Sittings · Document

OPINION (2025/2239(INI)) 2026-02-10

On the Commission’s 2025 Rule of Law report – annual report 2025

Committee on Budgets · Rapporteur: JeanMarc Germain

AMENDMENTS

The Committee on Budgets submits the following to the Committee on Civil Liberties, Justice and Home Affairs, as the committee responsible:

Amendment 1

Motion for a resolution

Citation 57 a (new)

Motion for a resolutionAmendment
– having regard to its resolution of 7 May 2025 on a revamped long-term budget for the Union in a changing world1a, ______________ 1a Texts adopted, P10_TA(2025)0090.

Amendment 2

Motion for a resolution

Citation 57 b (new)

Motion for a resolutionAmendment
– having regard to its resolution of 18 December 2025 on the implementation of the rule of law conditionality regime1a, _____________ 1a Texts adopted, P10_TA(2025)0343.

Amendment 3

Motion for a resolution

Citation 66 a (new)

Motion for a resolutionAmendment
– having regard to the study requested by its Committee on Budgets entitled ‘The tools for protecting the EU budget from breaches of the rule of law: the Conditionality Regulation in context’1a, _____________ 1a Rubio E. et al., ‘The tools for protecting the EU budget from breaches of the rule of law: the Conditionality Regulation in context’, European Parliament, Directorate-General for Internal Policies, Policy Department for Budgetary Affairs, April 2023.

Amendment 4

Motion for a resolution

Citation 66 b (new)

Motion for a resolutionAmendment
– having regard to the letter of 20 May 2025 from the chairs of Parliament’s Anti-Corruption Intergroup, the Rule of Law Conditionality co-rapporteurs and many other Members to Commissioners Serafin and McGrath, calling on the Commission to significantly step up its conditionality measures in the case of Hungary through all available legal instruments,

Amendment 5

Motion for a resolution

Recital E a (new)

Motion for a resolutionAmendment
Ea. whereas Parliament has repeatedly called for a stronger link between respect for the rule of law and the EU budget, including a specific call to strengthen the links between the recommendations in its annual rule of law reports and financial support from the EU budget; whereas the Commission has, on several occasions, undertaken commitments to that effect, including in the State of the Union address delivered by Commission President Ursula von der Leyen on 10 September 2025;

Amendment 6

Motion for a resolution

Paragraph 20

Motion for a resolutionAmendment
20. Is concerned by the growing legal and financial restrictions, smear campaigns, and criminalisation of civil society organisations and human rights defenders; stresses that reporting requirements for NGOs must not exceed those strictly necessary and proportionate to the specific aims pursued;20. Is concerned by the growing legal and financial restrictions, smear campaigns, and criminalisation of civil society organisations and human rights defenders; stresses that reporting requirements for these entities benefiting from EU funding should be proportionate and adequate in relation to the specific aims pursued;

Amendment 7

Motion for a resolution

Paragraph 21

Motion for a resolutionAmendment
21. Calls on the Member States and the Commission to ensure the allocation of adequate financial resources for civil society organisations and human rights defenders; calls on the Member States to provide effective protection for human rights defenders, including rapid response mechanisms to threats;21. Calls on the Member States and the Commission to ensure the allocation of adequate financial resources for civil society organisations active in the field of the rule of law and fundamental rights, and human rights defenders; calls on the Member States to provide effective protection for human rights defenders, including rapid response mechanisms to threats; underlines that access to EU funding must remain fair, transparent and non-discriminatory, in full respect of the Treaties and in line with the Financial Regulation1a; stresses that discretionary and biased influence over funding decisions is unacceptable, undermines trust in the EU, does not comply with the protection of the financial interests of the Union and clearly does not comply with the legal requirement of sound financial management; _____________ 1a Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union (recast) (OJ L, 2024/2509, 26.9.2024, ELI: http://data.europa.eu/eli/reg/2024/2509/oj).

Amendment 8

Motion for a resolution

Paragraph 30

Motion for a resolutionAmendment
30. Is deeply concerned about fundamental rights violations facilitated by or linked to the use of EU funds in some Member States, notably in the areas of housing and educational segregation, reception conditions for asylum seekers, the institutionalisation of persons with disabilities and of children, and certain urban regeneration initiatives; calls on the Commission to include recommendations addressing these violations in its annual rule of law report; proposes that a specific share of EU funds be earmarked for the independent monitoring of EU-funded actions, including assessments of their legal and fundamental rights impacts, as well as for legal research, strategic litigation and the independent evaluation of potential violations, with strong involvement of civil society organisations;30. Is concerned about reports from civil society organisations indicating that certain fundamental rights violations may have been linked to the use of some EU funds in some Member States, notably in the areas of reception conditions for asylum seekers, the institutionalisation of persons with disabilities and children, and certain urban regeneration housing and education projects; calls on the Commission to thoroughly investigate whether such violations are occurring in EU-funded programmes or projects and, in cases where such violations are established, to consider the relevant enabling conditions and Recovery and Resilience Facility milestones as unfulfilled; calls on the Commission to include recommendations addressing these violations in its annual rule of law report; calls for proper funding for bodies such as the European Public Prosecutor’s Office and the European Anti-Fraud Office to ensure their ability to effectively investigate rule of law breaches affecting the EU’s financial interests, and for independent monitoring of EU-funded actions, including assessments of their impact on legal and fundamental rights;

