Proposal for a Regulation on the protection of the Union’s budget in case of generalised deficiencies as regards the rule of law in the Member States

Author (Corporate)
Series Details COM (2018) 324
Publication Date 02/05/2018
Content Type

Summary:

Legislative proposal published by the European Commission in May 2018 setting up protective measures of the European Union's own budget in case of generalised deficiencies as regards the rule of law in the Member States.

Further information:

This proposal establishes the rules necessary for the protection of the Union’s budget in case of generalised deficiencies as regards the rule of law in the Member States. It could be integrated into the Financial Regulation, which is based on the same legal basis, at the occasion of its future revision.

The procedure would be launched with an investigation by the European Commission and, once it considers that the generalised deficiency as regards the rule of law is established, it submits a proposal for an implenting act on the appropriate measures to the Council of the European Union. The implementing act is adopted, unless the Council decides, by qualified majority, to reject the Commission proposal within one month of its adoption by the Commission. The Council, acting by a qualified majority, may also amend the Commission’s proposal and adopt the amended text as a Council decision.

This proposal was adopted by the Commission and later discussed by co-legislators in the context of the discussions for the Multiannual Financial Framework (MFF) 2021-2027. The European Parliament's plenary session discussed its position in January 2019 and referred it back to the relevant committees for further discussion. A negotiating position was eventually adopted by the plenary session on 4 April. In July 2019, the Commission published a Communication on strengthening the rule of law within the Union, which calls on this proposal to be adopted as soon as possible. The European Council provided in July 2020 political guidance on this matter. The Council of the European Union later held discussions based on such guidance. An informal agreement between the co-legislators on a compromise text was reached on 5 November.

Source Link https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2018:324:FIN
Related Link(s)
Commentary and Analysis
Human Rights Watch: News, 03/05/2018: EU Looks to Rein in Funding to Abusive EU Governments https://www.hrw.org/news/2018/05/03/eu-looks-rein-funding-abusive-eu-governments
LSE: EUROPP Blog, 02/10/2018: A step too far? The Commission’s proposal to tie EU budget payments to compliance with the rule of law http://blogs.lse.ac.uk/europpblog/2018/10/02/a-step-too-far-the-commissions-proposal-to-tie-eu-budget-payments-to-compliance-with-the-rule-of-law/
Intereconomics: Vol 53, No 6 (Nov-Dec 2018): Going for the Wallet? Rule-of-Law Conditionality in the Next EU Multiannual Financial Framework https://archive.intereconomics.eu/year/2018/6/going-for-the-wallet-rule-of-law-conditionality-in-the-next-eu-multiannual-financial-framework/
EUObserver, 02/05/2019: Rule of law: it's time the EU Council said 'yes' https://euobserver.com/opinion/144766
EUCRIM: The European Criminal Law Associations' Forum (02/2019): Compliance with the Rule of Law in the EU and the Protection of the Union’s Budget https://eucrim.eu/articles/compliance-with-the-rule-of-law-in-the-eu-and-the-protection-of-the-unions-budget/
EPRS: Briefing, June 2020: Protecting the EU budget against generalised rule of law deficiencies http://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_BRI(2018)630299
Euro|topics, November 2020: Deal on the EU rule of law mechanism https://www.eurotopics.net/en/250829/
Balkan Insight: Review, 06/11/2020: Democracy Digest: Rule of law showdown approaches https://balkaninsight.com/2020/11/06/democracy-digest-rule-of-law-showdown-approaches/
Euro|topics, November 2020: Deal on the EU rule of law mechanism https://www.eurotopics.net/en/250829/

