On Tuesday, 8 July, the European Commission released its 2025 Rule of Law Report, a comprehensive check on the democratic foundations of the 27 Member States and four candidate countries. The report, the first of the Commission’s new mandate, underscores the vital link between the rule of law and Europe’s collective democracy, security, and economic prosperity. Interestingly, it includes, for the first time, a single market dimension. Moreover, it reveals a positive, although uneven, trajectory of reform across the Union, celebrating significant progress in some nations while flagging serious, persistent concerns in others, confirming that a robust rule of law is essential for upholding the Union’s values.
Justice and Anti-Corruption efforts
At its core, the rule of law ensures that no one is above the law, a principle upheld by independent and efficient justice systems. The 2025 report shows that many Member States have made commendable strides in this area. Reforms have been advanced to strengthen the independence of judicial councils, guarantee the autonomy of prosecutors, and improve the overall quality and efficiency of justice.
However, the picture is not uniform. In some countries, such as in Hungary, the pace of reform has been sluggish, and serious concerns remain. These challenges often stem from political pressure on the judiciary and insufficient resources, which can strain justice systems and hinder their effectiveness.
Similarly, the fight against corruption remains a critical battleground for preserving public trust. As Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection, Michael McGrath, stated, “The European Union stands for legal certainty — and with that comes economic stability and prosperity… The rule of law is not only vital for democracy and security, but also for our economy. This is our competitive edge.”
Encouragingly, several nations have bolstered their anti-corruption frameworks, launched new strategies and dedicated more resources to prosecution services. Yet, the report calls for more robust preventive measures, particularly concerning lobbying, conflicts of interest, and ensuring that high-level corruption cases are effectively prosecuted and judged.
Media freedom and institutional checks
The Commission acknowledges that a vibrant democracy cannot function without a free and pluralistic media, which holds power to account. The report highlights positive developments, with Member States beginning to align their national laws with the new European Media Freedom Act (EMFA). Many countries are also taking steps to ensure public service media is funded fairly and that the allocation of state advertising is transparent, reducing the risk of political influence.
Despite these advances, threats to journalists persist, and the report stresses the urgent need to improve their safety. In some Member States, the independence of media regulators and public service broadcasters remains a point of concern, alongside opaque media ownership structures.
Beyond the media, the report examines the broader system of institutional checks and balances that underpin a healthy democracy. This includes ensuring that new laws are drafted with proper consultation and that civil society organisations can operate freely. While many Member States have an enabling environment for these organisations, others have imposed obstacles, such as restrictive funding requirements. In a few Member States, the situation for civil society is particularly challenging, with organisations facing undue restrictions and inadequate protection, limiting their crucial role in public life.
Single Market dimension
This year’s report places a special emphasis on a crucial, but often overlooked, aspect of the rule of law: its direct impact on the EU’s Single Market. A stable and predictable legal environment is the bedrock upon which businesses, particularly small and medium-sized enterprises, build their plans and make investments. The report details how these principles translate into tangible economic benefits, from specialised courts that handle commercial cases efficiently to robust anti-corruption measures that ensure fairness in public procurement. A stable regulatory environment, free from sudden and unpredictable changes, is essential for businesses to thrive and for the Single Market to function effectively.
Conclusions
The report’s findings confirm that respect for the rule of law is not an abstract ideal but a practical necessity for the functioning of the Single Market, attracting investment, and creating a stable environment for businesses and citizens alike.
The Commission has issued specific recommendations to each Member State and will closely monitor their implementation. The coming year will see a renewed focus on ensuring that EU funds are tied to compliance with the rule of law. The Commission now calls on the European Parliament, the Council, national parliaments, and civil society to engage in robust debates based on the report’s findings. The key takeaway is clear: upholding the rule of law is a collective effort, essential for securing a democratic, secure, and prosperous future for the entire European Union.
