Governance and citizenship

The European Parliament and the German Presidency of the EU Council have agreed a compromise on the conditionality of EU funds. In short, the European Union will be able to cut funding to any government – local, regional or national – found to be violating European values, such as respect for the rule of law and minority rights.

Significantly, the cuts will not affect final beneficiaries, but only the government concerned. If the EU blocks funding to a national government for example, the country's students, farmers, municipalities and regions would still be able to benefit from funds. Local and regional governments have long advocated for such a measure.

Under the new procedure, the funds will be cut on a proposal of the European Commission approved by a qualified majority of national governments in the Council. In the past, a single national government could veto such measures. The compromise must now be adopted formally by the Parliament and national ministers in Council.