The rule of law conditionality in the EU - regulation 2092/2020, the EURI and the cases of Hungary and Poland

Abstract

The rule of law conditionality mechanism constitutes an instrument that has been added in the toolbox of the European Union since January 2021 according to the Regulation 2092/2020. The validity of the Regulation was contested by Hungary and Poland before the Court of Justice of the European Union (CJEU), which published its final judgments in February 2022 by rejecting both cases of annulment against the Regulation. The conditionality mechanism established by the Regulation allows for the protection of the financial interests of the EU in case of breach of the principles of the rule of law which affect, or seriously risk affecting, the sound financial management of the EU budget. This dissertation discusses the scope of application of the conditionality mechanism established under the Regulation 2092/2020 by further analyzing the judgments of the CJEU in the cases C-156/21 and C-157/21. The analysis is concluded by providing the background of the advancements due to the abovementioned judgments in the context of the actions of the EU institutions and of the invasion of Russia to Ukraine.