THE Spanish government is to ban party donations from companies and increase transparency regarding party funding, in light of widespread political corruption.

The new bill, which must first be approved by Parliament, directs parties to publish any donations and bank loans on their website.

The bill comes as Spain’s National Court investigates the slush fund handled by the Popular Party’s former treasurer Luis Barcenas, the biggest party funding scandal in European history.

Companies could previously make donations of up to €100,000 to parties.

Under the new law, any donations above €50,000 from individuals must be published on the party’s website.

For as long as Barcenas managed PP finances, ministers would receive an envelope each month containing between €5,000 and €10,000, funded by party donations from corrupt businessman in return for large contracts.

Last summer Prime Minister Mariano Rajoy, who was himself implicated in the scandal, declared the need for more transparency regarding party funding.