Preamble

The Party of the European Left, referred to as European Left (EL) in the following, is a “flexible, decentralised association of independent and sovereign European left-wing parties and political organizations which works on the basis of consensus” (EL Statutes, preamble). Following its self-conception, the party unites democratic parties of the Alternative and Progressive Left at the European continent, being aware of their different situation and history as well as their common values and fight for the consequent reformation of today’s social circumstances towards a peaceful and socially just society.  

All basic conclusions and regulations that refer to organisation and financial aspects of the EL activities have to follow this principle.  

The main source for the financial support of the activities is the contributions made by the different member parties. The amount of a contribution each party should give to the Party of the European Left (EL) finances has to be related or be proportionate to the number of affiliates the party has. The criteria of the quantity of membership ensure the equal treatment of all member parties regarding their different political, demographical and societal circumstances. Therewith the sovereign of all member parties of the EL becomes the centre point of reference: the single party member. 

 

Principles of financing

The EL financing is based on principles of complete transparency of all EL activity, and of equality of member parties and their mutual solidarity. At the same time, it takes into consideration all differences in the conditions, in which various member parties work, and their different possibilities. 

As an autonomous legal personality, the EL (GE, ASBL) has also an autonomous legal responsibility for its finances. Thus, the member parties bear no direct liability in case of negative budgetary balance of the EL (and vice versa), the EL cannot be held liable for the budgetary results of individual member parties). However, as the member parties through their representatives in the elected EL party organs jointly control all the EL activity and business, the member parties have a moral responsibility for the state of EL finances.

 

The everyday operation and political activities of EL are funded according to the budget, the responsibility for its preparation, necessary adjustments and its observance in EL business lies with the elected EL bodies and officials according to this Financial Statute.

All financial and decision-making procedures have to comply with the national (Belgian) law and with EL internal documents, in particular the Statute, and with all applicable special legislation, in particular with the EU regulations for financing of political parties on European level (* Regulation (EC) No 2004/2003 of the European Parliament and Council of 4 November 2004).

 

Each member party decides independently about the ways and forms the membership fee will be collected. 

The EL ExB is responsible for the specification of the contribution of the member parties and the contribution of single members in due time. 

 

Art. 1 The budget of the ELP  

The budgetary input is made of: 

a)      Membership fees from the member parties and individual members,

b)      Donations from other organisations and individuals,

c)      Subsidies appropriated by the European Parliament or other European institutions.

 

Art. 2. Contents of the annual budget

 

The contents of the annual budget are established taking into account the different needs for the functioning of the ELP

 

a)   Political activities

 

A part of the budget has to guarantee keeping and developing political activities in Europe organized by the ELP according to its Statute and Programme in <st1:place w:st="on">Europe</st1:place>. In particular common political activities and measures based on the working schedule as well as in reaction on current events are subject of the financial and organisational support. The focus of the EL activities should be the analysis of the political development in <st1:place w:st="on">Europe</st1:place> and the progress of the EU-Enlargement, to develop common political agenda and analogous become politically active in the European society. The propagation, explanation and clarification of the political goals just as well as the close cooperation with other structures of the Left in <st1:place w:st="on">Europe</st1:place>, in the Council of Europe, with all democratic political and social forces in the European countries are also a part of this aspect of the political work. Thereby an important relevance is the communication and acting with the political and social movements in <st1:place w:st="on">Europe</st1:place> and other continents (that means having an efficient webpage, relations with the European trade unions, NGOs and networks, but also with the Forum of Sao Paulo, World Social Forum).

 

b)   Office and staff of the ELP

 

A part of the budget has to meet the need to have an office in Brussels, a minimum staff, and the expenditure that the daily life of the Office needs (phone, internet, paper, personal computers, etc.) securing the political and organizational work of EL elected bodies and affiliated networks, the public relations and the events to be planed on basis of the working schedule by the EL office and to support the structures working based on common agreements and regulations.

