CELEX: 52012PC0499
Language: en
Date: 2012-09-12
Title: 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

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		52012PC0499
		
			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 /* COM/2012/0499 final - 2012/0237 (COD) */
			
				
		
		
			
			   	EXPLANATORY MEMORANDUM
1.           CONTEXT OF THE PROPOSAL
1.1.        General
context
The Treaty on European Union states in its
Article 10 that "political parties at European level contribute to
forming European political awareness and to expressing the will of citizens of
the Union". Article 12(2) of the Charter of Fundamental Rights of the
European Union expresses the same principle.
The right to freedom of association at all
levels, for example in political and civic matters, and the right to freedom of
expression, which includes the freedom to hold opinions and to receive and
impart information and ideas without interference by public authority and
regardless of frontiers, are fundamental rights of every citizen of the Union.
It is therefore in the interests of the
citizens of the European Union that a European representative democracy can
flourish. Truly transnational European political parties and political
foundations are key to articulating the voices of the citizens at European
level.
European political parties – and their
affiliated political foundations – have an important role to play in bridging
the gap between national and EU politics, and they fulfil important
communicative functions by supporting the interaction between all levels of the
Union's multi-tier governance system. Greater and more effective involvement of
European political parties and foundations can serve to promote citizens'
understanding of the connection between the political processes at the national
and European levels and is one way of generating transnational public debates
across Europe and encouraging the emergence of a European public sphere.
Furthermore, European political parties should be helped to develop their capacity to
express and channel the will of citizens with respect to elected offices and
other representative functions at the European level which are crucial for
European representative democracy as a whole; they should therefore be
encouraged, in the context of elections to the European Parliament, to raise
citizens' awareness of the affiliations between them and their national
political parties and candidates. This is particularly relevant following the
entry into force of the Lisbon Treaty, which has consolidated the role of the
European Parliament as full co-legislator alongside the Council. It is also an
important contribution to increasing citizens' interest and voter turnout in
European elections and to reinforcing the democratic legitimacy of the European
Union. 
1.2.        Grounds
for and objectives of the proposal
Nine years after the entry into force of
Regulation (EC) No 2004/2003 on the regulations governing political parties at
European level and the rules regarding their funding[1], and five years after its
revision in 2007[2],
which, inter alia, introduced affiliated political foundations at
European level within the scope of the Regulation, the Commission has conducted
a comprehensive assessment of the current financing and regulatory framework of
European political parties and foundations.
It has done so following the adoption, on
the one hand, of a report by the Secretary General of the European Parliament
(EP) on party funding at European level[3],
and, on the other hand, of the EP's resolution of 6 April 2011 on the
application of Regulation (EC) No 2004/2003 (hereafter referred to as "the
Giannakou report")[4].
The Giannakou report, which represents the
EP's evaluation report pursuant to Article 12 of Regulation (EC) No 2004/2003[5], covers two main areas by:
·                        
calling on the Commission to propose a statute for
European political parties and political foundations, referring also to related
issues of internal party democracy; and
·                        
suggesting a number of changes linked to the
funding regime applicable to the political parties and their affiliated political
foundations, requesting stricter conditions for access to funding, on the one
hand, and a more flexible system, on the other.
As part of its assessment of the existing
rules governing European-level political parties and political foundations, the
Commission has taken due consideration of the conclusions reached by the EP in the
Giannakou report. It shares the view that European political parties and
foundations have an important role to play to reinforce and foster
representative democracy at EU level, and bridge the divide between EU politics
and the Union's citizens.
This proposal for a Regulation aims,
therefore, to encourage and assist the European political parties and their
affiliated political foundations by creating conditions that allow them to grow
and pursue their endeavour to reach out to European citizens, to represent and
express their views and opinions, and to provide a stronger link between
European civil society and the European institutions, in particular the
European Parliament.
With regard to political foundations, it
offers a specific legal, financial and regulatory framework adapted to their
needs. This framework is separate from and different to the rules establishing
a European legal form for European Foundations set out in the Commission
proposal on the Statute for a European Foundation adopted on 8 February 2012[6].
2.           CONSULTATIONS WITH THE INTERESTED
PARTIES
In preparing the current proposal, the
Commission has been in close dialogue and consultation with relevant
stakeholders. It has held several meetings at various levels specifically on
this proposal with representatives of the political parties and foundations at
European level, the political groups in the EP, national and academic experts,
the President of the EP, the EP's Secretary General, and the rapporteur of the
EP's evaluation report.
All interested parties have provided
important and regular input based on their experience and expertise with regard
to the current rules governing the political parties and political foundations
under both Regulation (EC) No 2004/2003 and the Financial Regulation.[7]
In particular, the European political
parties and foundations were able to complement the EP's evaluation report by
identifying the concrete difficulties they had faced over recent years and with
proposals and recommendations for where improvements could be achieved; while
national experts and academics have provided significant insight into rules
pertaining to the status and funding of political parties at national level as
well as into the likely impact on the Member States of the measures being
considered by the Commission.
3.           LEGAL ELEMENTS OF THE PROPOSAL
3.1.        Legal basis 
The proposal is based on Article 224 of the
Treaty on the Functioning of the European Union, which states that "the
European Parliament and the Council, acting in accordance with the ordinary
legislative procedure, shall lay down the regulations governing political
parties at European level referred to in Article 10(4) of the Treaty on
European Union and in particular the rules regarding their funding". 
This provision corresponds, in its essence,
to the second subparagraph of Article 191 of the Treaty establishing the
European Community, on which Regulation (EC) No 2004/2003 is based.
3.2.        Subsidiarity and
proportionality
The proposal fully complies with the principle
of subsidiarity. The EU level is the only one at which rules governing the statute
and funding of European political parties and European political foundations
can be laid down. Although the existing Regulation governing the political
parties and foundations has proved to be a good platform for both entities to
gain a foothold and establish themselves on the European political landscape, a
reform of the current regulatory and funding systems is now needed to allow
them to fully meet the challenges of today (for example by creating European
actors at the European level, or by allowing European political parties to
carry over resources from one year to the next) and to adapt to the challenges
of the future. In setting out possible reform measures, the Commission has been
careful to reflect the principles contained in Declaration No 11 on Article 191
of the Treaty establishing the European Community annexed to the Final Act of
the Treaty of Nice.[8]
The proposal does not go beyond what is
necessary to achieve the long-term objective of developing and strengthening
European democracy and the legitimacy of the EU institutions, by seeking to
make European political parties and European political foundations more
effective and accountable democratic actors. It therefore complies with the principle
of proportionality. The proposal aims to create a new European legal form
for both types of entities, but they would in most aspects of their practical
activities continue to operate on the basis of a legal form recognised in the
legal order of the Member State in which they have their seat.
The proposed action would tackle some of
the most important obstacles the political parties and political foundations
encounter in their day-to-day activities and management when operating in and
across Member States, without, however, laying down an exhaustive set of rules
applicable to them. For example, the proposal does not include any provisions
on labour law or taxation (with the exception of rules related to the
non-discrimination of cross-border donors and donations, where there is a clear
European-level dimension). Except where explicitly provided for, the European
political parties and the European political foundations would continue to be
governed by national laws.
4.           MAIN ELEMENTS OF THE PROPOSAL
The Commission proposes a package of
complementary proposals to improve the funding and regulatory frameworks of the
political parties and political foundations at European level: one proposal,
the present one, intends to replace the current Regulation (EC) No 2003/2004,
while a second, parallel proposal seeks to amend the Financial Regulation.
