Regulation (EC) No 2004/2003 of the European Parliament and of the Council of 4 November 2003 on the regulations governing political parties at European level and the rules regarding their funding
Date: 2003-11-04
Institutions: Council of the European Union, European Parliament
Subjects: EU financing, legal status, party financing, political parties

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(Acts whose publication is obligatory)

REGULATION (EC) No 2004/2003 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

of 4 November 2003

on the regulations governing political parties at European level and the rules regarding their
funding

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE
EUROPEAN UNION,

Having regard to the Treaty establishing the European Com-
munity, and in particular Article 191 thereof,

Having regard to the proposal from the Commission,

Acting in accordance with the procedure laid down in Article
251 of the Treaty (1),

Whereas:

(1)

(2)

(3)

(4)

Article 191 of the Treaty states that political parties at
European level are important as a factor for integration
within the Union and that they contribute to forming a
European awareness and to expressing the political will
of the citizens of the Union.

A number of basic rules should be laid down, in the
form of regulations,
for political parties at European
level, in particular with regard to their funding. Experi-
ence acquired in applying this Regulation should reveal
the extent to which these regulations should, or should
not, be supplemented by further rules.

Experience has shown that a political party at European
level will have as its members either citizens gathered
together in the form of a political party or political
parties which together form an alliance. The terms ‘poli-
tical party’ and ‘alliance of political parties’ used in this
Regulation should therefore be clarified.

it

In order to be able to identify a ‘political party at
European level’, it is important to set certain conditions.
In particular,
is necessary for political parties at
European level to observe the principles on which the
European Union is founded, as set out in the Treaties
and recognised in the Charter of Fundamental Rights of
the European Union.

(5)

The procedure to be followed by political parties at
European level which wish to receive funding pursuant
to this Regulation should be laid down.

(1) Opinion of the European Parliament of 19 June 2003 (not yet
Journal) and Council Decision of 29

published in the Official
September 2003.

(6)

(7)

(8)

Provision should also be made for regular verification of
the conditions applied for identifying a political party at
European level.

Political parties at European level which have received
funding under this Regulation should submit to obliga-
tions aimed at ensuring transparency of sources of
funding.

establishing

In accordance with Declaration No 11 on Article 191 of
the European Community
the Treaty
annexed to the Final Act of the Treaty of Nice, the
funding granted pursuant to this Regulation should not
be used to fund, either directly or indirectly, political
parties at national level. By virtue of same declaration,
the provisions on the funding of political parties at
European level should apply, on the same basis, to all
the political forces represented in the European Parlia-
ment.

(9)

The nature of the expenditure that can be funded under
this Regulation should be defined.

(10)

(11)

The appropriations allocated to funding under this Regu-
lation should be determined in accordance with the
annual budgetary procedure.

It is necessary to ensure maximum transparency and
financial control of political parties at European level
funded from the general budget of the European Union.

(12) A scale should be set for distributing the appropriations
available each year,
taking into account, on the one
hand, the number of beneficiaries and, on the other, the
number of elected members in the European Parliament.

(13)

(14)

Technical assistance to be afforded by the European
Parliament to political parties at European level should
be guided by the principle of equal treatment.

The application of
funded should be examined in a report
European Parliament which should be published.

this Regulation and the activities
from the

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(15)

(16)

The judicial control which falls within the jurisdiction of
the Court of Justice will help ensure the correct applica-
tion of this Regulation.

In order to facilitate transition towards the new rules,
the application of some of the provisions of this Regula-
tion should be postponed until the European Parliament
has been formed after the elections due in June 2004,

(d) it must have participated in elections to the European

Parliament, or have expressed the intention to do so.

Article 4

Application for funding

HAVE ADOPTED THIS REGULATION:

1.
In order to receive funding from the general budget of
the European Union, a political party at European level shall
file an application with the European Parliament each year.

Article 1

Subject matter and scope

The European Parliament shall adopt a decision within three
months and authorise and manage the corresponding appro-
priations.

This Regulation establishes rules on the regulations governing
political parties at European level and rules regarding their
funding.

Article 2

Definitions

For the purposes of this Regulation:

1.

‘political party’ means an association of citizens:

— which pursues political objectives, and

— which is either recognised by, or established in accor-
dance with, the legal order of at least one Member State;

2.

3.

‘alliance of political parties’ means structured cooperation
between at least two political parties;

‘political party at European level’ means a political party or
an alliance of political parties which satisfies the conditions
referred to in Article 3.

Article 3

Conditions

A political party at European level shall satisfy the following
conditions:

(a) it must have legal personality in the Member State in which

its seat is located;

(b) it must be represented, in at least one quarter of Member
States, by Members of the European Parliament or in the
national Parliaments or regional Parliaments or in the
regional assemblies, or

it must have received, in at least one quarter of the Member
States, at least three per cent of the votes cast in each of
those Member States at the most recent European Parlia-
ment elections;

The first application shall be accompanied by the

2.
following documents:

(a) documents proving that the applicant satisfies the condi-

tions laid down in Article 3;

(b) a political programme setting out the objectives of the poli-

tical party at European level;

(c) a statute defining in particular the bodies responsible for
political and financial management as well as the bodies or
natural persons holding,
in each of the Member States
concerned, the power of legal representation, in particular
for the purposes of the acquisition or disposal of movable
and immovable property and of being a party to legal
proceedings.

Any amendment concerning the documents referred to in
3.
paragraph 2,
in particular a political programme or statute,
which have already been presented, shall be notified to the
European Parliament within two months. In the absence of
such notification, funding shall be suspended.

