State funding for Latvian parties has grown more than sixfold since 2019
Seven years ago Latvia's Saeima significantly increased state budget funding for political parties, raising the question of whether this practice will continue. The change was introduced in autumn 2019 at the initiative of then newly elected President Egils Levits.
In autumn 2019, the Saeima passed amendments to the Law on Financing of Political Organizations (Parties) that increased state budget allocations to parties more than sixfold. Parties that receive at least 2% of the vote in elections are eligible for this support.
The reform was one of the priorities put forward by President Egils Levits shortly after taking office, having been elected earlier that same summer. The aim was to reduce parties' dependence on private donors and promote a more transparent system of political financing.
Why it matters now
Seven years have passed since the changes were adopted, and state funding for parties has since been considerably higher than before. This raises the question of whether such a level of support will be maintained going forward, particularly in the context of upcoming elections, when voters need clarity on how the parties they may vote for are financed.
The rise in state funding in recent years has reshaped the financial model under which parties operate, allowing them to rely less on private donations and membership fees. At the same time, public debate continues over whether the scale of this funding is proportionate and whether it achieves its original goal of strengthening democratic processes and reducing corruption risks in politics.
