The court ruled that the conditionality mechanism was established on the basis of an appropriate legal basis and (here it is important) respects the limits of the powers conferred on the Union and the rule of law.
We will see the consequences of this decision the next years. The court introduces a precedent unprecedented: the rule of law is a prerequisite for financial prosperity and sound financial management.
In other words, the European Union is not a simple ATM and the court comes with its decision to strengthen the coherence of the EU internal market. The rules are common to all and must be respected by all, so that the internal market can to work for the benefit of Europeans.
The Court, in the reasoning of its judgment, “recalls that respect for the common values established and mutually endorsed by the Member States on which the Union is based – which define the very identity of the Union as a common legal order in those States – including the values of the rule of law and solidarity, justifies mutual trust between Member States. “As such respect is a condition for the exercise of all the rights deriving from the application of the Treaties in a Member State, the Union must be able to defend, within the limits of its competence, those values.” The Community budget is the most practical act of solidarity between the Member States. But solidarity also implies responsibility.
In Cyprus, the rule of law issues are high in the public debate. The European Commission's report on the rule of law identifies shortcomings that Cyprus is facing to a significant extent in its anti-corruption legislation. An important problem is the slow pace of justice, while there are also issues with freedom of the press. The report, for example, raises questions about the independence of the Broadcasting Authority.
The ruling of the European Court of Justice comes at a time when the demand for transparency is gaining ground in Cypriot society. The EU is now an ally of the citizens, with the European Court of Justice providing the Commission with the legal basis to enforce the rule of law. This is an important development in the choice of legal basis, comparable to the rulings of the US Supreme Court, which issued a series of rulings on the elimination of racial discrimination, based on the protection of interstate trade.
