The far-right Alternative for Germany (AfD) party received its largest-ever donation of €1.5 million on Wednesday, sparking questions about how parties in Germany typically fund their campaigns. The donor, Winfried Stöcker, a medical entrepreneur, has been fined for organizing an illegal vaccination campaign during the COVID-19 pandemic. While the donation raised eyebrows, it is legal in Germany, where there is no cap on funding political parties. In contrast to other countries, the cost of election campaigns in Germany is relatively low but has been steadily increasing, with parties spending €235 million on campaigns in 2021, up from €184 million in 2017.
Political parties in Germany can be funded through a variety of sources, including state funding, membership contributions, and private or corporate donations. State funding accounts for over one-third of a party’s revenue, with membership contributions and donations from individuals and companies making up the rest. The amount of state funding each party receives is determined by its recent electoral success and contribution from members. Critics argue that this system tends to favor larger, well-established parties over smaller ones. Despite the presence of state funding, there are no limits on donations from individuals or corporations in Germany, leading to concerns about potential influence on political parties.
While the law has been updated to improve transparency around donations, there are still loopholes that allow for significant contributions to parties. For example, associations or “Vereins” can collect donations over time and provide them to parties indirectly, raising concerns about the influence of money in politics. The AfD has previously faced allegations of benefiting from an illegal advertising campaign, while the left-wing nationalist Sahra Wagenknecht Alliance has faced scrutiny for donations from an association it founded. Although there are reporting requirements for large donations, experts argue that rules do little to prevent individuals or businesses from making significant contributions to parties.
NGOs and lobby groups have called for further restrictions on party donations in Germany, including a cap on contributions and increased transparency on donations up to a certain limit. However, efforts to enact these reforms have faced resistance, with the CDU reportedly blocking proposals for donation caps. Critics argue that the lack of restrictions on donations allows companies and the wealthy to wield disproportionate influence on the political landscape. The recent mega-donation to the AfD has raised concerns about the potential for undemocratic influence in German politics, prompting calls for reforms to address the issue.
