III. Comments on the Text on the Draft Electoral Law 

E. Financing of elections

As stated by the Council of Europe Committee of Ministers in their Recommendation 2003(4): “States should provide for independent monitoring in respect of the funding of political parties and electoral campaigns. The independent monitoring should include supervision over the accounts of political parties and the expenses involved in election campaigns as well as their presentation and publication.”The law has been improved in this respect, as certain provisions regarding monitoring of funding ofelectoral campaigns, as well as new provisions concerning the possible consequences for not complying with transparency requirements in funding of independent candidates and political parties were introduced. There is no specific definition, however, of dissuasive sanctions for violation of campaign funding provisions. Monetary penalties imposed against violators, either in the form of the loss of public funding or the assessment of fines, are common dissuasive sanctions. The introduction of public funding, which has been previously recommended, would not only address the recommendation but also create a potential mechanism for enforcing sanctions for campaign finance violations. Irregularities in financial reporting, non-compliance with financial-reporting regulations or improper use of public funds should result in the loss of all or part of public funds for the party.