site.btaBusinesses Expect Subsidy Cut to Make Political Parties More Efficient

115 POLITICS - PARTIES - FUNDING - BUSINESSES

Businesses Expect Subsidy Cut
to Make Political Parties
More Efficient

July 29 (BTA) - A public opinion poll conducted on the eve of a July 4 slashing of party subsidies in Bulgaria shows that 75 per cent of the member companies of the Bulgarian Chamber of Commerce and Industry (BCCI) believed that if state subsidies for political parties were abolished or were reduced from 11 leva to 1 lev per valid vote won at the latest parliamentary elections, the parties would streamline their organizational structure and would become more efficient.

The poll was carried out by the BCCI between June 28 and July 3. On July 4, the National Assembly approved the government-proposed slashing of party subsidies from 11 leva to 1 lev per vote by amending the 2019 State Budget Act on second reading. The State Budget Act amendments, which entail revisions to the Political Parties Act, further stipulate that political parties will be able to receive donations not only from natural persons but also from juristic persons and sole traders. The new provisions about the donations were vetoed by President Rumen Radev but the veto was overridden by the National Assembly on July 24.

The poll also shows that most BCCI member companies (74 per cent) expect the reduction of the party subsidies to be offset by money provided by businesses.

According to 60 per cent of respondents, one of the effects of the subsidy cut to 1 lev per vote will be that minor parties will die out and only big parties will survive. On the other hand, the changes will provide a level playing field for political entities in terms of funding and can thus give a chance to other parties to join the election race.

Respondents believe that the slashing of party subsidies, or their scrapping altogether, will bring a number of benefits. It will minimize the practice of nepotism in awarding party membership, make parties less dependent on voters for their existence, reduce expenses for non-core activities, and encourage stricter internal control.

The BCCI members recommend that other party funding sources be considered as well, such as increasing party membership fees and introducing sensible advertising packages in the lead-up to elections. They believe that the financial support for political parties should come from their members or supporters in the form of private resources, and the parties should gain support with their ideas. The subsidy cut will create a more competitive environment because the parties will not rely on the state to finance them.

Some 45 per cent of companies approve of the idea that they should finance political parties, but only if the money is provided and spent transparently and the acceptance of funding from unclear sources is criminalized.

Forty-six per cent of companies are worried that parties will exert pressure on businesses, and certain businesses will enjoy special protection. About 67 per cent propose a cap on corporate and NGO funding for parties. The cap should be a certain amount of money not related to the company size or turnover. As much as 72 per cent of respondents are opposed to setting the funding as a percentage of the companies' turnover or revenues, and 62 per cent say the funding should not depend on the size of the company (micro, small, medium, or large).

According to 63 per cent of the BCCI member companies, the state subsidies for political parties should be 1 lev per vote, and 78 per cent approve of the introduction of funding limits. Reducing the subsidies is good but the desired effect will not be achieved unless there is tight control, respondents say.

Most interviewees are of the opinion that under-the-table payments will continue. LY/VE
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