Europe Takes a Step Forward: New Rules for Political Parties and Foundations Strengthen Democracy
- maria tsaousi
- Jun 21
- 3 min read
In a significant move for democratic governance across the EU, the European Parliament and Council negotiators reached a provisional agreement this Tuesday to overhaul the statute and funding framework for European political parties and foundations. These long-awaited reforms are designed to increase transparency, improve financial sustainability, and strengthen protections against foreign interference — all while empowering political groups to better represent European citizens in a fast-changing political landscape.
Why This Reform Matters
European political parties and foundations are essential vehicles for fostering cross-border political dialogue and shaping the EU’s democratic life. Yet, they’ve long operated under outdated regulations that limited their ability to act as cohesive political families. The newly agreed rules seek to change that by clarifying the scope of their activities, updating funding mechanisms, and reinforcing safeguards around their operations.
Transparency and Security at the Forefront
One of the most notable aspects of the new rules is the emphasis on transparency and accountability:
Any donation over €3,000 will now require full identification data from the donor.
A new public, real-time donation registry managed by the Authority for European Political Parties and Foundations will ensure citizens can easily access funding information.
While parties and foundations from non-EU neighbouring or candidate countries can continue to participate, they will not be allowed to vote or contribute financially — a move intended to limit undue foreign influence without cutting off dialogue.
Reinforcing European Values
All recognised European political parties and foundations will now be required to formally commit to EU core values, as defined in Article 2 of the Treaty on European Union. This will be reassessed if their member composition changes.
Further steps to modernize party governance include:
Internal rules promoting gender balance,
Mandatory anti-harassment protocols, and
Annual reporting on gaps in representation.
These measures aim to ensure that Europe’s political spaces are not only transparent but also inclusive and safe.
Legal Clarity for Cross-Border Political Cooperation
For years, European political parties have faced legal uncertainty about how they can support their member organisations. The new regulation resolves this by formally allowing joint activities, such as campaign events or policy forums, giving parties confidence to act together without fear of overstepping regulatory boundaries.
Crucially, the ban on direct or indirect EU-level funding of national parties and candidates remains — preserving the integrity of domestic democratic processes.
A Sustainable Financial Model
Under the revised rules:
EU co-financing increases from 90% to 95%, giving political organisations more financial stability.
A new category of self-generated income (such as ticket sales for events or publications) is introduced, capped at 3% for parties and 5% for foundations — a cautious but important step toward diversification.
Recognising the unique challenges faced by European political foundations, EU institutions have also pledged to revisit their funding conditions as soon as procedural rules allow.
Voices from Parliament
Co-rapporteur Loránt Vincze (EPP, Romania) described the agreement as a “balanced reform” that brings long-awaited legal certainty, reduces red tape, and strengthens protections against foreign interference.
His colleague, Charles Goerens (Renew Europe, Luxembourg), while noting that not all of Parliament's ambitions made it into the final deal, still called the result a meaningful step forward: “Europe must move beyond timidity and embrace greater ambition in shaping its democratic future.”
What Happens Next?
The deal still requires formal endorsement by the European Parliament and Council. If approved, most of the new provisions will apply from 1 January 2026 — giving parties time to adapt to the new framework ahead of the next European elections.
A More Democratic European Future
At a time when democratic institutions face rising challenges — from disinformation and external interference to growing public skepticism — this reform sends a clear message: Europe is committed to a more transparent, inclusive, and resilient political system.
By modernising the rules and reinforcing shared values, the EU is not just updating administrative procedures — it’s investing in the future of European democracy.
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