Reforming European political foundations and beyond | EDCS

Reforming European political foundations and beyond

Executive Summary

In June 2026, the European Parliament adopted its report on the implementation of the regulatory framework on European political parties and foundations. Following general considerations, the report focuses on European foundations, and formulates observations and reform proposals for the European Commission's consideration. In particular, it addresses the amount and structure of funding, the regulatory burden faced by regulated entities, and legal uncertainty. Our report analyses this document in depth: we provide contextual information and data to better understand Parliament's proposals and their impact, and list additional paths for reforms or counter-proposals. We find reform a necessity to meet the goals set out in the treaties, and recalled by Parliament, and argue in favour of a wide-ranging reform effort following a sequential approach, based on topics and not targetted entities.

Note: Unless indicated otherwise, cited articles refer to recast Regulation 2025/2445, and all emphases are added for the purpose of this report. Those already familiar with Parliament's reportmay wish to move straight to the analysis section.

Introduction

On 16 June 2026, the European Parliament adopted its 2026 report on the application of Regulation (EU, Euratom) No 2025/2445 and on the activities funded (2026/2013(INI)), also referred to as the "implementation report".

While Art. 45 and 47 of Regulation 2025/2445 mandate the European Parliament to publish this report, the entry into force of the Regulation in December 2025 means, as Parliament recognised, that "data on and experience with [...] the Regulation is as yet limited" (recital F and para. 3).

Noting an "[increasingly volatile] geopolitical and technological environment" since the Commission's 2021 recast proposal requiring "long-term policy planning, democratic education and cross-border dialogue" to which European foundations can contribute (para. 7), as well as undefined "unforeseen policy challenges [that] have emerged in the immediate aftermath of the Regulation's entry into force, notably regarding the funding of political foundations" (recital F), Parliament chose to focus its report on European political foundations.

Parliament's decision orients the entirety of the evaluation report. However, while argumentation is limited to European foundations, the scope of Parliament's proposals often goes beyond foundations, and their implementation would impact European political parties.

This report by the European Democracy Consulting Stiftung (EDCS) highlights the issues and proposals made by the European Parliament, analyses the impact of the suggested reforms, and formulates recommendations for the European Commission's follow-up to the implementation report.

While our report focuses solely on the issues examined by Parliament, its appraisal for the reform of Regulation 2025/2445 should be done in conjunction with previous research, including the Comments on Reforming Regulation 1141/2014, written for the OSCE Office for Democratic Institutions and Human Rights (based on the Guidelines on Political Party Regulation of the OSCE/ODIHR and of the Venice Commission), the response to AFCO's draft report on the implementation of Regulation 1141/2014, the Logos Project on the visibility of the link between European parties and their member parties, the policy brief on a smarter funding system for European parties published by the Austrian Society for European Politics (Österreichische Gesellschaft für Europapolitik, ÖGfE), as well as recent theme-specific posts by EDCS.

Overall considerations

Parliament recalls that European parties and foundations "are essential for the development of a truly European public sphere" (recital A), that they should "play a more central role in the European election process" (recital B), and that they should "cooperate with their national member parties and partners to support them in bringing the EU and its policies closer to citizens and to enhance democratic legitimacy" (recital C).

In addition, Parliament notes the importance of ensuring political diversity "for public discourse and for expressing citizens' choices" (recital B), and of paying "particular attention to the Regulation's implications for the position of small European [parties and foundations]" (recital H).

While parties are also mentioned, the report goes on to focus on the specific case of European political foundations, "part of the EU's democratic architecture" (recital I), to "[raise] political awareness of and [contribute] to the debate on EU policy issues and the process of European integration" (recital J and para. 6), and to "prepare effectively for the challenges in the period up to 2040 and beyond" (recital L).

Main issues

Parliament's report highlights three main issues: the amount and structure of funding, the regulatory burden faced by European parties and foundations, and legal uncertainty.

It argues that those factors "limit the financial autonomy and sustainability" of foundations, and "underlines that a sustainable funding framework is essential to preserve their independence and prevent undue private influence" (para. 13).

Amount and structure of funding

Parliament states that "the current level and structure of EU funding available to European political foundations is no longer commensurate with the scope, strategic relevance and increasing complexity of their tasks" (recital N), and that, "in view of their expanding responsibilities, European political foundations require the necessary financial tools and appropriate and stable resources to fully assume their institutional role" (para. 8).

Regulatory burden

Parliament's report conveys political foundations' complaints of a "disproportionate regulatory burden", and their call for simplification, "notably with regard to reporting and transparency obligations" and the "reinstatement of the corrective measures" (recital O), found in Art. 29 of Regulation 1141/2014, but curtailed in Art. 35 of Regulation 2025/2445.

