The European Commission’s bid to tie EU cash to rule of law reforms sparked fireworks as Hungarian and Polish MEPs tore into the bloc’s ‘political weaponisation‘ of funds. Critics accused Brussels of hypocrisy as cash-for-ethics rumours swirled about unfreezing €600m for Hungary in exchange for backing Russia sanctions.

Michael McGrath, Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection, informed on Tuesday, 23 September, the MEPs of the 2025 Rule of Law Report. Hungary was the most frequent target of criticism for alleged breaches of the rule of law principle; it was also conditionality’s most fervent opponent.

Serious obstacles remain

Mr McGrath noted that although the situation had improved in some member states compared with the previous year, significant obstacles remained. He also stressed that upholding the rule of law remains a priority for the Commission.

“We will go further in the framework of MFF 20282034 to ensure that the rule of law will be firmly linked to the use of EU funds (…) If such conditions are not respected, parts of funds may be suspended at any time,” Mr McGrath declared.

The Commissioner noted that according to the 2025 Rule of Law Report there has been a positive trajectory in many member states and important reforms have seen implementation. However, he did not spare his criticism either. “In some EU countries the situation as regards rule of law has further deteriorated,” he said. Problems with the independence of the judiciary and freedom of the media then earned his particular focus.

Storm of dissaproval

Commissioner McGrath did not explicitly name any problematic member state in his speech. Nevertheless, in the ensuing debate, critical and even aggressive comments were present, particularly from Hungarian, Polish, and Slovak MEPs. These are the countries to which the 2025 Rule of Law Report is particularly critical.

We will go further in the framework of MFF 2028–2034 to ensure that the rule of law will be firmly linked to the use of EU funds. Michael McGrath, Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection

MEP Mariusz Kaminski (ECR/POL) voiced his “outrage and disgust” with the 2025 Rule of Law Report. “I did not find a single sense of objectivity,” Mr Kaminski said. Even tougher was MEP András László (Pfe/HUN). In his short, yet combative speech he called the conditionality (extending the link between rule of law and EU funds) “a death sentence for the EU”. He also accused the Commission of political weaponisation of this principle.

What next with frozen funds?

Some MEPs, particularly from Western European countries, questioned Commissioner McGrath about speculation regarding the possible release of some of the frozen EU funds for Hungary. Funds amounting to approximately €600m allegedly just might find their way to Budapest in exchange for Hungary’s agreement to a further package of sanctions against Russia.

Commissioner McGrath replied that the Commission was yet to take such a decision, but did not explicitly rule it out.

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