The institutional architecture of the EU has shifted on several fronts in recent days. Key developments include a landmark ruling by the Court of Justice against Hungary, the consolidation of the 2026 budget, and the drafting of a joint declaration locking in legislative priorities for the year. Against this backdrop, the institutions are displaying strong unity around competitiveness, budgetary discipline, and defence at the risk of relegating social rights and democracy to the background. Explore our previous analyses in the European Institutions section of Europe à Contre-Courant.
CJEU v. Hungary: a reminder of the EU’s external competence
On 27 January 2026, the Court of Justice of the European Union (CJEU) handed down a highly political ruling in Case C‑271/23 (Commission v Hungary, on the rescheduling of cannabis). In November 2020, EU governments adopted a common position for a UN vote on cannabis, deciding to support a rescheduling that kept cannabis among controlled drugs but removed it from the most restrictive category (those considered to have no medical value).
In practical terms, this means the EU is not advocating widespread cannabis legalisation but officially recognises its therapeutic uses, seeking to facilitate research and access to specific treatments. The objective is to strike a balance: remaining firm against trafficking and non‑medical use while allowing health systems to use cannabis as a medical tool when beneficial to patients.
In its judgment, delivered by the Grand Chamber, the Court found that Hungary failed to fulfil its obligations by:
- Violating the Council decision establishing the common position on cannabis.
- Encroaching on the Union’s exclusive external competence in drug policy, since UN decisions directly affect the application of EU law.
- Infringing the principle of sincere cooperation laid down in Article 4(3) TEU.
The official press release summarises the Court’s approach: a member state cannot “take the law into its own hands” by invoking the alleged illegality of a Council decision to justify breaching it on the international stage. This is a stark reminder that once a common position is adopted, member states must defend it, even if they criticise it politically.
Politically, this ruling adds fuel to the recurring dispute between the Commission and Budapest. It strengthens the arguments of those particularly in Parliament and in certain Central European capitals calling for swifter financial sanctions in cases of repeated rule‑of‑law violations, while also highlighting the limits of the current system: the CJEU can condemn, but compliance still depends on a Hungarian government that uses its confrontation with Brussels as a source of domestic legitimacy.
2026 budget: a tight compromise that shapes the year
The budgetary framework for 2026 is now set. On 26 November 2025, European Parliament President Roberta Metsola signed the annual budget following a mid‑November agreement with the Council. The final figures are:
- €192.77 billion in commitments.
- €190.1 billion in payments.
This level is lower than the Commission’s initial proposal (€193.26 billion in commitments) and leaves a narrow margin of €715.7 million below the ceiling of the 2021–2027 Multiannual Financial Framework (MFF). While priority programmes such as research, border management, environment, youth, civil protection and humanitarian aid received targeted increases of roughly €372.7 million, the overall situation remains tight, leaving very little room for new initiatives or for responding to unforeseen social shocks.
The budget also earmarks substantial resources for the Ukraine Facility and the European Solidarity Reserve, increasing pressure on social policies, climate action, and public services. For more vulnerable member states in Central and Southern Europe, this implies a need to “do more with less” under the supervision of the European Semester and EU deficit procedures.
Legislative priorities for 2026: a highly political joint statement
On 18 December 2025, the presidents of Parliament, the Council, and the Commission signed a Joint Declaration on legislative priorities for 2026. The text identifies ten major areas meant to respond to the “challenges of complexity and speed” confronting the EU.
According to the European Parliament and media such as The European Sting and EUobserver, these priorities centre on:
- A “new era” for European defence and security.
- Competitiveness and regulatory simplification.
- Sustainable prosperity and adaptation of the Green Deal.
- Strengthening the “European social model” and quality of life.
- A comprehensive approach to borders and migration.
- Protecting democracy against interference and disinformation.
In practice, the list of priority files clearly favours industry and security, with a focus on an “automotive package”, a Critical Medicines Act, capital market integration, the defence and security “omnibuses”, and the deepening of financial markets. For trade unions and climate activists, the absence of specific priorities on labour rights, platform work regulation, or massive investment in public services is a major concern, as these issues appear marginalised by the dominance of competitiveness and budgetary discipline.