For reference, according to the APPF's letter to European political parties and foundations of 28 November 2025:

There is no longer an opportunity to take corrective measures before decisions on sanction for quantifiable infringements (i.e. in particular for infringements related to donations, and the prohibition to fund directly or indirectly parties/other foundations or candidates), nor in the case of sanctions under Article 32(1)(vii) to (ix) of the Regulation (exclusion under the Financial Regulation, intentional omission to provide information or intentional provision of incorrect or misleading information, deliberate attempt to influence European elections by taking advantage of a data protection infringement). Subject to the right to be heard, such infringements therefore will be sanctioned, without possibility to avoid this by remedying the situation (Article 35(1));

Parliament further notes the "importance of effective and proportionate corrective measures as a tool to ensure compliance with the Regulation" (para. 4).

Legal uncertainty

Finally, Parliament notes the "legal uncertainty and operational constraints still faced by European political foundations, particularly as regards the classification of eligible costs", adding that these issues require "timely clarification" (para. 5), and "underlines the need to ensure that European political foundations are provided with a sound legal framework and financial security" (para. 9).

Proposals for improvement

Amount and structure of funding

In order to gather more information, Parliament first asks the Commission to carry out a "targeted review of the funding provisions applicable to European political foundations under the Regulation" (para. 18) and, in particular, to "review whether any national regulatory or policy framework prohibits or hinders the payment of contributions by national entities, including political foundations, to European political foundations" (para. 19).

The review in question would then form the basis of a "recast legislative proposal revising the funding rules for European political foundations" (para. 20) comprising, among others, the following proposals.

Firstly, Parliament suggest to "increase the cap on financial contributions or grants from the EU's general budget to 100 % of the eligible costs incurred by a European political foundation" (para. 20).

Secondly, it recognises efforts made by European foundations "to diversify and stabilise their sources of funding" and "encourages the […] use of available own-resource mechanisms" (para. 17). For instance, it proposes to increase the cap on donations from natural or legal persons beyond the current EUR 18 000 per year and per donor, for "greater flexibility" and as part of "diversification of own resources" (para. 14 and 20).

Thirdly, Parliament proposes "increasing the overall level of EU funding for political foundations under the forthcoming multiannual financial framework for 2028-2034, to take account of the absence of budgetary indexation in recent years and the rising inflation and increasing operational costs, with a view to ensuring appropriate, stable and predictable financial resources" (para. 21). This increased funding is considered "a strategic investment in the EU's democratic resilience and long-term governance capacity" (para. 22).

Finally, Parliament calls on the APPF and Commission to exchange with national authorities to "[raise] awareness of the impact of national funding frameworks […] and [identify] practical solutions aimed at avoiding unintended constraints on their financial sustainability" (para. 15).

Regulatory burden

Parliament only makes one substantial proposal with regard to regulatory burden, in part because recast Regulation 2025/2445 already abandoned the obligation to provide "annual financial statements on the basis of the international accounting standards" (Art. 23.1(a) of Regulation 1141/2014), the removal of which reporting entities had long asked for.

In this report, it proposes to "[establish] a single online reporting and disclosure system for EU funding, donations and contributions to European political foundations". This system is meant to "ensure adequate transparency for citizens, improve compliance monitoring and reduce reporting entities' administrative and compliance burden" (para. 16).

Beyond this, Parliament only promises to "further investigate and follow up on this matter in its upcoming systematic evaluation" (para. 4). In the same paragraph, it also emphasises "the importance of effective and proportionate corrective measures" and "undertakes to review the use of these measures in recent practice".

Legal uncertainty

Parliament does not provide many substantial proposals to increase legal uncertainty regarding funding.

Firstly, it merely "[commits] to working with the foundations [...] to the extent possible within the existing framework" (para. 9) and "encourages [them] to maximise financial possibilities under the existing framework" (para. 10).

Secondly, Parliament recalls several possibilities already existing under the current framework, such as the fact that the Regulation "does not prohibit a flexible and participation-based membership fee model through which member organisations contribute on the basis of their level of involvement in joint activities" (para. 9), that it authorises financing "via the own resources of the European political parties" (para. 10, see below), and that it "does not prohibit national foundations, other than political foundations, from becoming members of and paying a membership contribution" (para. 11).

The only proposal meant to improve legal uncertainty is to "[clarify Article 25] to confirm explicitly that participation fees can be charged to member organisations for their involvement in activities organised by a European political foundation" (para. 25).