Amendment 9

Motion for a resolution

Paragraph 31

Motion for a resolutionAmendment
31. Insists that the measures required for the release of EU funding, as defined by the relevant decisions taken under the Common Provisions Regulation, the Recovery and Resilience Facility Regulation50 and the Rule of Law Conditionality Regulation, must be assessed coherently as an integral package and that no payments should be made while deficiencies persist; believes that the Commission should take further action under the Rule of Law Conditionality Regulation as regards other breaches of the rule of law, such as those related to the judiciary; ______________ 50 Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility (OJ L 57, 18.2.2021, p. 17, ELI: http://data.europa.eu/eli/reg/2021/241/oj).31. Insists that the measures required for the release of EU funding, as defined by the relevant decisions taken under the Common Provisions Regulation, the Recovery and Resilience Facility Regulation50 and the Rule of Law Conditionality Regulation (Conditionality Regulation), must be assessed consistently as part of the same seamless and coherent toolbox, and that no payments should be made while deficiencies persist; believes that the Commission should take further action under the Rule of Law Conditionality Regulation as regards breaches of the rule of law; underlines that any lack of coherence hampers the proper application of the instrument and its democratic scrutiny; insists that any backsliding should also be taken into account and addressed in order to prevent the occurrence of similar situations or further backsliding in the future; rejects any reallocation or reshuffling to other programmes or objectives of frozen appropriations due to rule of law issues; regrets the Commission’s interpretation that the Conditionality Regulation should be used only as a measure of last resort and stresses that it should not be treated as such; ______________ 50 Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility (OJ L 57, 18.2.2021, p. 17, ELI: http://data.europa.eu/eli/reg/2021/241/oj).

Amendment 10

Motion for a resolution

Paragraph 31 a (new)

Motion for a resolutionAmendment
31a. Recalls that the Conditionality Regulation has been a key tool for protecting the EU’s financial interests against breaches of the rule of law, and that it should be applied whenever its legal conditions are met across the entire EU budget, including performance-based instruments and funding provided under Article 122 TFEU; highlights that the weakening of the judicial system and of the independence and impartiality of public administration and undue concentration in procurement procedures represent systemic rule of law risks that threaten sound financial management; calls on the Commission to be generally more proactive in its use of the rule of law toolbox when warranted, including the application of Article 6(4) of the Conditionality Regulation, while respecting the principle of proportionality;

Amendment 11

Motion for a resolution

Paragraph 32

Motion for a resolutionAmendment
32. Welcomes the suggestion in the Commission’s proposal for the 2028-2034 multiannual financial framework to make nearly half of funds conditional upon compliance with the rule of law and the Charter before their approval;32. Welcomes the suggestion in the Commission’s proposal for the 2028-2034 multiannual financial framework to make nearly half of funds conditional upon compliance with the rule of law and the Charter before their approval; notes that the new proposal introduces horizontal conditions on respecting the principles of the rule of law and the Charter; is concerned about the overlaps between the newly proposed conditionality in the upcoming multiannual financial framework and the Conditionality Regulation; calls for a unified, coherent and comprehensive framework across all EU programmes and requests that the Commission consolidate all rule of law tools into a single framework that provides clear, objective and transparent criteria for application and that clarifies how it will ensure coordination of these tools;

Amendment 12

Motion for a resolution

Paragraph 32 a (new)

Motion for a resolutionAmendment
32a. Stresses that the effective protection of the EU budget also depends on robust financial management and control systems; calls on the Commission to systematically take into account findings from the European Court of Auditors, the European Anti-Fraud Office, the European Public Prosecutor’s Office and national audit authorities when preparing recommendations in its rule of law reports to assess rule of law-related risks to EU funds; underlines that systemic deficiencies identified by these oversight bodies should be duly reflected in the Commission’s use of budget-protection tools, and that the annual rule of law reports should clearly refer to the findings of these independent bodies, explicitly distinguishing them from the Commission’s own assessments in order to strengthen transparency and credibility; raises serious concerns that, in accordance with the Commission’s proposals for the multiannual financial framework, no institution or body responsible will be expected to verify the underlying costs of measures under the national and regional partnership plans, and financing that is not linked to actual costs will become the primary method of budget implementation and severely hinder the Commission’s ability to determine or measure the financial consequences of rule of law breaches;

Amendment 13

Motion for a resolution

Paragraph 32 b (new)

Motion for a resolutionAmendment
32b. Urges the Commission and the Council to act expeditiously and in full transparency if a link is established between rule of law breaches or serious risks thereof and risks to the EU budget, and if the Member State concerned does not act to address the situation effectively, sustainably and in a timely manner; insists that lengthy informal dialogues must not become a substitute for decisive actions;

