Banks to be barred from writing off political parties’ debt

Lenders will no longer be able to write off the debt of political parties while businesses and foundations will be barred from donating money to them, according to a raft of anti-corruption measures approved by the Cabinet on Friday.

The changes, which affect around 15 existing laws, address three major issues: party funding, rules for elected officials, and criminal prosecution of corruption.

"The laws for party control are a new step towards the transparency of foundations because now there are very clear criteria to know when a foundation has ties to a party. Their accounts will undergo greater scrutiny,” said Deputy Prime Minister Soraya Sáenz de Santamaría during the press conference following the cabinet meeting.

These and other measures were announced by Prime Minister Mariano Rajoy of the center-right Popular Party (PP) last February, during the state of the nation debate.

The ruling party has sought to portray itself as tough on corruption after many of its officials were caught up in Gürtel, a major bribes-for-contracts scheme. A related investigation into former party treasurer Luis Bárcenas revealed secret ledgers suggesting illegal party funding, including donations by business people that went over the legal limit, and cash-filled envelopes for party leaders, including Rajoy himself.