ASAMBLEA PARLAMTARIA EURO-LATINOAMERICANA EURO-LATIN AMERICAN PARLIAMTARY ASSEMBLY ASSEMBLEIA PARLAMTAR EURO-LATINO-AMERICANA ASSEMBLÉE PARLEMTAIRE EURO-LATINO- AMÉRICAINE PARLAMTARISCHE VERSAMMLUNG EUROPA-LATEINAMERIKA Plenary session AP102.131/AA1-25 20.7.2016 AMDMTS 1-25 Report Ángel Rozas (Parlatino, Argentina), Beatriz Becerra Basterrechea (ALDE, European Parliament) (AP101.794v03-00) on the financing of political parties in the European Union and Latin America AA\1101283.doc AP102.131v01-00
AA_Assemblies_DR AP102.131v01-00 2/17 AA\1101283.doc
1 Beatriz Becerra Basterrechea (EP), Izaskun Bilbao Barandica (EP), Reimer Böge (EP), Carlos Iturgaiz (EP), Teresa Jiménez-Becerril Barrio (EP), Artis Pabriks (EP), Ángel Rozas (Parlatino), Andreas Schwab (EP), Molly Scott Cato (EP), Jordi Sebastià (EP), Josep-Maria Terricabras (EP), Ernest Urtasun (EP), Bodil Valero (EP), Jarosław Wałęsa (EP), Renate Weber (EP), Pablo Zalba Bidegain (EP) Recital A A. whereas political parties are a fundamental institution within the democratic system and play a vital public role in that they are channels of political representation and help determine the will of the people; A. whereas political parties are a fundamental institution of representative democracy and play a vital public role in that they are channels of political representation and participation; 2 Beatriz Becerra Basterrechea (EP), Izaskun Bilbao Barandica (EP), Reimer Böge (EP), Carlos Iturgaiz (EP), Teresa Jiménez-Becerril Barrio (EP), AA\1101283.doc 3/17 AP102.131v01-00
Artis Pabriks (EP), Ángel Rozas (Parlatino), Andreas Schwab (EP), Jarosław Wałęsa (EP), Renate Weber (EP), Pablo Zalba Bidegain (EP) Recital D D. whereas democracy implies and demands that the needs of all citizens be considered on an equal footing, making it essential to ensure equal access to resources, provide transparency regarding the origin of economic support, and avert every form of conflict of interest, pressure or interference, in particular those that may involve money from a dubious or illegal source; D. whereas democracy implies and requires that the needs of all citizens be considered on an equal footing, making it essential to ensure equal access to resources for political parties, provide transparency regarding the origin of their economic support, and avert every form of conflict of interest, pressure or interference; 3 Ángel Rozas (Parlatino) Recital G G. whereas fund-raising can give rise to conflicts of interest, and whereas private donors, when not subject to a transparent G. whereas fund-raising can give rise to conflicts of interest, and whereas private donors might seek to use political AP102.131v01-00 4/17 AA\1101283.doc
system that limits the possibility to contribute to the political activity of the parties, might seek to use political financing in order to influence decisiontaking, thus negating the principle of democratic equality; financing in order to influence decisiontaking, thus negating the principle of democratic equality; 4 Beatriz Becerra Basterrechea (EP), Izaskun Bilbao Barandica (EP), Reimer Böge (EP), Carlos Iturgaiz (EP), Teresa Jiménez-Becerril Barrio (EP), Artis Pabriks (EP), Ángel Rozas (Parlatino), Andreas Schwab (EP), Molly Scott Cato (EP), Jordi Sebastià (EP), Josep-Maria Terricabras (EP), Ernest Urtasun (EP), Bodil Valero (EP), Jarosław Wałęsa (EP), Renate Weber (EP), Pablo Zalba Bidegain (EP) Recital J J. whereas the legislation on political financing in the bi-regional partnership countries includes regulations on private and public funding, expenditure, accountability, oversight, and punishment; J. whereas the legislation on political financing in the bi-regional partnership countries includes regulations on private and public funding, expenditure, accountability, oversight, and punishments; AA\1101283.doc 5/17 AP102.131v01-00
5 Ángel Rozas (Parlatino) Recital M M. whereas, in view of the principle of democratic fairness, additional indirect financing arrangements for political parties must be taken into account; M. whereas additional indirect financing arrangements for political parties, in respect of non-monetary in-kind contributions, must be taken into account; 6 Ángel Rozas (Parlatino) Recital N N. whereas the development of social networks is transforming traditional political financing processes, in particular through micro-financing and the involvement of volunteers, making it essential both to adapt election campaigns and to call for regulatory frameworks addressing these new tools; N. whereas the development of social networks and other technologies is transforming traditional political financing processes, in particular through microfinancing and the involvement of volunteers, making it essential both to adapt election campaigns and to call for regulatory frameworks addressing these new tools; AP102.131v01-00 6/17 AA\1101283.doc