In the present proposal for a Regulation on
the statute and funding of European political parties and European political
foundations, the Commission is proposing a series of improvements to Regulation
(EC) No 2004/2003. Their overarching objective is to increase the visibility,
recognition, effectiveness, transparency and accountability of European
political parties and foundations.
This proposal introduces a European
legal statute. The European statute provides for the possibility to
register as a European political party or a European political foundation and
thus obtain a legal status based on EU law.
This new European legal personality, which
will succeed any pre-existing national legal personality, will provide the
European political parties with the recognition they require, and help them to
tackle some of the long-standing obstacles they have faced. These include the
diversity of national legal forms under which they have until now existed,
which are generally ill-suited to the very specific tasks and objectives of
European-level political parties, and the lack of public visibility and
recognition that stem from this. A uniform legal status based on EU law is
therefore crucial, and it will enable them to better accomplish the specific
mission attributed to them by the Treaties.
The similar European legal statute for
affiliated political foundations represents clear recognition of the crucial
role they have in underpinning and complementing the activities of the European
political parties, in particular by contributing to debates on European public
policy issues and European integration and by bringing together actors from
different spheres and different levels from across the European Union.
Obtaining a European legal status will be
conditioned on respecting high standards of governance, accountability and
transparency. The specific conditions and requirements for obtaining a European
legal status include strict respect for the values on which the EU is founded,
and, in the case of political parties, satisfying minimum rules on internal
party democracy.
Although it will be possible to register statutes
as a European political party or as a European political foundation but not
apply for EU funding, the opposite is not true. This means that
recognition as a European political party or as a European political
foundation, and therefore satisfying the conditions and requirements on which
this is dependent, would be a pre-condition for eligibility for funding from
the EU budget.
It is crucial to ensure that the conditions
to become a European political party are not excessive but can be readily met
by organised and serious transnational alliances of political parties and/or
natural persons, thereby encouraging and supporting also the emergence of new
European political parties. On the other hand, it is also necessary to
establish objective criteria in order to allocate limited resources from the EU
budget, and which should reflect the true European ambition of a European
political party as well as genuine electoral support. Such a criterion is best
sought in the outcome of elections to the European Parliament, which can provide
a precise indication of the electoral recognition of a European political
party, and identifies those parties that are in a position to fully participate
in the democratic life of the EU and therefore to express the political will of
the Union's citizens at the highest level. Therefore, as requested by the
European Parliament in its resolution of 6 April 2011, and as recognition of
the role the European Parliament has of directly representing the Union's
citizens, assigned to it by Article 10(2) of the Treaty on European Union, the
Commission is proposing that only those political parties – and, by extension,
affiliated political foundations – that are represented in the European
Parliament by at least one of their members should be entitled to receive EU
funding. 
The Commission is moreover proposing
important changes to the mode of EU funding for European political parties and
European political foundations. The proposed amendment of the Financial
Regulation foresees the creation of a separate Title for the European political
parties, which would no longer receive operating grants but sui generis
contributions. The present proposal, together with the proposed revision of the
Financial Regulation, will introduce a degree of necessary flexibility with
respect to the working methods and activities of the political parties and
political foundations, in particular by, inter alia, raising the
pre-financing levels, reducing the co-financing requirements, and allowing the
building up of reserves from own resources. In addition, the present proposal
raises the level of donations permitted per year and per donor to foster the
ability of the political parties and foundations to generate own resources.
In order to counterbalance the increased
flexibility, a comprehensive and transparent regulatory and control framework is
established, encompassing all aspects linked to the activities and financing of
European political parties and their affiliated political foundations, covering
all of their financial operations, irrespective of the source of funding. This
framework reinforces reporting and transparency obligations, it strengthens the
accounting and control mechanisms, and it introduces a new regime of
proportionate administrative and financial sanctions for breaches of the
conditions of the Regulation, including breaches of the values on which the EU
is founded.
5.           BUDGETARY IMPLICATION
The EU funding provided to European
political parties and European political foundations will continue to come from
the budget of the European Parliament. The present proposal has no significant additional
implications for the EU budget.
2012/0237 (COD)
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 
THE EUROPEAN PARLIAMENT AND THE
COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 224 thereof,
Having regard to the proposal from the
European Commission,
After transmission of the draft legislative
act to the national Parliaments,
Having regard to the opinion of the
European Economic and Social Committee[9],
Having regard to the opinion of the
Committee of the Regions[10],
After consulting the European Court of
Auditors[11],
After consulting the European Data
Protection Supervisor[12],

Acting in accordance with the ordinary
legislative procedure,
Whereas:
(1)       Article 10(4) of the
Treaty on European Union and Article 12(2) of the Charter of Fundamental Rights
of the European Union state that political parties at European level contribute
to forming European political awareness and to expressing the political will of
citizens of the Union.
(2)       Articles 11 and 12 of the
Charter of Fundamental Rights of the European Union state that the right to
freedom of association at all levels, for example in political and civic
matters, and the right to freedom of expression, which includes the freedom to
hold opinions and to receive and impart information and ideas without interference
by public authority and regardless of frontiers, are fundamental rights of
every citizen of the Union.
(3)       European citizens should
be enabled to use these rights to participate fully in the democratic life of
the Union.
(4)       Truly transnational European
political parties and their affiliated European political foundations have a
key role to play in articulating the voices of citizens at European level by
bridging the gap between politics at national and Union level.
(5)       European political parties
and their affiliated European political foundations should be encouraged and
assisted in their endeavour to provide a strong link between European civil
society and the European institutions, in particular the European Parliament.
(6)       Experiences acquired by
the European political parties and their affiliated European political
foundations in applying 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[13], and the legislative
resolution on the application of Regulation (EC) No 2004/2003, adopted by the
European Parliament on 6 April 2011[14],
show the necessity to improve the legal and financial framework for European
political parties and their affiliated European political foundations to enable
them to become more visible and effective actors in the multi-level political
system of the Union.
(7)       As a recognition of the
mission attributed to European political parties in the Treaty and in order to
facilitate their work, a specific European legal status should be established
for European political parties and their affiliated European political
foundations, providing them with full legal capacity and recognition in all the
Member States.
(8)       The procedures to be
followed by European political parties and their affiliated European political
foundations to obtain a European legal status pursuant to this Regulation
should be laid down, as should the procedures and criteria to be respected in
arriving at a decision on whether to grant such a European legal status. It is
also necessary to lay down the procedures for cases where a European political
party or a European political foundation may forfeit, lose or give up its
European legal status.
(9)       The European political
parties and the European political foundations should be governed by the
substantive rules set out in this Regulation, and by national law in the Member
States, in particular that of the Member State where they have their respective
seat and for the purposes of which they should identify the appropriate legal form,
which must correspond to a form of legal entity recognised in the legal order
of that Member State.
(10)     European political parties
and their affiliated European political foundations, which wish to obtain
recognition as such at the European level through a European legal status and
to receive public funding from the general budget of the European Union, should
respect certain principles and fulfil certain conditions. In particular, it is
necessary for European political parties and their affiliated European
political foundations to respect the values on which the European Union is
founded, as set out in Article 2 of the Treaty on European Union and the Charter
of Fundamental Rights of the European Union.
(11)     Principles and minimum
requirements for the governance and internal organisation of European political
parties should be laid down, in particular to ensure a commitment to and
respect for high standards of internal party democracy. The statutes of a
European political party or a European political foundation should also contain
a series of basic administrative and legal provisions.
