Legal entities may face restrictions on donating to political parties under proposed changes to the Law on Political Unions of Citizens. The draft will be introduced during today’s Bureau session.

The amendments seek to reduce the upper limit of the total allowable expenses incurred by a party in a year from 0.05% of the previous year’s gross domestic product to 0.04%.

The ruling Georgian Dream initiated the changes, who argue that the adoption of this draft aligns with the recommendation on de-oligarchization by the Venice Commission issued on June 12, 2023. Specifically, this recommendation outlines the prohibition of legal entities from financing political parties.

The proposed law would disallow political parties from receiving funding from legal entities. Additionally, it aims to decrease the overall expenses incurred by a party annually. Initiators assert that such measures will foster healthy competition among parties, ensuring a fair electoral environment and facilitating its continued development.

The draft law stipulates that in the event of a prohibited donation by a legal entity, their union, or another organizational entity, the person donating and the person facilitating the prohibited donation through a third party (if applicable) will be subject to a fine double the amount of the prohibited donation or expense.