JOHN CARLOS I

KING OF SPAIN

To all who present it and understand it.

Sabed: That the General Courts have approved and I come to sanction the following organic law.

Reason exposure

The approval in the Congress of Deputies of Organic Law 3/87 on Financing of Political Parties constituted the first regulation of the source of income of one of the basic institutions on which it is based our democratic system. The political parties are private associations that fulfill a transcendental public function in our democratic system by being instruments of political representation and formation of the popular will.

However, it is estimated that the regulation that makes the law currently in force as important as its financing, an essential factor in guaranteeing the stability of the democratic system, does not guarantee adequate the adequacy, regularity and transparency of their economic activity.

Over the course of twenty years since this law was passed, society has experienced many political and economic changes such as the rapid incorporation of new technologies, the incorporation of the Spanish State into the Economic and Monetary Union and the very consolidation of the democratic system which at the time of the adoption of the current funding law was only ten years old. Alongside these changes, the appearance of possible irregularities linked in some cases to the financing of political parties can be added to the public opinion.

Currently, there is a broad sense among society and public opinion that also extends to political parties on the need to address a new regulation of the financing of political parties. provide more transparency and control.

In this new regulation, it is intended that the exercise of popular sovereignty should be definitively assumed to require that the political control of the institutions chosen at the polls should ultimately correspond to the citizen, from which he is The need to establish guarantees and more means to ensure that the financing system does not incorporate elements of distortion between the popular will and the exercise of political power is essential.

The freedom of political parties in the exercise of their powers would be impaired if a model of total liberalization were to be allowed as a financing formula, since, if so, it would always be questionable. In the case of the Commission, the Court of the Court of the European Court of the European Court of the European Court of the European Court of the European Court of popular will.

The financing of political parties must correspond to a mixed system that includes, on the one hand, the contributions of the citizenry and, on the other, the resources from the public authorities in proportion to their representativeness as a means of ensuring the independence of the system, but also of its sufficiency. Private contributions must be made from natural or legal persons who do not engage in public administration, be public and not exceed reasonable and realistic limits.

It is necessary, at the same time, to establish auditing and audit mechanisms with sufficient human and material resources to exercise their function independently and effectively. Hence the need for the regulation of sanctions arising from the responsibilities that could be deducted from the non-compliance with the regulatory standard.

What it is all about is, therefore, realistically addressing the funding of political parties so that the state, through public subsidies, as well as individuals, are militants, injured or sympathizers, contribute to their maintenance as a basic instrument for the formation of the popular will and political representation, enabling the highest levels of transparency and publicity and regulating control mechanisms that prevent the diversion of their functions.

Finally, with this Law, it is necessary to comply with the requirement explicitly made by the Joint Commission for relations with the Court of Auditors and the repeated recommendations of the annual reports of the Supreme Court. The Court held that the Court held that the Court held that the Court held that the Court held that the Court held that the Court held that the Court held that the Court of Auditors had not been able to give its opinion. the adequacy, regularity and transparency of the economic activity of these training courses.

TITLE I

General rules

Article 1. º Scope of Law.

The financing of political parties, federations, coalitions or groups of voters will be in accordance with the provisions of this Organic Law.

For the purposes of this Law the expression "political party" shall include, where appropriate, the set of entities mentioned above.

Article 2. Economic Resources.

The economic resources of the political parties will be constituted by:

One. Resources from public funding:

(a) Public subsidies for electoral expenses, in the terms provided for in the Organic Law 5/1985, of the General Electoral Regime and in the legislative legislation of the electoral processes of the Legislative Assemblies of the Autonomous Communities and the General Boards of the Basque Historical Territories.

(b) Annual State subsidies for operating expenses, as provided for in this Law.

(c) The annual grants to be established by the Autonomous Communities for operating expenditure in the corresponding autonomous area, as well as those granted by the Basque Historical Territories and, where appropriate, by the Local Corporations.

d) Extraordinary grants to carry out propaganda campaigns that can be established in the Organic Law of the different referendum modalities.

e) The contributions that the political parties may receive from the Parliamentary Groups of the Chambers of the General Courts, the Legislative Assemblies of the Autonomous Communities, the General Boards of the Historical Basque territories and groups of representatives in the organs of local administrations.

Two. Resources from private finance.

(a) The contributions and contributions of its affiliates, adwounded and sympathizers.

