Sittings · Document

OPINION (COM(2021)0734 – C90432/2021 – 2021/0375(COD)) 2022-05-17

On the proposal for a regulation of the European Parliament and of the Council on the statute and funding of European political parties and European political foundations (recast)

Committee on Budgets · Rapporteur: Nils Ušakovs

SHORT JUSTIFICATION

Your rapporteur welcomes the Commission’s proposal to recast Regulation 1141/2014 (the ‘Regulation’) on the statute and funding of European political parties (EUPPs) and European political foundations (EUPFs) in order to improve the legislative framework of the EUPPs and EUPFs ahead of the 2024 elections to the European Parliament. This Regulation will enable EUPPs/Fs to continue building EU political awareness, ensuring political diversity while respecting sound financing management and increasing transparency as regards EUPF/F’s activities and spending.

He welcomes the introduction of own resources as new category of revenues as this will capture the EUPPs’ actual sources of revenues and guarantee the completeness of their reporting. He also welcomes the lowering of the co-financing rate for EUPPs from 10% to 5% in line with the current rate applied for EUPFs. He believes that it is necessary to enable countries outside the EU to contribute to EUPPs/Fs but at the same time calls for prudence in order to avoid unwanted political interference. He agrees that funds from the EU budget could be used to finance national referendum campaigns for issues directly related to the European Union.

He supports the amendments to strengthen the reporting and controls mechanisms aiming at protecting the financial interest of the EU and ensuring that EUPPs/Fs respect the values on which the EU is funded. He therefore welcomes the new common repository for the disclosures of European political parties, including on political advertising. He advocates that the financing of such repository should be borne by the budget of the Authority and not by the Citizens, Equality, Rights and Values (CERV) programme as indicated by the Commission in its proposal. He calls for prudent budgetary approach when allocating human and financial resources to the Authority during the budgetary annual procedure, while ensuring that it has sufficient resources to fulfil its mission. He agrees with the abolition of the 3-month period between a de-registration decision by the Authority and its entry into force.

He believes that a direct link between the names of the EUPPs and later their names as a group in the European Parliament during the European political campaigns, including referendum, is necessary to ensure that the visibility obtained by the promotion and branding of the EUPPs at national level is kept at the European Parliament’s level. He believes that in the context of European Parliament elections both the name and logo of EUPP is equally important as the name and logo of EUPP political group in the European Parliament (in case they are different). The Regulation should allow using either logos and names of both EUPP and its group or one of each at the EUPP discretion during the European Parliament election campaign. The usage of EUPP or groups name and logo during the European Parliament election campaign should be allowed to be equally financed by the party. This approach would promote awareness and engagement.

Furthermore, he would like to highlight that, while Member States establish the rules regarding financing of political campaigns, the Commission should engage in aligning the rules amongst Member States, so EUPPs are not discriminated and face equal access to the public in every Member State. It is crucial that national member parties according to national regulation are not affected by these campaigns, neither from accountancy point of view, nor with respect to any other limits or constraints. EUPP campaigns should not be linked with national member parties’ activities, booking, accountancy or spending limits.

Finally, he believes annual spending limits per EUPP per Member States should be introduced based on a per capita approach in order to prevent EUPP to intervene in Member States’ domestic issues with non-proportional, excessive spending.

AMENDMENTS

The Committee on Budgets calls on the Committee on Constitutional Affairs, as the committee responsible, to take into account the following amendments:

Amendment 1

Proposal for a regulation

Recital 8

Text proposed by the CommissionAmendment
(8) The Authority for European political parties and foundations ( Authority') is a body of the Union within the meaning of Article 263 of the Treaty on the Functioning of the European Union (TFEU) whose purpose is to register, control and impose sanctions on European political parties and European political foundations. Registration should be necessary in order to obtain European legal status, which entails a series of rights and obligations. To avoid any possible conflict of interests, the Authority should be independent.(8) The Authority for European political parties and foundations ( Authority') is a body of the Union within the meaning of Article 263 of the Treaty on the Functioning of the European Union (TFEU) whose purpose is to register, control and impose sanctions on European political parties and European political foundations. Registration should be necessary in order to obtain European legal status, which entails a series of rights and obligations. To avoid any possible conflict of interests, the Authority should be independent. The Authority should be equipped with adequate resources to implement its additional tasks, in particular for procedures pertaining to the European elections in 2024.

Justification

The recast expands and clarifies the Authority's responsibilities and thus leads to a need of the Authority to have adequate human resources.

