Public funding of political parties in Italy has developed along quite clear-cut lines: increasingly generous reimbursements; non-selective criteria for the allocation of funds; and an increase in the number of beneficiaries. The current reimbursement system costs the State more than 250 million euros a year. The payment of such reimbursements in annual instalments means that in many cases they continue to receive funds even though they are no longer politically active. However, the most problematic issue concerns party fragmentation. Reimbursements are paid out at different levels of electoral competition (European, general and regional), effectively providing parties with different channels of funding. This is a big opportunity, above all for small parties that often find it difficult to reach the thresholds for representation and funding in some spheres of the electoral competition. This is even more evident if one considers that public funding is the main source of revenue for the Italian political parties.
