To expand its toolbox in the rule of law crisis, the EU is increasingly relying on budgetary conditionality. These new instruments for defending EU values combine political and economic powers to create a potent lever applying pressure on Member States which show illiberal features. Under these instruments, funds of up to around €110 billion for Poland and around €28 billion for Hungary have been frozen, specific reform objectives have been set and funds have been at least partially released.
The study will investigate the various instruments by analysing how the Commission and the Council operationalise these instruments and reveal the underlying understandings. Thus, the PhD project applies an inductive approach. On that basis, this dissertation will show a potential shift in the federal balance of the EU.