(b) The products of the political party's own activities and income from the management of its own assets, the profits from its promotional activities, and those which may be obtained from the services that they may provide in relation to their specific purposes.

c) Donations in money or in kind, which they perceive in the terms and conditions provided for in this Law.

d) Funds from loans or loans that they have made.

e) The inheritances or legacies that they receive.

TITLE II

Funding sources

CHAPTER FIRST

Public resources

Article 3. Subventions.

One. The State shall grant to the political parties with representation in the Congress of Deputies, annual non-conditional grants, charged to the General Budget of the State, in order to meet its operating expenses.

Equally, an annual allocation to cover the security costs incurred by political parties to maintain their political and institutional activity may be included in the General Budget of the State.

Two. These grants will be distributed according to the number of seats and votes obtained by each political party in the last elections to the indicated House.

For the allocation of such grants, the corresponding budgetary consignment shall be divided into three equal amounts. One of them will be distributed in proportion to the number of seats obtained by each political party in the last elections to the Congress of Deputies and the remaining two proportionally to all the votes obtained for each party in the elections.

Three. Similarly, the Autonomous Communities may grant to the political parties with representation in their respective Legislative Assemblies, annual non-conditional grants, from the corresponding autonomic budgets, to attend to their operating expenses.

These grants will be distributed according to the number of seats and votes obtained by each political party in the last elections to the indicated Legislative Assemblies, in proportion and according to the criteria that set the corresponding autonomic regulations.

The grants referred to in this paragraph may also be awarded by the Basque Historical Territories.

Four. The grants referred to above shall be incompatible with any other financial or financial aid included in the general budget of the State, in the budgets of the Autonomous Communities or in the budgets of the Historical Basque territories intended for the functioning of political parties, except those mentioned in the number one of the article 2. of this Law.

Five. Initiated the procedure for the illegalisation of a political party, under the provisions of Article 11.2 of the Organic Law 6/2002, of 27 June, of Political Parties, the judicial authority, on the proposal of the Minister of the Interior, may to ensure, in a precautionary manner, the suspension of the delivery to the party concerned of resources from public funding, whatever their type or nature.

CHAPTER SECOND

Private resources

Article 4. º

One. Contributions from its affiliates.

Political parties will be able to receive in accordance with their statutes quotas and contributions from their affiliates, adwounded and sympathizers.

Two. Private donations to political parties.

(a) Political parties may receive donations, not finalists, nominative, in money or in kind, from natural or legal persons within the limits and in accordance with the conditions and conditions laid down in the this Act.

Donations received in accordance with the provisions of this Law, which shall be irrevocable, shall be used to carry out the activities of the donor entity.

The valuation of in-kind donations shall be made in accordance with the provisions of Law 49/2002 of 23 December of Tax Regime of Non-Profit Entities and Tax Incentives to Patronage.

(b) Donations from legal persons shall always require an agreement in due form by the competent social body to the effect, expressly stating the fulfilment of the provisions of the present law.

Political parties will not be able to accept or receive directly or indirectly donations from public bodies, entities or companies.

(c) The political parties will also not be able to accept or receive, directly or indirectly, donations from private companies that, through current contracts, provide services or perform works for the Public Administrations, agencies public or publicly owned capital companies.

(d) The amounts donated to the political parties shall be credited to the accounts of credit institutions, which are open exclusively for that purpose. The revenue incurred in these accounts shall be, only, those arising from such donations.

e) Of the donations provided for in this article, the date of imposition, amount of the same and the name and tax identification of the donor will be recorded. The credit institution where the tax is to be imposed shall be obliged to extend to the donor an accreditable document in which the above ends are established.

(f) In the case of donations in kind, the effectiveness of the donations shall be credited by certification issued by the political party, in addition to the identification of the donor, the document public or other authentic document that accredits the gift of the donated good by making express mention of the irrevocable character of the donation.

Three. Operations assimilated.

Political parties may not accept that, directly or indirectly, third parties effectively assume the cost of their acquisitions of goods, works or services or any other expenses that their business generates.

The breach of the provisions of the preceding paragraph shall be sanctioned in accordance with the provisions of Article 17 (a) of this Law.

Article 5. º Limits to private donations.

Political parties will not be able to accept or receive directly or indirectly:

1. Anonymous donations.

2. Donations from the same natural or legal person in excess of EUR 100,000 per year.

Donations in kind of real estate are exempted from this limit, provided that the requirements laid down in Article 4 (2) (f) are met.

Article 6. º Activities of your own.

One. Political parties may not engage in activities of a commercial character of any kind.