7 Paragraph 1 1. Calls for political parties to be strengthened in their role as channels of democratic representation and political participation by being equipped in efficient ways with the necessary public resources (both direct and indirect) enabling them to function effectively and ethically on a permanent basis, thus guaranteeing that elections can be genuinely and fairly contested; 1. Takes the view that increased financing for political parties, in their role as channels of democratic representation and political participation, should be properly regulated and that they should be equipped in efficient ways with the necessary public resources (both direct and internal), thus guaranteeing that elections can be genuinely and fairly contested; takes the view, furthermore, that any Member State may be exempted from application in whole or in part of the rules adopted by the highest competent authority, without precluding their subsequent incorporation in whole or in part, within the framework of existing democratic and cultural diversity; 8 Ángel Rozas (Parlatino), Molly Scott Cato (EP), Jordi Sebastià (EP), Josep-Maria Terricabras (EP), Ernest Urtasun (EP), Bodil Valero (EP), AA\1101283.doc 7/17 AP102.131v01-00
Paragraph 3 3. Recognises the importance of establishing oversight mechanisms enabling citizens to know the origin and use of the funds received by the political parties; 3. Recognises the importance of establishing transparency mechanisms enabling citizens to know the origin and use of the funds received by the political parties, in addition to oversight mechanisms to prevent improper funding; 9 Paragraph 3 3. Recognises the importance of establishing oversight mechanisms enabling citizens to know the origin and use of the funds received by the political parties; 3. Recognises the importance of establishing regulatory oversight mechanisms enabling citizens to know the origin and use of the funds received by the political parties; 10 Paragraph 4 4. Considers it essential to establish a wellbalanced mixed system of (public and private) financing, duly regulated by national law, and funding control systems defining, laying down penalties for and taking action against illegal funding, together with supervisory bodies to audit and inspect parties as such, from which 4. Considers it essential to establish a wellbalanced mixed system of (public and private) financing, duly regulated by national law, and funding control systems defining, laying down penalties for and taking action against illegal funding, together with supervisory bodies to audit and inspect parties as such, from which AP102.131v01-00 8/17 AA\1101283.doc
they must be kept separate; they must be kept separate; considers, furthermore, that any Member State may be exempted from application in whole or in part, without precluding their subsequent incorporation in whole or in part; 11 Ángel Rozas (Parlatino) Paragraph 5 5. Believes that a system of regressive tax incentives in respect of the private funding of political parties should be introduced in the countries concerned; 5. Believes that systems of regressive tax incentives in respect of the private funding of political parties should be introduced to provide greater tax relief to the largest contributors, within the bounds set by existing legal frameworks; 12 Paragraph 5 5. Believes that a system of regressive tax incentives in respect of the private funding of political parties should be introduced in the countries concerned; 5. Believes that a system of regressive tax incentives in respect of the private funding of political parties should be introduced in the countries that choose to apply such funding arrangements; AA\1101283.doc 9/17 AP102.131v01-00
13 Paragraph 6 6. Maintains that political parties should not only use their resources in an efficient and responsible manner to conduct election campaigns, but also set aside specific funds for activities related to empowerment, political training, promoting involvement in the political process and institutional development, refraining at the same time from creating privileged networks and from using them for private expenses of any kind and complying at all times with the stipulations of national law and the rules governing such parties; 6. Maintains that the public has a right to know how those funds will be used and where they will be allocated, with a view to ensuring transparency and proper disclosure of income and expenditures, taking