Analysis Reveals Extensive Political Financing Discrepancies in the EU Ahead of Crucial Elections
A quarter of all private money donated to political parties in the EU is going to far-right, far-left, and populist movements, boosting their finances by millions of euros before the crucial European Parliament elections next week. With polls predicting a rise in support for hardline conservative, Eurosceptic, and pro-Russia parties, the Guardian and 26 other media partners led by the investigations group Follow the Money have conducted an in-depth analysis called 'Transparency Gap.' The data, gathered from the annual reports of over 200 parties across 25 countries, reveals that 1 in every 4 private donations made between 2019 and 2022 went to populist parties and those with extreme political views. The research found a significant lack of transparency in political financing, with three-quarters of countries publishing no or only partial information on the individuals or businesses behind donations. This raises concerns of potential corruption risks due to the variance in reporting and disclosure thresholds across EU member states. While regulations exist regarding the reporting and public disclosure of donations in all member states, the threshold for disclosure varies substantially, with the average threshold carrying possible corruption risks. The analysis also shows that when including other forms of funding, hardline and populist parties captured one-fifth of the money raised between 2019 and 2022, amounting to almost 500 million euros. Parties on both ends of the political spectrum in countries like France, Latvia, Hungary, Italy, Portugal, and Greece have experienced a surge in financial support from nonpublic funding. The data reveals a trend where far-right, far-left, and populist parties are attracting over half of the nonpublic funding in several EU countries. In some cases, far-left parties like the Communist Party of Greece and the Partido Comunista Português in Portugal are major recipients of nonpublic funding. State funding has become the most critical income stream for political parties in many EU nations, with nonpublic money representing a smaller portion of available funding. For example, public funding accounts for about 45% of party income in Germany and the Netherlands. Changing political landscapes and the rise of nationalist and far-right parties in several EU states are indicating a potential shift in power dynamics within the European Parliament. The call for increased transparency in political financing is essential to ensure accountability and prevent corruption risks in the democratic process.
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