Party subsidies are subsidies

Subsidy

A subsidy is an assistance paid to a business or economic sector. Most subsidies are made by the government to producers or distributors in an industry to prevent the decline of that industry or an increase in the prices of its products or simply to encourage it to hire more labor A subsidy (also...

 paid by the government directly to a political party

Political party

A political party is a political organization that typically seeks to influence government policy, usually by nominating their own candidates and trying to seat them in political office. Parties participate in electoral campaigns, educational outreach or protest actions...

, for example in proportion to the number of seats in the parliament, or in proportion to the number of votes each party got. Often this system is combined with a prohibition of private funding of parties.

It is used in Austria, Canada, Belgium, Denmark, Finland, Germany, Italy, the Netherlands, and Sweden.

Supporters argue that directly providing the campaign funds reduces political corruption

Political corruption

Political corruption is the use of legislated powers by government officials for illegitimate private gain. Misuse of government power for other purposes, such as repression of political opponents and general police brutality, is not considered political corruption. Neither are illegal acts by...

, as parties do not need to get "money with an opinion".

Opponents argue that it locks the democratic process and makes the foundation and participation of new parties practically impossible, because of the lack of public funding and the prohibition of private funding.

External links

• Subsidies to the parties, Ministry of Justice Finland.