The rules of the conditionality mechanism in the European Union’s new long-term budget should be transparent, objective, and automatic, argues Siegfried Mureşan, Vice-Chair of the European People’s Party (EPP) in the European Parliament. In a report adopted during the Parliament’s December plenary session, MEPs called for strengthening this instrument. The issue is one of the key elements under negotiation between the European Commission and the Parliament in the context of the EU’s next financial perspective.
“Negotiating the European Union’s seven-year budget is always a lengthy process. The European Commission has presented a proposal that contains some good elements—for example, increased funding for security, defense, and strengthening the economy. However, there are also aspects that need improvement, such as ensuring adequate funding for farmers and safeguarding cohesion financing. The Commission’s idea of including these two policies in a single, common fund is, in our view, dangerous at the regional level. It is risky for farmers because it eliminates predictability,”
said Siegfried Mureşan, Romanian Member of the European Parliament and Vice-Chair of the EPP, in an interview with Newseria.
According to the Commission’s announcements, access to EU support is intended to become simpler and more streamlined by merging all EU funds used by member states and regions into a single, coherent strategy covering agricultural and cohesion policy. This approach, however, is opposed by Members of the European Parliament.
“We are at the early stage of the process. The European Commission has put forward its proposal, and the European Parliament has ideas on how to improve it. We will defend the Common Agricultural Policy and cohesion policy. We want a strong and mandatory role for regions, and we want the budget to be sufficiently large. If Europe is expected to do more in terms of security, competitiveness, and defense, this cannot be achieved with the same budget as before. That is why, in the European Parliament, we believe that ultimately the overall level of the budget must be higher than it has been so far,”
Mureşan emphasized.
A Record-High EU Budget and Stronger Conditionality
In mid-July 2025, the European Commission presented its proposal for the new long-term EU budget for 2028–2034. It is set to be record-high, totaling nearly €2 trillion. The new budget is designed to provide greater flexibility, enabling faster action and responses to emerging challenges. The number of programs is to be reduced from around 52 to 16, and even greater emphasis has been placed on the rule-of-law conditionality mechanism.
“This is a very important aspect, and the European Parliament supports it. Let me be very clear: anyone who wants to receive European funds must respect European values, principles, and rules. We have already seen member states where political actors do not respect the rule of law. In some countries—such as Hungary—they are even part of the government. In others, there are political parties that attack the rule of law but have not yet come to power and are currently in opposition. However, there is a risk that one day they may govern and actively threaten the rule of law. That is precisely why we must protect it,”
said the EPP Vice-Chair.
Under the Commission’s proposal, currently under negotiation, funding from the Multiannual Financial Framework would be strictly linked to compliance with the rule of law. National and regional partnership plans are intended to provide additional safeguards. Compliance with rule-of-law principles and the Charter of Fundamental Rights would be reinforced as a precondition for receiving support. Member states would be required to demonstrate that they have appropriate mechanisms in place to ensure compliance throughout the entire implementation period.
Parliament Calls for Automatic and Uniform Sanctions
“The European Parliament is calling for the strengthening of the rule-of-law conditionality mechanism so that it is automatic, objective, and applied in the same way to all categories of funds and, of course, to all member states. Sanctions under this mechanism should be known ex ante—that is, defined in advance,”
Mureşan stressed.
“Every government should be aware of the financial consequences of failing to respect the rule of law. Every citizen should know what financial consequences may follow from electing a party that attacks the rule of law. In the European Parliament, we want the mechanism to function automatically and objectively, without room for political bargaining—for example, between governments and the European Commission. If a government violates the rule of law, the consequences should be clear, and funds should be effectively frozen.”
In its December report assessing five years of the rule-of-law conditionality mechanism, the Parliament urged the Commission and the Council of the European Union to strengthen the instrument. MEPs argue that the mechanism currently suffers from insufficient transparency and an overly restrictive interpretation by the Commission, which limits its effectiveness. According to a majority in Parliament, decisions to suspend funds should not be subject to political negotiation, and frozen funds should only be released after a member state has fully implemented the required reforms.
MEPs also believe transparency should be enhanced at every stage of the process. In the report adopted in December 2025, they called for the creation of an interactive public portal allowing citizens to track each case from notification to the lifting of measures. Lawmakers are also demanding stronger parliamentary oversight and a greater say in decisions such as the redistribution of frozen funds to other EU programs.
Lessons from Hungary
“So far, the mechanism has been applied in the context of Hungary. Funding was suspended and then partially unblocked. Following decisions by the European Commission, the situation became quite ambiguous, and people did not have clear information about what was happening or on what basis the funds were released. That is precisely why the rules should be clearer and the conditions for blocking and unblocking funds more transparent. If there is room for political negotiation, that is a weakness of the entire mechanism. This is why we want it to be more automatic. This is something that has not been perfect so far and can be improved. The rules should be transparent, automatic, and objective,”
explained Siegfried Mureşan.
The report also highlights the need to protect beneficiaries within affected countries, ensuring that entities such as universities, small and medium-sized enterprises (SMEs), and civil society organizations are not penalized for rule-of-law violations committed by their governments.
