E. Rules on the financing of political parties

There is no special chapter in the draft Act on legitimate sources of party income. Provisions on legal donations and relevant restrictions are stipulated in Part IV of the draft Act on “Control of donations to registered parties”, which also regulates the mechanism for reporting on donations. The draft Act does not regulate other sources of financing, including the state budget or possible profitable activities undertaken by the party itself. It is recommended to include such financing instruments in the draft Act as well. Such regulation should include safeguards for equal treatment of political parties in accordance with European standards. Article 35 provides for these issues to be stipulated in a separate law, but it would be preferable if they were incorporated into legislation on political parties. At the same time, consideration may be given to also ensuring a proper balance between the different financing sources, so as to safeguard the freedom of association. Limitations on loans or provisions on donations to entities connected with a political party should also be provided.