On the triggering of the EU’s conditionality mechanism: what has been done and what could follow

Gonçalo Martins de Matos (Master in Judiciary Law by the University of Minho)
 

            When the Court of Justice of the European Union (CJEU) delivered, at the beginning of the last year, the two landmark judgements Hungary v. Parliament and Council (Case C-156/21) and Poland v. Parliament and Council (Case C-157/21), the conditionality mechanism created by Regulation (EU, Euratom) 2020/2092 for the protection of the Union’s budget[1] definitely gained the green light for its implementation, in the sequence of which the Commission adopted the guidelines of application of said mechanism. On 27 April of the same year, the European Commission formally announced it would be triggering the conditionality mechanism against Hungary. After an intense period of negotiations between Brussels and Budapest, the European Commission adopted, on 18 September, a proposal on measures for the protection of the Union budget against breaches of the principles of the rule of law in Hungary[2] (COM(2022) 485 final), following which the Council of the EU adopted, on 18 September, an implementing decision on the measures proposed by the Commission.

            Before we proceed with the analysis of the proposed measures and their impacts on the protection of the rule of law, we must briefly provide the necessary legal framework. As we have discussed before, the intention behind the adoption of Regulation (EU, Euratom) 2020/2092 is “the protection of the Union budget in the case of breaches of the principles of the rule of law in the Member States”, as is set out in Article 1 of the same Regulation. Article 3 of this Regulation establishes situations that may indicate a breach of the principles of the rule of law, and Article 4 stipulates the conditions for the adoption of the necessary measures to protect the same principles. Article 5 lays down the measures that can be adopted in case the Commission finds that the principles of the rule of law have been breached under the described terms, following the procedure set out in Article 6 of the Regulation. We further add that Article 5(3) enshrines a principle of proportionality when adopting those protective measures. Article 6(1) determines that the Commission may resort to the conditionality mechanism unless it considers that other procedures set out in Union legislation would allow it to protect the Union budget more effectively. Seeing that the European Commission has already resorted to Article 7 TEU and to several infringement procedures regarding the Hungarian government’s various breaches, the conditions were met to activate the conditionality regime.

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A new strategy for EU law enforcement

By Pedro Pereira (Master’s student in European Union Law at the School of Law of the University of Minho)

The European Commission is regarded as the “Guardian of the Treaties” in the Treaty on the European Union (TEU), and according to its most recent Communication last October 13, it plans to ensure its own role with both a helping hand and watchful eye, all while honouring democratic transparency and (especially) EU law.

The Communication “Enforcing EU law for a Europe that delivers”[1] draws on the fact that the EU is an established community of both law and values. It reminds us that the EU’s best asset is its ability to create a homogenous background for its citizens and businesses alike. EU law lays the foundation and groundwork for a well-functioning internal market, for a more digital and greener Europe, ensures and promotes European values, provides for effective judicial cooperation, security and ultimately succeeds in showing the world the bastion of justice, democracy, and respect for fundamental rights. And bearing the responsibility as the Guardian of the Treaties and EU law, in its own words: “The Commission is committed to stepping up its work to promote and uphold people’s rights, fundamental freedoms and the rule of law.”

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Note from MEP José Manuel Fernandes regarding European Parliament resolution of 10 March 2022 on the rule of law and the consequences of the ECJ ruling

José Manuel Fernandes (Member of the European Parliament)

The principle of the rule of law is not just one among other basic principles of our democracy. It is more than that: it is a sine qua non condition for the recognition of all other fundamental rights. There is no effective freedom of speech, of association, of conscience, among others, in a community that is not governed by law. Where there is no “rule of law”, there is arbitrariness and lack of security. In such conditions, there is no freedom.

When the “rule of law” is abandoned, explicitly or implicitly, we embark on a path that leads from civility to barbarism, from equality before the law, to the rule of the strongest; from the liberal democratic system built and perfected over the last decades, to alternative, authoritarian regimes that restrict freedoms. Whoever foregoes the “rule of law” necessarily foregoes the fundamental principles on which the Portuguese constitutional order and the European Union Treaties are founded (see art. 2 TEU). Therefore, respect for the rule of law is not an option but an obligation in order to be eligible to be a member of the European Union.

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Review of Portuguese Association of European Law’s webinar on the rule of law protection in the European Union

by Alessandra Silveira and Joana Covelo de Abreu (Editors)

On 28 May 2021 a webinar was held at the School of Law of the University of Minho under the theme “Rule of law protection in the European Union”, organized by the initiative of the Portuguese Association of European Law (APDE). The event had the moderation of Carlos Botelho Moniz (APDE’s President) and the interventions of Alessandra Silveira (Editor), Joana Covelo de Abreu (Editor) and José Manuel Fernandes (Member of the European Parliament, EPP’s Coordinator of the Committee on Budgets and Recovery and Resilience Facility Mechanism’s negotiator). In order to keep a record for future memory, some ideas presented by the participants will be reproduced in this review.

Speakers reflected on how the European Union has been playing a relevant role on the rule of law protection and has been proclaiming itself as a “Union of law”. They started by analysing the concept of rule of law and its implications from the Treaties, the CFREU and the Court of Justice jurisprudence – mainly from Les Verts[1] and Associação Sindical dos Juízes Portugueses[2] judgments (the later also known as “Portuguese Judges”)[3]. They also focused legal procedures that act against violations of the rule of law enshrined on Article 7 TEU, and the infringement procedure steaming from Article 258 TFEU, envisaging the possibility of Member States to explore the procedural way opened by Article 259 TFEU, namely because the political tension escalade within the European Union. But the preliminary ruling procedure of Article 267 TFEU was also mentioned as continuing to play an important role to national judicial authorities when they are facing the need to comply with EU law. Lastly, speakers also devoted their attention on the Rule of Law Conditionality (Regulation 2020/2092 of the European Parliament and of the Council of 16 December 2020 on a general regime of conditionality for the protection of the Union budget) and on the debate around its approval and implementation.

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