EU Conditionality Regulation and Neighbourhood Policies

The EU Conditionality Regulation

The Conditionality Regulation is a mechanism created by the EU to protect the rule of law by linking EU funding to respect for democratic standards and proper management of the EU budget. Under this mechanism, the EU can suspend or reduce financial support when rule of law violations threaten the use of EU funds.

The regulation became particularly important because Article 7 TEU proved politically difficult to use effectively, mainly due to the unanimity requirement for sanctions. The Conditionality Regulation is considered more effective because financial pressure is often stronger than political criticism. Hungary became one of the main examples of the use of this mechanism because of concerns regarding corruption, judicial independence, and the rule of law. In conclusion, the Conditionality Regulation represents a more pragmatic and financially based approach to defending EU values and the rule of law.

ENP Differentiation

ENP Differentiation in the European Neighbourhood Policy (ENP) refers to the idea that neighbouring countries cannot all be treated in the same way because they have different political ambitions, economic situations, and geopolitical positions. Originally, the ENP aimed to create a “ring of friends” around the EU through cooperation, stability, and economic integration. However, the EU later realised that countries such as Ukraine, Morocco, Azerbaijan, and Israel had very different relationships with the Union.

As a result, the EU adopted a more flexible and differentiated approach based on bilateral cooperation:

• Eastern Neighbourhood: Increasingly connected to enlargement and possible EU membership, especially for Ukraine, Moldova, and Georgia.
• Southern Neighbourhood: Focused more on partnership, migration, trade, and regional stability rather than accession.

In conclusion, differentiation allowed the EU to adapt its neighbourhood policy to the very different realities and ambitions of neighbouring countries.

The Eastern Partnership (EaP)

The Eastern Partnership (EaP) is a framework created by the European Union in 2009 to strengthen relations with six Eastern European neighbours: Ukraine, Moldova, Georgia, Armenia, Azerbaijan, and Belarus. It forms part of the European Neighbourhood Policy (ENP).

The EaP combines both bilateral and multilateral cooperation:

• Bilaterally: The EU develops individual relations with each country depending on its ambitions and reforms.
• Multilaterally: The six countries cooperate together with the EU in regional meetings and common projects involving areas such as trade, infrastructure, energy, and governance.

One of the key ideas behind the EaP is differentiation. The EU realised that Eastern neighbours are very different politically and geopolitically, so they cannot all be treated equally. Ukraine, Moldova, and Georgia became the most pro-European countries and moved closer towards EU integration and possible accession. In contrast, Azerbaijan focused more on energy and sovereignty, while relations with Belarus became limited because of authoritarianism under Lukashenko.

The EaP also became increasingly geopolitical, especially after the deterioration of EU-Russia relations following the annexation of Crimea in 2014 and the invasion of Ukraine in 2022. Russia viewed growing EU influence in Eastern Europe as a geopolitical threat. In conclusion, the Eastern Partnership reflects the EU’s attempt to promote stability, cooperation, and European integration in Eastern Europe through a flexible and differentiated approach.