Two. The activities referred to in point (b) of Article 2 (2) shall not be deemed to be business activities.

Three. Revenue from the political party's own activities, income from the management of its own assets, as well as the profits from its promotional activities and those which may be obtained from the services which they may lend in connection with their specific purposes, shall specify the identification of the transmittal when the transfer of the assets to the political party is equal to or greater than EUR 300.

Article 7. Contributions of foreign persons.

One. Political parties may receive non-finalist donations from foreign persons, with the limits, requirements and conditions set out in this Law for private contributions, and provided that they are also met. requirements of the existing regulation on control of changes and movement of capital.

Two. Notwithstanding the foregoing, parties may not accept any form of financing by foreign governments and bodies, entities or public undertakings or companies directly or indirectly related to them.

Article 8. Justification of quotas and contributions.

One. The shares and contributions of members, members and supporters shall be credited to the accounts of credit institutions opened exclusively for that purpose. The revenue made in these accounts shall be, only, those which come from these quotas, and such revenue must be made by direct debit from an account of which the affiliate is a holder, or by means of a registered income in the account to be designated by the party.

Two. The remaining private contributions must be paid into an account other than that prescribed in the preceding paragraph. In any event, the date of imposition, the amount of the same and the full name of the affiliate or contributor shall be recorded. The credit institution where the tax is to be imposed shall be obliged to extend a supporting document containing the above points.

TITLE III

Tax Regime

Article 9. Object and scope of application.

One. The purpose of this Title is to regulate the tax regime of political parties, as well as that applicable to quotas, contributions and donations made by natural or legal persons to contribute to their financing.

Two. The general tax rules and in particular those for non-profit-making entities shall apply as far as this Title is not provided for.

CHAPTER FIRST

Tax regime of political parties

Article 10. º Rents exempt from taxation.

One. Political parties shall enjoy exemption in the Corporate Tax on income obtained for the financing of the activities that constitute their specific object or purpose in the terms set out in this Article.

Two. The exemption referred to in the preceding number shall apply to the following income and capital increases:

(a) The contributions and contributions paid by its affiliates.

(b) The grants received in accordance with the provisions of this Law.

(c) Private donations made by natural or legal persons as well as any other increases in equity that are evidenced as a result of acquisitions for a profit.

d) The income earned in the exercise of its own activities. In the case of income from own economic holdings, the exemption must be expressly stated by the tax authorities.

The exemption shall also apply in respect of income which is shown in the onerous transfer of goods or rights affecting the performance of the object or purpose of the political party provided that the product the disposal is intended for new investments linked to its own purpose or purpose or to the financing of its activities within the time limits laid down in the Corporate Tax rules.

e) The returns from the assets and rights that make up the political party's patrimony.

Article 11. º Type of lien, income not subject to withholding and obligation to declare.

One. The positive tax base corresponding to non-exempt income shall be taxed at the rate of 25%.

Two. Income exempt under this Act shall not be subject to withholding or income. The procedure for the accreditation of political parties shall be determined for the purposes of the exclusion of the obligation to retain.

Three. Political parties shall be obliged to submit and sign a declaration for the corporation tax in respect of non-exempt income.

CHAPTER SECOND

Tax regime of quotas, contributions and donations made to political parties

Article 12. º Tax Incentives.

One. Membership fees, as well as the other contributions made to political parties, shall be deductible from the taxable base of the Income Tax of the Physical Persons, subject to the limit of EUR 600 per year, provided that these quotas and contributions are justified under Article 8. 1.

Two. To the donations referred to in Article 4. º, made to the political parties, the deductions provided for in Law 49/2002, of 23 December, of Tax Regime of the Non-profit Entities and of the Incentives will apply to them. Tax on Patronage.

Article 13. º Justification of the quotas, contributions and donations made.

The application of the tax regime established in the previous article will be conditional on the physical or legal person having the document proving the contribution, donation or quota satisfied by the party. Perceptor politician.

TITLE IV

Accounting Obligations

Article 14. º Accounting Books.

One. Political parties shall carry out detailed accounting records which allow at all times to know their financial and patrimonial status and the fulfilment of the obligations laid down in this Law.

Two. The books of Treasury, Inventories and Balances shall contain, in accordance with generally accepted accounting principles:

a) The annual inventory of all goods.

(b) The revenue account, with at least the following categories of income:

-Global quota of the contributions and contributions of your affiliates.

-Revenue from your own estate.

-Income from the donations referred to in Article 4 of this Law.