(12)     Eligibility for funding
from the general budget of the European Union should be limited to European
political parties and their affiliated European political foundations that have
been recognised as such and obtained a European legal status. While it is
crucial to ensure that the conditions to become a European political party are
not excessive but can be readily met by organised and serious transnational alliances
of political parties or natural persons or both, it is also necessary to
establish proportionate crtieria in order to allocate limited resources from
the EU budget, which objectively demonstrate the European ambition and genuine electoral
support of a European political party. Such a criterion is best based on the
outcome of elections to the European Parliament, in which the European
political parties are required to participate under this Regulation, providing
a precise indication of the electoral recognition of a European political
party. It should reflect the role the European Parliament has of directly
representing the Union's citizens, assigned to it by Article 10(2) of the
Treaty on European Union, as well as the objective for European political
parties to participate fully in the democratic life of the Union and to become
active actors of Europe's representative democracy, in order to effectively
express the views, opinions and political will of the citizens of the Union. Eligibility
for funding from the general budget of the European Union should therefore be
limited to European political parties which are represented in the European
Parliament by at least one of their members and to European political
foundations which apply through a European political party that is represented
in the European Parliament by at least one of its members.
(13)     To increase the
transparency of European political party funding, and in order to avoid
potential abuse of the funding rules, a Member of the European Parliament should,
for the purposes of funding only, be considered as a member of only one
European political party, which should, where relevant, be the one to which his
or her national or regional political party is affiliated on the final date for
the submission of applications.
(14)     The procedures to be
followed by European political parties and their affiliated European political
foundations when they apply for funding from the general budget of the European
Union should be laid down, as well as the procedures, criteria and rules to be
respected in arriving at a decision on granting such funding.
(15)     In order to encourage a European
political culture of independence, accountability and responsibility, certain
types of donations and contributions to European political parties and European
political foundations from sources other than the budget of the European Union
should be prohibited or subject to limitations and reinforced transparency
requirements.
(16)     Many Member States grant
beneficial tax treatment to donations made to domestic political parties and
political foundations both for the beneficiary and for the donors. Given the
need to encourage the development of own resources of European political
parties and European political foundations, it is important that this
beneficial tax treatment is also automatically available to European political
parties, European political foundations and their donors, for donations made
within or across borders.
(17)     European political parties should
be able to finance campaigns conducted in the context of elections to the
European Parliament, while the funding and limitation of election expenses for
parties and candidates at such elections should be governed by the rules
applicable in each Member State. In order to help raise the European political
awareness of citizens of the Union and to promote the transparency of the
European electoral process, European political parties should be encouraged to inform
citizens during elections to the European Parliament of the ties between them
and their affiliated national political parties and candidates.
(18)     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.
Moreover, European political parties and their affiliated European political foundations
should not finance national referenda campaigns. 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.
(19)     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, related notably to
their statutes, membership, financial statements, donors and donations,
[contributions] and grants received from the budget of the Union, as well as
information related to decisions taken by the European Parliament on
registration, funding and penalties, should be published. Establishing 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. In compliance with the principle of proportionality, the
obligation to publish the identity of natural persons should not apply to those
members of a European political party who have not given their express consent for
publication or to donations equal to or below EUR 1 000 per year and per donor.
Also in compliance with the principle of proportionality, information on
donations should be published annually, except during election campaigns to the
European Parliament or for donations exceeding EUR 12 000 where publication
should take place expeditiously. 
(20)     This Regulation respects
the fundamental rights and observes the principles enshrined in the Charter of
Fundamental Rights of the European Union, in particular Articles 7 and 8
thereof which state that everyone has the right to respect for his or her
private life and to the protection of personal data concerning him or her, and it
must be implemented in full respect of these rights and principles. 
(21)     Regulation (EC) No 45/2001
of the European Parliament and of the Council of 18 December 2000 on the
protection of individuals with regard to the processing of personal data by the
Community institutions and bodies and on the free movement of such data[15] applies to the processing of
personal data carried out by the European Parliament and the committee of
independent eminent persons in application of this Regulation.
(22)     Directive 95/46/EC of the
European Parliament and of the Council of 24 October 1995 on the protection of individuals
with regard to the processing of personal data and on the free movement of such
data[16]
applies to the processing of personal data carried out in application of this
Regulation.
(23)     For the sake of legal
certainty, it is appropriate to clarify that the European Parliament, the
European political parties and European political foundations, the national
authorities competent for exercising control over aspects related to the
financing of European political parties and European political foundations, and
other relevant third parties referred to or provided for in this Regulation are
the data controllers within the meaning of Regulation (EC) No 45/2001 or Directive
95/46/EC. It is also necessary to specify the maximum period for which they may
retain the personal data collected for the purposes of ensuring the legality,
regularity and transparency of the funding of European political parties and
European political foundations and the membership of European political parties.
In their capacity as data controllers, the European Parliament, the European
political parties and European political foundations, the competent national
authorities and the relevant third parties need to take all the appropriate measures
to comply with the obligations imposed by Regulation (EC) No 45/2001 and
Directive 95/46/EC, in particular those relating to the lawfulness of the
processing, the security of the processing activities, the provision of
information and the rights of data subjects to have access to their personal
data, as well as to procure the correction and erasure of their personal data.
(24)     The provisions of Chapter
III of Directive 95/46/EC on judicial remedies, liability and sanctions apply
as regards the data processing carried out in application of this Regulation. The
competent national authorities or relevant third parties should be liable in
accordance with applicable national law for any damage that they cause. In
addition, Member States should ensure that the competent national authorities or
relevant third parties are subject to appropriate penalties for infringements
of this Regulation.
(25)     Specific rules and
procedures shall be laid down for distributing the appropriations available
each year from the general budget of the European Union, taking into account,
on the one hand, the number of beneficiaries and, on the other, the share of
elected members in the European Parliament of each beneficiary European
political party and, by extension, its respective affiliated European political
foundation. These rules shall provide for strict transparency, accounting,
auditing and financial control of European political parties and their
affiliated European political foundations, and auditing provisions by the
European Parliament and the Court of Auditors as well as proportionate
sanctions, including in the event of a breach by a European political party or
a European political foundation of the values on which the Union is founded.
(26)     The European Parliament should
verify regularly that the conditions and requirements related to the
registration and funding of European political parties or European political
foundations continue to be met. This verification should be carried out
annually, or following a motivated request by any natural or legal person.
Decisions related to respect for the values on which the Union is founded should
only be taken in accordance with a procedure specifically designed to this
effect, and in consultation with a committee of independent eminent persons.
(27)     Technical assistance to be
afforded by the European Parliament to European political parties should be
guided by the principle of equal treatment, should be supplied against invoice
and payment and shall be subject to a regular public report.
(28)     The application of key
aspects of this Regulation should be presented on a dedicated website and
examined in an annual report from the European Parliament which should be
published.
(29)     The judicial control which
falls within the jurisdiction of the Court of Justice of the European Union
will help to ensure the correct application of this Regulation. Provisions
should also be made for administrative appeal procedures.
(30)     Given the need for
significant changes and additions to the rules and procedures currently
applicable to European political parties and European political foundations,
Regulation (EC) No 2004/2003 should be repealed,
HAVE ADOPTED THIS REGULATION:
Chapter i
General provisions
Article 1
Subject matter
This Regulation
lays down the conditions governing the statute and funding of political parties
at European level (hereinafter referred to as "European political
parties") and political foundations at European level (hereinafter
referred to as "European political foundations").
