Members' Research Service By / November 27, 2018

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

On 3 May 2018 the Commission put forward a proposal for a regulation on the protection of the Union’s budget in the event of generalised deficiencies as regards the rule of law in a Member State.

© Tanja Esser / Fotolia
Written by Rafał Mańko (2nd edition, updated on 25.06.2020),
Gericht - es geht um viel Geld
© Tanja Esser / Fotolia
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.


Proposal for a regulation of the European Parliament and of the Council on the protection of the Union’s budget in case of generalised deficiencies as regards the rule of law in the Member States
Committees responsible:

Budgets (BUDG) and Budgetary Control (CONT) (jointly under Rule 55)

COM(2018) 324 2.5.2018

Petri Sarvamaa (EPP, Finland) and Eider Gardiazabal Rubial (S&D, Spain)

Shadow rapporteurs:     Lefteris Cristoforou (EPP), Claudiu Manda (S&D), Katalin Cseh (RE), Joachim Kuhs (ID), Alexandra Geese (Verts/ALE), Ryszard Czarnecki (ECR), Younous Omarjee (GUE/NGL) Ordinary legislative procedure (COD) (Parliament and Council on equal footing – formerly ‘co-decision’)
Next steps expected: Trilogue negotiations

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