– This is simply a strictly legal mechanism, in line with the Treaties, due to the fact that this has been confirmed by the Court of Justice in Hungary, Poland against the European Commission, but it has no uncertainty a political aspect, i.e. a signal that the country afraid is violating the values of the European Union, losing its credibility.
This besides plays its function internationally within the European Union," says Newseria agency Michał Wawrykiewicz, associate of the European Parliament from KO.
The conditionality mechanics shall apply from 1 January 2021.
The study adopted by the European Parliament points to the request for changes to the conditionality mechanics for the regulation of law. Experience so far with the blocking of EU funds for Hungary in relation to the breach of the regulation of law by that country shows that in the fresh position the mechanics needs a number of changes to make it more effective. However, there is no shortage of votes that it should be abolished at all, as it is simply a tool for political force on associate States.
The conditionality mechanics shall apply from 1 January 2021. It introduces the alleged "money for regulation of law" principle, which means that it allows the payment of EU funds to be made subject to an assessment of compliance with the regulation of law where their infringement may jeopardise the financial interests of the EU. It is only 1 component of EU instruments for the protection of the regulation of law and the Union budget, alongside the yearly reports of the European Commission, infringement procedures and the control of the Court of Justice of the EU.
In fact, this mechanics has only been tested in Hungary and has indeed had its effect
It has so far been formally applied erstwhile – to Hungary, which has lost EUR 1 billion irretrievably due to the suspended payments of European funds. As indicated by the EPS, this case revealed, among another things, unclear criteria for launching the procedure, lengthy decision-making processes and the limited function of the European Parliament throughout the process. In December 2025, the study adopted by the Parliamentary Committees on Budgets (BUDG) and Budgetary Control (CONT) assessed that the implementation of the mechanics needed improvement. The request to simplify procedures, increase transparency and effectiveness and better defend the EU's financial interests has been identified.
– The key lessons from the conditionality mechanics to date are that we have any shortcomings in the effectiveness of the action. In fact, this mechanics was tested exclusively in Hungary and actually had an effect – says Michał Wawrykiewicz. "The aim of the EU and its institutions is to guarantee that sanctions are applied to the government of a associate State which has problems with the regulation of law and which is in awe of the values of the European Union, but at the same time that the citizens of the European Union who are not guilty of anything, do not endure for this.
Independent judiciary and prosecution are, after all, a warrant that EU funds can be decently distributed
The European Parliament is working on a possible strengthening of the mechanism, including the introduction of "smart compliance". According to EPRS analyses, this solution would let direct targeting of funds to the final beneficiaries – local governments, universities, NGOs or businesses – without the central administration of the sanctioned state.
– This conditionality mechanism, besides at the request of the Committee on civilian Liberties, Justice and Home Affairs (LIBE), is besides to include the principles of independence, independency of the judiciary. This aspect is besides to be taken into account through this mechanism. Independent judiciary and prosecution are, after all, a warrant that EU funds can be decently distributed and that state control is on this. Coruption mechanisms simply cannot function if there is an independent judiciary and a prosecutor's office, as indicated by a associate of the European Parliament from the Civic Coalition.
Any decision under the mechanics may be subject to judicial review by the EU Court of Justice
Any changes to the conditionality mechanics will be straight applicable to the plan of the fresh EU financial position after 2027, in which the link between funds and the regulation of law assessment can be extended to further budgetary instruments. – Any decision under the mechanics may be subject to judicial review by the EU Court of Justice. So we have a balance between the political elements and the legal elements and I believe that the mechanics works, although it should be improved in any respects," emphasises Michał Wawrykiewicz.
However, the regulation of law conditionality mechanics besides has a large number of opponents.
This mechanics is simply a tool to intimidate associate States
– The top threat to the regulation of law mechanics is, above all, its politicisation and the open usage of it against countries that do not comply with the European Commission's main political line. We have seen this example, for example, towards Poland, erstwhile Polish funds were blocked many times during the regulation of the Law and Justice – says Tomasz Buczek, associate of the European Parliament of the Confederation. "We see what is happening present towards Viktor Orbán's government, and we are afraid of what will happen next, due to the fact that the European Commission under the current leadership is increasingly pressing the knee of all sorts of harmful policies. It does so in contravention to countries with conservative values, which are capable of contesting the adopted line, specified as climate policy, trade agreements with Mercosur countries or loans to Ukraine.
The MEP calls this mechanics a tool to intimidate associate States.