Article 2
Definitions
For the
purposes of this Regulation:
(1)          ‘political party’ means an
association of citizens which pursues political objectives,
(2)          ‘political alliance’ means
structured cooperation between political parties and/or natural persons from
different Member States,
(3)          ‘European political party’ means
a ‘political alliance’ which pursues political objectives and is registered
with the European Parliament in accordance with the conditions and procedures
laid down in this Regulation,
(4)          ‘European political foundation’
means an entity which is formally affiliated with a European political party, has its statutes registered with the European
Parliament in accordance with the conditions and procedures laid down in this
Regulation, and which through its activities, within the aims and fundamental
values pursued by the European Union, underpins and complements the objectives
of the European political party by performing one or several of the following
tasks:
(a)         
observing, analysing and contributing to the
debate on European public policy issues and on the process of European
integration,
(b)         
developing activities linked to European public
policy issues, such as organising and supporting seminars, training,
conferences and studies on such issues between relevant stakeholders, including
youth organisations and other representatives of civil society,
(c)         
developing cooperation in order to promote
democracy, including in third countries,
(d)         
serving as a framework for national political
foundations, academics, and other relevant actors to work together at European
level,
(5)          ‘regional Parliament’ or ‘regional
assembly’ means a body whose members either hold a regional electoral mandate
or are politically accountable to an elected assembly, 
(6)          ‘funding from the general budget
of the European Union’ means a grant awarded in accordance with Title IV of
Part One of Council Regulation (EC, EURATOM) No 1605/2002 of 25 June 2002 on
the Financial Regulation applicable to the general budget of the European
Communities[17]
(hereinafter ‘the Financial Regulation’) or a [contribution] awarded in
accordance with […][18],
(7)          ‘donation’ means cash offerings
and other donations in kind (goods or services) that constitute an economic
advantage for the European political party or the European political foundation
concerned.
Chapter ii
Statute for European political parties and European political foundations 
Article 3
Conditions for registration
1.           A political alliance, as defined
in Article 2 point (2), shall be entitled to apply to register its statutes as
a European political party with the European Parliament subject to the
following conditions:
(a)         
it must have its seat in a Member State,
(b)         
it must be represented, in at least one quarter
of the Member States, by Members of the European Parliament or in the national
Parliaments, regional Parliaments or 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 elections to the European Parliament,
(c)         
it must observe, in particular in its programme
and in its activities, and through those of its members, the values on which
the European Union is founded, namely respect for human dignity, freedom,
democracy, equality, the rule of law and respect for human rights, including
the rights of persons belonging to minorities,
(d)         
it must have participated in elections to the
European Parliament, or have expressed publicly the intention to participate in
the next elections to the European Parliament,
(e)         
it must not pursue profit goals.
2.           A political foundation
shall be entitled to apply to register its statutes as a European political
foundation with the European Parliament subject to the following conditions:
(a)         
it must be affiliated with a European political
party recognised in accordance with the conditions and procedures laid down in
this Regulation, as certified by the registered statutes of that party,
(b)         
it must have its seat in a Member State,
(c)         
it must observe, in particular in its programme
and in its activities, the values on which the European Union is founded,
namely respect for human dignity, freedom, democracy, equality, the rule of law
and respect for human rights, including the rights of persons belonging to
minorities,
(d)         
its objectives must complement the objectives of
the European political party with which it is formally affiliated,
(e)         
its governing body must be composed of members
from at least one quarter of the Member States,
(f)           
it must not pursue profit goals.
3.           A European political party
can have only one formally affiliated European political foundation. The formal
relationship between a European political party and its affiliated European
political foundation must be stated in the statutes of both, in accordance with
Articles 4(1) and 5. Each European political party and affiliated European
political foundation must ensure a separation between the daily management and
governing structures and the financial accounts of the European political
party, on the one hand, and of its European political foundation, on the other
hand.
Article 4
Governance and internal democracy of European political parties
1.           The statutes of a European
political party shall include administrative and legal provisions covering at
least the following:
(a)         
the name of the party, which must be clearly
distinguishable, also in its short form, from that of any existing European
political party,
(b)         
the address of its seat, which must be in one of
the Member States,
(c)         
the legal form of the party, as recognised in
the legal order of the Member State in which it has its seat,
(d)         
a written political programme setting out the
purpose and objectives of the party,
(e)         
its adherence to the no-profit principle, without
prejudice to Article 12(4),
(f)           
the name of its affiliated political foundation,
where relevant, and a description of the formal relationship between them,
(g)         
information on the party's representation with
respect to all acts of daily management, including legal representation,
(h)         
the administration and financial management of
the party,
(i)           
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,
(j)           
the dissolution of the entity as a recognised
European political party.
2.           The statutes of a European
political party shall include rules on internal party democracy covering at
least the following:
(a)         
the admission, resignation and exclusion of the
party's members, with the list of members annexed to it,
(b)         
the rights and duties associated with all types
of membership, including the rules guaranteeing the representation rights of
all members, be they natural or legal persons, and the relevant voting rights,
(c)         
the functioning of a general assembly, at which
the representation of all members must be ensured,
(d)         
the democratic election of and democratic
decision-making processes for all other governing bodies, specifying for each
its powers, responsibilities and composition, and including the modalities for
the appointment and dismissal of its members and clear and transparent criteria
for the selection of candidates and the election of office-holders, whose
mandate must be limited in time but may be renewable,
(e)         
the party's internal decision-making processes,
in particular the voting procedures and quorum requirements,
(f)           
its approach to transparency, notably on books,
accounts and donations, privacy and the protection of personal data, 
(g)         
the procedure for amending the statutes.
Article 5
Governance of European political foundations
The statutes of a European political
foundation shall include provisions covering at least the following:
(a)         
the name of the foundation, which must be
clearly distinguishable, also in its short form, from that of any existing
European political foundation,
(b)         
the address of its seat, which must be in one of
the Member States,
(c)         
the legal form of the foundation, as recognised
in the legal order of the Member State in which it has its seat,
(d)         
a description of the purpose and objectives of
the foundation, which must be compatible with the tasks listed in Article 2
point (4),
(e)         
its adherence to the no-profit principle, 
(f)           
the name of the European political party with
which it is directly affiliated, and a description of the formal relationship
between them,
(g)         
a list of the foundation's bodies, specifying
for each its powers, responsibilities and composition, and including the
modalities for the appointment and dismissal of its members and managers,
(h)         
the administration and financial management of
the foundation,
(i)           
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,
(j)           
the procedure for amending the statutes,
(k)         
the dissolution of the entity
as a recognised European political foundation.
Article 6
Registration
1.           The European Parliament
shall establish a registry (hereinafter referred to as 'the Registry') for the
purposes of the registration of a European political party and a European
political foundation.
2.           In order to register its statutes,
the political alliance, as defined in Article 2 point (2), or the political
foundation affiliated with a European political party shall file an application
with the European Parliament.
3.           The application shall be
accompanied by:
(a)         
documents proving that the applicant satisfies
the conditions laid down in Article 3,
(b)         
the party or foundation statutes, which shall include,
as required by Articles 4 and 5, the written political programme of the party
or a description of the purpose and objectives of the foundation as well as the
respective rules and provisions on governance and internal party democracy.
4.           A political foundation may
register its statutes with the Registry only through the European political party
with which it is affiliated.