A highly aligned institutional triangle with limited openness
The current alignment between Parliament, Council, and Commission is striking. The 2026 budget, the joint declaration on priorities, and the CJEU’s case law form a coherent triangle:
- Budgetary discipline with minimal scope for new social policies.
- Legislative priorities centred on defence, competitiveness, and “simplification”.
- Increased EU control over member states’ international conduct (as illustrated by Case C‑271/23).
Legal experts such as Jacob Öberg note that the ruling against Hungary serves as a political reminder: EU unity on the international stage is treated as a precondition for influence, leaving less tolerance for national dissent—but not necessarily greater openness to internal social demands.
For trade unions, NGOs, and civil‑rights groups, the message is clear: legally, the EU is prepared to go very far to enforce its decisions; budgetarily, the room for social expansion is limited; and legislatively, the agenda is dominated by security and industry. To shift this agenda, progressive movements will need to exert strong pressure and make strategic use of existing toolssuch as CJEU and ECHR rulings to challenge policies that depart from Europe’s social and democratic consensus.
Sources
- CJEU – Press release No 8/26, ‘Judgment of the Court in Case C‑271/23 Commission v Hungary (Rescheduling of cannabis)’ (27 January 2026).
https://curia.europa.eu/site/upload/docs/application/pdf/2026-01/cp260008en.pdf - CJEU – Case C‑271/23, summary and explanatory video.
https://curia.europa.eu/site/jcms/1241152_EmbedVideo/en/judgment-commission-v-hungary-explained-c-271/23 - Doctrine.fr – “CJEU, No. C-271/23, Judgment of the Court, European Commission v. Hungary” (27 January 2026).
https://www.doctrine.fr/d/CJUE/2026/CJUE62023CJ0271 - Agenparl – Reproduction of the CJEU press release “Press Release No 8/26: Judgment of the Court in Case C‑271/23 – Commission v Hungary” (27 January 2026).
https://agenparl.eu/2026/01/27/press-release-8-26-judgment-of-the-court-in-case-c-271-23-commission-v-hungary-rescheduling-of-cannabis/ - IDPC – “Hungary infringed EU law by voting against the Council’s common position on cannabis at the UN” (26 January 2026).
https://idpc.net/news/2026/01/eu-court-confirms-that-eu-member-states-must-comply-with-common-positions-in-un-drug-policy - EU Law Live – “Court of Justice finds Hungary in violation of EU law obligations by departing from Union’s position on amended scheduling of cannabis” (26 January 2026).
- Jacob Öberg – LinkedIn analysis of judgment C‑271/23 (27 January 2026).
https://www.linkedin.com/posts/jacob-%C3%B6berg-b5baaa6_externalcompetence-hungary-exclusive-activity-7422166117013532672-22el - European Parliament – Research Service, ‘The European Union’s 2026 Budget’ (27 October 2025).
https://epthinktank.eu/2025/10/28/the-european-unions-2026-budget/ - ERA.gv.at – “EP adopts EU budget for 2026” (25 November 2025).
https://era.gv.at/news-items/ep-adopts-eu-budget-for-2026/ - PubAffairs Brussels – “Council gives green light to the EU’s annual budget for 2026” (23 November 2025).
https://www.pubaffairsbruxelles.eu/eu-institution-news/council-gives-green-light-to-the-eus-annual-budget-for-2026/ - European Parliament – “EU institutions define priorities for 2026” (News, 17 December 2025).
https://www.europarl.europa.eu/news/en/press-room/20251215IPR32213/eu-institutions-define-priorities-for-2026 - The European Sting – “EU institutions define priorities for 2026: A Joint Declaration on EU legislative priorities for 2026 was signed today…” (19 December 2025).
https://europeansting.com/2025/12/19/eu-institutions-define-priorities-for-2026-a-joint-declaration-on-eu-legislative-priorities-for-2026-was-signed-today-by-the-european-parliament-council-and-commission/ - CDE Universidad de Almería – “EU legislative priorities for 2026 were signed by the European Parliament, Council and Commission” (18 December 2025).
https://www.cde.ual.es/en/eu-legislative-priorities-for-2026-was-signed-by-the-european-parliament-council-and-commission/ - EUobserver – “Ten EU priorities for 2026 include defence, competitiveness, simplification and budget” (18 December 2025).
https://euobserver.com/eu-political/ar9bd44494
