European Parliament: Member states jeopardising the rule of law will risk losing EU funds

Anca Alexe 17/01/2019 | 15:12

Governments interfering with courts or failing to tackle fraud and corruption will risk suspension of EU funds, according to a draft law endorsed by MEPs on Thursday, by 397 votes to 158 and 69 abstentions.

The draft says that the EU Commission, assisted by a panel of independent experts, would be tasked with establishing “generalised deficiencies as regards the rule of law” and decide on measures that could include suspending EU budget payments or reducing pre-financing.

The decision needs to be approved by the European Parliament and Council in order to be implemented.

Once the member state remedies the deficits identified by the EU Commission, Parliament and EU ministers could unlock the funds, according to the EP’s press release.

The European Commission may establish that the rule of law is under threat, if one or more of the following are undermined:

  • proper functioning of the authorities of the member state implementing the EU budget;
  • proper functioning of the authorities carrying out financial control;
  • proper investigation of fraud – including tax fraud -, corruption or other breaches affecting the implementation of the EU budget;
  • effective judicial review by independent courts;
  • recovery of funds unduly paid;
  • preventing and penalising tax evasion and tax competition;
  • cooperation with the European Anti-Fraud Office and, if applicable, the European Public Prosecutor’s Office.

Depending on the scope of the shortcomings and the budget management procedure, the Commission can decide on one or several measures, including:

  • suspending commitments;
  • interrupting payment deadlines;
  • reducing pre-financing;
  • suspending payments.

 

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