Exploring the EU’s response to the COVID-19 and Rule of Law crises through functional spill-over

Through the framework of functional spill-over, this study examines the positions taken by the EU27 member states on two key issues in the negotiations of the European Union budget package of 2020. The two issues are the constitution of generalised deficiencies in the Rule of Law Conditionality regulation, and whether the Recovery and Resilience Facility would provide financial assistance in the form of loans or grants. First, our analysis shows that functional spill-over was present in the policy preferences of all of the EU27 – including in the positions of the member states that were opposed to the regulations. Second, our analysis highlights the nuances of the policy preferences of all member states and coalitions within the Council. These findings offer insights into intra-Council negotiations on matters related to the provision of financial assistance at the EU level, and the Union’s attempts to address Rule of Law backsliding.