Progressive FEPS foundation rejects the finding, saying it is allowed to provide advice to social-democratic policymakers.
The think tank of the Party of European Socialists, home to Spanish Prime Minister Pedro Sánchez and Denmark’s Mette Frederiksen, has been fined for funding the UK Labour Party indirectly.
The Foundation for European Progressive Studies (FEPS) violated rules on how political foundations can spend their EU cash, the EU’s party watchdog announced this week.
The fine of around €36,000 is the same amount FEPS channeled to the Fabian Society, a foundation linked to the U.K. Labour party.
The Socialist think tank funded a conference and book launch in London in January 2023, which was attended by Labour MPs and councilors. The event was designed to help Labour set their policy platform ahead of the U.K.’s July 2024 national election.
The EU’s party watchdog considered that a breach of rules prohibiting the funding of national political parties, either directly or indirectly.
“FEPS granted an advantage specifically to the UK Labour Party which benefited … from cost-free advice and support for its ‘pathway to power’ across a range of policy areas,” it said in a statement.
FEPS disagrees.
While the foundation respects the APPF’s decision, they dispute the judgment and deny indirectly funding the UK Labour Party, FEPS Head of Communications Ainara Bascuñana said.
“As a political foundation, FEPS cannot be expected to be non-political, and it is certainly within the remit of FEPS’ mission to provide advice, guidance and input for social-democratic policymakers and organisations,” Bacuñana said.
FEPS can challenge the decision before the Court of Justice of the EU.
“If needed, we will further review our activities and practice to eliminate the risk of non-compliance and avoid the wrong perception,” Bascuña added.
