The European Semester is an economic governance tool that the European Union (EU) uses to monitor and coordinate national policies, but it has also evolved into a mechanism to address rule-of-law risks in Member States. By linking financial support to reforms, particularly through the Recovery and Resilience Facility (RRF), the Semester helps enforce rule-of-law standards and represents an innovative approach to safeguarding EU values. However, this process raises concerns about democratic accountability, and it overlooks broader societal concerns.

The Covid-19 crisis provided an opportunity for the European Union to offer an alternative regulatory response to the crisis of values by systemically linking European funding to respect for the rule of law. A rule of law conditionality mechanism for spending was introduced in the Recovery and Resilience Facility and in Regulation 2020/2092. It is both positive – in that it encourages Member States to implement reforms and investments aimed at improving the rule of law – and negative – in that it takes the form of financial sanctions. However, the development of the rule of law conditionality is leading to an economisation of the concept of the rule of law, insofar as it mainly concerns those dimensions of the rule of law that are conducive to growth – such as justice systems and the fight against corruption. As a result, it could paradoxically exacerbate the very crisis it is designed to resolve.