-Public grants.

-Res from party activities.

(c) The expense account, with at least the following categories of expenditure:

-Personal Expenses.

-Acquisition expenses for goods and services (streams).

-Financial expense of loans.

-Other administrative expenses.

-Costs of the party's own activities.

d) Capital operations relating to:

-Credits or loans from financial institutions.

-Investments.

-Debtors and creditors.

Three. The maximum management body of those political parties which receive some form of public subsidy from those provided for in Article 3. of this Law is obliged to submit the annual accounts for each financial year, in details and documentation of their revenue and expenditure.

Four. The consolidated annual accounts shall be extended to the State, Autonomous, Regional and Provincial areas. The consolidated annual accounts of party and coalition federations shall include those of the federated and coalition parties.

Five. The annual accounts shall comprise the balance sheet, the results account and an explanatory note for both. In any event, this report shall include the ratio of public subsidies and private donations received from natural or legal persons with specific reference, in each of them, to the elements which enable the donor to be identified and to identify the amount of capital received.

The Memory must also be accompanied by an annex specifying in detail the contractual terms of the loans or loans of any kind that the party maintains with the credit. It shall identify the entity, the amount granted, the interest rate and the repayment term of the credit or loan and the outstanding debt at the close of the financial year in question with any relevant contingency on the basis of compliance with agreed conditions.

Six. By way of derogation from the preceding paragraph, for the accountability of the Parliamentary Groups of the General Courts, the Legislative Assemblies of the Autonomous Communities, the General Boards of the Basque Historical Territories and of the Local Corporation Groups, they will be subject to their respective specific local regulations or regulations.

Seven. The duly formalised consolidated annual accounts shall be forwarded to the Court of Auditors by 30 June of the year following the year following which they relate.

TITLE V

Audit and control

Item 15. Internal Control.

Political parties should provide for an internal control system to ensure proper intervention and accounting of all acts and documents resulting from rights and obligations of economic content, as to its statutes. The report resulting from the review shall accompany the documentation to the Court of Auditors.

Item 16. External Control.

One. It is for the Court of Auditors alone to monitor the economic and financial activity of the political parties, without prejudice to the powers conferred on the audit bodies of the Autonomous Communities provided for in their respective Statutes.

Two. This control will extend to the audit of the legality of the public and private resources of the political parties as well as the accounting regularity of the economic and financial activities that they perform.

Three. The Court of Auditors, within six months of receipt of the documents referred to in Article 13. of this Law, shall issue a report on its regularity and adequacy of the provisions of this Law, or shall be recorded in its case. expressly any violations or irregular practices have been observed.

Four. That report shall be submitted for approval, if appropriate, to the General Courts and subsequently published in the "Official State Gazette".

TITLE VI

Sanctioning Regime

Item 17.

Without prejudice to any legal responsibilities arising from the provisions of the legal order in general and the provisions of this Law in particular, the Court of Auditors may agree to the imposition of the of pecuniary sanctions against the offending political party:

(a) Where a political party obtains donations that contravene the limitations and requirements set out in this Law, the Court of Auditors may propose the imposition of a fine of equal to double the contribution illegally received, which will be deducted from the next annual subsidy to its operating costs.

(b) In the event that a political party does not present, without justified cause, the accounts for the last financial year or these are so deficient that they prevent the Court of Auditors from carrying out its tasks The Commission may propose that annual grants for its operating costs not be paid to the infringer.

Article 18. º

The sanctioning procedures referred to in paragraphs (a) and (b) of the previous Article shall be initiated by agreement of the Court of Auditors ' plenary session.

One. The initiation agreement will have the following minimum content:

a) Identification of the allegedly responsible political party.

(b) The facts that motivate the opening of the procedure, its possible legal status and the sanctions that might be appropriate.

c) The instructor of the procedure, with express indication of the recusal regime of the procedure.

The initiation agreement will be communicated to the instructor and the political party will be notified that it has a period of 15 days to provide as many allegations, documents or information as appropriate and for request the opening of a probative period and propose the means of proof that they consider appropriate.

The initiation agreement shall be accompanied by the documents and evidence which the governing body of the sanctioning competition has taken into account in order to open the procedure.

Two. An evidentiary period will open in the following scenarios:

(a) When in the case of allegations set out in the preceding article is requested by the party concerned with the proposal of concrete means of proof.