Amendment 2

Proposal for a regulation

Recital 12 a (new)

Text proposed by the CommissionAmendment
(12a) In order to allow for more flexibility and to facilitate freedom of research, different levels of affiliation and in particular a specific category of ‘research partner’ should be recognised for European political foundations.

Justification

To concretize the requests from paragraphs 19 and 33 of the European Parliament resolution of 11 November 2021 on the application of Regulation (EU, Euratom) No 1141/2014 on the statute and funding of European political parties and European political foundations and allow specific and sui generis type of research partnerships, like for instance with internationally wide known researchers not acting on behalf of any organization.

Amendment 3

Proposal for a regulation

Recital 34

Text proposed by the CommissionAmendment
(34) The co-financing rate should be lowered to 0% in the year of the elections to the European Parliament. Eliminating the co-financing obligation in the year of the elections to the European Parliament should help European political parties increase the number and intensity of their campaign activities and, therefore, also increase their visibility at national level.deleted

Justification

A 0% co-financing rate during an election year could proof to have a detrimental impact on midterm financial planning of parties, in particular the year 2025, as they might underestimate the efforts to ensure a 5% co-financing the following year.

Amendment 4

Proposal for a regulation

Recital 37

Text proposed by the CommissionAmendment
(37) In order to enhance cooperation with long-standing members sharing EU values, contributions from member parties having their seat in a country outside the Union but in the Council of Europe, should be allowed. However, such contributions should be subject to a cap in relation to total contribution, to limit the risk of foreign interference.(37) In order to enhance cooperation with long-standing partners sharing EU values, association fees should be allowed from partners having their seat in a former Member State, in a country member of the European Free Trade Association (EFTA), in EU candidate countries and in Eastern Partnership countries with which the EU has concluded comprehensive and enhanced partnership agreements. However, such association fees should be subject to a cap as well as to publication in a separate category by the Authority, to limit the risk of foreign interference. The Authority for European Political Parties and European Political Foundations should monitor and control the purpose of association fees to ensure absence of politically motivated interference, including indirect interference, of non-democratic third countries.

Justification

The proposal to add an income source category called association fees for partners allows for a distinction between members and partners outside the Union, ensures legal certainty and creates transparency about the different types of payments. Not all countries members of the Council of Europe share the EU values, which is even more important during elections campaigns to avoid unwanted political interference. Monitoring and control by the Authority for EUPP/F is needed to prevent, dissuade and sanction foreign interference.

Amendment 5

Proposal for a regulation

Recital 38

Text proposed by the CommissionAmendment
(38) Regulation (EU, Euratom) No 1141/2014 acknowledges only two categories of revenues for European political parties and foundations apart from contributions from the budget of the European Union, namely contributions from members and donations. A number of revenue sources generated from own economic activities (such as sales of publications or conference fees) fall outside the scope of these two categories, creating accounting and transparency problems. A third category of revenues (‘own resources’) should therefore be created. The proportion of own resources in the total budget of a European political party or foundations should be capped at 5% to avoid that it becomes overdimensioned in relation to the overall budget of these entities.(38) Regulation (EU, Euratom) No 1141/2014 acknowledges only two categories of revenues for European political parties and foundations apart from contributions from the budget of the European Union, namely contributions from members and donations. Revenue sources generated from own economic activities (sales of publications, conference fees) fall outside the scope of these two categories, creating accounting and transparency problems. A third category of revenues (‘other own resources’) should therefore be created. Without prejudice to the condition that European political parties and European political foundations remain non-profit organisations at all times, the proportion of other own resources in the total budget of a European political party or foundations should be capped at 5% to avoid that it becomes overdimensioned in relation to the overall budget of these entities. European political parties and European political foundations should not have own resources beyond contributions from members, donations, association fees, and other own resources thus defined.

Justification

The amendment wishes to clarify the type of revenue EPP/Fs can generate to establish transparency.

Amendment 6

Proposal for a regulation

Recital 40 a (new)

Text proposed by the CommissionAmendment
(40a) To guarantee an efficient use of funds, a European political party should be allowed during the European Parliament election campaign to use its logo and name simultaneously to the logo and name of the corresponding group in the European Parliament. The European political party should be allowed to finance the costs that arise during the European Parliament election campaign.

Justification

This change aims at aligning the names of European political parties with the names of political groups of the European parliament during the European political campaigns. This will avoid that funds spent for the visibility of the European political parties during the European political campaigns is lost in case the name of that political party changes after being elected to the European Parliament. It should also aim at the increased participation of the citizens in the decision-making.

