Suspending EU funds to member states that breach the rule of law: a new accountability mechanism?

Authors:

• Justyna Łacny

Abstract

In the European debate over the alleged breaches of the rule of law by, inter alia, Hungary, Poland and other member states, it is increasingly pointed out that the EU does not have effective legal instruments to stop such violations. Those who believe in the driving force of such enforcement measures argue that maybe changes could bring about the threat of suspending EU funds transferred to these member states from the EU budget, and the anticipated negative political consequences their illiberal governments could experience as a result at the national and EU level. In response, the Commission presented, on 2 May 2018, a draft regulation authorising the Council to suspend EU funds if a member state is found to be in non-compliance with the rule of law (known as ‘the conditionality mechanism’) (COM(2018)324 final). This chapter comments on this draft regulation and the proposed model for this mechanism, which is supposed to apply after January 2021.