(b) When, in the absence of a request from an interested party, the instructor considers it necessary for the clarification of the facts and the determination of those responsible. In this case, the instructor shall give a period of five days to the persons concerned to propose the means of proof which they deem appropriate.

c) The probative period shall last thirty working days.

(d) The practice of the tests shall be carried out in accordance with the provisions of Article 81 of Law 30/1992, of the Legal Regime of Public Administrations and of the Common Administrative Procedure.

Three. Where appropriate, the instructor shall make a proposal for a resolution, which shall contain:

1) If you think there is an infringement and responsibility:

a) The facts that you consider to be tested and the assessment of the test in which such consideration is founded.

b) The political party that it considers responsible, the precepts and the assessment of the proof in which such consideration is founded.

(c) The precepts of infringements in which they consider to be subsumed the facts and the reasons for such consideration which must be exclusively those appearing in paragraphs (a) and (b) of Article 17. of this Law.

(d) the penalties which it considers to be from the terms of Article 17. of the Organic Law on the Financing of Political Parties, the precepts in which they are determined, the circumstances to which it has been considered, the The provisions of this Regulation shall be based on the principles laid down in Article 4 (1) of Regulation (EC) No 2626/86 of the European Union and of the Council of the European Union and of the Council

the European Union.

2) If you estimate that there is no breach or liability:

a) The proposal for acquittal.

Four. The motion for a resolution shall be notified to the parties concerned, indicating that they have a period of 15 days to make representations. In such notification, it shall be communicated to the parties concerned that the file shall be made clear to them during that period, so that they may consult it and obtain copies of the documents in the file.

Pending the hearing, the instructor will immediately submit the motion for a resolution to the Court of Auditors ' plenary session to resolve the proceedings, together with the documents, allegations and information contained in it. file.

Five. The instructor may, in particular, extend the time limits for such claims and that of the probationary period, for once and for the same or shorter time than the time laid down, provided that, by the number and nature of the tests to be carried out, the complexity of the factual situations and legal issues analysed or other appropriate reasons, be necessary to achieve the proper determination of the facts and the responsibilities or to ensure the effective defense of the accused.

Six. The acts of the instructor who refuse the opening of the probative period or the practice of any means of proof proposed by the parties, shall be subject to appeal within three days, with their silence being considered to be unestimatory.

Seven. The Court of Auditors ' plenary session will give a reasoned decision on all the questions raised by the party concerned and those arising from the procedure. The resolution that resolves the procedure must have the content set out in the third paragraph of this article.

The Court of Auditors ' plenary session, the body responsible for resolving, may only vary the factual relationship expressed in the motion for a resolution, by adding it or taking into account others only if this is beneficial. of the imputed. The body responsible for resolving the factual variation shall be specifically motivated by the resolution.

If the resolution has not been notified within six months of the initiation of the procedure, the procedure shall be terminated. The six-month period shall be interrupted as long as the proceedings are brought to a standstill for reasons attributable to the parties concerned.

Eight. The penalty decisions taken by the Court of Auditors shall be subject to administrative and administrative proceedings before the Supreme Court. Where such penalty decisions agree on the minorisation or the non-release of the annual operating expenditure grants, the appeal shall automatically suspend the execution of the decision taken by the Court of Justice. of Accounts.

Article 19. º Collaboration Duty.

One. Political parties shall be obliged to refer to all documents, records, data and justifications required by the Court of Auditors for the performance of their audit function.

Two. Where, in the exercise of the audit function, the authorities or officials of the Court of Auditors have knowledge of data, reports or records affecting the privacy of persons, they shall be obliged to the strictest and most complete if they fail to fulfil that obligation, they shall bear the administrative or criminal responsibilities which they may be responsible for.

Likewise, and only in these cases, political parties will be able to comply with the obligation referred to in paragraph 1 of this Article by making available to the Tribunal the information necessary at the seat or in the office. they are designated by the same.

Three. Institutions which have maintained relations of an economic nature with the political parties shall be obliged, if required by the Court of Auditors, to provide this information and detailed justification for their operations with in accordance with the generally accepted external audit standards and for the sole purpose of verifying compliance with the limits, requirements and obligations established by this Law.

Additional disposition first.

Article 9 (3) (c) of the Consolidated Text of the Company Tax, approved by Royal Decree-Law 4/2004 of 5 March 2004, is hereby amended as follows:

"c) Professional colleges, business associations, official chambers and workers ' unions."

Additional provision second.

Article 28 (2) (d) of the Recast Company Tax Text, approved by Royal Decree-Law 4/2004 of 5 March 2004, is hereby amended as follows:

"(d) Professional colleges, business associations, official chambers and workers ' unions."