Amendment 7

Proposal for a regulation

Recital 41

Text proposed by the CommissionAmendment
(41) European political parties should not fund, directly or indirectly, other political parties and, in particular, national parties or candidates. European political foundations should not fund, directly or indirectly, European or national political parties or candidates. The prohibition of indirect funding should however not prevent European political parties from publicly supporting and engaging with their member parties in the Union on issues of relevance for the Union, or to support political activities in the common interest, to be able to fulfil their mission under Article 10(4) TEU. Moreover, European political parties and their affiliated European political foundations should only finance activities in the context of national referendum campaigns when they concern the implementation of the TEU and the TFEU . These principles reflect Declaration No 11 on Article 191 of the Treaty establishing the European Community annexed to the Final Act of the Treaty of Nice.(41) European political parties and foundations should not fund, directly or indirectly, other political parties and, in particular, national, parties or candidates. The prohibition of indirect funding should however not prevent European political parties or political foundations from publicly supporting and engaging with their member parties or member organisations in the Union on issues of relevance for the Union, co-finance joint events to the extent that they concern issues of relevance for the Union’s field of activity, or from engaging in educational activities without prejudice to Article 25, in order to be able to fulfil their mission under Article 10(4) TEU and act to reinforce the existence of the European demos. The prohibition of indirect funding should not prevent the participation of either representatives and staffers of political parties, nor of potentially politically active persons in events of European political foundations. Moreover, European political parties and their affiliated European political foundations should only finance activities in the context of national referendum campaigns when they concern issues directly related to the Union and within the limits and in accordance with EU values as expressed in Article 2 TEU. These principles reflect Declaration No 11 on Article 191 of the Treaty establishing the European Community annexed to the Final Act of the Treaty of Nice. No funding should be made available for activities promoting the scope of Article 50 TEU.

Justification

Individual members and staff of political parties and foundations should unrestrictedly participate in party events and educational events. European political parties and foundations shall have the option to organise joint events with clear financial accountability and transparency between national and European parties.

Amendment 8

Proposal for a regulation

Recital 49

Text proposed by the CommissionAmendment
(49) European political parties often rely on external service providers, including advertising publishers, for the preparation, placement, publication and dissemination of their political advertisements. Such service providers are bound by Regulation 2022/XX of the European Parliament and of the Council28 on the transparency and targeting of political advertising. Where entering into a contractual relationship on the provision of services related to political advertisements, European political parties should ensure that the providers of political advertising services, including advertising publishers, comply with their obligations under Regulation 2022/XX [on the transparency and targeting of political advertising]. They should ensure that the contractual arrangements specify how the relevant provisions of this Regulation are taken into account. Where appropriate, the political advertisement may include the European political party’s political logo.(49) European political parties often rely on external service providers, including advertising publishers, for the preparation, placement, publication and dissemination of their political advertisements. Such service providers are bound by Regulation 2022/XX of the European Parliament and of the Council28 on the transparency and targeting of political advertising. Where entering into a contractual relationship on the provision of services related to political advertisements, European political parties should ensure that the providers of political advertising services, including advertising publishers, comply with their obligations under Regulation 2022/XX [on the transparency and targeting of political advertising]. They should ensure that the contractual arrangements specify how the relevant provisions of this Regulation are taken into account. The political advertisement should include the European political party’s political logo.
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Amendment 9

Proposal for a regulation

Recital 50

Text proposed by the CommissionAmendment
(50) It is necessary to establish a common repository for the disclosures of European political parties. Given its specific role in the implementation of this Regulation, the Authority should establish and manage such repository as a part of the Registry for European political parties. The information contained in the repository should be transmitted by European Political Parties to the Authority using a standard format and may be automated. European political parties should make available in the Authority’s repository information to enable the wider context of the political advertisement and its aims to be understood. The information on the amount allocated to political advertising in the context of a specific campaign to be included in the repository may be based on an estimated allocation of funding. The amounts to be mentioned in the repository include donations for specific purposes or benefits in kind.(50) It is necessary to establish a common repository for the disclosures of European political parties. Given its specific role in the implementation of this Regulation, the Authority should establish and manage such repository as a part of the Registry for European political parties. The information contained in the repository should be transmitted by European Political Parties to the Authority using a standard format and may be automated. European political parties should make available in the Authority’s repository information to enable the wider context and objectives of the political advertisement to be understood. The information on the amount allocated to political advertising in the context of a specific campaign to be included in the repository may be based on a realistic estimation of funding and the actual amounts, once known. The amounts to be mentioned in the repository include donations for specific purposes, benefits in kind, contributions, association fees and other own resources.

