On Monday, in the coalition meeting, SDE will propose making an amendment to the Political Parties Act capping donations.

"This concern primarily arises from what we are seeing in global politics, and to some extent in Estonian politics as well, how big money can start influencing politics," Läänemets, who is also minister of the interior, told ERR.

One of Läänemets' concerns is around Elon Musk's activities in relation to the U.S. president. Musk has cut funding for democracy programs that have supported the independence of small states.

"In Estonia, we also have conservative parties whose financial resources come largely from a single wealthy individual. If we look at Isamaa, it is a clear example of a risk to Estonia. Over the past few years, businessman Parvel Pruunsild has donated €2 million to Isamaa," the chairman said.

In 2023, Pruunsild donated €700,000 to Isamaa and €400,000 the previous year. In 2023, he also donated €300,000 to the Conservative People's Party of Estonia (EKRE).

"Clearly, a single individual can gain significant influence over a political party and Estonian politics," Läänemets said.

"Our proposal is that we should follow the example of several other European countries, such as Finland, where individuals cannot donate more than a certain amount per year. We propose setting this limit at €100,000, meaning no one should be allowed to donate more than that," he said.

In Estonia, donations to political parties are disclosed and published once a quarter by the Political Party Funding Supervision Committee (ERJK.)

When asked why donation amounts should be limited if voters are already aware of party funding sources, Läänemets responded with a counterquestion: "If someone is buying laws and directing a party's policies, is that really the power of the people?"

He continued: "We are seeing more and more that elections are being bought, that money can influence people's opinions, behaviors, and outcomes. This means that in democratic elections, each individual's vote carries significantly less weight. In my view, the concern is that we could end up in a situation similar to Western Europe, where billionaires make decisions for us, and that is no longer representative democracy. I think what is happening in America is actually a warning bell and a very bad example. We should learn from it and take preventive measures now."

When asked if the amendment would undermine democracy by restricting another party's success, Läänemets said money should not determine the results of democratic elections.

"Democratic election results should depend on how well you do your job, the ideas you propose, and the quality of the people in your party — not on how much money your party has. The Social Democrats have always held this view. We have previously proposed setting spending caps for election campaigns and equalizing advertising opportunities and volumes for all parties. We will certainly discuss these issues today as well," the party chairman stated.

Läänemets also noted that amendments to the Political Parties Act are necessary. For example, the ERJK has stated that it cannot obtain information from third parties, and legislative changes are needed to create mechanisms for accessing this data.

According to the Social Democrats' chairman, the legal amendment should be passed before the next local elections.

Reinsalu: Läänemets is worried about SDE's prospects

Isamaa chairman Urmas Reinsalu said party donations are transparent and not transactional in nature. He thinks concern about SDE's future is driving the reform.

"Let's put the matter in a broader context. For me, the problem is that the Social Democrats have too much influence on Estonian politics. This is reality and I think it has an unhealthy effect on the quality of our politics," Reinsalu said.

Reinsalu said the coalition promised to submit proposals about increases transparency from the spring of 2023. "There has been no hesitation or hesitation about this at the moment. If they have specific proposals, we will certainly form our position on this," he said.

That people support Isamaa with both words and money shows the public's dissatisfaction with the current Reform-SDE-Eesti 200 coaltion, Reinsalu said.

"It is clear that in the logic of the government coalition, we do not have a big scissors when it comes to state budget funding, which concerns the fact that Isamaa is David fighting Goliath, considering the money the governing parties receive from the state budget," he said.

Reinsalu would not speculate on the new proposal: "If its purpose is also to concretely explain the disproportion from the state budget, which has arisen mechanically according to the election result, then this is certainly a problem for society."

Asked if there is a risk to democracy if one donor make a disproportionally large share of party donations, Reinsalu replied that transparency of funding is important. 

"It is important that any support must not be transactional in any way. As for Läänemets' concerns, I think Läänemets is currently worried about the prospects of its party and the prospects of continuing the policies of the ruling coalition," the chairman said. 

Läänemets apologizes to Pruunsild

On Tuesday, Läänemets posted an apology on social media to Pruunsild.

"Through both the media and representatives of the Levin law firm, I have received signals that my recent discussions on issues related to party financing may have unjustly offended Isamaa party's major donor, Parvel Pruunsild. Therefore, I would like to apologize that Parvel Pruunsild felt personally affected and offended when I unfairly used his role as a major donor to Isamaa as a central example in my discussion on party financing issues. I find it necessary to emphasize that this is not about any particular individual or party," the minister wrote.

He stressed discussions about party financing should not become stuck on one or another example in Estonian politics but should focus on the bigger picture.

This includes how and to what extent party donors can influence Estonian politics and whether this is fair in the long run for other Estonian citizens, residents, as well as private entrepreneurs or civic organizations that choose to stay out of politics.

Läänemets emphasized that Pruunsild has done nothing wrong by donating to political parties.

This article was updated to add comments from Urmas Reinsalu.

It was updated for a second time on February 12 to add additional comments from Lauri Läänemets.

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