5.           Within three months following
the reception of the application for registration, the European Parliament shall
adopt a decision, which it shall publish in the Official Journal of the
European Union, together with the party or foundation statutes or, where an
application has not been approved, the grounds for rejection.
6.           Any amendments to the
documents or statutes submitted as part of the application for registration in
accordance with paragraph 3 shall be notified to the European Parliament within
four weeks.
7.           The updated list of
members of a European political party, annexed to the party statutes in
accordance with Article 4(2), shall be sent to the European Parliament on a
yearly basis, but within four weeks of any changes following which the European
political party may no longer satisfy the requirement in Article 3(1)(b).
Article 7
Verification of registration
1.           The European Parliament shall
verify annually that the conditions and requirements set out in Articles 3, 4
and 5 continue to be met by the European political parties and the European political
foundations.
Where relevant, the timing of the annual
verification referred to in this paragraph shall be aligned with the
application procedure for funding set out in Article 13, in order for the
Registry and the Authorising Officer to coordinate and exchange information as
necessary.
2.           Whenever requested to do
so by one quarter of its members, representing at least three political groups
in the European Parliament, the European Parliament shall decide by a majority
of its members whether the condition in Article 3(1)(c) for a European
political party and in Article 3(2)(c) for a European political foundation
continues to be met.
Before reaching its decision, the European
Parliament shall hear the representatives of the European political party or
European political foundation concerned and ask a committee of independent
eminent persons to give an opinion on the subject within a reasonable time period.
This committee shall consist of three members,
with the European Parliament, the Council and the Commission each appointing
one member within six months after the end of the first session of the European
Parliament following elections to the European Parliament. The secretariat and
funding of the committee shall be provided by the European Parliament.
3.           Any natural or legal
person may, at any moment, introduce a motivated request to the European
Parliament to verify that one or more of the conditions and requirements
referred to in paragraph 1 continue to be met. A breach of the values on which
the Union is founded by a European political party, including its members, or a
European political foundation can only be established in accordance with
paragraph 2. 
4.           If the European Parliament
finds that any of the conditions or requirements referred to in paragraph 1 are
no longer satisfied, the provisions provided for in Article 11 or in Article 22
or in both shall apply, having due regard to the provisions of Article 23.
5.           A European political
foundation shall automatically forfeit its status if the European political
party with which it is affiliated is removed from the Registry. The Authorising
Officer responsible shall reduce the amount of or terminate the contribution or
grant agreement or decision on Union funding received under this Regulation, and
recover amounts unduly paid under the contribution or
grant agreement or decision as well as any unspent Union
funding at the date of the decision adopted on the basis of Article 11.
Chapter iii
Legal status of European political parties and European political
foundations 
Article 8
Legal personality
The European political party and the
European political foundation shall have legal personality, which it shall
acquire on the date on which it is entered in the Registry in accordance with
Article 6.
Article 9
Legal recognition and capacity
The European political party and the
European political foundation shall have full legal recognition and capacity in
all Member States.
Article 10
Applicable law
1.           The European political
party and the European political foundation shall be governed by this
Regulation and, where expressly authorised by this Regulation, by the
provisions of their respective statutes.
2.           For matters not regulated
by this Regulation or, where matters are partly regulated by it, for those
aspects not covered by it, the European political party and the European
political foundation shall be governed in the Member State in which it has its
seat by those national laws applicable to the legal form referred to in the
party or foundation statutes. Activities carried out by the European political
party and the European political foundation in other Member States shall be
governed by the relevant national laws of those Member States.
Article 11
Termination of European legal status and winding up
1.           A European political party
or a European political foundation shall forfeit or give up its status and
cease to have European legal personality in one of the following cases:
(a)         
its governing body decides to wind up the
European political party or the European political foundation,
(b)         
its governing body decides to convert the
European political party or the European political foundation into a legal
entity recognised in the legal order of a Member State,
(c)         
a European political party no longer meets the
requirements in Article 3(1)(b) following changes to its membership or
following elections to the European Parliament,
(d)         
it is removed from the Registry pursuant to the
provisions in Article 22(1) or (4) or in accordance with Article 7(5).
2.           The European Parliament
shall adopt a decision on the termination of the European legal status and the removal
from the Registry.
3.           A European political party
or a European political foundation in one of the cases provided for under
paragraph 1 points (a), (b) or (c) shall have any ongoing decision on Union funding
received under this Regulation withdrawn or any ongoing agreement on such
funding terminated and any unspent Union funding recovered, including any
unspent Union funds from previous years.
4.           Winding up, insolvency,
cessation of payments and similar procedures shall be governed by the legal
provisions which apply to the legal form referred to in the statutes of the
European political party or the European political foundation in the Member
State in which it has its seat.
Chapter iv
Funding provisions
Article 12
Funding conditions
1.           A European political party
registered in accordance with the conditions and procedures laid down in this
Regulation, which is represented in the European Parliament by at least one of
its members, and which is not in one of the situations of exclusion referred to
in Article [93] of the Financial Regulation may apply for funding from the
general budget of the European Union, in accordance with the terms and
conditions published by the European Parliament in a call for [contributions].
2.           A European political
foundation which is affiliated with a European political party eligible to
apply for funding under paragraph 1, is registered in accordance with the
conditions and procedures laid down in this Regulation, and which is not in one
of the situations of exclusion referred to in Article [93] of the Financial
Regulation may apply for funding from the general budget of the European Union,
in accordance with the terms and conditions published by the European Parliament
in a call for proposals.
3.           For the purposes of
determining eligibility for funding from the general budget of the European
Union in accordance with paragraph 1 and Article 3(1)(b), and for the
application of the provisions in Article 14(1), a Member of the European
Parliament shall be considered as a member of only one European political
party, which shall, where relevant, be the one to which his or her national or
regional political party is affiliated on the final date for the submission of
applications.
4.           Financial contributions or
grants from the general budget of the European Union may not exceed 90% of the
annual reimbursable expenditure of a European political party and 95% of the
annual eligible costs indicated in the budget of a European political foundation.
European political parties may use any unused part of the EU contribution
awarded to cover reimbursable expenditure within the following two financial
years after its award. Amounts unused following those two financial years shall
be recovered in accordance with the Financial Regulation.
Article 13
Application for funding
1.           In order to receive
funding from the general budget of the European Union, a European political
party or a European political foundation, which satisfies the conditions of
Article 12(1) or (2), shall file an application with the European Parliament
each year following a call for [contributions] or proposals.
2.           The European political
party and the European political foundation must, at the time of its
application, comply with the obligations listed in Article 19, and, from the
date of application until the end of the financial year covered by the [contribution]
or grant, remain registered in the Registry and not be the subject of any of
the penalties foreseen in Article 22.
3.           A European political
foundation shall include in its application its annual work programme.
4.           The Authorising Officer
responsible shall adopt a decision within three months after closure of the
call for [contributions] or call for proposals, and authorise and manage the
corresponding appropriations, in accordance with the Financial Regulation.
5.           A European political
foundation may apply for funding from the general budget of the European Union
only through the European political party with which it is affiliated.
Article 14
Award criteria and distribution of funding
1.           The respective
appropriations available to the European political parties and the European
political foundations which have been awarded [contributions] or grants in
accordance with Article 13 shall be distributed annually on the basis of the
following distribution key:
–              
15 % shall be distributed in equal shares,
–              
85 % shall be distributed in proportion to their
share of elected members of the European Parliament among the beneficiary European
political parties.
