Act on Political Parties regulates how German parties are financed

KUALA LUMPUR: The Act on Political Parties regulates how parties are financed in Germany and the level of public funding they are allowed to receive.

The criterion for the distribution of these funds is the extent to which the parties are rooted in society, the German Parliament said.

This is measured, firstly, by how many votes a party gained in the most recent European, Bundestag (Parliament) and Landtag (state) elections, and secondly, the amount of money raised through members’ subscriptions and contributions made by office holders.

Legally-obtained donations are also factored into the decision.

The amount of public money that flows to the parties entitled to receive state funding is set on Feb 15 each year.

This decision is taken by the president of the German Bundestag.

The Act states that the maximum total amount of public funds which may be allocated annually among the political parties is €133 million (RM635 million) (the absolute upper limit).

Within the framework of partial public funding, the political parties will receive an annual amount of €0.70 for each valid vote cast for the respective party list, or €0.70 for each vote cast for the respective party in a constituency or polling district if a list for that party is not admitted at the Land level.

The Act states in derogation of this, a party shall receive €0.85 per vote for up to four million valid votes received.

The parties will also get €0.38 for each euro received from other sources (membership dues, contributions from elected officeholders or lawfully-obtained donations).

The Act stipulates that only donated amounts of up to €3,300 per natural person will be taken into account.

It specifies that political parties will have to submit an application in writing to the president of the German Bundestag for the assessment of the amount and disbursement of public funds for the year of entitlement by Sept 30.

“The president of the German Bundestag shall, by Feb 15 of every year, determine the rate of public funds to be allocated to each eligible political party for the preceding year (year of entitlement),” it said.

It said the basis for calculating the rate of public funding is on the number of valid votes won by the eligible political parties in the most recent elections to European Parliament and/or to the Bundestag and in the most recent Landtag elections during the period ending on Dec 31 of the year of entitlement, and the contributions received during the preceding year (accounting year) as published in the statements of accounts.