#11780. The Rule of Law Conditionality Under Regulation No 2092/20XX—Is it all About the Money?

July 2026publication date
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Journal’s subject area:
Law;
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Abstract:
The European Union is built by moving from crisis to crisis. Crises in the last decade which affected the Union and its citizens concerned, inter alia, public finance (the financial crisis, 20XX), migration (20XX), public health (the COVID-19 pandemic, 20XX) and the rule of law crisis (20XX). It has been noted that some Member States have been happy to receive the benefits of EU membership, specifically the financial ones, while their commitment to European values, including the rule of law (Article 2 TEU), has been lacking. Since many instruments applied by EU institutions to improve this situation have proved rather insufficient, halting transfers of EU funds to these recalcitrant Member States has been touted as the way that might solve this crisis. This draft aimed to make the transfer of EU funds to the Member States conditional upon their continuous respect for the rule of law (and therefore became known as ‘the rule of law conditionality’). In the conclusions of the European Council meeting in December 20XX it was however accepted that it will be applied only in relation to budgetary commitments starting under the new Multiannual Financial Framework (MFF) 20XX–2027, including Next Generation EU. This paper provides the legal characteristics of rule of law conditionality established under Regulation 20XX/2092 and aims to determine whether financial incentives can restore compliance with the rule of law in Member States.
Keywords:
Conditionality; European values; Financial interests of the Union; Rule of law; Suspension of EU funds; Union budget; Union funds

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