ABSTRACT

The evolution of the Estonian party finance system shares similarities with processes in other East European countries. Campaign costs have been rising while parties rely increasingly on state subsidies. The Estonian legal system establishes few limits on financing-the most noteworthy of which is a ban on corporate donations. Overall, the main concern regarding party finance in Estonia is the lack of transparency. Although parties have to submit declarations concerning campaign costs and donations, there is no effective system to scrutinize the truthfulness of the declarations. This chapter will address these issues, and how finance influences party system development in Estonia.