Linking EU Funds to Rule of Law Compliance
Sweden and Finland are calling for stricter conditions on EU funding, advocating that access to subsidies, including the Common Agricultural Policy (CAP), be tied to adherence to the rule of law and fundamental rights. This proposal comes in response to recent actions by Brussels to block funds to Poland and Hungary over concerns about democratic backsliding and judicial reforms. The two countries argue that all member states must respect these shared values as part of their commitment to the European Union.
Extending Oversight to Agricultural Subsidies
Sweden’s Jessica Rosencrantz and Finland’s Joakim Strand want the CAP, which allocates €264 billion for 2023-2027, to be included under these stricter conditions. CAP funds, heavily protected by farmers in major agricultural nations like France and Spain, have thus far escaped the level of oversight applied to other EU funding programs. The ministers argue that applying rule of law conditions across the entire EU budget would ensure greater accountability and fairness in the distribution of funds.
Past Use of Rule of Law Mechanisms
The EU has already used rule of law provisions to freeze billions in funding for Poland and Hungary due to concerns over judicial independence and corruption. Poland saw €76.5 billion withheld, while Hungary faced a freeze on nearly €22 billion, with half of that still suspended. Sweden and Finland argue that this system should be expanded to cover more areas of the EU budget, ensuring that all funds are tied to respect for the rule of law.
Strengthening Financial Conditionality
Rosencrantz and Strand are pushing for a stronger conditionality mechanism that could freeze funds if the financial integrity of the EU is at risk, as seen in the case of Hungary. They oppose any weakening of these rules and believe taxpayers should have confidence that EU funds are being used responsibly. The ministers’ letter urges the European Commission to fully utilize this conditionality mechanism to safeguard EU finances.
Broader Implications for EU Budget Reforms
The call from Sweden and Finland comes as the European Commission, led by Ursula von der Leyen, prepares for potential action against Slovakia over recent legislative changes. Von der Leyen has pledged to create a closer link between EU funds and rule of law adherence, emphasizing the need for a comprehensive reform of the EU budget. The ongoing issues in countries like Hungary and Slovakia highlight the importance of stronger financial oversight tied to democratic principles.
SOURCE: Ref Image from EUobserver
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