Illiberalism’s Challenge to the European Single Market

The erosion of the rule of law in some EU Member States undermines the single market. In a new policy brief for the FES EU Office, York Albrecht uses Hungary and Poland as case studies and puts forward concrete proposals on how the rule of law can be protected more effectively at the EU level, thereby strengthening the single market.

Among his recommendations:

1. The Commission should use infringement proceedings more assertively, especially concerning the use of Article 114 TFEU. Stronger enforcement of competition rules can contribute to countering illiberal monopolisation of political and economic power. This requires breaking down administrative silos between departments of the European Institutions to improve coordination, monitoring and enforcement.

    

2. Rule-of-law conditionality is the EU’s strongest instrument to address illiberalism. A stronger link of rule-of-law reforms with the EU budget is a step in the right direction but requires consistency, transparency and accountability on the side of the Commission. Council decision-making on rule-of-law conditionality should shift to reversed qualified majority voting to prevent political blockades, while the disbursement of frozen funds should be tied to the implementation of reforms rather than political bargaining.

Lessons learned for the next Multiannual Financial Framework

In light of the ongoing negotiations for the next EU Budget, there is a crucial window of opportunity to strengthen the rule of law and the single market against future challenges. 

Find further recommendations how to achieve this in the policy brief below.