Justification

This change aims at aligning the recital with Annex II - paragraph 1 - indent 2 regarding the disclosure of the actual amounts. In addition, other own resources are a new source of funding and should be reported, along with contributions, association fees, donations and benefits in kinds. The proposed terms “association fees” and “other own resources” apply throughout the text. Adopting the amendment will necessitate corresponding changes throughout.

Amendment 10

Proposal for a regulation

Recital 55

Text proposed by the CommissionAmendment
(55) For reasons of transparency, and in order to strengthen the scrutiny and the democratic accountability of European political parties and European political foundations, information considered to be of substantial public interest, relating in particular to their statutes, membership, financial statements, donors and donations, contributions and grants received from the general budget of the European Union, as well as information relating to decisions taken by the Authority and the Authorising Officer of the European Parliament on registration, funding and sanctions, should be published in a user-friendly, open and machine readable format . Laying down a regulatory framework to ensure that this information is publicly available is the most effective means of promoting a level playing field and fair competition between political forces, and of upholding open, transparent and democratic legislative and electoral processes, thereby strengthening the trust of citizens and voters in European representative democracy and, more broadly, preventing corruption and abuses of power.(55) For reasons of transparency, and in order to strengthen the scrutiny and the democratic accountability of European political parties and European political foundations, information considered to be of substantial public interest, relating in particular to their statutes, membership, financial statements, donors and donations, contributions and grants received from the general budget of the European Union, as well as information relating to decisions taken by the Authority and the Authorising Officer of the European Parliament on registration, funding and sanctions, should be published in a user-friendly, open and machine readable format. European political parties and European political foundations should supply to the Authority and the Authorising Officer of the European Parliament any documentation required for publication purposes in a user-friendly, open and machine readable format. Laying down a regulatory framework to ensure that this information is publicly available is the most effective means of promoting a level playing field and fair competition between political forces, and of upholding open, transparent and democratic legislative and electoral processes, thereby strengthening the trust of citizens and voters in European representative democracy and, more broadly, preventing corruption and abuses of power.

Justification

In order to facilitate processes within the Authority, documents submitted to the Authority shall be easy to process.

Amendment 11

Proposal for a regulation

Recital 61

Text proposed by the CommissionAmendment
(61) In order to facilitating the monitoring of the implementation of this Regulation, single points of contact in charge of coordination with the European level should be designated by each Member Sate. Such contact points should be adequately resourced to be able to ensure effective coordination, including on issues related to the monitoring of political advertising,(61) In order to facilitating the monitoring of the implementation of this Regulation, single points of contact in charge of coordination with the European level should be designated by each Member Sate. Such contact points should be adequately resourced to be able to ensure effective coordination, including on issues related to the monitoring of political advertising. The Authority should regularly convene the points of contact designated by the Member States for exchange of best practices on matters of common concern.

Justification

Regular meetings will help strengthening cooperation between Member States and the Authority and contribute to a better flow of information at European level.

Amendment 12

Proposal for a regulation

Article 2 – paragraph 1 – point 4 – point d

Text proposed by the CommissionAmendment
(d) serving as a framework for national political foundations, academics, and other relevant actors to work together at European level;(d) serving as a framework for national political foundations, academics, and other relevant actors to work together at European level, including at different levels of affiliation and as ‘research partners’;

Justification

To concretize the requests from paragraphs 19 and 33 of the European Parliament resolution of 11 November 2021 on the application of Regulation (EU, Euratom) No 1141/2014 on the statute and funding of European political parties and European political foundations and allow specific and sui generis type of research partnerships, like for instance with internationally wide known researchers not acting on behalf of any organization.

Amendment 13

Proposal for a regulation

Article 2 – paragraph 1 – point 7

Text proposed by the CommissionAmendment
(7) 'donation' means any cash offering, any offering in kind, the provision below market value of any goods, services (including loans) or works, and any other transaction which constitutes an economic advantage for the European political party or the European political foundation concerned, with the exception of contributions from members and usual political activities carried out on a voluntary basis by individuals;(7) 'donation' means any cash offering or bank transfer, any offering in kind, the provision below market value of any goods, services (including loans) or works, and any other transaction which constitutes an economic advantage for the European political party or the European political foundation concerned, with the exception of contributions from members, association fees, other own resources, and usual political activities carried out on a voluntary basis by individuals;

Justification

Bank transfer is the most common way to transfer donations and contributions to a EUPP/F. The introduction of a new category "association fees" requires its listing under Article 2 and creates transparency by listing all transfers from a partner (party or organisations associated to a EUPP/F, which have their seat outside the Union). The term "own resources" is misleading and should be replaced by “other own resources” throughout the text.