Analysis

In this section, we will dive into each proposal highlighted above, with contextual information and data analysis.

Amount and structure of funding

EP proposal #1. Review national funding provisions

Gathering additional information ahead of formulating proposals is indeed sensible, especially to ensure that the proposals in question adhere to the overall considerations above and properly address the issues that Parliament seeks to remedy.

This being said, Parliament's proposed review of national frameworks is not unlike the APPF's 2023 study of Provisions of national law affecting European political parties and European political foundations, which compiles provisions of national law that, in addition to the provisions of EU law, directly or indirectly impact European parties and foundations.

→ given our own work on European parties and their funding, we could update and expand upon the APPF's work, focusing on aspects relevant to Parliament and the Commission.

EP proposal #2. Increase public financing rate to 100 % of eligible costs

Raising public financing to 100% of European foundations' eligible costs is a false good idea. The arguments in favour are well understood, and are mostly the same as those used to justify raising the public financing rate from 90% to 95% for European parties in Regulation 2025/2445. In its initial recast proposal, in 2021, the Commission had even proposed to raise the public financing rate for European parties to 100% during election years.

An understandable premise

From the perspective of a party or foundation, these proposed increases make sense. In the EU's current political system, neither European political parties nor foundations are major players, and raising private funding can be demanding. European parties and foundations have thus long complained that raising private funding is difficult. In particular, while European parties raise member contributions on a yearly basis, European foundations complain that their member foundations are not able or willing to pay membership fees.

In addition, this private funding comes with strict reporting requirements, in order to trace the money and avoid undue influence, which can be burdensome. Consequently, this requirement diverts their time and attention away from substantive matters to administrative and fundraising issues, implicitly considered a waste. Increasing this rate is therefore portrayed as way to make parties and foundations more effective in the delivery of their core mission.

Fundraising is implicitly portrayed as a waste of resources.

The argument also takes an additional edge when raising the rate to 100%. In previous discussions, the focus was simply to make life easier for parties and foundations. However, for the vast majority of them, almost the entirety of the private funding raised to match public funding is made up of member contributions. Therefore, the fundraising in question is far less an exercise in seeking donors in the dark, rather than agreeing with known members on contribution amounts. As a result, roughly the same amount of work is required whether this private funding represent 25% or 5% of eligible costs. This means that, as the required share of private funding decreases, the same amount of time spent on fundraising yields less and less private money, leading parties and foundations to think "all that work just for just 5%". Raising the rate to 100% would eliminate this work entirely, for entities choosing not to raise private funding.

Another argument, raised in the case of European parties, is that smaller parties are particularly disadvantaged and that, therefore, the requirement to raise private funding is damaging to political pluralism and democracy.

Data analysis

A look at financial data paints a slightly different story.

First of all, data analysis of European political foundations shows that, over the past decade, most foundations consistently receive close to their maximum entitlement.

Between 2015 and 2024, in 58% of cases, a foundation received over 90% of its entitlement, and, in 75% of cases, they received more than 80% of it. Figures even increase to over 68% and over 83%, respectively, over the past five years.

Likewise, previous research on European parties' donations and contributions does not find that smaller parties are facing more difficulties in raising private funds as a share of their budget. While differences are small and not always consistent, smaller parties actually tend to receive a slightly higher share of their income from private sources.

Unsustainable trend

As indicated, European parties and foundations have complained about their co-funding requirement since the inception of European public funding in 2004 (since 2007 for foundations). The initial private co-funding requirement stood at 25%; as of 2008, it was brought down to 15%. Starting in 2019, private co-funding was further reduced to 10% for parties and 5% for foundations, and the 2025 recast harmonised this requirement at 5% for all.

Increase after increase, their difficulties in private fundraising have remained.

Overall, the recent harmonisation of European parties' rate with that of foundations, the Commission's proposal to bring the rate for parties to 100% in election years, as well as Parliament's current proposal to bring it to 100% for foundations make it very likely that a rate of 100% would soon be proposed for European parties as well. This seems hinted at in the implement report, which refers to "the cap on financial contributions or grants from the EU’s general budget", since "contributions" refers to the funding of European parties, while "grants" refers to the funding of European foundations (see the calls for contributions and proposals on the European Parliament's Open tenders page).

This current proposal is therefore part of a long-term trend that aligns with requests from parties and foundations, but also one that does not seem to have assuaged their private funding issues. Each time, parties and foundations claim the increase in the rate of public funding will be the solution to their fundraising woes. Yet, increase after increase, their difficulties in private fundraising have remained.

