Cuts party subsidies and tightens control of party funding

Automatic summary, not yet reviewed

1. It reduces the 2012 annual state subsidy for party operating expenses to €65,883,000.58 and the annual allocation for security expenses to €3,382,000.75. It also cuts public grants to foundations and associations linked to political parties by 20%.
2. Parties may not accept donations from companies that provide services or perform works for public administrations, from companies in the same group or majority-owned by them, or from foundations, associations or entities that receive public money.
3. Donations from the same person are capped at €100,000 per year, and banks may forgive no more than €100,000 of party debt annually. Donations over €50,000 and donations of real estate must be reported to the Court of Accounts within three months.
4. Parties must publish on their website, after the Court of Accounts audit, their balance sheet, income statement, credit received and debt forgiveness. They must also have an audited internal control system.
5. The sanction regime is strengthened: the Court of Accounts may fine parties twice the amount of an illegal donation, withhold the subsidy if accounts are not filed, or fine the excess over election spending limits. Violations expire after four years, and its rulings can be appealed to the Supreme Court.
6. All contributions received by foundations and associations linked to parties come under Court of Accounts control. These entities must audit their accounts, publish their balance sheet and report donations to the Ministry of Finance.

Who it affects

• Political parties with seats in the Congress of Deputies (Congreso de los Diputados): They receive less state funding and face more donation bans, reporting duties and publication requirements.
• Foundations and associations linked to parties: Their grants are cut in 2012 and they are subject to audits, oversight and information duties.
• Companies and individuals that donate to parties: They face new limits and bans, and large donations must be reported to the Court of Accounts.
• Credit institutions (banks): They cannot forgive more than €100,000 of party debt per year, and debt agreements are reported to the Court of Accounts and the Bank of Spain.
• Court of Accounts (Tribunal de Cuentas): Its sanctioning powers and audit authority over parties and linked entities are strengthened.

Words worth knowing

Condonación de deuda (debt forgiveness)

When a bank cancels all or part of the money a party owes, including interest.

Tribunal de Cuentas (Court of Accounts)

The public body that audits the accounts of those managing public money and can sanction irregularities.

Prescripción (statute of limitations)

The maximum time to sanction a violation; once it passes, no sanction is possible.

Donación en especie (donation in kind)

A donation of goods, such as real estate, instead of money.

Recurso contencioso-administrativo (judicial review appeal)

A court challenge to review a decision made by a public body.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries