Recently, I've been looking at the system of state funding of Italian political parties. I'm interested in the subject because of the incentives it may create to form new parliamentary groups (since they qualify for funding), and the way funding systems interact with the new electoral system.
The history of state funding is pretty shabby. In 1993, an abrogative referendum repealed parts of the law on party funding, banning direct subventions, but allowing compensation for electoral expenses. These electoral expenses gradually grew; new laws were passed in 1999 and 2002, lowering the qualification threshold from 4% of vote-share to 1% of vote share (or electing at least one candidate), with funds divided according to the parties' vote-shares.