Not only is this trend of continuously alleviating parties' and foundations' private financing requirement not sustainable, but, if none of the previous attempts to support private financing by increasing the public financing rate have failed, it is hard to justify that yet another reduction will be any more successful.

Failure to free funds

This situation was on display when officials from the European Parliament's DG FINS, in charge of handling the public funding of parties and foundations, talking to EDCS, suggested that Regulation 2025/2445's increased public funding rate for European parties meant that the private funds not allocated to eligible costs could be transferred by parties to foundations, an idea also entertained in Parliament's proposal (para. 10).

While it is too early to assess the consequences of this recent regulatory change, for this argument to hold, previous increases in the share of public financing should likewise have led to stable member contributions and donations, as a share of parties' public funding entitlement. With contributions and donations remaining around the same level but less used to cover eligible costs, more private funding would have remained available for non-eligible costs, such as supporting foundations.

However, looking at the largest European parties before and after the increase of the public co-funding rate from 85% to 90% (between 2018 and 2019), we see an immediate drop in contributions as a share of parties' maximum grant.

The EPP and PES, in particular, are good examples for two reasons. Firstly, as the largest parties, they have a broader membership, and both have large and well-endowed national parties as members, meaning that these parties' capacity to transfer funds to their European is not in jeopardy. Secondly, both parties rely almost exclusively on member party contributions, and are therefore not impacted by the whims of donors. Up to 2018, the EPP and PES raised, respectively, 13-14% and 16-19% of their entitlement in contributions; as soon as the reform came into effect, rates for both parties immediately dropped to 10-11%.

The data therefore shows that the increase in the public co-funding rate did not "free up" private funds that continued to be raised for use on non-eligible expenditure, such as financial support for political foundations. Instead, European parties simply raised less private funding — just enough to avail themselves of their new and lower private co-funding rate.

Impact on European democracy

But even more worrisome than the limited rate of success of this measure is the decreasing reliance of European parties and foundations on private funding, in particular small individual donations, which are key to creating ties between political parties and citizens.

By contrast, increasing the public co-funding rate will further entrench the disconnect between European citizens and their political representatives at EU level – this is particularly true of bringing the rate of private funding down to 0% in elections years, precisely when European parties should most reach out to citizens as part of their campaigns.

Private funding is an essential part of democracy.

For reference, in Germany, which has a similar system of large and well-endowed political foundations, foundations indeed receive 95% of their budget from public funding. However, political parties are required to raise at least 50% of their funding from private sources, and this for much larger budgets and far fewer citizens and companies potentially donating; this relatively high level of private funding has contributed to maintaining a higher level of trust in political parties than in most member states. While the role of political parties between the national and European levels can, of course, not directly be compared, this is a reminder that the private funding of political parties is an essential part of representative democracy.

Likewise, DG FINS itself has pushed back against a rate of 100% of public funding, arguing that private funding helps tie parties and foundations to civil society and their members. In addition, they insisted that private funding is essential when some expenses are declared non-reimbursable, and must therefore be covered by private funds. In the absence of a co-funding requirement, a party or foundation could find itself without the means to reimburse Parliament for the funds it advanced.

Building a sustainable and democratic public funding

Of course, European parties' and foundations' struggles to raise private funding must be listened to, but eliminating the need to raise private funds is neither an effective nor sustainable way to address this concern, and it risks further undermining the conditions for a sound representative democracy. Instead, parties and foundations must be allowed and encouraged to reach out to citizens.

A more productive reform to build a more sustainable and democratic public funding system would be to increase the overall amount of public funding (which is already proposed by Parliament, see below), progressively increase the required rate of private funding (especially for parties), and progressively decrease the share of national party contributions in private funding. Such a reform would increase European parties' reliance on individual member contributions and on private donations, preferably with a cap to focus on small donations, creating stronger ties with citizens and strengthening European democracy.

These proposals must go hand-in-hand with other measures to reforme private funding and ensure the visibility of European parties for citizens, including ensuring that national parties properly display their affiliation to European parties at all times, displaying the logo of European parties on electoral propaganda and on ballots for European elections, and allowing European parties to financially support their national parties when these share their name and logo.1

→ given our previous work on European parties and their funding, we can provide detailed research and data analysis on the proposals above to inform the Commission's reflection and decision-making.

EP proposal #3. Increase the cap on donations from natural or legal persons

Increasing the cap on private donations is another seemingly sound idea, but one that is unlikely to reach its goal and instead create undue risk.

