Home > 6 Political parties > GEORGIA - Joint Opinion on the Draft Law on Amendments and Additions to the Organic Law on Political Unions of Citizens
 
 
 
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Paragraph 13
 

V. Property and funding of political parties


Prohibition of corporate donations









The draft amendments introduce a broad prohibition of corporate donations (donations by legal persons) to the party finances (Article 26 para 1 of the Organic Law). The banning of corporate donations exists in a number of models: France, Poland, Bulgaria, inter alia. The French model has been very influential in Europe over the last decade. When combined with significant state financing of political parties, the model aims to decrease the pressure exerted by big business on the political process. It is a legitimate choice for a country to make. However it should be borne in mind that corporate bans may be circumvented in a number of ways, through channelling of corporate money through individual donations (employees of a company, for instance); donating to party-related NGOs (foundations) etc. Also, if there is no adequate level of state subsidies for the political parties, the banning of corporate funding coupled with strict disclosure provisions may create difficulties for the political parties to fundraise.