Article 5

Verification

1.
The European Parliament shall verify regularly that the
conditions set out in Article 3(a) and (b) continue to be met by
political parties at European level.

2. With regard to the condition specified in Article 3(c), at
the request of one quarter of its members, representing at least
three political groups in the European Parliament, the European
Parliament shall verify, by a majority of its members, that the
condition in question continues to be met by a political party
at European level.

(c) it must observe, in particular in its programme and in its
activities, the principles on which the European Union is
founded, namely the principles of
liberty, democracy,
respect for human rights and fundamental freedoms, and
the rule of law;

Before carrying out such verification, the European Parliament
shall hear the representatives of the relevant political party at
European level and ask a committee of independent eminent
persons to give an opinion on the subject within a reasonable
period.

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three members, with the
The committee shall consist of
European Parliament, the Council and the Commission each
appointing one member. The secretariat and funding of the
committee shall be provided by the European Parliament.

Article 8

Nature of expenditure

3.
If the European Parliament finds that any of the condi-
tions referred to in Article 3(a), (b) and (c) is no longer satisfied,
the relevant political party at European level, which has for this
reason forfeited this status, shall be excluded from funding
under this Regulation.

Article 6

Obligations linked to funding

A political party at European level shall:

(a) publish its revenue and expenditure and a statement of its

assets and liabilities annually;

(b) declare its sources of funding by providing a list specifying
the donors and the donations received from each donor,
with the exception of donations not exceeding EUR 500;

(c) not accept:

— anonymous donations,

— donations from the budgets of political groups in the

European Parliament,

— donations from any undertaking over which the public
authorities may exercise directly or indirectly a domi-
nant influence by virtue of their ownership of it, their
financial participation therein, or
the rules which
govern it,

— donations exceeding EUR 12 000 per year and per
donor from any natural or legal person other than the
undertakings referred to in the third indent and without
prejudice to the second subparagraph.

Contributions from political parties which are members of
a political party at European level shall be admissible. They
may not exceed 40 % of that party's annual budget.

Article 7

Prohibition of funding

The funding of political parties at European level from the
general budget of the European Union or from any other
source may not be used for the direct or indirect funding of
other political parties, and in particular national political
parties, which shall continue to be governed by national rules.

received from the general budget of

the
Appropriations
European Union in accordance with this Regulation may only
be used to meet expenditure directly linked to the objectives set
out in the political programme referred to in Article 4(2)(b).

Such expenditure shall include administrative expenditure and
expenditure linked to technical assistance, meetings, research,
cross-border events, studies, information and publications.

Article 9

Implementation and control

1.
Appropriations for funding political parties at European
level shall be determined under the annual budgetary procedure
and shall be implemented in accordance with the Financial
Regulation applicable to the general budget of the European
Communities (1).

The valuation of movable and immovable property and
2.
its depreciation shall be carried out
in accordance with
Commission Regulation (EC) No 2909/2000 of 29 December
2000 on the accounting management of
the European
Communities' non-financial fixed assets (2).

3.
Control of funding granted under this Regulation shall be
exercised in accordance with the Financial Regulation and the
implementing rules thereto.

Control shall also be exercised on the basis of annual certifica-
tion by an external and independent audit. This certification
shall be transmitted, within six months of the end of the finan-
cial year concerned, to the European Parliament.

Further

to application of

4.
this Regulation, any funds
improperly received by political parties at European level from
the general budget of the European Union shall be refunded to
that budget.

Any document or information required by the Court of
5.
Auditors in order to carry out its task shall be supplied to it at
its request by the political parties at European level receiving
funding granted under this Regulation.

expenditure

is committed by political parties at
Where
European level jointly with national political parties and other
organisations, evidence of the expenditure incurred by the poli-
tical parties at European level shall be made available to the
Court of Auditors.

Funding of political parties at European level

6.
in their
capacity as bodies pursuing an objective of general European
interest shall not be subject to the provisions of Article 113 of
the
the Financial Regulation relating to the decreasing of
funding.

(1) Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002
on the Financial Regulation applicable to the general budget of the
European Communities (OJ L 248, 16.9.2002, p. 1).

(2) OJ L 336, 30.12.2000, p. 75.

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Article 10

Distribution

1.
Available appropriations shall be distributed annually as
follows among the political parties at European level which
have obtained a positive decision on their application for
funding as referred to in Article 4:

(a) 15 % shall be distributed in equal shares;

(b) 85 % shall be distributed among those which have elected
members in the European Parliament, in proportion to the
number of elected members.

For the application of
the
European Parliament may be a member of only one political
party at European level.

these provisions, a Member of

2.
Funding charged to the general budget of the European
Union shall not exceed 75 % of the budget of a political party
at European level. The burden of proof shall rest with the rele-
vant political party at European level.

favourable than those granted to other external organisations
and associations that may be accorded similar facilities and
shall be supplied against invoice and payment.

The European Parliament shall publish details of the technical
support provided to each political party at European level in an
annual report.

Article 12

Report

The European Parliament shall publish a report not later than
15 February 2006 on the application of this Regulation and
the activities funded. The report shall indicate, where appro-
priate, possible amendments to be made to the funding system.

Article 13

Entry into force and application

Article 11

Technical support

This Regulation shall enter into force three months following
the date of its publication in the Official Journal of the European
Union.

All technical support from the European Parliament to political
parties at European level shall be based on the principle of
It shall be granted on conditions no less
equal

treatment.

Articles 4 to 10 shall apply from the date of the opening of the
first session held after the European Parliament elections of
June 2004.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 4 November 2003.

For the European Parliament

The President

P. COX

For the Council

The President

G. TREMONTI