Amendment 14

Proposal for a regulation

Article 2 – paragraph 1 – point 8

Text proposed by the CommissionAmendment
(8) 'contribution from members' means any payment in cash, including membership fees, or any contribution in kind, or the provision below market value of any goods, services (including loans) or works, and any other transaction which constitutes an economic advantage for the European political party or the European political foundation concerned, when provided to that European political party or to that European political foundation by one of its members, with the exception of usual political activities carried out on a voluntary basis by individual members;(8) 'contribution from members' means any payment in cash or bank transfer, including membership fees, or any contribution in kind, or the provision below market value of any goods, services (including loans) or works, and any other transaction which constitutes an economic advantage for the European political party or the European political foundation concerned, when provided to that European political party or to that European political foundation by one of its members, with the exception of usual political activities carried out on a voluntary basis by individual members;

Justification

Bank transfer is the most common way to transfer donations and contributions to a EUPP/F.

Amendment 15

Proposal for a regulation

Article 2 – paragraph 1 – point 8 a (new)

Text proposed by the CommissionAmendment
(8a) 'association fees' means payments in cash or bank transfer, when provided to the European political party or to the European political foundation by partner (political party or organisation associated to it and having its seat outside the Union but in a former Member State, in a country member of the European Free Trade Association (EFTA), in EU candidate countries and in Eastern Partnership countries with which the Union has concluded comprehensive and enhanced partnership agreements, within the limits set out in this Regulation;

Justification

The introduction of a new category "association fees" requires its listing under Article 2 and creates transparency by listing all transfers from a partner (party or organisations associated to a EUPP/F, which have their seat outside the Union).

Amendment 16

Proposal for a regulation

Article 2 – paragraph 1 – point 9

Text proposed by the CommissionAmendment
(9) ‘own resources’ means income generated by own economic activities, such as conference fees and sales of publications;(9) ‘other own resources’ means income generated by own economic activities, such as conference fees and sales of publications;

Justification

The term "own resources" is misleading and should be replaced by “other own resources”. This amendment applies throughout the text. Adopting it will necessitate corresponding changes throughout.

Amendment 17

Proposal for a regulation

Article 2 – paragraph 1 – point 10

Text proposed by the CommissionAmendment
(10) ‘indirect funding’ means funding from which the member party derives a financial advantage, even where no funds are directly transferred; this should include cases which allow the member party to avoid expenditure which it would otherwise have had to incur for activities, other than political activities in the common interest, organised for its own and sole benefit;(10) ‘indirect funding’ means funding from which the member party derives a financial advantage, even where no funds are directly transferred; this should include cases which allow the member party to avoid expenditure which it would otherwise have had to incur for activities, other than political activities in the common interest such as activities organised to promote European values as expressed in Article 2 TEU and awareness and joint events co-financed to the extent they concern issues of relevance for the Union´s field of activities and as long as the European political party is visible in any such joint event or from engaging in educational activities without prejudice to Article 25 of this Regulation, while individual members who had been elected or appointed to a public position do not have to partially or fully compensate retrospectively for the training received previously.

Justification

Individual members and staff of political parties and foundations should unrestrictedly participate in party events and educational events. Membership in the party should not lead to additional payment obligations as a result of election or appointment to a public position. European political parties and foundations shall have the option to organise joint events with clear financial accountability and transparency between national and European parties.

Amendment 18

Proposal for a regulation

Article 5 – paragraph 2

Text proposed by the CommissionAmendment
2. Each European political party shall transmit within five working days of the first dissemination to the Authority information concerning each political advertisement that it sponsors or publishes directly to enable the wider context of the political advertisement and its aims to be understood by citizens. That information shall include at least the information listed in point 1 of Annex II.2. Each European political party shall transmit within five working days of the first dissemination to the Authority information concerning each political advertisement that it sponsors or publishes directly to enable the wider context of the political advertisement and its aims to be understood by citizens. That information shall include at least the information listed in point 1 of Annex II. The information shall be provided to the Authority in a form which is easily accessible and using plain language.

Amendment 19

Proposal for a regulation

Article 8 – paragraph 1

Text proposed by the CommissionAmendment
1. The Authority shall establish and manage a Register of European political parties and European political foundations. The register shall include a repository for the information to be provided by European political parties pursuant to Article 5(2). Information from the Register shall be available online in accordance with Article 36.1. The Authority shall establish and manage a Register of European political parties and European political foundations. The register shall include a repository for the information to be provided by European political parties pursuant to Article 5(2). Funds to set up this repository should be available as part of the specific budgetary title for the Authority. Information from the Register shall be available online in accordance with Article 36.

Justification

This change is to ensure that contrary to what the Commission proposes, funds to procure a pilot of the Repository wont be financed by the Citizens, Equality, Rights and Values (CERV) programme, but will be made available in the dedicated budgetary line of the Authority, under Title 5 of the European Parliament’s budget.

Amendment 20

Proposal for a regulation

Article 13 – paragraph 1

Text proposed by the CommissionAmendment
The Authority shall annually prepare and publish a report on the political advertising activity of European political parties. This report shall include a factual summary of the reports for the relevant reporting year published by European political parties according to Article 5(4), as well as any decisions of the national regulatory authorities designated under Article 5(6) or of the supervisory authorities referred to in Article 5(7) finding that a European political party has violated Article 5 of this Regulation.The Authority shall annually prepare and publish a report on the political advertising activity of European political parties. This report shall include the reports for the relevant reporting year published by European political parties according to Article 5(4), as well as any decisions of the national regulatory authorities designated under Article 5(6) or of the supervisory authorities referred to in Article 5(7) finding that a European political party has violated Article 5 of this Regulation.

Justification

The proposal wants to ensure that the Authority does not conduct political work, but instead increases transparency by releasing the report in its entireness.

Amendment 21

Proposal for a regulation

Article 23 – title

Text proposed by the CommissionAmendment
Donations, contributions and own resourcesDonations, contributions, association fees and other own resources

Justification

Amendment to update the wording following the new proposal for income source category "association fees" and replacement of the term own resources by “other own resources”.

Amendment 22

Proposal for a regulation

Article 23 – paragraph 2 – introductory part

Text proposed by the CommissionAmendment
2. European political parties and European political foundations shall, at the time of the submission of their annual financial statements in accordance with Article 26, also transmit a list of all donors with their corresponding donations, indicating both the nature and the value of the individual donations. This paragraph shall also apply to contributions made by member parties of European political parties and member organisations of European political foundations.2. European political parties and European political foundations shall, at the time of the submission of their annual financial statements in accordance with Article 26, also transmit a list of all donors with their corresponding donations, indicating both the nature and the value of the individual donations. This paragraph shall also apply to contributions made by member parties of European political parties and member organisations of European political foundations as well as to association fees and to other own resources.

Justification

The rules shall apply to any income beyond donations such as association fees and other own resources to create the highest possible level of transparency.

Amendment 23

Proposal for a regulation

Article 23 – paragraph 5 – introductory part

Text proposed by the CommissionAmendment
5. For all donations the value of which exceeds EUR 3000, European political parties and European political foundations shall request donors to provide the necessary information for their proper identification. European political parties and European political foundations shall transmit the information received to the Authority upon its request.5. For all donations, covering one-time donations and cumulated donations (total of several individually transferred donations from the same donor) the value of which exceeds EUR 3 000, European political parties and European political foundations shall request donors to provide the necessary information for their proper identification. European political parties and European political foundations shall transmit the information received to the Authority upon its request, including information about the relevant personal and business environment of the donor in order to avoid the absence of control over donations executed by members belonging to the same personal or professional sphere, such as donations coming from the same family or the same work organisation. Donors have to provide a written declaration stating that they are not directly or indirectly connected to persons or companies on sanction lists of the EU.

Amendment 24

Proposal for a regulation

Article 23 – paragraph 9

Text proposed by the CommissionAmendment
9. Contributions from members of a European political party that have their seat in, or are citizens of, a Member State or from member parties that have their seat in a country belonging to the Council of Europe shall be permitted. The total value of contributions from members shall not exceed 40 % of the annual budget of a European political party. The value of contributions from member parties that have their seat in a country outside the Union shall not exceed 10% of the total contributions from members.9. Contributions shall be permitted from members of a European political party that have their seat in, or are citizens of, a Member State and association fees shall be permitted from partners that have their seat in a former Member State, in a country member of the European Free Trade Association (EFTA), in EU candidate countries and in Eastern Partnership countries with which the EU has concluded comprehensive and enhanced partnership agreements. The total value of contributions and association fees from members and partners shall not exceed 40 % of the annual budget of a European political party. The value of association fees from partners that have their seat in a country outside the Union shall not exceed 10% of the total contributions and association fees received by the European political party.

