New safeguarding instruments such because the so-called ’conditionality’ regulation have improved the safety of EU funds from rule-of-law breaches by member states, however there are nonetheless important dangers, in response to a brand new report by the European Courtroom of Auditors (ECA).
”Whereas the just lately launched further safeguards are a transparent enchancment, we [the EU] are nonetheless not proof against rule of legislation breaches,” warned Annemie Turtelboom, the ECA member who led the audit, at a press convention on Wednesday (21 February).
Hungary and Poland each face rule-of-law-related EU budgetary measures with an estimated influence of round €22bn and €134bn respectively, though within the longer quite than short-term.
Current safeguard mechanisms, together with these below the Restoration and Resilience Facility and cohesion coverage, permit the EU to introduce measures, like monetary corrections or suspension of funds, when a breach of the rule of legislation impacts the EU’s monetary pursuits.
”In actuality, there’s solely very restricted instant sanction on the governments,” the lead EU auditor argued, because the blocked quantities largely concern future funds and commitments as much as the top of the last decade and don’t have an effect on bigger programmes just like the Frequent Agricultural Coverage — which accounts for about one-third of the EU funds.
In the meantime, the frozen funds may hamper the event of EU programmes or negatively influence residents in these states, the Luxembourg-based auditors additionally stated.
For instance, with out further monetary help, Polish and Hungarian college students may very well be excluded from collaborating in an Erasmus+ trade programme.
A second threat is that the rule-of-law conditionality regulation turns into a mere box-ticking train, with no actual enhancements on the bottom.
On this case, the conditionality regulation can be a missed alternative to enhance the scenario within the member state, the auditors famous.
”It may additionally create a harmful precedent that would undermine the regulation’s effectiveness sooner or later and, moreover, the actions tackling rule-of-law points may very well be reversed as soon as the budgetary measures are lifted,” Turtleboom stated.
Political bargaining chip
On high of that, each dangers may turn into extra important as political issues may in the end play a significant position within the choices to not block, or to launch, EU funds, the auditors level out — citing the scenario that occurred in December 2023 with Hungary.
On the time, rule-of-law choices on Viktor Orbán’s nation needed to be taken nearly concurrently as member states had been about to vote on Ukraine’s accession talks, which required unanimity and to which Hungary was initially opposed.
Just some days earlier than Orbán briefly left the room to permit the EU to open accession talks with Ukraine at their summit in Brussels, the fee authorized the discharge of €10bn in cohesion funds for Hungary.
”We cannot afford political bargaining taking part in a significant position in choices that must be grounded in technical and authorized evaluation,” the main EU auditor commented.
”We additionally can’t afford to take totally different approaches in direction of the totally different member states,” Turtelboom added.
On this sense, the EU auditors concluded that the measures taken below the conditionality regulation for Hungary in 2022 had been justified, however for different international locations, they may not assess the explanations for utilizing one instrument or one other.
Consequently, the fee didn’t transparently show that the EU’s monetary pursuits are protected in all member states the place it recognized challenges to the rule of legislation, the auditors concluded.
The EU govt has accepted or partially accepted all of the ECA’s suggestions besides the final, the place the Luxembourg-based auditors instructed that the fee enhance the rule of legislation framework when getting ready future legislative proposals.
In line with a World Justice Mission index, Hungary and Bulgaria are the EU’s worst performers on rule of legislation, adopted by Poland, Romania, and Greece.