An understandable premise

Parliament's report proposes to "to increase the cap on donations for European political foundations, therefore ensuring greater flexibility and diversification of funding sources". For context, however, two amendments, submitted jointly by the co-rapporteurs and which introduced this provision to the report, proposed both to increase the cap on donations for foundations to €30,000 and to "to allow donations of up to a value of €30,000 per year and per donor for both parties and foundations", to "[ensure] greater flexibility and diversification of funding sources". Another amendment, put forward by the ECR, went further and "[urged] the Commission to double the maximum amount of donations" to €36,000. These proposals constitute, respectively, 67% and 100% increases of the donations cap.

As indicated above, while donations account for a small amount and share of private funding, fundraising can be time and resource consuming. When a donor is found, it would therefore make parties' and foundations' fundraising easier if the donor were allowed to make a more sizeable donation, so as to increase the value of the fundraising effort.

This proposed increased donations cap for European foundations creates risks on three counts: concentration of donations, undue influence of wealthy donors, and likely extension to European parties.

Concentration of donations

Firstly, it is unclear how increasing the cap on donations can diversify the origin of private funding, as it does nothing to incentivise or legalise donations from donors who could not donate before. Parliament does not provide an explanation on this point. Instead, it is likely to increase the amounts of donations already reaching the current ceiling, increasing the importance of a few donations of high value.

Looking at national regulations, the EU's current cap of €18,000 for donations from individuals places it in the lowest bracket, which is in line with its public funding scheme, more generous than in many member states. Conversely, the proposed increase would place it around the middle of the fray. Meanwhile, with regard to donations from legal persons, the EU is already far ahead of many member states, given the widespread ban on donations from legal persons at the national level.

Risk of ondue influence

Secondly, this proposal paves the way for increased, and perhaps undue, influence for wealthier stakeholders, and therefore risks undermining political pluralism. This is especially true given both the limited total amount of private funding and its importance in leveraging much higher amounts of public funding. For smaller European parties with more limited member party contributions, high donations may prove enticing enough to grant influence.

High-value donations represent a high share of donations for the parties pushing for an increase cap.

Data from national and European parties shows that a donation to a European party or foundation matching an increased cap could easily become a significant share of this entity's total donations, and play a crucial role in securing public funding, at a much higher rate than at the national level. In practice, for most European parties, a single €30,000 or €36,000 donation is several times more than the total amount of donations they currently receive. This risk should be particularly concerning at a time when economic inequalities are increasing.

Further data shows that donations above €12,000, which are considered high enough to warrant immediate reporting and disclosure, account for over 40% of total donations for seven parties and foundations, almost of them on the right side of the political spectrum. This includes ALDE and its foundation, the EPP's foundation, and the ECR and its foundation, namely the very parties proposing the increase in the donation cap.

Extension to European parties

Finally, taken together with the call to remove European political foundations' private co-funding requirement (which, as pointed out, could easily be later extended to European parties), this would mean that foundations (and potentially parties) would have no need for small donations or member contributions, and could instead just rely on a few large donors as a top-up to their guaranteed public funding.

Ways forward

An understandable way forward could be to account for inflation and to increment the donations cap accordingly, either indexed on real inflation rates or on a fixed percentage. This increase could kick in on an annual basis or every few years. At any rate, the increase would be far from the figures proposed by MEPs in their amendments. For instance, assuming an annual increase of 2% decided in Regulation 1141/2014 alongside its new €18,000 cap, which applied as of 2018, the amount by 2026 would be around €21,000 — far from the proposed €30,000-36,000.

However, the goal of diversifying and stabilising private funding can be much better achieved by strengthening the role of small donations from citizens via a dedicated matching fund, which would also encourage European parties to reach out to citizens, or via a subsidy rewarding European parties' number of membership fee-paying individual members. Both of those measures, which exist and function well in Germany and the Netherlands, would increase connections between European parties and citizens, thereby strengthening European democracy.

→ given our previous work on donations and contributions and on the public funding of political parties, we can provide detailed research and data analysis on the proposals above to inform the Commission's reflection and decision-making.

EP proposal #4. Increase EU funding

Parliament's report does not substantiate its claim that "the current level and structure of EU funding available to European political foundations is no longer commensurate with the scope, strategic relevance and increasing complexity of their tasks", which presumably stems from European foundations' own statements at the exchange of views of 18 March.

Looking back

A first look at European political foundations' final grants between 2015 and 2024 shows that public funding, with the notable exception of WMCES in 2020-2021, has been on an slow, upward trajectory.2

However, inflation in the EU has indeed been higher than planned for the past several years. Data from the ECB for the Eurozone shows rates almost consistently above 2% since July 2021, with a peak above 10% in October 2022; while values have receded, inflation remains between 2 and 3%. Meanwhile, the total amount of European public funding for European parties has remained stable at €46 million since 2021,3 and the amount for foundations has rather stable, around €23-24 million since the same date. And this, despite a 20% increase in the number of European parties and foundations.4 As a result, the average per-entity amount of public funding allocated to European parties and foundations has grown less than inflation in all but one year for the past five years.

