From Collateral Damage to Protective Shield: Safeguarding Final Beneficiaries of EU Funding in Rule of Law Spending Conditionality Processes

Regulation (EU, Euratom) 2020/2092 establishes a general regime of spending conditionality aimed at addressing breaches of the principles of the rule of law that seriously affect or risk affecting the EU’s financial interests. To date, academic literature has extensively examined the complexities of the adoption process, analyzed procedural details, reviewed its sole application against Hungary, and questioned the effectiveness of financial suspensions in restoring the protection of the EU budget and compliance with the rule of law. However, a central issue remains largely unaddressed: the safeguarding of the final beneficiaries of EU funding. While the obligation to protect these beneficiaries is explicitly stated in the regulation, the EU appears ill-equipped to manage situations where a government refuses to respect the rights of its nationals. This paper aims to fill this gap in the literature on rule of law spending conditionality. First, it clarifies the legal obligations of national authorities toward their constituents. Second, it examines the instruments available to the EU in cases where a government fails to fulfill its responsibilities. Third, it explores potential avenues that have been proposed to overcome these challenges. In empirical terms, this analysis relies on the case study of the application of Regulation 2020/2092 against Hungary.