On 17 July 2026, European Executive Vice-President Henna Virkkunen and Commissioner Michael McGrath presented the seventh annual Rule of Law Report, confirming a broadly positive trajectory with nearly half of 2025's recommendations addressed, while announcing a strengthened media pillar and a series of anti-corruption initiatives to be unveiled before year-end. The report, which covers all 27 Member States and four enlargement countries, is based on hundreds of meetings with national authorities, judicial bodies, civil society, and other stakeholders. Virkkunen stressed that the rule of law is essential for the EU's prosperity, security, and democratic resilience, particularly amid rising political polarisation and external threats. McGrath described the report as an 'early warning system' and a 'regular health check' for Europe, noting that prevention is better than cure.
The report marks the first edition since the European Media Freedom Act (EMFA) began to apply in August 2025. Virkkunen explained that the Commission has adjusted its approach: issues previously covered by rule of law recommendations are now governed by legally binding EMFA provisions, so the report will no longer issue recommendations in those areas but will monitor broader trends. She announced that the Commission intends to strengthen the media pillar of the report, systematically tracking how digitalisation and the rise of local news deserts affect media freedom and pluralism. McGrath added that he is determined to make EMFA 'a reality on the ground' through enforcement and continued cooperation with Member States and stakeholders.
A key development is the strengthened link between the Rule of Law Report and EU funding, embedded in the Commission's proposal for the next Multiannual Financial Framework (MFF). Virkkunen stated that the report will be an important element in assessing Member States' compliance with rule of law and fundamental rights safeguards in national and regional partnership plans, and that recommendations have been made more targeted and operational to help identify reforms and investments eligible for EU funds. However, she emphasised that there will be 'no automaticity' between a rule of law recommendation and access to EU funds. McGrath echoed President von der Leyen's position that the rule of law is a must for EU funds.
McGrath also outlined a forthcoming package of anti-corruption measures to be presented before the end of 2026: a review of the EU's Anti-Fraud Architecture, an EU Anti-Corruption Strategy, and the strengthening of the European Public Prosecutor's Office (EPPO) following its evaluation and the third report on the PIF Directive. These initiatives aim to bolster the rule of law further, building on the report's findings. McGrath highlighted positive examples from Member States, including Bulgaria's reform to prevent political influence in the Supreme Judicial Council, Hungary's new transparency and anti-corruption laws, and Romania's lobbying registration requirement.
The report's findings show that 47% of the 2025 recommendations have been fully or partially addressed, though progress remains uneven across Member States and pillars. Virkkunen noted that reforms are often slower than expected, and challenges persist. The report continues to cover four pillars: justice systems, anti-corruption frameworks, media pluralism and freedom, and other institutional checks and balances. McGrath stressed that the rule of law is tangible in daily life, ensuring equal treatment, accountability, and transparency, and that its absence is keenly felt, as he witnessed during his visit to Budapest following the elections.
For EU citizens, the report and associated initiatives promise stronger protection of rights, greater transparency, and reduced corruption, but may also lead to stricter conditions on EU funding for Member States. National authorities face pressure to implement reforms more quickly, with potential delays due to legislative or electoral cycles. Media organisations and journalists stand to benefit from enhanced protections under EMFA and the strengthened media pillar, though smaller outlets in news deserts may require additional support. Businesses and investors gain from improved legal certainty and a level playing field across the Single Market, but may face new compliance costs related to anti-corruption measures and transparency requirements. The overall impact is moderate, as the report is primarily a monitoring and preventive tool, with concrete legislative follow-up expected later this year.