Finally, the overall picture of the evolution of public funding for European parties and foundations is one of extreme instability, with constantly large year-on-year variations, both positive (20% in average) and negative (10% in average) since 2004, including with a net 17% decrease for foundations in 2026 and a 23% decrease for parties in 2025.5

Faced with raising costs and stagnating or decrease entitlements, European parties and foundations understandably complain about their loss of purchasing power and action.

Stabilising public funding

A first measure to stabilise public funding and increase financial predictability for European parties and foundations is to replace the current yearly decision-making for the total amount of public funding with a planned adjustment included in the Regulation. As for the donations cap, this can be based on real inflation rates (either the whole rate or a fraction of it) or on a fixed value. The adjustment can be annual or take place every few years, to provide stability. Finally, an mechanism could allow the APPF or the Commission to submit an exceptional change without requiring an amendment of the Regulation.

There is no reason for a party's funding to be impacted by the presence or absence of others.

Going one step further, financial predictability can be more sustainably and more easily ensured by moving away from the split-envelope model, which is constantly affected by the registration or de-registration of parties and foundations. While the envelop itself could be made to account for the number of entities qualifying for funding, it would still remain dependent on the number of MEPs members of a European party in each given year. Additionally, since there is no objective reason that a party's public funding entitlement would be affected by the presence or absence of other parties, or by the membership of MEPs with no relation to this party, the calculation of entitlements should be independent of the fate of other parties. A more efficient and fairer way is therefore to replace the current percentages with fixed amounts.

For instance, in the current system, with a total envelope of €46 million for 12 European parties, each party was entitled, for the financial year 2026, to a lump sum of 46 x 10% / 12 = €383,333 and to another 46 x 90% / 663 = €62,443 per MEP. Instead, the lump sum could be a fixed amount (e.g. €400,000) initially calculated based on real operating costs faced by parties and foundations, including real estate, staffing, and basic operations. Likewise, a fixed amount per MEP would reward each party's own elective performance. Both amounts can then automatically be adjusted for inflation, as proposed above.

Finally, this fixed amount per MEP could be replaced with a fixed amount per vote received in the previous European elections. This would contribute to stabilising the public funding calculation between elections, though other parts of the calculation, if based on donations or membership, could still fluctuate. Basing the calculation on votes would also more closely respect the choice of European citizens and European parties' electoral performance, and avoid the practice of national parties taking their funding with them as they switch European parties.

→ given our previous work on the public funding of political parties, including via our European Party Funding Observatory and its upcoming public funding simulator, we can provide detailed and customised scenarios and compare them with the current funding scheme to inform the Commission's reflection and decision-making.

EP proposal #5. Raise awareness of the impact of national funding frameworks

This proposal goes hand-in-hand with the proposal to "Review of national funding provisions". The fact that national political parties and foundations are regulated under national law naturally leads to diverging frameworks, if only for historical reasons whereby some members have not introduced a differentiation between European political parties and foundations and other non-national similar entities.

While European institutions are welcome to contribute to this awareness-raising, and the related advocacy for a streamlining of national provisions with a view to enabling European parties and foundations to properly carry out their mandated role, this mission is probably best undertaken by the APPF.

In practice, however, the APPF has shown a tendency to limit its activities to its explicit mandate, with the notable exception of its school competition. The APPF also regularly liaises with national contact points, which is not directly part of its mandate (Art. 8.1), but nevertheless mentioned in the Regulation (Art. 34.1).6 As a result, a slight broadening of the APPF's mandate to include awareness-raising and advocacy relating to the sound implementation of the Regulation and of Art. 10.4 TEU7 would be beneficial to legally empower and direct the APPF to carry our these tasks.

Going further

Beyond Parliament's goal to endow foundations with "appropriate and stable resources", numerous additional proposals can be considered to improve European parties' and foundations' funding system, and to increase funding transparency for citizens. For each of the proposals below, we have more detailed research and data analysis that can be provided.

Regulatory burden

As indicated, Parliament only formulates one substantial proposal with regard to regulatory burden; it also "emphasises [...] the importance of effective and proportionate corrective measures", but stops short of formulating a reform proposal.

