Populism

How do deficits in the rule of law in Hungary affect German companies and the European single market? The study defines 'illiberal economic policies' with which the Hungarian government wants to nationalize strategic sectors.

The toolbox offers ideas for concrete policy measures aiming at a more resilient rule of law in the EU. It draws from the results of a robust data analysis conducted in the RESILIO project.

While the European Commission is the ‘Guardian of the Treaties’, there is also potential for stronger protection of the EU’s fundamental values by its member states. Germany should increase its cooperation with like-minded member states to defend democracy and the rule of law.

Democracy and the rule of law have been eroding in Hungary since 2010. In view of Hungary's tendencies towards autocratization, the policy paper contains recommendations on how the German government should respond bilaterally, multilaterally, and at the EU level.

The new budget conditionality mechanism opens pathways to effectively curbing democratic backsliding in the EU. Making use of its proclaimed "Zeitenwende", Germany should use its leverage and take a more pro-active approach – as in the case of Poland – to defend the rule of law.

Some governments in Central and Eastern Europe are more illiberal than their populations. They support most of the EU’s liberal values. We analyse and explain the origins and conditions of illiberalism in the region.

Illiberal values in Central and Eastern Europe receive less support than some governments might suggest. Their policies often serve mere power interests. Our study provides concrete suggestions for dealing with authoritarian-populist governments in CEE.