Analysis
Politics
European Commission Report Highlights Ukraine’s Gains in Governance, Reform and Resilience
7 November 2024
The Court emphasised the rule of law as a value common to all member states.
On 16 the Court of Justice of the European Union delivered its judgment in case C-156/21 concerning the legality of the Conditionality Regulation, which had been challenged by Poland and Hungary. The court dismissed the challenges, finding the Regulation valid.
What Is the Conditionality Regulation and Why Is It Important?
The Conditionality Regulation is a mechanism to deny funds from the EU budget to a member state that does not respect the rule of law. In cases where breaches of the rule of law in a member state threaten EU financial interests, the EU Commission may ask the Council to adopt suitable measures, for instance freezing payments to the state concerned. It is thus called a ‘conditionality mechanism,’ as it makes EU funding conditional on respecting the rule of law.
The Regulation was adopted in late 2020, as a response to the deteriorating situation in some member states, chiefly in Poland and Hungary.
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