News
EurActiv, 23/01/2018: EU mulls new link between budget and rule of law https://www.euractiv.com/section/future-eu/news/eu-mulls-new-link-between-budget-and-rule-of-law/
Politico, 01/05/2018: Brussels unveils battle plan to hit ‘illiberal democracies’ https://www.politico.eu/article/mff-commission-eu-budget-proposal-brussels-looks-to-link-eu-payouts-to-justice-standards/
Reuters, 02/05/2018: EU commission says it will cut funds for member states that undermine rule of law https://uk.reuters.com/article/idUKKBN1I32GN
RFE/RL, 02/05/2018: Long-Term EU Budget Plan Would Punish 'Rule Of Law Deficiencies' https://www.rferl.org/a/eu-long-term-budget-plan-would-punish-rule-of-law-deficiencies/29204662.html
EurActiv, 03/05/2018: Bulgaria dislikes Commission plan to link EU funding to rule of law https://www.euractiv.com/section/future-eu/news/bulgaria-dislikes-commission-plan-to-link-eu-funding-to-rule-of-law/
Politico, 07/05/2018: Jourová: Law-abiding countries have nothing to fear from funding-cut plan https://www.politico.eu/article/eu-funds-budget-poland-hungary-rule-of-law-budget-jourova-law-abiding-countries-have-nothing-to-fear/
EUCRIM: News, 29/06/2018: Commission Proposes Loss of EU Money if Rule of Law is Not Respected https://eucrim.eu/news/commission-proposes-loss-eu-money-if-rule-law-not-respected/
The Guardian, 17/01/2019: MEPs back plans to cut funds for EU states who weaken rule of law https://www.theguardian.com/world/2019/jan/17/meps-back-rule-of-law-plans-freeze-funds-to-corrupt-eu-states
Politico, 17/01/2019: European Parliament backs plan to link EU funds to rule of law https://www.politico.eu/article/budget-hungary-poland-rule-of-law-european-parliament-backs-plan-to-link-eu-funds/
Hungary Today, 17/01/2019: Member States Jeopardizing the Rule of Law Risk Losing EU Funds https://hungarytoday.hu/ep-voted-member-states-jeopardizing-the-rule-of-law-risk-losing-eu-funds/
Radio Poland, 17/01/2019: MEPs back plan to link EU funds to rule of law http://thenews.pl/1/10/Artykul/402035
France24, 17/01/2019: EU states breaching rule of law could lose funds: Parliament https://www.france24.com/en/20190117-eu-states-breaching-rule-law-could-lose-funds-parliament
Euronews, 18/01/2019: MEPs vote to impose financial sanctions on countries that flout rule of law https://www.euronews.com/2019/01/18/meps-vote-to-sanction-countries-that-flout-rule-of-law
EurActiv, 18/01/2019: Parliament seeks financial punishment for countries breaching rule of law https://www.euractiv.com/section/eu-elections-2019/news/parliament-seeks-financial-punishment-for-countries-breaching-rule-of-law/
EurActiv, 30/09/2019: Finnish PM says EU ready to tie funding to rule-of-law criteria https://www.euractiv.com/section/economy-jobs/news/finnish-pm-says-eu-ready-to-tie-funding-to-rule-of-law-criteria/
EurActiv, 05/11/2020: EU institutions strike budget deal on rule of law mechanism https://www.euractiv.com/section/all/news/eu-institutions-strike-deal-on-rule-of-law-mechanism/
Deutsche Welle, 05/11/2020: EU agrees to link rule of law to budget fund access https://p.dw.com/p/3kvHj
The Guardian, 05/11/2020: Deal struck to enable EU to block budget payments to rogue members https://www.theguardian.com/world/2020/nov/05/deal-struck-enable-eu-block-budget-payments-rogue-members
Politico, 05/11/2020: ‘Historic’ EU rule of law deal faces challenges https://www.politico.eu/article/historic-rule-of-law-deal-faces-challenges/
EUObserver, 06/11/2020: Deal reached on linking EU funds to rule of law https://euobserver.com/institutional/149967
Associated Press, 06/11/2020: EU negotiators clinch deal tying rule of law to fund access https://apnews.com/article/europe-841aa4ae120ab7629925d217a18ea98a

Official
European Parliament: Legislative Observatory: Procedure File for Proposal on Protection of the Union's budget in case of generalised deficiencies as regards the rule of law in the Member States https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?reference=2018/0136(COD)
European Parliament: Legislative Train Schedule: Proposal for a Regulation on the protection of the Union's budget in case of generalised deficiencies as regards the rule of law in the Member States http://www.europarl.europa.eu/legislative-train/theme-new-boost-for-jobs-growth-and-investment/file-mff-protection-of-eu-budget-in-case-of-rule-of-law-deficiencies
European Parliament: Press Release, 17/01/2019: Member states jeopardising the rule of law will risk losing EU funds http://www.europarl.europa.eu/news/en/press-room/20190109IPR23011/
European Parliament: Press Release, 05/11/2020: Rule of law conditionality: MEPs strike a deal with Council https://www.europarl.europa.eu/news/en/press-room/20201104IPR90813/
Council of the European Union: Press Release, 05/11/2020: Budget conditionality: Council presidency and Parliament's negotiators reach provisional agreement https://www.consilium.europa.eu/en/press/press-releases/2020/11/05/budget-conditionality-council-presidency-and-parliament-s-negotiators-reach-provisional-agreement/

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