Financial Conditionality and Legal Instruments

Abstract

This panel examines the European Union’s increasing reliance on financial conditionality and legal instruments to safeguard the rule of law and protect its financial interests. In response to persistent democratic backsliding and rule-of-law violations in several member states, the EU has expanded its enforcement toolbox beyond political dialogue toward budgetary sanctions, fund suspensions, and legally codified conditionality mechanisms. While these instruments promise greater leverage, they also raise important questions regarding effectiveness, legality, and long-term consequences for EU governance.

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