The EP has adopted the rule of law and will enter into force in January



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the essence of the decision

The European Parliament on Wednesday approved a regulation to protect EU funds from abuses by governments that distort the rule of law. Under the new regulation, EU payments can be withheld from countries where there is evidence of a violation of the rule of law in the management of EU funds. At the same time, the Union guarantees that the invoice will not be borne by the final beneficiaries.

“We did it! This is now the law, and no unilateral statement will change that. With the help of the conditionality system, we can now examine dubious efforts that would use EU funds for purposes contrary to Union values,” said the co-rapporteur of the People’s Party of Finland, Petri Sarvamaa.

Parliament has ensured that all relevant elements become part of the regulation and that the text remains intact. We hope that the Commission, as guardian of the Treaties, will start the independent implementation of the regulation from 1 January 2021. European citizens expect the same

added the member. The President of the Commission has also said important things today:

“La Unión is not an à la carte restaurant in which we can maintain our rights even if we do not fulfill our responsibilities. It is a community based on common values, and it is up to both Member States and citizens to uphold common values. The mechanism adopted today to link the EU budget to the rule of law is an extraordinary success for Parliament, “said Eider Gardiazabal Rubial, Spanish Socialist co-rapporteur.

“Parliament has ensured that the sanctions that can be imposed under the regulation go directly to governments and not to the final beneficiaries. Students, researchers, companies and NGOs are not affected by the EU sanction, as we are protected by a safety net, “he added.

How does it work?

Once the Commission has identified an infringement, it proposes to initiate a conditional procedure against the government of the Member State in question, followed by a cut or freeze of the Member State’s resources from the EU budget.

The Council has one month (in exceptional cases three months) to vote on the proposed measures by a qualified majority, that is, at least 55% of the Member States, representing 65% of the Union’s population.

MEPs called for the EU’s institutional decision-making mechanism to be reduced from 12 to 13 months to between 7 and 9 months.

The legislation applies to both specific and systemic offenses

Thanks to Parliament, the new legislation does not only apply when EU funds are specifically misused, for example through corruption or fraud. The law can also be applied when fundamental rights that all Member States must respect, such as democracy or the independence of the judiciary, are systematically violated and have or may have an impact on the management of EU funds.

During the negotiations, MEPs managed to illustrate possible infractions with examples in a separate section. Examples include the threat to the independence of the judiciary, the lack of redress for arbitrary or illegal decisions, and the limitation of redress.

Protection for final beneficiaries

Legislation has found a way to prevent the ultimate beneficiaries of, or dependent on, EU funding from suffering the consequences of their governments’ infractions. Subsidized students, farmers or NGOs can file a complaint on the Commission’s dedicated website, where they will be assisted in obtaining the amount awarded.

The Commission has also been authorized to adjust payments due to that Member State by reducing the next tranche of aid to that Member State.

Next steps

The new regulation, adopted today by Parliament and thus legalized, will apply to all resources under the joint management of the Union and the Member States as of January 1, 2021.

In addition to adopting the regulation, Parliament is voting on a resolution with recommendations to the Council and the Commission on the application of the cross-compliance regulation. The draft resolution can be read here, which can also be seen as a quasi-war message and for which Ursula von der Leyen wanted to reassure MEPs.

Cover Image Source: Getty Images



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