The CJEU Validates in C-156/21 and C-157/21 the Rule of Law Conditionality Regulation Regime to Protect the EU Budget

Abstract

This contribution aims to introduce the reader to a judgment from the Court of Justice of the European Union on the rule of law conditionality regulation in the two cases of Hungary v Parliament and Council (C-156/21) and Poland v Parliament and Council (C-157/21). The judgment expands our understanding of the legality and application of the regime of conditionality for the protection of the European Union budget provided by the Regulation (EU, Euratom) 2020/2092. On the other hand, the Court of Justice of the European Union in C-156/21 and in C-157/21 has now defined how the European Union can legally cut funds to Member States in the case of an established violation of the rule of law, if this violation endangers the EU budget. Despite having a new tool to sanction violations of the rule of law by its Member States, the European Union still lacks the political will to do so. This contribution discusses the importance of the rule of law conditionality regulation in C-156/21 and C-157/21, and what it means to not only to uphold the rule of law, but also fight against corruption in areas associated with Union’s budget and financial interests.