Justification

Not all countries members of the Council of Europe share EU values, which is even more important during elections campaigns to avoid foreign interference. Adding an income source category "association fees" for partner political parties and foundations would allow for a distinction between members and partners outside the Union, ensure legal certainty and create transparency about the different types of payments. The proposed terms “association fees” and “partners” apply throughout the text. Adopting the amendment will necessitate corresponding changes throughout.

Amendment 25

Proposal for a regulation

Article 23 – paragraph 10 – introductory part

Text proposed by the CommissionAmendment
10. Contributions from members of a European political foundation that have their seat in, or are citizens of, a Member State or from member organisations that have their seat in a country belonging to the Council of Europe , and from the European political party with which it is affiliated, shall be permitted. The total value of contributions from members shall not exceed 40 % of the annual budget of a European political foundation and shall not derive from funds received by a European political party pursuant to this Regulation from the general budget of the European Union. The value of contributions from member organisations that have their seat in a country outside the Union shall not exceed 10% of the total contributions from members.10. Contributions shall be permitted from members of a European political foundation that have their seat in, or are citizens of, a Member State and association fees shall be permitted from partners that have their seat in a former Member State, in a country member of the European Free Trade Association (EFTA), in EU candidate countries and in Eastern Partnership countries with which the EU has concluded comprehensive and enhanced partnership agreements, and from the European political party with which it is affiliated. The total value of contributions and association fees from members and partners shall not exceed 40 % of the annual budget of a European political foundation and shall not derive from funds received by a European political party pursuant to this Regulation from the general budget of the European Union. The value of association fees from partners that have their seat in a country outside the Union shall not exceed 10% of the total contributions and association fees received by the European political foundation.

Justification

Not all countries members of the Council of Europe share EU values, which is even more important during elections campaigns to avoid foreign interference. Adding an income source category "association fees" for partner political parties and foundations would allow for a distinction between members and partners outside the Union, ensure legal certainty and create transparency about the different types of payments. The proposed terms “association fees” and “partners” apply throughout the text. Adopting the amendment will necessitate corresponding changes throughout.

Amendment 26

Proposal for a regulation

Article 23 – paragraph 13

Text proposed by the CommissionAmendment
13. The value of own resources of a European political party or of a European political foundation generated from own economic activities shall not exceed 5% of the annual budget of that European political party or European political foundation.13. The value of other own resources of a European political party or of a European political foundation generated from own economic activities shall not exceed 5% of the annual budget of that European political party or European political foundation.

Justification

The proposal shall ensure consistency of the approach to name such revenue "other own resources".

Amendment 27

Proposal for a regulation

Article 24 – paragraph 2

Text proposed by the CommissionAmendment
2. The funding of European political parties and European political foundations from the general budget of the European Union or from any other source may be used to finance referendum campaigns when those campaigns concern the implementation of the Treaties of the Union.2. The funding of European political parties and European political foundations from the general budget of the European Union or from any other source may be used to finance referendum campaigns when those campaigns concern issues directly related to the European Union and within the limits and in accordance with Union values as expressed in Article 2 TEU.

Amendment 28

Proposal for a regulation

Article 25 – paragraph 1

Text proposed by the CommissionAmendment
1. Notwithstanding Article 24(1), the funding of European political parties from the general budget of the European Union or from any other source shall not be used for the direct or indirect funding of other political parties, and in particular national parties or candidates. Those national political parties and candidates shall continue to be governed by national rules.1. Notwithstanding Article 24(1), the funding of European political parties from the general budget of the European Union or from any other source shall not be used for the direct or indirect funding of other political parties, and in particular national parties or candidates nor of entities based outside the Union or of individuals from outside the Union who are not entitled to vote in the elections to the European Parliament. Exception shall be made for political activities in the common interest of European and national member parties and capacity building to support the formation of future political leadership in the Union. Those national political parties and candidates shall continue to be governed by national rules.

Justification

The proposal seeks to ensure that funding of European political parties cannot be used to finance activities of entities or individuals based outside of the Union.

