Money Talks: The potential of an EU financial conditionality mechanism linked to the rule of law
(2022) JURM02 20221Department of Law
Faculty of Law
- Abstract
- Over the last decade, the status of the rule of law as a foundational value of the EU legal order has been questioned by the political developments in certain EU member states. Particularly Poland and Hungary have seen a rapid dismantling of central state institutions, in a process which has become known as rule of law backsliding. In 2021, the EU legislator introduced a new mechanism to counter the troubling trend: a financial conditionality mechanism linked to the rule of law. This mechanism empowers the EU institutions to withhold EU funds from member states that do not respect fundamental principles of the rule of law.
The purpose of this thesis is to investigate what effects a rule of law-based financial conditionality mechanism... (More) - Over the last decade, the status of the rule of law as a foundational value of the EU legal order has been questioned by the political developments in certain EU member states. Particularly Poland and Hungary have seen a rapid dismantling of central state institutions, in a process which has become known as rule of law backsliding. In 2021, the EU legislator introduced a new mechanism to counter the troubling trend: a financial conditionality mechanism linked to the rule of law. This mechanism empowers the EU institutions to withhold EU funds from member states that do not respect fundamental principles of the rule of law.
The purpose of this thesis is to investigate what effects a rule of law-based financial conditionality mechanism may have upon the EU legal framework for the protection of the rule of law. Firstly, I depict different theoretical and comparative approaches to the rule of law, to explain the EU’s conception of the notion. Secondly, I assess the EU legal framework for protection of the rule of law and developing CJEU case law on the rule of law. Thirdly, I analyse the new rule of law-based conditionality mechanism and the CJEU’s verdicts in Case 156/21 and Case C-157/21, regarding the mechanism’s compatibility with central provisions of the treaties.
In my analysis, I find that the financial conditionality mechanism has a two-fold purpose – to protect the EU budget against breaches of the rule of law and to uphold respect for the rule of law per se – and that there is a direct link between the rule of law and corruption. Moreover, I argue that the financial conditionality mechanism will be applied when a member state’s illiberal actions threaten the solidarity within the Union. However, to ensure efficient EU level protection of the rule of law, I believe that the mechanism ought to be combined with other measures. (Less) - Abstract (Swedish)
- Under det senaste decenniet har rättsstatens ställning som ett värde av grundläggande vikt för EU-rätten ifrågasatts genom den politiska utvecklingen i vissa medlemsstater. Särskilt i Polen och Ungern går det att se hur centraladelar av statsmakten har nedmonterats. År 2021 införde EU en villkorlighetsmekanism, som ger EU:s institutioner befogenhet att hålla inne budgetåtaganden till medlemsländer som inte respekterar rättsstatens principer.
Syftet med detta examensarbete är att undersöka vilka effekter en sådan finansiell villkorlighetsmekanism kan ha för det EU-rättsliga regelverket till skydd för rättsstatens principer. Först går jag igenom olika rättsfilosofiska och komparativa uppfattningar av rättsstatens principer, för att skapa... (More) - Under det senaste decenniet har rättsstatens ställning som ett värde av grundläggande vikt för EU-rätten ifrågasatts genom den politiska utvecklingen i vissa medlemsstater. Särskilt i Polen och Ungern går det att se hur centraladelar av statsmakten har nedmonterats. År 2021 införde EU en villkorlighetsmekanism, som ger EU:s institutioner befogenhet att hålla inne budgetåtaganden till medlemsländer som inte respekterar rättsstatens principer.
Syftet med detta examensarbete är att undersöka vilka effekter en sådan finansiell villkorlighetsmekanism kan ha för det EU-rättsliga regelverket till skydd för rättsstatens principer. Först går jag igenom olika rättsfilosofiska och komparativa uppfattningar av rättsstatens principer, för att skapa mig en bild av EU:s definition av begreppet. Därefter granskar jag skyddet för rättsstatens principer på EU-nivå, inklusive rättspraxis från EU-domstolen på detta tema. Slutligen analyserar jag den nya villkorlighetsmekanismen samt två avgöranden från EU-domstolen, mål C-156/21 och mål C-157/21, som handlar om mekanismens förenlighet med centrala bestämmelser i fördragen.
I min analys konstaterar jag att villkorlighetsmekanismen har dubbla syften – att skydda EU:s budget mot överträdelser av rättsstatens principer samt att skydda rättsstaten i sig – och att det föreligger ett direkt samband mellan rättsstatens principer och korruption. Därtill argumenterar jag för att villkorlighetsmekanismen kommer att tillämpas först när en medlemsstats rättsstridiga agerande hotar solidariteten inom Unionen. För att garantera ett fullvärdigt skydd av rättsstatens principer på EU-nivå anser jag emellertid att mekanismen bör kombineras med andra åtgärder. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9080061
- author
- Bungerfeldt, Katarina LU
- supervisor
- organization
- course
- JURM02 20221
- year
- 2022
- type
- H3 - Professional qualifications (4 Years - )
- subject
- keywords
- EU law, constitutional law, rule of law, rule of law backsliding, conditionality, solidarity, corruption, article 7 TEU.
- language
- English
- id
- 9080061
- date added to LUP
- 2022-06-09 12:31:04
- date last changed
- 2022-06-22 11:33:03
@misc{9080061,
abstract = {{Over the last decade, the status of the rule of law as a foundational value of the EU legal order has been questioned by the political developments in certain EU member states. Particularly Poland and Hungary have seen a rapid dismantling of central state institutions, in a process which has become known as rule of law backsliding. In 2021, the EU legislator introduced a new mechanism to counter the troubling trend: a financial conditionality mechanism linked to the rule of law. This mechanism empowers the EU institutions to withhold EU funds from member states that do not respect fundamental principles of the rule of law.
The purpose of this thesis is to investigate what effects a rule of law-based financial conditionality mechanism may have upon the EU legal framework for the protection of the rule of law. Firstly, I depict different theoretical and comparative approaches to the rule of law, to explain the EU’s conception of the notion. Secondly, I assess the EU legal framework for protection of the rule of law and developing CJEU case law on the rule of law. Thirdly, I analyse the new rule of law-based conditionality mechanism and the CJEU’s verdicts in Case 156/21 and Case C-157/21, regarding the mechanism’s compatibility with central provisions of the treaties.
In my analysis, I find that the financial conditionality mechanism has a two-fold purpose – to protect the EU budget against breaches of the rule of law and to uphold respect for the rule of law per se – and that there is a direct link between the rule of law and corruption. Moreover, I argue that the financial conditionality mechanism will be applied when a member state’s illiberal actions threaten the solidarity within the Union. However, to ensure efficient EU level protection of the rule of law, I believe that the mechanism ought to be combined with other measures.}},
author = {{Bungerfeldt, Katarina}},
language = {{eng}},
note = {{Student Paper}},
title = {{Money Talks: The potential of an EU financial conditionality mechanism linked to the rule of law}},
year = {{2022}},
}