Milestones and targets

This chapter compares the conditionality provided for in the EU’s Recovery and Resilience Fund (RRF) with that of its cohesion policy. Both the RRF and cohesion funds employ conditionality in the context of spending. Conditionality in these areas currently applies to a majority of the EU budget including funds for agriculture and fisheries that come under cohesion policy, as well as NextGenerationEU (NGEU) funds. The formulation and application of this new type of conditionality under the RRF is examined in relation to the justice systems of three Member States- two at the heart of the rule of law crisis (Hungary and Poland) and one that has been more vigilant in terms of observing the rule of law (Italy). These differing cases are examined in order to give a comprehensive overview of conditionality under the RRF. This chapter argues that if this form of conditionality become a regular and predictable feature of EU economic governance, then there must be serious consideration of the incentives it creates. Conditionality in the context of spending must promote good governance as well as the coordination of economic and fiscal policies across the EU. This chapter further examines how conditionality may be most effective in these varying circumstances and attempts to draw on lessons from EU and non-EU programmes that have employed conditionality. These include the programmes of the IMF, EU bailout programmes, and the EU accession process.