 

c)   Regular functioning of the ELP

 

Another part of the budgets is used for the further development of the cooperation of the EL parties and to assure the political work of the structures of the EL (ExB, Council of Chairpersons) towards third parties, the coverage of the EL congresses as well as to support independently organized conferences and meetings.

 

Art. 3.   Procedure for budget creation and evaluation

 

The budget proposal is submitted by the EL treasurer after consultation with the EL chairperson and the treasurers of the member parties each year until end of October / beginning of November. Thereby the treasurer also considers proposals for the political tasks and work planning.

 

The budget proposal is debated and finally approved by the EL ExB. The budget proposal has to be confirmed by the Council of Chairpersons on its following session.  

 

To ensure a balanced and optimal budget, the EL treasurer holds meeting about the budget/financial situation with the treasurers, alternatively with the responsible persons for financial affairs of the EL member parties at least once a year.

 

The EL treasurer reports on a regular basis to the EL Executive Board about the realization of the common budget and its utilisation.

 

Final annual accounting of EL has to be verified by the elected internal auditors, and the balance sheet approved by EL Chairperson and by EL ExB. External auditing is regulated by the appropriate legislation and corresponding EU-directives.

 

 

Art. 4. The need for transparency and public control

 

4.1

The ELP has to assure that all the financial aspects and movements are subject to the principle of transparency, and democratic public control. There will be regular and external audits undergone by different institutions, among them the European Parliament.

 

4.2

At the periodical congress the EL ExB will present a financial report. It has to be confirmed by the congress.

 

4.3

The EL ExB adopts the following regulations of its own and the EL-activities:

§    Annual planning of the member-ship fees

§      Framework of income and expenses

§      Financial aspects of the activities of all EL structures

§      EL regulation for travel expenses

§     Regulation for donations and orientations for fund-raising

 

 

Art. 5.  Membership fee

 

5.1. Membership fee for political member parties.

 

All member parties are obliged to contribute to the budget of the ELP following two criteria:

a)      the number of individuals who belong to each party,

b)     the total amount of the annual budget of the ELP.

 

The membership fee is assessed on the principles laid down in the article 1, and consists of two parts:

 

(i)   Part A, equal to all member parties; the EL ExB will set up the actual amount for each year

 

(ii) Part B, which is calculated on the basis of planned expenditures of the EL and divided between the EL member parties in proportion of their annual budgets in the preceding year and to the number of their affiliates. To ensure timely construction of the budget, the member parties are obliged to submit the needed data (official balance sheet etc.) immediately after the year was officially closed (and/or audited, where required by the respective national law). For the parties, which did not submit the data, the contribution will be calculated on the basis of their previous-year fee, if that is not possible, the fee will be determined by the EL ExB on the basis of an estimate of their financial strength relatively to other member parties.

Each member party decides independently on the ways and forms the membership fee will be collected.

 

 

5.2. Membership fees for individual members

 

For individual members, the membership fee will be determined each year by the     EL ExB, taking into account the differences in purchasing power in various countries, and the forms and amount of membership fee paid by members of the member party/parties in the particular country.

 

 

Art. 6   Sufficiency of the ELP budget

 

The annual budget will try to be a balanced one, being able to face the three main aims (functioning, political activities and communication) through the total amount of inputs coming from the different concepts.

In case there is superavit, and if this superavit has been produced by the ELP own contribution outside the 25% EP requirements, that amount of money will be added to the budget of the following year in order to allow more political activities.

 

The EL aspires to build up reserves apart from the EP budget during the current financial year for future projects and common political activities. The requirements for building up reserves will be adopted by the EL ExB in connection with the annual and long term scheduling of the EL-work.

 

 

Art. 7  Changes to this Financial Statute

 

The EL Executive Board is entitled to make provisional amendments to this Financial Statute in cases, where it is needed to satisfy the requirements of law. Validity of such amendments expires at the next EL Congress.