ITALY- Henceforth, Italian political parties will no longer be funded by the state, as their accounts will now be externally audited.

According to the Prime Minister Enrico Letta under the plans announced yesterday, the new system would avoid the scandals of recent years.

Taxpayers will now be able to choose whether to fund a party.

However, a leader of the anti-establishment Five Star Movement, Beppe Grillo, has called on Mr Letta's party to return the state funds it has received.

Responding to Mr Letta statement that the decree issued on Friday would fulfill an election pledge of his to abolish state funding for parties by the end of the year, Mr Grillo called the move a "joke", writing on his blog: "In order to give up public money, it is sufficient to simply not take it, as the Five Star Movement has done."

Under the new system, Italians will now have the option of earmarking 0.2% of their annual income tax to the party of their choice.

If they choose not to fund a party, the money will go to the state.