In the recast Regulation, corrective measures were restricted from applying to "any of the sanctions referred to in Article 27"14 (Art. 29 of Regulation 1141/2014) to applying only to "any of the sanctions referred to in Article 32(1), points (a)(i) to (vi)" (Art. 35). Most notably, this removes the possibility of corrective measures for "quantifiable infringements", where a European party or foundation "has accepted donations and contributions that are not permitted" or case of non-compliance with the provisions on the financing of campaigns for European elections (Art. 26) and on prohibition of funding (Art. 27). Subject to the right to be heard, such infringements are now sanctioned, without possibility to avoid this by remedying the situation (Article 35(1)).

Meanwhile, the APPF has sought to accompany reporting entities in this new framework via its "Regulatory Compliance Action Plan" (R-CAP). R-CAP allows European parties and foundations to request from the Authority a preventive check of important planned situations relevant to the Regulation. This includes draft statutes provisions, revenue items expected to be generated, planned new type of joint activities, draft contribution rules, draft donation policy, etc. While the APPF retains its ability to later control the implementation of such scenarios, R-CAP provides parties and foundations with advance legal guidance with regard to factors relevant to the APPF's later checks. While R-CAP was praised as a useful tool for compliance, European parties and foundations have nevertheless called to revert to the initial scope of corrective measures. A dedicated review of corrective measures and their use would be useful to determine cases where they might have been abuses, and to inform on the relevant scope of their application.

EP proposal #6. Establish a single online reporting and disclosure system

Parliament's proposal to "[establish] a single online reporting and disclosure system for EU funding, donations and contributions", if well implemented, is one the most efficient ways to improve transparency for citizens, facilitate checks by European institutions and auditors, and actively reduce the administrative and compliance burden for reporting entities.

Manual input leads to extended delays, administrative burden, duplication of work, and a higher risk of human error.

Historically, European parties and foundations have submitted the documents required of them, including lists of donations and contributions and other financial information, by email. More recently, Parliament's IT services have provided a more secure file upload system, although communications continue over email. This requires staff from the APPF and the European Parliament to manually input this information into their data systems for processing, and does not contribute to the publication of this data, which must be handled separately. The result is extended delays, administrative burden, duplication of work, and a higher risk of human error.

Conversely, an online reporting and disclosure system allows relevant stakeholders to submit data at any point, directly into the data system, and removes the need for APPF or EP staff to re-enter this information. Reviews can be partially automated and streamlined, and imported data can directly feed into a public disclosure portal, ensuring that information is provided to citizens in a timely manner.

Additionally, several European parties have reported redundant requests for information from the APPF and the DG FINS' Financing of Political Parties and Foundations Unit, as well as a perceived lack of coordination between the two. A reporting and disclosure system accessible by both entities (in case their respective roles are not merged and granted to a single entity) would avoid such duplication and help ensure data integrity and accuracy.

Designed in conjunction with all interested parties, an online reporting and disclosure system can therefore dramatically simplify data reporting, review, and disclosure. It simplifies administrative processes and increases transparency, and would also simplify the implementation of numerous other transparency-focused regulatory improvements.

We propose to amend Art. 39 to entrust the APPF with the development of an online reporting and disclosure system for all data and information to be submitted by European political parties and foundations. This exceptional task should be matched with additional human and financial resources allocated to the APPF for the development of this tool.

→ a online reporting and disclosure mechanism is a substantial endeavour and requires ample study and analysis; given our own development of the European Party Funding Observatory, as well as consultations we have already undertaken with the majority of European parties and foundations on this topic, we can provide detailed guidance for the development and implementation of this essential tool.

Legal uncertainty

EP proposal #7. Clarify that participation fees can be charged to member organisations

The scope of this proposal is very limited, and does not bring anything new or meaningful to the Regulation. At any rate, clarifications on this point, or of other elements mentioned in its report by Parliament (such as financing from the own resources of European parties or the possibility of membership from entities other than national political foundations)15 are welcome in a review of the Regulation.

Going further

Beyond Parliament's core issues of funding, regulatory burden, and legal certainty, numerous other proposals, numerous additional proposals can be considered to strengthen the European public sphere and enhance the EU's democratic legitimacy, which are the goals stated by Parliament.

In line with Parliament's report, the proposals below affect European political foundations, but also European parties; however, additional proposals relating exclusively to European parties (such as the reform of registration criteria) were not included, although they remain extremely relevant for the EU's democratic legitimacy. For each proposal, we have more detailed research and data analysis that can be provided.

