In December 2020, the European Parliament and the Council adopted a new piece of legislation aimed at protecting the rule of law in the Member States of the Union – the so-called rule of law Conditionality Regulation. This contribution tracks the legislative process in the run-up to the new Regulation, analyses the substance and the procedure, and provides an outlook onto the future application and its obstacles. Finally, and by placing a particular emphasize on the Conclusions of the European Council in December 2020, this contribution inquires whether the European Council exceeded its remit by giving the European Commission precise instructions regarding the application of the new Regulation.