The same distribution key shall be used to
award funding to European political foundations, on the basis of their
affiliation with a European political party. 
2.           The distribution referred
to in paragraph 1 shall be based on the number of elected members in the
European Parliament who are members of the applicant European political party
on the final date for the submission of applications, taking into account the
provisions of Article 12(3).
After this date, any changes to the number
shall not affect the respective share of funding between European political
parties or European political foundations. This is without prejudice to the
requirement in Article 12(1) for the European political party to be represented
in the European Parliament by at least one of its members.
Article 15
Donations and contributions
1.           European political parties
and European political foundations may accept donations from natural or legal
persons of up to a value of EUR 25 000 per year and per donor, without
prejudice to paragraph 5.
2.           European political parties
and European political foundations shall, at the time of the submission of
their annual financial statements to the European Parliament in accordance with
Article 19, 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 the contributions made by members referred
to in paragraphs 7 and 8.
3.           Donations received by the European
political parties and European political foundations within six months prior to
elections to the European Parliament shall be reported on a weekly basis to the
European Parliament in writing and in accordance with the provisions of
paragraph 2.
4.           Single donations exceeding
a value of EUR 12 000 that have been accepted by the European political parties
and European political foundations shall be immediately reported to the
European Parliament in writing and in accordance with the provisions of
paragraph 2.
5.           A European political party
and a European political foundation shall not accept:
(a)         
anonymous donations or contributions,
(b)         
donations from the budgets of political groups
in the European Parliament,
(c)         
donations from any undertaking over which the
public authorities may exercise directly or indirectly a dominant influence by
virtue of their ownership of it, their financial participation therein, or the
rules which govern it,
(d)         
donations from any public authority from a third
country, including from any undertaking over which the public authorities may
exercise directly or indirectly a dominant influence by virtue of their
ownership of it, their financial participation therein, or the rules which
govern it.
6.           Any donation that is not
permitted under this Regulation shall within 30 days following the date it is
received by the European political party or the European political foundation:
–                        
be returned to the donor or any person acting on
the donor's behalf, or,
–                        
when it is not possible to return it, be reported
to the European Parliament. The Authorising Officer shall proceed to the
establishment and authorisation of the recovery order in accordance with the
provisions laid down in Articles [71] and [72] of the Financial Regulation. The
funds shall be entered as general revenue in the European Parliament section of
the Budget.
7.           Contributions to a
European political party from its members shall be admissible. These
contributions shall not exceed 40 % of the annual budget of that European
political party.
8.           Contributions to a
European political foundation from its members, as well as from European
political parties, shall be admissible. These contributions shall not exceed 40
% of the annual budget of that European political foundation and may not derive
from funds received by a European political party pursuant to this Regulation
from the general budget of the European Union.
The burden of proof shall rest with the
European political party concerned, which shall clearly indicate in its
accounts the origin of funds used to finance its affiliated European political
foundation.
Article 16
Non-discriminatory tax treatment of donations and donors
1.           Any European political
party or European political foundation that receives a donation from within or
across borders shall benefit from the same tax treatment that is applicable to
donations made to a political party or political foundation that has its seat in
the Member State concerned.
2.           Any natural or legal
person donating to a European political party or European political foundation
within or across borders shall benefit from the same tax treatment that is
applicable to donations made to a political party or political foundation that
has its seat in the Member State where the donor is resident for tax purposes.
3.           For the purposes of
paragraphs 1 and 2, the European political party and the European political
foundation shall be regarded as equivalent, respectively, to a political party and
a political foundation established pursuant to the law of the Member States
concerned.
Article 17
Financing of campaigns in the context of elections to the European Parliament
1.           The funding of European
political parties from the general budget of the European Union or from any
other source may be used to finance campaigns conducted by the European
political parties in the context of the elections to the European Parliament,
in which they participate as required in Article 3(1)(d).
In accordance with Article 8 of the Act
concerning the election of the members of the European Parliament by direct universal
suffrage[19],
the funding and limitation of election expenses for all parties and candidates
at elections to the European Parliament is governed in each Member State by
national provisions.
2.           Expenditure linked to
campaigns conducted in the context of elections to the European Parliament shall
be clearly identified as such by the European political parties in their annual
financial statements.
3.           European political parties
shall, in the context of the elections to the European Parliament, take all appropriate
measures to inform citizens of the Union of the affiliations between national
political parties and candidates and the European political parties.
Article 18
Prohibition of funding
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 national,
regional or local elections or other political parties, and in particular
national political parties or candidates.
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 defined in Article 2 point (4) and to meet expenditure directly linked to
the objectives set out in their statutes according to Article 5. It shall in
particular not be used for the direct or indirect funding of European, national,
regional or local elections, political parties, candidates or foundations.
3.           The funding of European
political parties and European political foundations from the general budget of
the European Union or from any other source shall not be used to finance national,
regional or local referenda campaigns.
Chapter V
Control and Transparency
Article 19
Accounts and reporting obligations
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 Registry and to the
competent national authorities in the Member States:
(a)         
their annual financial statements and
accompanying notes, covering the revenue and expenditure, and assets and
liabilities at the beginning and at the end of the financial year, according to
the law applicable in the Member State in which they have their seat,
(b)         
an external audit report on the annual financial
statements, covering both the reliability of these annual financial statements
and the legality and regularity of their revenue and expenditure, carried out
by an independent body or expert authorised to audit accounts under the law
applicable in the Member State in which they have their seat,
(c)         
the list of donors and their corresponding
donations reported in accordance with Article 15(2), (3) and (4).
2.           Where expenditure is
executed by European political parties jointly with national political parties or
by European political foundations jointly with national political foundations, and
with other organisations, evidence of the expenditure incurred by the European
political parties or the European political foundations directly or through
these third parties shall be included in the annual financial statements
referred to in paragraph 1.
3.           The information referred
to in paragraph 1 shall be published in accordance with Article 24.
Article 20
Implementation and control
1.           Appropriations for the
funding of European political parties and European political foundations shall
be determined under the annual budgetary procedure and shall be implemented in
accordance with the Financial Regulation.
The terms and conditions for [contributions]
and grants shall be laid down by the Authorising Officer in the call for [contributions]
and the call for proposals.
2.           Control of funding
received from the general budget of the European Union shall be exercised in
accordance with the Financial Regulation.
Control shall also be exercised on the basis of
annual certification by an external and independent audit, as provided for in
Article 19(1).
3.           The competent national
authorities in the Member State in which the European political parties and
European political foundations have their respective seat shall, in accordance
with Article 10(2), exercise control over the funding received from sources
other than the budget of the European Union, and all expenditure. Such control
shall be exercised in cooperation with the European Parliament and the
competent national authorities in other Member States.
The national authorities and the European
Parliament shall agree practical arrangements in order to share information on
the European political parties and the European political foundations.
4.           Any document or
information required by the Court of Auditors to carry out its task shall be
supplied to it at its request by the European political parties and the
European political foundations that receive funding in accordance with this
Regulation.
5.           The [contribution] and
grant award decision or agreement shall expressly provide for auditing by the
European Parliament and the Court of Auditors, on the basis of records and on
the spot, of the European political party which has received a [contribution]
or the European political foundation which has received a grant from the
general budget of the European Union.
6.           The Court of Auditors and
the Authorising Officer, or any other external body authorised by the
Authorising Officer, may carry out the necessary checks and verifications on
the spot in order to verify the legality of expenditure and the proper
implementation of the provisions of the [contribution] and grant award decision
or agreement, and, in the case of European political foundations, the proper
implementation of the work programme. The beneficiary shall supply any document
or information needed to carry out this task.
