The conditionality mechanism aims to protect the EU budget from risks linked to breaches of the rule of law by imposing financial measures when budgetary soundness is threatened. Its objective is to ensure compliance with core EU values such as democracy and human rights while maintaining public trust in the Union. So far, the regulation has primarily been applied in Hungary, with limited enforcement in other member states. Political delays and a lack of transparency in its application have undermined the tool’s credibility. Future implementation must be more consistent and free from political interference to enhance its effectiveness.