The European Union is founded on values, including democracy, the rule of law and respect for fundamental rights, laid down in Article 2 TEU. Those values are common to all Member States and a precondition for a well-functioning Union based on mutual trust. In recent years, events in some Member States revealed systemic threats to the rule of law. A lack of coherent and effective action to protect those values revealed need for a new and more effective EU mechanism. The Parliament is due to vote during the October II plenary session on a legislative-initiative report to create an interinstitutional 'Pact on democracy, the rule of law and fundamental rights'.