ECJ rules in favour of making EU cash handouts conditional on a country’s respect for rule of law

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  1. The European Court of Justice (CJEU) has ruled in favour of making EU cash handouts conditional on a country’s respect for rule of law.

    >The so-called rule of law mechanism will see money withheld if an EU country does not respect the bloc’s core values.

    >That includes areas like rule of law, democracy, press freedom and an independent judiciary.

    >It comes amid long-running disputes Brussels is having with Poland and Hungary, who have been accused of failing to adhere to core EU values.

    > **How did this case come about?**

    >Budapest and Warsaw initiated the case after the European Commission introduced this rule of law mechanism.

    >In December, the court’s advocate general gave an opinion and rejected the arguments of Hungary and Poland, saying the policy was compatible with EU treaties.

    >The CJEU on Wednesday followed this opinion.

    >**What does the rule of law mechanism envisage?**

    >The regulation allows EU funds to be withheld from a country where there are violations of the rule of law that “prejudice or threaten to prejudice” the EU’s financial interests “in a sufficiently direct manner”.

    >A suspension or reduction of payments must be proposed by the European Commission and endorsed by at least 15 out of 27 Member States.

    >The mechanism applies to funds paid out under the EU budget — substantial amounts for Poland and Hungary which are among the largest net recipients of EU funds — as well as to post-COVID recovery plans.

    >A judicial approval of this new instrument will increase the pressure on the European Commission, which is responsible for activating it.

    >The EU executive had agreed with the 27 Member States to wait for the Court’s opinion before acting, even though the regulation has been in force since 1 January 2021.

    >But the European Parliament has been impatient for months and even sued the Commission for its refusal to activate it.

    >The court’s decision is due to be debated in a plenary session in Strasbourg on Wednesday afternoon.

    I’m waiting vor Orbabs and PiS‘s inevitable meltdown

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