Protecting the EU budget against generalised rule of law deficiencies [EU Legislation in Progress]

Written by Rafał Mańko (2nd edition, updated on 25.06.2020),

When preparing the 2021-2027 multiannual financial framework, the European Commission proposed to strengthen the link between EU funding and respect for the rule of law. To this end, on 3 May 2018, the Commission presented a proposal for a regulation that would introduce a general rule of law conditionality into the EU’s financial rules. Any Member State where a generalised rule of law deficiency is found could be subject to the suspension of payments and commitments, reduced funding and a prohibition on concluding new commitments. On 13 November 2019, the decision of the European Parliament’s Budget and Budgetary Control Committees to enter interinstitutional negotiations on the proposal was announced in plenary. Negotiations will be based on Parliament’s first-reading position adopted in plenary in April 2019. Parliament’s main amendments are concerned with the definition of generalised deficiencies, procedural issues (the panel of independent experts and the need to put Parliament on an equal footing with Council), and with the protection of end beneficiaries of EU funding. The rule of law conditionality has become an important element of the negotiations on the legislative package for the 2021-2027 MFF and the Recovery Instrument for the aftermath of the coronavirus pandemic.

Versions

• June 2020: ‘Protecting the EU budget against generalised rule of law deficiencies‘ (1st edition)