The New German party finance law

Abstract

In 1992 the Federal Constitutional Court decided for the sixth time since 1949 that the German legislation concerning political finance was unconstitutional. While the first five cases were important milestones in the development of German law on the public funding of parties and campaigns, this decision was notable for its rejection of key provisions of two laws that were passed in the 1980s and for overturning the Court's previous ban on direct aid to the parties. A commission of experts was formed to study and recommend changes, and a new law was passed by the Bundestag and Bundesrat in November and December 1993. Instead of focusing on reimbursements of parties for their campaign expenditures, the new law provides for direct financing of parties based on one DM for each vote in EU, national, and Land elections and DM .50 for each D‐Mark received in party dues and donations up to DM 6,000 per person (12,000 per couple). For the first five million votes, the parties receive DM 1.30 per vote. To encourage citizen involvement, parties are not to receive more than the sum of all of their own source revenues, and the total support for all parties is not to exceed the DM 230 million (adjusted for inflation) that was given to the parties as reimbursements for campaign expenditures in the period 1989–1992. To those who have followed the controversies over German political financing since the 1950s, it will be no surprise to learn that the new legislation has provoked criticism and sparked plans to bring the new law before the Federal Constitutional Court.