Amendment 14

Motion for a resolution

Paragraph 32 c (new)

Motion for a resolutionAmendment
32c. Stresses the need to enhance synergies between the various rule of law tools and their links to the EU budget, as also acknowledged in the 2025 State of the Union address by the Commission President, and to strengthen the links between the recommendations in the annual rule of law report and financial support from the EU budget; deplores the lack of detail on how this link is made in the 2025 Rule of Law Report, particularly in its recommendations; urges the Commission to translate the country-specific recommendations from its annual rule of law reports into concrete milestones to be systematically acted on by the Member States and, where appropriate, to serve as evidence to justify the application of the Conditionality Regulation;

Amendment 15

Motion for a resolution

Paragraph 32 d (new)

Motion for a resolutionAmendment
32d. Emphasises that transparency is vital to ensure that all budgetary tools linked to the rule of law are applied systematically and based on clear criteria; highlights the need for transparent, consistent and predictable implementation across all Member States; is concerned about unclear procedures that may undermine accountability and allow governments to frame fund retention as arbitrary or discretionary; calls on the Commission to set out and publish clear and detailed criteria for assessing the budgetary implications of rule of law deficiencies, including for interruptions, suspensions and the reprogramming of EU funds, and to ensure timely and non-selective decision-making across all Member States; calls on the Commission to include in its annual rule of law reports its findings related to the budgetary implications of rule of law deficiencies, including for interruptions, suspensions and the reprogramming of EU funds;

Amendment 16

Motion for a resolution

Paragraph 32 e (new)

Motion for a resolutionAmendment
32e. Stresses that a smarter approach is needed to safeguard final recipients and beneficiaries, particularly those who suffer the consequences of rule of law deficiencies, from being affected when EU funding to their respective governments is suspended as a result of rule of law breaches; recalls the obligation of the Member States subject to measures under the Conditionality Regulation to continue honouring all commitments towards final recipients and beneficiaries; stresses that any measures taken to ensure that legitimate final recipients and beneficiaries can continue to access EU funding should not weaken the application of the Conditionality Regulation; notes the proposal by the Commission to make decommitted funds available for use under direct or indirect management and recommends that these funds be used, in particular, for the instruments and programmes that contribute to supporting the EU’s democracy, civil society and values or the fight against corruption, including for activities in the Member States where the violations occurred; believes, furthermore, that the horizontal conditions should cover all values enshrined in Article 2 TEU, and that the decision-making procedure should be identical, culminating in Commission decisions;

Amendment 17

Motion for a resolution

Paragraph 32 f (new)

Motion for a resolutionAmendment
32f. Observes, with concern, that in some Member States, kleptocratic oligarchic structures are systematically taking over strategically important sectors, such as the media, telecommunications, banking, retail, agricultural, food, healthcare, pharmaceutical, construction and tourism sectors, which may pose risks to the protection of the EU budget, for instance when such structures apply for EU funds; believes that systematic rule of law breaches, identified under the pillars of the annual rule of law reports, that have a sufficiently direct link to the protection of the EU budget, should lead to the triggering of the conditionality mechanism, particularly when the breaches pertain to the functioning of the judiciary system, violations of rules, the manipulation of, or favouritism in, calls for tender and applications involving EU funding, and administrative harassment that breaches the principle of equal treatment of local and regional authorities, companies or other final recipients and beneficiaries, and their access to EU funds;

Amendment 18

Motion for a resolution

Paragraph 32 g (new)

Motion for a resolutionAmendment
32g. Recalls the speech made by the Commission President during Parliament’s plenary sitting on 9 October 2024, in which she stated that the current government of Hungary discriminates against European companies by taxing them more than others, that it targets European businesses with arbitrary inspections and permit blockages, and that public contracts in Hungary mostly go to a small group of beneficiaries; regrets that the Commission has not taken sufficient subsequent steps to mitigate the situation it correctly highlighted and criticised; recalls that these findings add to a broader pattern of systemic and persistent breaches of the rule of law, which directly affect sound financial management and the protection of the Union budget; urges the Commission to immediately suspend the maximum possible amount of EU funding to Hungary, in accordance with the applicable legislation, to protect the Union’s financial interests;

Amendment 19

Motion for a resolution

Paragraph 35 a (new)

Motion for a resolutionAmendment
35a. Stresses that the values enshrined in Article 2 TEU must also be respected when EU funds are allocated to non-EU countries participating in EU programmes; recalls that it is essential to protect these values so as to ensure consistent and sound financial management of all EU spending, both within the Union and when collaborating with partner countries;

ANNEX: DECLARATION OF INPUT

The rapporteur for opinion declares under his exclusive responsibility that he did not include in his opinion input from interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register, or from representatives of public authorities of third countries, including their diplomatic missions and embassies, to be listed in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

INFORMATION ON ADOPTION BY THE COMMITTEE ASKED FOR OPINION

Date adopted5.2.2026
Result of final vote+: –: 0:26 9 0