Refining Conditionality Regimes: Recommendations for Policy Makers

The European Union’s conditionality framework plays a crucial role in safeguarding the rule of law, fundamental rights, and financial integrity within Member States. The 2021-2027 Multiannual Financial Framework (MFF) and the Recovery and Resilience Facility (RRF) have brought about new conditionality mechanisms to address systemic challenges. Hungary serves as a key case study in this regard, as to date it is the only Member State where all conditionality tools linked to EU funds have been activated to address persistent issues, including systemic corruption, the erosion of checks and balances, and violations of fundamental rights.

Our policy brief examines the application of three core regulations—the Regulation on the General Regime of Conditionality, the Common Provisions Regulation, and the Regulation establishing the Recovery and Resilience Facility—alongside their synergies with other instruments in the EU Rule of Law Toolbox. Drawing on the experiences of human rights watchdogs and anti-corruption civil society organizations, our analysis identifies weaknesses in implementing these mechanisms over the past 2.5 years. Our recommendations aim to enhance the EU’s approach by strengthening transparency, accountability, and enforcement, ensuring more effective protection of EU values and financial interests.

➡️ Read our policy brief Refining Conditionality Regimes: Recommendations for Policy Makers.

The HHC presented key findings are recommendations of this brief at the joint hearing of the European Parliament’s Committees on Budgets (BUDG) and on Budgetary Control (CONT) on 7 April 2025. Watch the hearing on the European Parliament’s website here.