Additional provision third.

The number 28 is added to Article 20 (1) of Law 37/1992 of 28 December of the Value Added Tax, with the following text:

" 28. The provision of services and the supply of goods by political parties in order to provide financial support for the fulfilment of their specific purpose and organized in their exclusive benefit. "

Additional provision fourth.

A new article 61a is added to the Law 35/2006 of 28 November of the Tax on the Income of the Physical Persons and the partial modification of the laws of the Taxes on Societies, on the Income of Non-Residents and on the Heritage, with the following wording:

" Article 61a. Reduction in quotas and contributions to political parties.

Affiliation fees and contributions to Political Parties, Federations, Coalitions or Groups of Electors may be subject to reduction in the tax base with a maximum limit of EUR 600 per year. "

Additional provision fifth.

A new letter e) is added to Article 45.1 A) of the Recast Text of the Law on the Tax on Heritage Transmissions and Documented Legal Acts, approved by Royal Legislative Decree 1/1993, of 24 September, with the following wording:

"e) Political parties with parliamentary representation."

Additional provision sixth.

One. The overall amount of the consignment to be included in the General Budget of the State to meet the subsidies provided for in Article 3. of this Law shall be adjusted annually, at least, to the increase in the Index of Consumer Prices.

Two. The same adequacy shall be made in respect of the amounts shown in the other articles of this Law.

Additional provision seventh. Foundations and Associations linked to political parties.

The donations received by the Foundations and Associations linked organically to political parties with representation in the General Courts will be subject to the control and control mechanisms and the sanctioning regime. provided for, respectively, in Titles V and VI of this Law, without prejudice to their own rules of application. Such donations shall also be subject to the limits and requirements laid down in Chapter II of Title II of this Law, with the following specialties:

(a) The limit referred to in Article 5 (2) shall be EUR 150 000 per natural or legal person and year.

(b) The provisions of Article 4 (2) (c) shall not apply to them.

(c) Donations made by legal persons in excess of EUR 120,000 shall also specify that the donor institution in the public document formalizes the donation in question.

Additional provision octave.

The Court of Auditors will, within 6 months of the adoption of this Law, draw up a specific plan of accounts for political formations, which will in any case respect the limits and provisions of this Law, according to the criteria which the Court has set out in the various reports on the Fiscalisation of Political Parties approved for each financial year. Such a plan must be approved by the Court prior to analysis and debate by the Joint Congressional-Senate Committee for Relations with the Court of Auditors.

Additional provision ninth.

The quantitative limit provided for in Article 5 (2) of this Law shall be updated each year in accordance with the increase in the consumer price index.

Additional provision tenth.

The provisions of Title III and the additional provisions first to fifth of this Law shall be without prejudice to the foral tax regimes of concert and economic agreement in force, respectively, in the Community Autonomous Basque Country and the Autonomous Community of Navarra.

Additional provision eleventh.

The provisions of Article 7 (2) of this Law will not apply to political parties that carry out political functions as legally established parties in other States other than Spanish. in the case of grants based on the development of those tasks.

First transient disposition.

The political parties shall, where appropriate, adapt their statutes and internal rules to the provisions of this Organic Law within one year.

Second transient disposition.

The political parties will be able to reach agreements on the debt conditions that they maintain with credit institutions. Such agreements shall be admitted according to the customs and customs of the normal commercial traffic between the parties and shall not apply to them the requirements and limitations set out in Titles I and II of this Law. The Court of Auditors and the Bank of Spain shall be taken into account of such agreements.

Transient Disposition third.

For the financial year 2008, the annual State subsidy for the operating expenses of the political parties and the annual allocation for the expenses of security are fixed, respectively, at 78,100,00 thousand euros and 4,010.00 thousand of euro.

Repeal provision.

The following provisions are repealed:

Organic Law 3/1987 of 2 July on Financing of Political Parties.

Other provisions that are contrary to this Law.

Final disposition.

This Law shall enter into force on the day following that of its publication in the "Official Gazette of the State". However, the rules on the taxation of corporate tax, contained in Section 1 of Title III, shall apply from the first financial year starting from the entry into force of the Act.

Therefore,

I command all Spaniards, individuals and authorities, to keep and keep this organic law.

Madrid, 4 July 2007.

JOHN CARLOS R.

The President of the Government,

JOSE LUIS RODRIGUEZ ZAPATERO