Transparency of funding of political parties in the Austrian Republic

Funding of political parties is important in any multi-party system since the form and amounts of funding constitute the elements which determine the party policy. A new Federal law on the funding of political parties was adopted in the Austrian Republic in 2012. This document enshrines the norms relating to state and private support, limitation of expenses on election campaigns, the requirement to increase transparency of funding of political parties and reliability of their financial reporting. To conduct its public activities, each political party gets funds in the amounts provided for in both federal and land legislation. Legislation sets definite requirements to political parties which enable them to seek funding from the state, lands and communes. Donations from people and entities form the main source of parties' takings. Although, the Federal law on the funding of political parties 2012 determined some prohibitions on the character and amount of the above takings. For the first time ever, the law has set an imperative norm in relation to the restriction of expenses on election campaigns, the minimum amount being not more than 7 million euro for one political party. Political parties are obliged to maintain accounting records of application of the funds according to their purposes. Thus, audit is a compulsory procedure for them. The introduction of an independent and professional audit on a regular basis increasingly promotes the development of the current system of control over the financial activity of political parties. Financial reports are to be posted on the websites of both political parties and the Audit Chamber which has considerable supervisory powers (e.g. refers documents to a competent body in case of alleged violations of the obligation to report; the prohibition on acceptance of donations or restriction of expenses on election campaigns etc.). Moreover, all improperly accepted donations should be immediately referred by a political party to the Audit Chamber which keeps them on a separate account and transfers to the institutions involved in charity and research activities. The liability of political parties for financial violations and corruption is very strict and includes fines and confiscation of improperly accepted monies. All decisions about the sanctions against political parties are made by the Independent senate of party transparency. Thus, the purpose of all current legislative prescriptions of the Austrian Republic is to increase transparency of funding of political parties and public control.

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