Commission looks to expand ‘cash-for-reform' scheme on rule of law issues
With judicial independence weakening and civic space shrinking in parts of the bloc, the European Commission is exploring ways to expand existing mechanisms that condition access to EU funds on rule of law reforms, according to its newly released Rule of Law Report.
Presenting this year's report, EU Justice Commissioner Michael McGrath said the EU's next long-term budget, known as the Multiannual Financial Framework (MFF), should be used as a tool to help protect judicial independence across the bloc.
'What's important (…) is that we have appropriate rule of law conditionality safeguards built into the MFF architecture, along with a clear link to the recommendations in the Rule of Law Report,' McGrath told Euractiv in a closed-door interview with journalists on Tuesday.
The Commission is due to present its proposal for the next MFF on 16 July.
European Commission President Ursula von der Leyen has previously indicated that the EU budget starting in 2028 would require member states to reform in order to access EU funding. In connection with the new report, a senior EU official acknowledged that 'cash-for-reform" scheme had proven 'extremely helpful' in advancing rule of law objectives.
The Recovery and Resilience Facility (RRF), launched after the COVID-19 crisis, marked the EU's first large-scale use of conditional funding, tying disbursement of grants and loans to concrete national reforms on rule of law. Usual suspects Now in its sixth year, the Rule of Law Report provides an annual snapshot of justice systems, anti-corruption frameworks, and media landscapes. It includes tailored recommendations aimed at addressing democratic backsliding.
The 2025 edition, spanning more than 800 pages and published on Tuesday, acknowledges some progress but warns that member states must do more to protect civil society, media freedom and judicial independence.
The report find that EU countries have made progress, albeit slower than in the previous year. The 2024 report found that member states had made positive progress on 68% of 2023's recommendations, while only 57% of last year's recommendations had been fully or somewhat implemented this year.
McGrath attributed the slowdown to the efficacy of the Rule of Law Report. 'The low-hanging fruit has been picked at this stage,' he said.
The report delivered particularly critical assessments for Hungary, Poland, Italy, and candidate country Albania.
In Hungary, the Commission noted that aside from modest pay increases for judicial staff, 'no progress' had been made in all other areas. Italy drew criticism for relaxed rules on political campaign financing.
Similarly, last year's report gave low marks to Hungary, Slovakia, and Italy.
On Tuesday, McGrath declined to speculate on whether more countries could face frozen funds due to rule of law violations in the future.
'Our goal is not to increase the number of member states that are subject to conditionality,' he said. The aim is to achieve 'the highest standards possible throughout the European Union in relation to the rule of law'.
(de)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Euractiv
3 hours ago
- Euractiv
Caught in translation: EU interpreter fired for alleged Russian spying
An interpreter working for the European Commission has been dismissed over suspicions of spying for Russia, after allegedly taking notes during a high-level meeting in Brussels last December, Le Monde reports. At a closed-door meeting between Ukrainian President Volodymyr Zelenskyy and EU heads of state and government, a Ukrainian interpreter was caught taking notes – an act strictly prohibited in such a context, according to a report by Le Monde . Leaders were discussing Ukraine's battlefield posture and ongoing European military support in the wake of US President Trump's re-election the month before. Czech interpreters reportedly observed the interpreter taking notes. Commission officials then entered the booth, seized the notes, and expelled her from Commission premises. An internal Commission investigation has since concluded. Belgian authorities will decide whether to pursue the case further and assess if the incident is part of a broader Russian espionage operation. Le Monde identified the interpreter as Ms M, a dual French and Ukrainian national. Of Russian descent, she has lived in Ukraine for several years. Together with her sister, she has freelanced as an interpreter for EU institutions, French ministries, and NATO for over two decades. The European Commission confirmed the incident. 'The notes were confiscated. After a careful examination of the facts, it was decided to no longer use the interpreter's services,' a spokesperson told Le Monde . Ms M remains formally listed as an interpreter with NATO, the French Permanent Representation in Brussels, and several French ministries. French authorities have stated they will 'draw all the necessary consequences of the incident.' The interpreter has been blacklisted by Ukrainian authorities, who suspect her of maintaining professional ties with Russian officials. When questioned by Le Monde , Ms M responded that her work is bound by confidentiality and insisted she has always upheld "respect" for the ethical standards of her profession. The case surfaces as Brussels continues to reel from a separate wave of lobbying and corruption scandals involving alleged influence operations linked to Chinese tech giant Huawei. (aw)
Euractiv
4 hours ago
- Euractiv
Germany's Merz: Alleged Chinese laser targeting of German aircraft ‘completely unacceptable'
