04 April 2023
Frozen
After years of inaction, the European Commission and Council jointly acted to freeze EU funds totaling more than €28.7 billion for Hungary and more than €110 billion for Poland at the end of 2022, citing rule-of-law violations. Surprisingly, the decisions were taken not just (or even primarily) using the new Conditionality Regulation designed for that purpose. Instead, they used a variety of other legal tools to which rule-of-law conditionality was attached. It remains somewhat mysterious, however, precisely which funds and what proportion of those funds have been suspended, and how those suspensions have been legally justified. This post, a shorter version of a SIEPS paper that will be published soon, describes what we know about the complex set of funding suspensions intended to make EU Member States pay for their rule-of-law violations. Continue reading >>
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28 March 2023
The Council’s Conditionality Decision as a Violation of Academic Freedom?
On 15 December 2022, the Council’s suspended various EU budgetary commitments towards Hungary, the first application of the so-called Rule of Law Conditionality Regulation. The measure also froze access to Erasmus+ and Horizon Europe funds for 21 Hungarian universities that remain under the management of public interest trusts, thereby effectively denying access to these funds to a large pool of scholars and students. The decision raises important questions regarding the scope of protection afforded to final beneficiaries of EU funds. We suggest that a deeper engagement with the rights and interests of final beneficiaries in the context of the Conditionality Regulation necessitates a reconceptualisation of the EU’s understanding of and responsibility for academic freedom. Continue reading >>
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18 November 2022
Trusting Hungary with Billions of Euros
It’s crunch time for the Conditionality Regulation at the European Commission. In its College meeting on 22 November, the Commission is scheduled to discuss whether Hungary has actually made the 17 changes it proposed in order to avoid cuts to its Cohesion Funds. What the Commission chooses to do will depend on whether it believes that Hungary’s anti-corruption program will in fact allow Hungary to be entrusted with billions of Euros without having a sizeable fraction of those Euros pocketed by cronies. We believe that Hungary’s reforms are designed to be ineffective and will not even begin to halt the massive corruption that is the hallmark of Hungary’s kleptocracy. Continue reading >>
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07 November 2022
With or Without Hungary
By December 2022, the Council must vote on the Commission's proposal to withdraw EU budgetary funds from Hungary under the Rule of Law Conditionality Regulation. Without a legal basis for its exclusion, Hungary will cast its vote on that proposal. Obviously, the participation of a Member State in a vote that decides on the consequences of its own rule of law violations seems paradoxical. There should be a general Treaty rule that prevents a Member State from voting in the Council when their own alleged misconduct is at stake. Continue reading >>
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02 June 2022
Competition and Conditionality
On 5 April 2022, just two days after the Hungarian national elections, the European Commission formally announced that it would apply the conditionality mechanism enshrined in Regulation 2020/2092 in relation to Hungary. In the past the Commission has frequently addressed issues related to “systemic irregularities, deficiencies and weaknesses in public procurement procedures”. In Hungary, however, it has not probed the enforcement of competition (cartel) law in public tender procedures. The Commission should seize the opportunity to act in this area. Continue reading >>16 June 2021
A Hollow Threat
On 10 June, the European Parliament passed a resolution on the application of the Conditionality Regulation and threatens to take the EU Commission to Court. However, the very peculiar ‘action for failure to act’ set out in Article 265 TFEU is not an appropriate procedure to solve the problem at issue. The Parliament should employ the more political means at its disposal to tackle a problem that is ultimately political in nature. Continue reading >>
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11 June 2021
Bringing a Knife to a Gunfight
On 10 June 2021, the European Parliament adopted a Resolution on the Rule of Law situation in the European Union and the application of the Conditionality Regulation. In this Resolution, the European Parliament expresses its concerns about the regression of the democratic situation in several member States and regrets the inaction of other institutions, notably the Council and the Commission. Continue reading >>
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07 January 2021
New Year’s Predictions on Rule of Law Litigation
On December 16, the European Union legislature finally adopted Regulation 2020/2092 on the rule of law conditionality of EU funds. Although the Regulation is supposed to apply from 1 January 2021, Hungary and Poland have reportedly announced their intention to challenge it before the CJEU. Here are three predictions on how this litigation is going to go in the year ahead. Continue reading >>
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