into account the universal principle of moderate and sensible spending and avoiding the irresponsible squandering of funds; 14 Paragraph 7 7. Points to the need to bring transparency to democracy by drawing up mandatory guidelines for annual financial reporting whereby reports, which should be accessible to the public in a timely and reliable manner, would have to include a breakdown of the origin and destination of funds received, expenditures by the parties, the identities of donors, and noncompliance or late submission of which 7. Points to the need to bring transparency to democracy by drawing up mandatory guidelines for annual financial reporting whereby reports, which should be accessible to the public in a timely and reliable manner, would have to include a breakdown of the origin and destination of funds received, expenditures by the parties, the identities of donors, and noncompliance or late submission of which AP102.131v01-00 10/17 AA\1101283.doc
would carry a penalty; in the case of the funds used in electoral processes, the national body responsible for monitoring electoral expenditure shall publish, in due form at the appropriate time, all the information relating to the funding and expenditures of the political parties in the election campaign; would carry a penalty; takes the view that, for the purposes of transparency, the electoral body must supervise the financial resources whether public, private or of any other type of all organisations involved in electoral processes and set clear rules for campaigning that prohibit and punish financing from illegal sources; 15 Beatriz Becerra Basterrechea (EP), Izaskun Bilbao Barandica (EP), Reimer Böge (EP), Carlos Iturgaiz (EP), Teresa Jiménez-Becerril Barrio (EP), Artis Pabriks (EP), Ángel Rozas (Parlatino), Andreas Schwab (EP), Jarosław Wałęsa (EP), Renate Weber (EP), Pablo Zalba Bidegain (EP) Paragraph 8 8. Proposes that supervisory bodies be set up within and outside political parties in order to foster interinstitutional cooperation, improve standardisation as regards training and experience in the auditing of political financing, and hence increase transparency, bearing in mind that transparency in political financing is a vital confidence-building measure; 8. Proposes that supervisory bodies be set up within and outside political parties in order to foster interinstitutional cooperation, improve training and experience in the auditing of political financing, and hence increase transparency, a vital confidence-building measure; AA\1101283.doc 11/17 AP102.131v01-00
16 Ángel Rozas (Parlatino), Molly Scott Cato (EP), Jordi Sebastià (EP), Josep-Maria Terricabras (EP), Ernest Urtasun (EP), Bodil Valero (EP) Paragraph 9 9. Recommends that an online publication system be set up to make mandatory disclosures of candidates, elected representatives, public officials and parties financial statements readily accessible and provide the public with detailed information about sources of funding and the financial and audit reports on parties and their foundations produced by the appropriate authorities; 9. Recommends that an online publication system be set up to make mandatory disclosures of candidates, elected officials, public officials and political parties financial statements readily accessible and provide the public with detailed information about sources of funding and the financial and audit reports on parties and their foundations produced by the appropriate authorities; 17 Ángel Rozas (Parlatino), Molly Scott Cato (EP), Jordi Sebastià (EP), Josep-Maria Terricabras (EP), Ernest Urtasun (EP), Bodil Valero (EP) AP102.131v01-00 12/17 AA\1101283.doc
Paragraph 3 11. Suggests that limits be imposed on the amounts receivable by natural and legal persons so as to reduce the potential for distorting the principle of democratic equality; 11. Suggests that limits be imposed on the amounts receivable by natural and legal persons so as to avoid any potential for distorting the principle of democratic equality; 18 Paragraph 13 13. Stresses the need to take the necessary action to put an end to tax havens and banking secrecy; 13. Stresses the need to take the necessary action to put an end to tax havens and banking secrecy, as corruption is a disease that poisons society, undermines democracy, leads to human rights violations, damages quality of life and creates a breeding ground for organised crime, terrorism and other threats to human security; 19 Ángel Rozas (Parlatino) AA\1101283.doc 13/17 AP102.131v01-00