Timely publication of data and information

Publication modalities

Institutional and other improvements

Conclusion

Adopted in the wake of a major review of the legal framework on European political parties and foundations, Parliament's implementation report cannot capture the full impact of new provisions of Regulation 2025/2445. In this context, Parliament's choice to focus on European foundations, which were mostly unaddressed in the Commission's 2021 recast proposal, is sensible.

However, not only is the reform of legal provisions affecting foundations likely to also impact European parties, but the Commission's recast proposal had left aside a number of other items brought forward by Parliament in its 2021 implementation report. As a result, the development of a truly European public sphere and the strengthening of democratic legitimacy, which Parliament advocates for in its report, require a broader approach to this topic than the proposals made herein.

While a step-by-step approach dividing reform in sequential chapters may be helpful in avoiding prolonged disagreements between institutions, contrasting foundations with parties may not be the most relevant path. Instead, a first reform package could focus on "transparency, visibility, and clarifications", followed by a reform of private and public funding, and a third package dedicated to registration modalities and the relationship between European parties and their members. This staggered approach would allow tackling lower-hanging fruits, with more technical changes handled first, and give additional time and reflection for more political and broader topics.

Reforming the legal framework on European political parties and foundations is a necessity to allow European parties to meet their treaty-mandated role and meaningfully contribute to the EU's democratic architecture. The European Democracy Consulting Stiftung has carried out ample research in this field and developed unique tools, and its staff stands ready to further contribute to EU institutions' reflections and decision-making.


1 Some of these reform may also require amending the EU's Electoral Act. Up

2 Unfortunately, due to the current modalities for the publication of information, as well as the calculation of public funding, 2024 is the most recent year for which data is available. Up

3 With the exception of the financial year 2024, for which public funding for European parties increased to €50 million. Up

4 The number of qualifying European parties increased from 10 to 12 by the calendar year 2025, and in the same manner for European foundations the following year. Up

5 For simplification, we use the total amount of public funding divided by the number of European parties or foundations. Of course, in practice, not all parties are affected in the same way when the number of parties changes. For instance, the launch of ELA and ESN drew MEPs from some parties more than from others. However, all parties and all foundations, respectively, are equally impacted by the change in the lump sum amount. Up

6 "The Authority, the Authorising Officer of the European Parliament and the Member States via the National Contact Points shall share information and keep each other regularly informed of matters related to funding provisions, controls and sanctions." Up

7-17 "Political parties at European level contribute to forming European political awareness and to expressing the will of citizens of the Union." (Art. 10.4, TEU) Up 7 Up 17

8 See the current long-form definitions in Art. 2.9 and 2.10. Up

9 Wolfs, Wouter and European Democracy Consulting Stiftung. European Party Funding Observatory Dataset, 2024. Up

10 The Commission's 2012 proposal only proposed to raise this threshold to €1,000 and the Parliament did not dispute this figure in its report. The increase to €3,000 only appears following agreement with the Council. Up

11 European Democracy Consulting Stiftung, European Party Funding Observatory dataset, retrieved 17 February 2026, https://epfo.eu/dataset. Up

12 While Regulation 2025/2445 refers to "single donations the value of which exceeds EUR 12 000", the APPF has in the past also reported donations of precisely €12,000. Up

13 For instance, the list of donations published by the APPF for 2024 does not make a distinction between donations recorded as part of the pre-electoral expedited reporting and donations made later in the year. For a record of donations made in the six months prior to the 2024 European elections, see European Democracy Consulting's Donations tracker. Up

14 This provisions does not apply to "the conditions set out in points (b) to (d) of Article 3(1) and in point (c) of Article 3(2)", meaning the representation requirement, the impossibility for a national party to be a member of more than one European party, the obligation to respect EU values, the obligation to participate or plan to participate in European elections. Up

15 Indeed, Regulation 2025/2445 does not define "member organisations", merely indicating where they may have their seat: in the Union for "member organisations from the Union" and in specific other countries for "associated member organisations". Both groups are collectively referred to as "member organisations" (Art. 2.5). Up

16 In response to requests for public access to documents placed by the European Democracy Consulting Stiftung, the European Parliament has argued that the note could not be publicised until European parties and foundations had been notified and given the opportunity to submit observations and to appeal the conclusions of the Bureau. However, it has never indicated why the publication of these documents would constitute an impediment to such steps by European parties or foundations. Up

18 This would be in line with other entities such as the European Ombudsman and the European Data Protection Supervisor and Board. Up

19 In its Special Report 13/2000 on the expenditure of the European Parliament's political groups, the European Court of Auditors mentions "the inclusion in the budget of a heading specifically for contributions to European political parties", though it is not clear whether "the budget" refers to the general budget of the European Union or that of Parliament. Up