Investigator Proposes No Restrictions on LO Funding to Social Democrats

The inquiry concerning the financing of political parties has been under review for nearly two years. The so-called Transparency Committee, established to enhance the transparency of party financing, was expected to present its findings back in February.

However, the leading investigator, a prominent legal expert, received instructions to conduct further examinations. The inquiry initially concluded that imposing limits on contributions from individual members of labor organizations to political parties could infringe upon constitutionally protected freedoms of association.

Despite these findings, the government urged the committee to produce a legislative proposal, which would predominantly impact the Swedish Trade Union Confederation (LO), known for contributing substantial funds to the Social Democratic Party.

On Thursday, the committee is slated to submit its findings. Reports indicate that the committee will suggest the introduction of a lobby register. Nevertheless, the investigator has maintained a stance against implementing stricter regulations regarding union donations, standing firm on his previous conclusions, according to several informed sources.

This proposal has created divisions among committee members, who represent all parties in the parliament. Due to the chairman's support for the opposition's viewpoint, there appears to be no majority within the committee.

This is not the first instance where a government-appointed investigator has diverged from the intentions of the ruling coalition. In several cases, the government has proceeded with actions against the investigator's advice, such as significantly increasing repatriation grants last autumn, despite the investigator's recommendations against it. Earlier this year, the government advanced a controversial proposal concerning financing for new nuclear power initiatives.

According to reports, the Sweden Democrats, Christian Democrats, Liberals, and Moderates intend to propose a reservation to pursue a model similar to that of Denmark, which would allow members to opt-out of having their fees allocated to political donations without requiring prior consent.

A source with insight into the investigation remarked on the absurdity of forcing union members to support a specific party through their fees.

Annika Hirvonen, a member of the committee from the Green Party, criticized the proposal, asserting that it would undermine fundamental principles of association. She emphasized that all organizations should democratically decide on the allocation of their funds, and members should not dictate how their fees are spent.

Hirvonen noted that the government's intent appears to be aimed at restricting funding to the Social Democrats, which raises significant concerns about democratic integrity.

The LO's contributions to the Social Democrats are substantial, with membership fees amounting to six million Swedish kronor annually, equating to over four kronor per member. Additionally, the LO typically invests significant sums in election campaigns, contributing 30 million kronor to the Social Democrats' campaign in 2022 along with 20 million kronor for educational initiatives.