Paragraph 15 15. Calls on state authorities to pool their efforts at the governmental, parliamentary and judicial levels to provide swift, independent justice in the appropriate form and for effective official, independent supervisory bodies to be set up with the means necessary to perform that task, thereby ensuring compliance with existing regulations; 15. Calls for a pooling of efforts to provide swift, independent justice in the appropriate form and for effective official, independent supervisory bodies to be set up with the means necessary to perform that task, thereby ensuring compliance with existing regulations; 20 Paragraph 16 16. Calls for incentives to be created for political parties to channel resources specifically for the purposes of strengthening participation and ensuring their internal processes are democratic, by putting forward parity lists offering equal conditions and opportunities to all, thus facilitating the involvement of women, LGBTI persons, indigenous peoples, persons with disabilities, young people and other minorities and excluded groups in party bodies and their nomination as electoral candidates; 16. Calls for incentives to be created for political parties to channel resources specifically for the purposes of strengthening participation and ensuring their internal processes are democratic, by putting forward parity lists offering equal conditions and opportunities to all, thus facilitating the involvement of women, LGBTI persons, indigenous peoples, persons with disabilities, young people and other minorities and excluded groups in party bodies and their nomination as electoral candidates; provided that funding is not obtained from illegal sources; 21 AP102.131v01-00 14/17 AA\1101283.doc
Paragraph 20 20. Urges governments to guarantee political pluralism and ensure that the legislation on political financing does not prevent the emergence of new political players, albeit within the bounds set by national constitutions and universal ethical values; 20. Urges governments to guarantee political pluralism and other forms of political advocacy organisations such as citizens groups that involve women, indigenous people and persons with disabilities, who have been excluded up to now, and ensure that the legislation on political financing does not prevent the emergence of new political players, albeit within the bounds set by national constitutions and universal ethical values; 22 Paragraph 22 22. Urges that clear and specific rules on financing be adopted for electoral alliances of every kind; 22. Urges that clear and specific rules on financing be adopted for electoral alliances of every kind, which may be applied by the Member States; 23 Paragraph 1 23. Urges those countries which have not done so to ratify the United Nations Convention against Corruption; 23. Encourages those countries which have not done so to ratify the United Nations Convention against Corruption; AA\1101283.doc 15/17 AP102.131v01-00
24 Oscar Perez Darío Perez (Parlandino), Omar A. Perotti (Parlatino, Argentina) Ángel Rozas (Parlatino) Paragraph 24 a (new) 24a. Calls on countries to ensure that public debates are held between candidates to enable them to put their proposals to the electorate irrespective of their financial resources; 25 Elías Castillo (Parlatino) Paragraph 25 25. Instructs its Co-Presidents to forward this resolution to the Council of the European Union and the European Commission, and to the parliaments of the Member States of the European Union and all the countries of Latin America and the Caribbean, the Latin American Parliament, the Central American Parliament, the Andean Parliament and the Mercosur Parliament, the Secretariat of the Andean Community, the Committee of Permanent Representatives of Mercosur, the Permanent Secretariat of the Latin 25. Instructs its Co-Presidents to forward this resolution to the Council of the European Union and the European Commission, and to the parliaments of the Member States of the European Union and all the countries of Latin America and the Caribbean, the Latin American Parliament, the Central American Parliament, the Andean Parliament and the Mercosur Parliament, the Secretariat of the Andean Community, the Committee of Permanent Representatives of Mercosur, the Permanent Secretariat of the Latin AP102.131v01-00 16/17 AA\1101283.doc
American Economic System and the Secretaries-General of the Organization of American States, the Union of South American Nations and the United Nations. American Economic System, the pro tempore presidency and the countries that make up the troika of the Community of Latin American and Caribbean States (CELAC) and the Secretaries-General of the Organization of American States, the Union of South American Nations and the United Nations. AA\1101283.doc 17/17 AP102.131v01-00