Changes from plenary report to adopted text

RemovedEXPLANATORY STATEMENT

RemovedBackground

RemovedIn December 2020, as part of the legislative package on the EU’s Multiannual Financial Framework (MFF) 2021-2027, the Parliament and the Council adopted a Regulation on a general regime of conditionality for the protection of the EU budget against breaches of the principles of the rule of law (the ‘Conditionality Regulation’). The rule of law conditionality mechanism forms part of the EU’s ‘rule of law toolbox’, which should ensure adherence of all Member States to the rule of law, which is one of the fundamental values enshrined in Article 2 TEU. The Conditionality Regulation is to protect the EU’s budget and financial interests in the case of breaches of the rule of law, which affect the financial management of the EU budget or the protection of the EU’s financial interests. Under the Regulation, the Commission is obliged to monitor the situation in all Member States. So far, the mechanism has only been triggered once, in December 2022 against Hungary. Following two reassessments of the situation by the Commission, the measures are still in place, and Hungary has already lost EUR 1 billion, which have been irreversibly decommitted.

RemovedAim and timing of the report

RemovedSince the conditionality mechanism has been in place for almost five years, it is an opportune moment for Parliament to assess its application and to draw lessons for the future, in particular in view of the forthcoming discussions on the post-2027 MFF. In this context, the co-rapporteurs wish to put particular emphasis on the transparency of the process, areas of applicability, revision of the guidelines, deterrent effect, and the scrutiny role of the Parliament.