The Coalition of Media Workers Uncovers EU’s Largest Political Funders
Brussels: In the context of the European elections, revelations regarding political party funding have emerged. A joint investigation by a media group and Noteworthy has uncovered the extent of government subsidies and external funds supporting political parties across Europe. This investigation has identified major funders within the European Union.
A collaborative effort involving 50 journalists from 26 outlets across the EU, coordinated through the Follow the Money project, has revealed detailed information on political funding in several countries, including Ireland. The investigation highlighted significant fundraising activities and identified gaps in the legal provisions governing donations. It was found that many political parties in the EU are heavily reliant on government subsidies.
Funding of Political Parties in Ireland
In Ireland, political parties that secure more than 2% of first-preference votes, even if they do not win an election, receive government-subsidised funding. Approximately €3.50 of every taxpayer’s money goes towards funding political parties, making Ireland the eighth-highest in the EU in this regard.
The EU permits companies to donate to political parties in countries including Ireland. Official figures show that Irish political parties have received a total of €2,000 in corporate donations. Among the highest fundraisers are the Green Party, Social Democrats, Fine Gael, and Fianna Fáil. Each party spends millions on campaigning. Ireland leads the EU in the proportion of taxpayer money used for party funding.
Legislative Deficiencies
Although Ireland imposes strict restrictions on who can donate to political parties and the amount they can contribute, the law does not mandate disclosure of donor identities or donation amounts. Only 8.37% of donations to Irish political parties between 2019 and 2022 have been disclosed, making Ireland one of the most transparent in the EU despite these shortcomings.
Government-Sponsored Politics
From 2019 to 2022, public funds accounted for 80% of the income of political parties in Ireland. Across the EU, political parties received a total of €3.7 billion in government funding, with varying laws in each country. Politicians are permitted to donate to their own parties, but there is no legal mechanism to verify whether funds have been sourced from the public.
European Comparisons
In Spain, political parties are funded through tax revenues and a portion of the central fund, allocated based on party representation at local and national levels and seats in previous elections. Belgian parties receive substantial public funding, allowing them to function without private donations.
Contributions Across Europe
Between 2019 and 2022, 300 political parties in the EU collected €685 million from private individuals and companies. Germany tops the list for corporate contributions. The insurance company Allianz donates €20,000 to €30,000 annually to five parties, while Florian Rehm, a herbal liqueur company owner, contributed approximately €300,000 to three parties between 2021 and 2022. Philip Morris’ German subsidiary contributed €310,000, and the German metal and electro industries donated €1.35 million to government parties. Chancellor Olaf Scholz’s SPD received €90,000, Die Grünen €430,000, and the FDP €430,000. The opposition CDU received €2.9 million, with companies donating €77 million over four years. Italy ranked second, with €6 million in party donations.
Political Influence Through Donations
Incidents have surfaced where large donations to political parties have led to ministerial appointments. In Bulgaria, MP Nikolay Sabev, owner of a private postal service, donated €50,000 to the We Continue to Change party in 2021 and was subsequently appointed Minister of Communications. He later donated an additional €105,000.
Country-Specific Insights
In Poland, 80% of donations to the Law and Justice (PIS) party’s 2019 European Parliament campaign came from individuals employed in government companies and institutions, with large donations occurring on the same day.
In Finland, the largest single-party donation was orchestrated by a trust formed by wealthy business owners to circumvent the country’s €30,000 donation limit. This trust has donated over €1.5 million annually to the Swedish People’s Party, the Swedish minority party in Finland, since 2010.
Billionaire Steven Schurmann, a Dutch tech entrepreneur, was the largest individual donor, contributing €1.25 million to Germany’s Die Grünen during the 2021 elections. He also donated €1 million to the Dutch liberal party D66 through his Dreamery Foundation.
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