BERLIN – German Chancellor Friedrich Merz denounced a Chinese warship's alleged use of a laser against a German military surveillance aircraft in the Red Sea as "completely unacceptable" on Wednesday afternoon, reiterating the anger from Berlin over the incident. Hours earlier, Chinese foreign ministry spokesperson Mao Ning denied the German allegations in remarks to reporters: "What Germany has said is fully inconsistent with the facts.' Merz noted that the Chinese ambassador had been summoned over the incident but that he had not yet been briefed on how China sought to explain the alleged encounter. Such an "attack" on a German aircraft requires clarification, Merz said at a joint afternoon press conference with NATO Secretary General Mark Rutte in Berlin. The incident allegedly occurred earlier this month, when a German military aircraft patrolling off the coast of Yemen as part of the EU's Aspides mission was targeted by a laser from a Chinese warship in the Red Sea. A spokesperson for the German ministry said the Chinese vessel acted without warning or reason, adding that the aircraft aborted its flight mission and diverted to a base in Djibouti. The Aspides mission is an EU maritime surveillance operation aimed at protecting the Red Sea shipping lanes from Houthi attacks that have disrupted a vital trade route for Europe. 'Putting German personnel at risk and disrupting the operation is completely unacceptable,' the German foreign ministry said in a post on X on Tuesday. German Foreign Minister Johann Wadephul said he was "more than irritated" over the incident in an interview published Wednesday by Germany's RND news outlet. "Such interference with our aircraft, as well as any other unprovoked endangerment of our units, is unacceptable," he said. Berlin's public accusations came just after Chinese Foreign Minister Wang Yi visited Berlin as part of a broader European tour. Chris Kremidas-Courtney, a senior visiting fellow at the European Policy Centre and an expert on hybrid threats, told Euractiv that the use of lasers is a common tactic employed by Beijing. In 2022, 'Chinese vessels used lasers to blind an Australian aircraft off the northern cost of Australia,' they said. According to Spiegel, a German naval frigate had previously been targeted by Chinese lasers while sailing through the Taiwan Strait in the autumn. The attack, which was intended to "blind" the vessel, was reported to Berlin but not publicly addressed by the German government at the time. Kremidas-Courtney said that pointing a laser at an aircraft disrupts the engine's reconnaissance and surveillance capabilities, and is commonly used as a 'harassment technique'. 'The question is, how will we respond to this escalation?' Kremidas-Courtney asked. This story was updated to include German Chancellor Friedrich Merz's remarks on the alleged incident. (bts, de)
Euractiv
5 hours ago
- Euractiv
Sánchez rules out resignation as he launches anti-corruption plan
MADRID – Spanish Prime Minister Pedro Sánchez ruled out resignation on Wednesday, unveiling a sweeping anti-graft strategy as his Socialist party faces mounting scrutiny over corruption allegations. "I am a clean politician, I am not going to throw in the towel," Sánchez told lawmakers at the beginning of the parliamentary debate to report on the corruption cases engulfing his party. The corruption scandals involve alleged bribery, tender rigging, and influence peddling by senior PSOE officials. Prosecutors are also investigating whether EU funds were misallocated in the illicit awarding of public contracts involving the PSOE leadership. In response, Sánchez presented a new anti-corruption plan featuring a raft of measures: the creation of an Independent public integrity agency, tighter controls on the management of EU funds, stronger whistleblower protections, stricter rules on political financing, and mandatory compliance protocols for companies contracting with the state. The plan was developed in coordination with the OECD and incorporates recommendations from the Group of States against Corruption of the Council of Europe (GRECO), and the Commission's rule of law report Tough times in parliament Sánchez's announcement caused quite a stir in the Spanish parliament, where the scandals have dominated political discourse for weeks. Yolanda Díaz, head of the left-wing coalition partner Sumar, praised Sánchez's stance but urged the PSOE to accelerate social reforms , such as the long-delayed Right to Housing Act, which aims to curb property speculation by hedge funds. The Catalan separatist parties supporting the government coalition were less conciliatory. Catalan separatist party Junts, led by now-exiled Carles Puigdemont, warned that "time is ticking" and predicted that the government might not survive until 2027. Meanwhile, Gabriel Rufián of the separatist Republican Left of Catalonia threatened to pull support if investigations revealed that corruption extended beyond the party's organisational secretariat, currently the focus of one of the Spanish law enforcement agencies, the Guardia Civil. Opposition centre-right leader Alberto Núñez Feijóo demanded accountability for Sánchez's 'personal appointments' of figures under investigation, such as former Minister of Transport José Luis Ábalos and former PSOE Secretary of Organisation Santos Cerdán. Further right, populist Vox leader Santiago Abascal accused the government of 'buying power through political favours' and mocked Sánchez for "having the balls" to present an anti-corruption plan, prompting a formal rebuke for inappropriate language. Sánchez nevertheless defended his record, arguing that his administration has been, together with that of José Luis Rodríguez Zapatero, the cleanest in Spain's democratic history. (cs, mm)
