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Explained European Union Court judgment

EU Value Conditionality Judgments: Freezing over €30 Billion in Funding

The EU frozen over €30 billion in funding for Hungary using three value conditionality instruments based on Article 2 TEU.

What Changed

  • EU deployment of budgetary powers since 2021 under Article 2 TEU.
  • Implementation of three value conditionality instruments.
  • Freezing of over €30 billion in EU funding allocated to Hungary.

Since 2021, the European Union has increasingly relied on its budgetary powers to defend its fundamental values under Article 2 of the Treaty on European Union (TEU). This defense has been carried out through three value conditionality instruments. In response to value breaches in Hungary, these legal instruments have been utilized to freeze over €30 billion in EU funding. Legal analysis by Andreas Knecht published on the European Law Blog examines recent General Court judgments addressing who bears the financial and legal costs of systemic rule of law breaches within EU Member States.

Who May Be Affected

EU Member States, particularly Hungary, and entities reliant on EU budgetary funding.

Cross-Border Context

Pertains to EU-wide enforcement of Article 2 TEU values across EU Member States.

What to check next

  • Read the complete article by Andreas Knecht on European Law Blog.
  • Review the corresponding General Court judgments on EU value conditionality.

This article provides general information and does not constitute legal advice. Consult the official text and obtain advice appropriate to your circumstances where needed.

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