7.           The European Anti-Fraud
Office (OLAF) may carry out investigations, including on-the-spot checks and
inspections, in accordance with the provisions and procedures laid down in Regulation
(EC) No 1073/1999 of the European Parliament and of the Council of 25 May 1999
concerning investigations conducted by the European Anti-Fraud Office (OLAF)[20] and Council Regulation
(Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and
inspections carried out by the Commission in order to protect the European
Communities' financial interests against fraud and other irregularities[21] with a view to establishing
whether there has been fraud, corruption or any other illegal activity
affecting the financial interests of the Union in connection with [contributions]
or grants under this Regulation. If appropriate, the findings may give rise to
recovery decisions by the European Parliament.
Article 21
Technical support
All technical support from the European
Parliament to European political parties shall be based on the principle of
equal treatment. It shall be granted on conditions no less favourable than
those granted to other external organisations and associations that may be
accorded similar facilities and shall be supplied against invoice and payment.
In accordance with Article 24, the European
Parliament shall publish details of the technical support provided to each
European political party in an annual report, within three months following the
end of the financial year.
Article 22
Penalties
1.           If the European Parliament
finds, in accordance with Article 7(2), that a European political party or a
European political foundation has failed to respect the values on which the
Union is founded or has been the subject of a judgement which has the force of
res judicata for illegal activities detrimental to the financial interests of
the Union as defined in Article [93(1)(e)] of the Financial Regulation, or that
a European political party has failed to respect the minimum rules on internal
democracy required by Article 4(2), the European political party or the
European political foundation in question may be removed from the Registry,
forfeit its status in accordance with Article 11, and have any ongoing decision
on Union funding received under this Regulation withdrawn or any ongoing
agreement on such funding terminated and any Union funding recovered, including
any unspent Union funds from previous years.
2.           The European Parliament
shall impose on a European political party or a European political foundation a
fine according to a scale determined by it:
(a)         
in the event of failure to satisfy any of the
conditions and requirements laid down in Articles 3, 4 or 5 not covered by
paragraph 1 and which are not the result of changes to the membership of a
European political party or elections to the European Parliament,
(b)         
in the event of failure to
provide the notification laid down in Article 6(6) and (7) or if the European
Parliament finds that the European political party or the European political
foundation has at any moment intentionally provided incorrect or misleading
information,
(c)         
if any of the bodies
authorised by this Regulation to audit or conduct checks on the beneficiaries
of funding from the general budget of the European Union detect inaccuracies in
the annual financial statements,
(d)         
in the event of failure to transmit
to the European Parliament the list donors and their corresponding donations in
accordance with Article 15(2) or to report donations in accordance with Article
15(3) and (4),
(e)         
if a European political
party or a European political foundation has accepted donations that are not
permitted according to Article 15(5) or has not reported such donations as
required by Article 15(6).
3.           When setting the amount of
a fine imposed on a European political party or a European political foundation
pursuant to paragraph 2, the European Parliament shall take into account the
gravity, duration and, where relevant, recurrence of the infringement, the time
that has elapsed, the intention or degree of negligence, and any measures taken
to comply with the conditions and requirements of this Regulation. Any fine
must be effective and dissuasive, and may not exceed 10% of the annual budget
of the European political party or the European political foundation in
question corresponding to the year in which the sanction is imposed.
4.           A European political party
or a European political foundation which, following an infringement described
in paragraph 2 point (a), fails to introduce the measures requested by the
European Parliament to remedy the situation, despite having been given the
opportunity to do so pursuant to Article 23, may be removed from the Registry
and forfeit its status in accordance with Article 11, and have any ongoing
decision on Union funding received under this Regulation withdrawn or any
ongoing agreement on such funding terminated and any Union funding recovered,
including any unspent Union funds from previous years.
5.           A European political party
or a European political foundation which is the subject of a penalty imposed on
it on the basis of the infringements listed in paragraph 2 shall no longer be
in compliance with Article 13(2). As a result, the Authorising Officer
responsible shall reduce the amount of or terminate the contribution or grant
agreement or decision on Union funding received under this Regulation, and
recover amounts unduly paid under the contribution or grant agreement or
decision, including any unspent Union funds from previous years.
6.           A European political party
or a European political foundation may, in addition, be excluded from funding
for up to five years in cases of grave professional misconduct established by
the Authorising Officer in accordance with Article [93(1)(c)] of the Financial
Regulation.
7.           The penalties imposed
pursuant to this Article shall apply to all European political parties and
European political foundations irrespective of whether they receive Union funding.
The Authorising Officer responsible may impose administrative and/or financial penalties
in accordance with Article [96(2)] of the Financial Regulation and Article
[145] of its Rules of Application on any European political party or European
political foundation that is in one of the cases referred to in Article [96(1)]
of the Financial Regulation not covered by the paragraphs above.
Article 23
Hearings and corrective measures
1.           Before taking a final
decision related to any of the penalties in Article 22, the European Parliament
shall give the European political party or the European political foundation concerned
the opportunity to present its observations and, where relevant and appropriate,
to introduce the measures required to remedy the situation within a reasonable
time period.
2.           If the European Parliament
considers it necessary, it may hear other natural or legal persons, including
any complainants referred to in Article 7(3).
Chapter VI
Final Provisions
Article 24
Transparency
1.           The Registry shall publish
on a website created for the purpose the following:
(a)                   
the names and statutes of all registered
European political parties and European political foundations, together with
the documents submitted as part of the application for registration in
accordance with Article 6(3), at the latest four weeks after the European
Parliament has adopted its decision and, beyond this date, any amendments
notified to the European Parliament pursuant to Article 6(6) and (7),
(b)                   
a list of those applications that have not been
approved, together with the documents submitted as part of the application for
registration in accordance with Article 6(3) and the grounds for rejection, at
the latest four weeks after the European Parliament has adopted its decision,
(c)                   
an annual report with a table of the amounts
paid to each European political party and European political foundation, for
each financial year for which [contributions] have been received or grants have
been paid from the general budget of the European Union,
(d)                   
the annual financial statements and external
audit reports referred to in Article 19(1), and, for the European political
foundations, the final reports on the implementation of the work programmes,
(e)                   
the names of donors and their corresponding donations
reported by the European political parties and European political foundations
in accordance with Article 15(2), (3) and (4), with the exception of donations from
natural persons not exceeding a value of EUR 1 000 per year and per donor which
shall be reported as "minor donations",
(f)                     
the contributions referred to in Article 15(7)
and (8) and reported by the European political parties and European political
foundations in accordance with Article 15(2), including also the identity of
the members who have made the contributions, with the exception of those contributions
from natural persons not exceeding a value of EUR 1 000 per year and per member
which shall be reported as "minor contributions",
(g)                   
the details of and reasons for any final decisions
taken by the European Parliament pursuant to Article 22, including, where
relevant, the opinions adopted by the committee of independent eminent persons
in accordance with Article 7(2), having due regard to the provisions of Regulation
(EC) No 45/2001,
(h)                   
the technical support provided to European
political parties in accordance with Article 21,
(i)                     
the provisions for the implementation of this
Regulation as referred to in Article 28,
(j)                     
the evaluation report of the European Parliament
on the application of this Regulation and the activities funded as referred to
in Article 27.
