INTERNATIONAL ASPECTS OF POLITICAL PARTY FINANCING

Abstract

The article provides a comprehensive analysis of the institution of state financing of political parties in the European Union and in Ukraine. It examines the historical prerequisites for the emergence of this mechanism, its legal regulation, and the practice of its application. The study demonstrates that public funding of parties in most European countries has become an important tool for reducing the dependence of political forces on private donors and ensuring equal opportunities in political competition. Particular attention is paid to the experience of Germany, Austria, Italy, Spain, Sweden, and other states where party financing was introduced in the second half of the twentieth century, as well as to the generalization of this experience in the documents of the Venice Commission, the Parliamentary Assembly of the Council of Europe, and the Council of Europe in the early 2000s. In the Ukrainian context, the evolution of legislative regulation is traced: from the first attempts to introduce public financing in 2002–2003, which were never implemented in practice, to the adoption of the Law of Ukraine “On Amendments… on Preventing and Combating Political Corruption” in 2015 and the actual start of party financing in the third quarter of 2016. The article highlights the key provisions of current legislation, in particular the 2% electoral threshold for receiving funding, the proportional principle of resource distribution, and the introduction of the “gender bonus” as a mechanism to encourage gender balance in parliamentary factions. The practice of using public funds by parties in 2016–2017 is analyzed, showing that a significant share of expenditures was directed toward political advertising and maintaining party apparatuses, while political education and research activities remained underdeveloped. Expert criticism of this spending structure is discussed, and possible ways of improvement are outlined, including a ban on the use of public funds for advertising, clearer specification of expenditure directions, the creation of expert funds modeled on Poland, and the determination of an optimal percentage of financing for regional party organizations. The conclusions emphasize that the institution of state financing of parties in Ukraine generally corresponds to European standards but requires further refinement. Key recommendations include expanding the circle of recipients to parties with significant results at the local level; stimulating expenditures on political education and analytical activities; combining draft laws into a unified legislative framework; and conducting a broad public information campaign to increase societal support for this institution. Thus, the article combines a comparative analysis of European experience and Ukrainian practice, identifies problems and prospects for the development of state financing of political parties, and formulates recommendations for its improvement in line with international standards and national specificities