ABSTRACT
After the November 1989 collapse of the Zhivkov regime, multiple parties emerged in Bulgaria claiming representation of various group interests. Since then, the development of a multi-party system has been facilitated by the introduction of a proportional representation (PR) electoral system which enhanced electoral competition and encouraged newcomers. At present, there are over three hundred registered parties in the country. Only a few of them, however, have consistently won seats in parliament and many have not been politically active for years. Aside from the electoral system, another explanation that may cast light on how the party system in Bulgaria evolved in the last fifteen years can be drawn from arguments about the importance of party finance.1 Among the various characteristics of a funding regime, the origin of the money supporting organizational campaigns is especially relevant to party development. Some would expect that public funding minimizes party dependence on large donors which enables parties to better serve the broader public interest. Skeptics argue, however, that even if public finance is available, party leaders continue to compete for additional funds which can be extracted from the corporate sector.2 Therefore, regulation becomes important to set limits on both the amounts raised for and the sums spent in election campaigns. The above perspectives propose two mechanisms of state engagement: First, public money may (or may not) be made available to parties as private associations which provide a public service. Second, national legislation establishes (or may not) ceilings for the flow of money in and out of party coffers. These two instruments are combined to create a regime of public finance that is then expected to influence party organizational development and electoral fortunes.