2.           From the list of members
of a European political party, annexed to the party statutes in accordance with
Article 4(2) and updated in accordance with Article 6(7), the European
Parliament shall publish the total number of members, the identity of the legal
persons that are members, as well as the names of those natural persons who
have given their express written consent to their publication. European political
parties shall request this consent as a matter of course from all natural
persons who are members. 
3.           European political parties
and European political foundations shall, in a publicly available privacy
statement, provide potential members and donors with the information required
by Article 10 of Directive 95/46/EC and inform them that their personal data
may be made public and may be processed for auditing and control purposes by
the European Parliament, OLAF, the Court of Auditors, competent national
authorities, and external bodies or experts authorised by these. The European
Parliament, in application of Article 11 of Regulation (EC) 45/2001, shall
include the same information in the calls for [contributions] or proposals referred
to in Article 13(1).
Article 25
Protection of personal data
1.           In processing personal
data pursuant to this Regulation, the European Parliament and the committee
referred to in Article 7(2) shall comply with Regulation (EC) No 45/2001. For
the purposes of the processing of personal data, they shall be considered as
data controllers in accordance with Article 2(d) of Regulation (EC) No 45/2001.
2.           In processing personal
data pursuant to this Regulation, the European political parties and the
European political foundations, the national authorities competent for
exercising control over aspects related to the financing of European political
parties and European political foundations in accordance with Article 20(3) and
the independent bodies or experts authorised to audit accounts in accordance
with Article 19(1) shall comply with Directive 95/46/EC and the national
provisions adopted pursuant thereto. For the purposes of the processing of
personal data, they shall be considered as data controllers in accordance with
Article 2(d) of Directive 95/46/EC.
3.           The European Parliament
and the committee referred to in Article 7(2) shall ensure that personal data
collected by them pursuant to this Regulation are not used for any purpose
other than to ensure the legality, regularity and transparency of the funding
of European political parties and European political foundations and the
membership of European political parties. They shall destroy those personal
data at the latest 24 months after publication of the relevant parts in accordance
with Article 24.
4.           The competent national
authorities and independent bodies or experts authorised to audit accounts
shall use the personal data they receive only in order to exercise control over
the financing of European political parties and European political foundations.
They shall destroy those personal data in accordance with applicable national
law after transmitting it to the European Parliament pursuant to Article 20(3).
5.           Personal data may be
retained beyond the time limits laid down in paragraph 3 or foreseen by the
applicable national law referred to in paragraph 4 if necessary for the
purposes of legal or administrative proceedings relating to the funding of a
European political party or a European political foundation or the membership of
a European political party. All such personal data shall be destroyed at the
latest one week after the date of conclusion of the said proceedings by a final
decision, or after any audits, appeals, litigation or claims have been disposed
of. 
6.           The data controllers
referred to in paragraphs 1 and 2 shall implement appropriate technical and
organisational measures to protect personal data against accidental or unlawful
destruction or accidental loss, alteration, unauthorised disclosure or access,
in particular where the processing involves the transmission of data over a
network, and against all other unlawful forms of processing.
7.           The European Data
Protection Supervisor shall be responsible for monitoring and ensuring that the
European Parliament and the committee referred to in Article 7(2) respect and
protect the fundamental rights and freedoms of natural persons in the
processing of personal data pursuant to this Regulation. Without prejudice to
any judicial remedy, every data subject may lodge a complaint with the European
Data Protection Supervisor if he or she considers that his or her right to the
protection of their personal data has been infringed as a result of the
processing of this data by the European Parliament or the committee.
8.           The European political
parties and the European political foundations, the competent national
authorities and the independent bodies or experts authorised to audit accounts
under this Regulation shall be liable in accordance with applicable national
law for any damage they cause in the processing of personal data pursuant to
this Regulation. The Member States shall ensure that they are subject to
effective, proportionate and dissuasive penalties for infringements of this
Regulation, Directive 95/46/EC and the national provisions adopted pursuant
thereto, and in particular for the fraudulent use of personal data.
Article 26
Right of appeal
1.           The European Parliament
shall provide for administrative appeal procedures in relation to any decisions
linked to the registration of statutes, funding or penalties.
2.           Administrative appeal
procedures shall not have suspensory effect. The European Parliament may,
however, if it considers that circumstances so require, suspend the application
of any decision it has taken.
3.           Decisions taken pursuant
to this Regulation may be the subject of court proceedings before the Court of
Justice of the European Union, in accordance with the relevant provisions of
the Treaty on the Functioning of the European Union.
Article 27
Evaluation
The European Parliament shall publish by 1
July of the third year following elections to the European Parliament a report
on the application of this Regulation and the activities funded. The report
shall indicate, where appropriate, possible amendments to be made to the
statute and funding systems.
Article 28
Implementing rules
The European Parliament shall adopt a
Decision laying down the rules and procedures for implementing this Regulation,
including for the establishment of the Registry.
Article 29
Repeal
Regulation (EC) No 2004/2003 is repealed
from the date of entry into force of this Regulation.
Article 30
Entry into force and application
This Regulation shall enter into force on
the third day following that of its publication in the Official Journal of
the European Union.
It shall apply from 1 July 2013.
This
Regulation shall be binding in its entirety and directly applicable in all
Member States.
Done at Brussels,
For the European Parliament                       For
the Council
The President                                                 The
President
[1]               OJ L 297, 15.11.2003, p. 1
[2]               OJ L 343, 27.12.2007, p. 5.
[3]               Report by the Secretary General on party funding at
European level pursuant to Article 15 of the Decision of the Bureau of the
European Parliament of 29 March 2004 laying down the procedures for
implementing Regulation (EC) No 2004/2003 of the European Parliament and of the
Council on the regulations governing political parties at European level and
the rules regarding their funding – 18 October 2010.
[4]               A7-0062/2011
[5]               Article 12 reads: "The European Parliament shall
publish, by 15 February 2011, a report on the application of the Regulation and
the activities funded. The report shall indicate, where appropriate, possible
amendments to be made to the funding system".
[6]               COM(2012) 35 final.
[7]               Currently 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). This text will be
replaced by a new Financial Regulation, which should enter into force on 1 January
2013.
[8]               Declaration n° 11 of the Nice Treaty: "The
Conference recalls that the provisions of Article 191 do not imply any transfer
of powers to the European Community and do not affect the application of the
relevant national constitutional rules. The funding for political parties at
European level provided out of the budget of the European Communities may not
be used to fund, either directly or indirectly, political parties at national
level. The provisions on the funding for political parties shall apply, on the
same basis, to all the political forces represented in the European Parliament."
[9]               OJ C , , p. .
[10]             OJ C , , p. .
[11]             OJ C , , p. .
[12]             OJ C , , p. .
[13]             OJ L 297, 15.11.2003, p. 1.
[14]             OJ C , , p. . 
[15]             OJ L 8, 12.1.2001, p. 1.
[16]             OJ L 281, 23.11.1995, p. 31.
[17]             OJ L 248, 16.9.2002, p. 1. Reference
to be updated once the new Financial Regulation has been formally adopted and published.
[18]             At the date of adoption of the present proposal, the
College will also adopt a Commission working document on a proposal to amend
the Financial Regulation introducing a new Title on the financing of European
political parties by means of contributions. The introduction of 'contributions'
for European political parties will be confirmed after the latter
proposal has been adopted by the co-legislators.
[19]             OJ L 278, 8.10.1976, p. 5.
[20]             OJ L 136, 31.5.1999, p. 1.
[21]             OJ L 292, 15.11.1996, p. 2.