Beneficiary Member States must uphold rule-of-law principles throughout Modernisation Fund implementation; breaches affecting sound financial management can trigger suspension of disbursement decisions or of already-adopted disbursements.

Beneficiary Member States receiving Modernisation Fund support must comply, and this is not law yet.

Why it matters

This is a Commission proposal: it is not law yet, and it can change before it is.

It is Art. 1(19), inserting Art. 10da of Directive 2003/87/EC, in the EU ETS revision. as of 2026-08-14
The act gives its timing as: 2031-2040. as of 2026-08-14
It names no industry: it applies across the economy rather than to one of them. as of 2026-08-14
Compliance is checked by competent authority, n/a. as of 2026-08-14

Addressee Beneficiary Member States receiving Modernisation Fund supportAct COM(2026) 616 final, 2026/0212 (COD)Article Art. 1(19), inserting Art. 10da of Directive 2003/87/ECClass Governments

The rule

New — no predecessor

Trigger

breach of rule-of-law principles under Regulation (EU, Euratom) 2020/2092 that affects or seriously risks affecting sound financial management of the Modernisation Fund

Obligation

Beneficiary Member States must uphold rule-of-law principles throughout Modernisation Fund implementation; breaches affecting sound financial management can trigger suspension of disbursement decisions or of already-adopted disbursements.

Who is affected

Addressee

Beneficiary Member States receiving Modernisation Fund support

Class

Governments

Sectors

No sector named — applies by size or activity

Applies

2031-2040

Burden drivers

D6 · D3 — 2 of 7 marks fire on this provision.

Source text

Verbatim

Beneficiary Member States shall ensure the respect of the principles of the rule of law as set out in Article 2, point (a), and Article 3 of Regulation (EU, Euratom) 2020/2092 throughout the implementation of the Modernisation Fund.

View source →