The rule of law is also very much about the economy!

The rule of law crisis in the EU is deepening. It has become highly politicised and has triggered legal disputes that undermine the very foundations of the European Union. While the political and legal aspects of the rule of law debate are very much present in public discourse, the economic angle remains underestimated. This is a mistake, in my opinion, as social and economic stability is highly impacted by the rule of law.

Respect for the rule of law spurs growth by attracting investors, who value safety, security and transparency. Investors also appreciate the stable conditions offered by just and ethical governments, as well as a fair and independent judiciary. Respect for the rule of law is therefore essential for investment and trade.

Personally, I believe that the rule of law principle should play a stronger role in the internal market. We cannot have fair competition if discriminatory measures (such as additional bureaucracy and taxes that apply only to foreign investors) are in place in a growing number of EU countries. Certain rights, such as the right to property and freedom to conduct business, must be better enforced.

The economic aspect of the rule of law is especially visible when it comes to enlargement. For candidate and potential candidate countries, the prospect of EU accession is the greatest incentive to conduct economic reforms and strengthen the rule of law. The EU must set an example so that these countries stay on the path to accession and continue to develop their democracies in the European style. This is especially important now, when other countries are stepping up their attempts to gain influence, for example, in the Western Balkans.

These are just a few of the reasons why monitoring the economic aspects of the rule of law must be intensified. We need to put the economic dimension of the rule of aw into greater focus. This is a role for us – the EESC  – during our on-going fact-finding missions on the rule of law. Personally, I would very much encourage the European Commission to include a separate chapter in its 2022 Rule of Law report focusing on the economic dimension. The topic is certainly worth long-term reflection and investment.

Christa Schweng
EESC President