Primary Law
3 instrumentsAllows suspension of EU funds for rule of law breaches affecting EU financial interests. Hungary: €7.5B frozen (cohesion), €900M+ RRF withheld. Commission assesses 17 remedial measures. ECJ validated mechanism (C-156/21, C-157/21). Poland: funds partially released after Tusk government reforms.
Annual peer review mechanism covering all 27 member states. Four pillars: justice systems, anti-corruption, media pluralism, institutional checks and balances. Country-specific recommendations now include follow-up mechanism. 2025 cycle flagged: Hungary (systemic), Romania (judicial independence), Slovakia (media pressure), Malta (corruption).
EP triggered Article 7(1) in 2018. Council held 5 hearings. No determination of “clear risk of serious breach” voted (requires 4/5 majority). Sanctions (Art 7(2)) require unanimity minus accused state — effectively impossible. Conditionality Regulation has proven more effective enforcement tool.