Amendment 29

Proposal for a regulation

Article 25 – paragraph 2

Text proposed by the CommissionAmendment
2. The funding of European political foundations from the general budget of the European Union or from any other source shall not be used for any other purpose than for financing their tasks as listed in Article 2, point (4), and to meet expenditure directly linked to the objectives set out in their statutes in accordance with Article 6. It shall in particular not be used for the direct or indirect funding of elections, political parties, or candidates or other foundations.2. The funding of European political foundations from the general budget of the European Union or from any other source shall not be used for any other purpose than for financing their tasks as listed in Article 2, point (4), and to meet expenditure directly linked to the objectives set out in their statutes in accordance with Article 6. It shall in particular not be used for the direct or indirect funding of elections, political parties, or candidates or other foundations, other than political activities in the common interest of European and national member parties and capacity building to support the formation of future political leadership in the Union.

Justification

As a matter of coherence, the exceptions introduced by the European Commission to the benefit of European political foundations or relating to the common interest, in the articles 2(4)b and 2(10) respectively, should also apply to European political parties.

Amendment 30

Proposal for a regulation

Article 26 – paragraph 1 – introductory part

Text proposed by the CommissionAmendment
1. At the latest within six months following the end of the financial year, European political parties and European political foundations shall submit to the Authority, with a copy to the Authorising Officer of the European Parliament and to the competent National Contact Point of the Member State of their seat:1. At the latest within six months following the end of the financial year, European political parties and European political foundations shall submit to the Authority, with a copy to the Authorising Officer of the European Parliament and to the competent National Contact Point of the Member State of their seat in an open, machine-readable format:

Justification

In order to streamline processes and manage the human resources capacities of the Authority, data readability must be facilitated.

Amendment 31

Proposal for a regulation

Article 30 – paragraph 4 – point b – paragraph 1

Text proposed by the CommissionAmendment
For the application of the percentages indicated in the first subparagraph , each donation or contribution shall be considered separately.For the application of the percentages indicated in the first subparagraph, each donation, contribution or instance of funding shall be considered separately.

Justification

The application shall include go beyond donations and contributions to ensure consistency with the introduction of additional categories.

Amendment 32

Proposal for a regulation

Article 32 – paragraph 3 a (new)

Text proposed by the CommissionAmendment
3a. The Authority and the National Contact Points shall regularly exchange views and information on matters related to controls and sanctions.

Justification

The proposal wishes to strengthen the relations between the Authority and Member States to ensure a common understanding at EU level.

Amendment 33

Proposal for a regulation

Article 32 – paragraph 4

Text proposed by the CommissionAmendment
4. The Authorising Officer of the European Parliament shall inform the Authority of any findings which might give rise to the imposition of sanctions under Article 30(2) to (4), with a view to allowing the Authority to take appropriate measures. The Authority shall make a decision on the imposition of sanctions within [6 months].4. The Authorising Officer of the European Parliament shall inform the Authority of any findings which might give rise to the imposition of sanctions under Article 30(2) to (4), with a view to allowing the Authority to take appropriate measures.

Justification

In order to avoid conflicting situations and avoid overlapping responsibilities, thus taking into account staff capacity, the Authority shall take decisions on sanctions alone.

Amendment 34

Proposal for a regulation

Article 36 – paragraph 1 – point f a (new)

Text proposed by the CommissionAmendment
(fa) the other own resources referred to in Article 23(13) and reported by European political parties and European political foundations in accordance with Article 23(2), including the identity of the person or entity which made those payments;

Justification

Transparency rules must apply to every category of revenue including other own resources.

Amendment 35

Proposal for a regulation

Article 36 – paragraph 1 – point f b (new)

Text proposed by the CommissionAmendment
(fb) the association fees referred to in Article 23(9a) and (10a) and reported by European political parties and European political foundations in accordance with Article 23(2), including the identity of the parties or organisations which made those payments;

Justification

Transparency rules must apply to every category of revenue including association fees.

Amendment 36

Proposal for a regulation

Article 45 – paragraph 1

Text proposed by the CommissionAmendment
Regulation (EU, Euratom) No 1141/2014 is repealed.Regulation (EU, Euratom) No 1141/2014 is repealed. Any procedural steps and decisions previously taken by an institution, the Authorising Officer of the European Parliament or the Authority in accordance with or on the basis of Regulation (EU, Euratom) No 1141/2014 shall remain applicable and be construed in light of this Regulation.

Justification

The proposal intents to ensure that any previously taken decision or ongoing procedure remains applicable and is not impaired by the recast.