income generated by the parties themselves in excess of a new reduced minimum co-funding level of 15%. New Article 9(8), which also constitutes a derogation from the no-profit rule laid down in Article 109 of the Financial Regulation, will allows the parties a greater degree of financial security and planning, while at the same time providing the parties with a strong incentive to strengthen their own resources and thus decrease their reliance on public funding from European level. In order to assure an appropriate balance, it is proposed to allow parties to build up savings corresponding to 100% of their average annual income. If a party exceeds this level of savings, the level of future public subsidies will be reduced correspondingly.
On the issue of political foundations at European level the Commission considers that such foundations do have an important role to play in underpinning and promoting the activities and objectives of the political parties at European level. European political foundations can underpin and complement the activities of the political parties by undertaking a range of activities that contribute to the debate on European public policy issues and European integration, including by acting as catalysts for new ideas, analysis and policy options. European political foundations may thus bring together all sorts of relevant actors – including national political foundations, and academics – who have the potential to enrich the public debate and to develop new and innovative policy proposals.
Political foundations already play an important role in national political systems in many Member States, inter alia because of the possibilities for political foundations to undertake different and more long-term activities from political parties at European level, who for obvious reasons place more emphasis on responding to the day-to-day politics of the Union. Amongst the activities that political foundations could undertake the following could be highlighted:
- observing, analysing and contributing to the debate on European public policy issues and the process of European integration;
- supporting European seminars, training, conferences and studies on such issues between key stakeholders;
- serving as a framework for national political foundations and academics to work together at European level, including youth organisations and other representatives of civil society.
Since the political foundations are closely affiliated with the European political parties, it is proposed that they must submit their application for funding through the political party at European level with which they are linked (cf. new Article 4(4)). In order to ensure transparency – and in line with the principle of activity based budgeting – the appropriations for political foundations at European level could be established as a separate budget line under Chapter 40 of Title IV, in Section I (Parliament) of the EU Budget.
Finally, it is proposed to establish clearly that appropriations received from the EU budget may also be used for the financing of campaigns conducted by the political parties at European level in the context of European Parliament elections, provided that this does not constitute a direct or indirect financing of national political parties or their candidates. This amendment follows logically from the fact that – in accordance with the existing Regulation – political parties at European level must have participated in the elections to the European Parliament or have expressed the intention to do so.