THE STATE OF THE EUROPEAN UNION Towards a new legislative term

37 Introduction On 5 July 2023, the Commission adopted its 4th Annual Report on the Rule of Law in the European Union. The report starts by identifying the rule of law as a central political, economic and institutional vector of the EU’s action and its legitimacy with respect to its citizens: “The rule of law stands alongside democracy and fundamental rights as founding values of the Union. It is common to all Member States and a bedrock of the Union’s identity. It is a core factor in Europe’s political stability and economic prosperity. In recent years, these founding values have come under attack around the world, testing the resilience of the EU and its Member States. The Russian war of aggression against Ukraine serves as a tragic reminder that these values can never be taken for granted. Constant proactive action is need- ed to safeguard these values and protect European soci- ety in the face of evolving challenges.” 1 In other words, this is not an annual evaluation rit- ual but instead goes to the very core of the future and survival of the EU. The Annual Rule of Law Mechanism should be seen as a requirement of constitutionality, one that is essential to the adequate operation of the 1 COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SO- CIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS: “2023 Rule of Law Report”. COM(2023) 800 final. internal market and the economic prosperity of the EU. It should establish parameters which go beyond peer evaluation and the “name and shame” method, and be binding on Member States. It is not just about promot- ing the EU’s values and, in particular, respect for the rule of law, but is also about providing a framework for re- specting and applying the rule of law, through specific mechanisms at the service of the EU and its institutions. In my chapter in the Report on the State of the Eu- ropean Union 2022, published by Fundación Alternati- vas and the Friedrich Ebert Stiftung, I offered a general analysis of the situation and of the mechanisms at the EU’s disposal to defend its values and, in particular, to ensure respect for the rule of law. I would therefore like to focus this chapter on three aspects which I identified as essential last year. (The toolbox available to the EU in this area is described in more detail in last year’s report.) I concluded my chapter of last year’s report by stat- ing that, “2022 can be considered the starting point for a much more proactive policy with more appropri- ate instruments to defend the rule of law resolutely and coherently in the EU. In this respect, three developments in the institu- tional life of the EU must be the elements that mark this change of course in 2022: – The implications of the judgment pending from the Court of Justice on Case 204/21, Commission/Poland. Situation of the Rule of Law in the European Union. The Annual Mechanism Francisco Fonseca Morillo