‘Budget Conditionality Judgments – A Virtuous Circle of Solidarity to Overcome Moral Hazard?’

The twin judgments in Budget Conditionality link the EU budget with solidarity, mutual trust and the effective implementation of EU law, marking a significant evolution in EU principles. These judgments elevate solidarity to a foundational stage in the EU's development. This article argues that solidarity is now being interpreted by the Court of Justice of the European Union (CJEU) as a practical tool to counter moral hazard and integrate solidarity into the EU legal cornerstones. The CJEU is operationalizing technically solidarity from a vague concept to one with concrete implications for EU public finances, linking it directly with the budget, rule of law and mutual trust among Member States. By doing so, the CJEU is making solidarity a central element of the EU legal order, transforming the discourse from financial allocations to a broader focus on shared responsibilities and compliance with EU law, thus reinforcing the EU’s foundational values of peace, democracy and the rule of law.