Filenews 15 July 2023
Five letters of reasoned opinion on issues related to recognition of professional qualifications, restrictions on construction and real estate services, consumer protection, accessibility of products and services by persons with disabilities and tax transparency rules are contained in the European Commission's July infringements package announced today.
The reasoned opinion letters are the last step before the Commission is called upon to consider referring a country to the Court of Justice of the EU for breaching the acquis communautaire or failing to implement EU law. As part of the same package, the Commission announced the referral of Cyprus to the CJEU on issues related to the recognition of professional qualifications of engineers and architects, on which CNA published a separate news.
The package also contains two letters of formal notice for Cyprus, concerning the first stage of an infringement procedure concerning money laundering and air traffic management.
The procedures concerning Cyprus as recorded in the July infringements package are as follows:
– Recognition of professional qualifications
The European Commission has decided to open the infringement procedure by sending a letter of formal notice to Germany and sent reasoned opinions to Cyprus (INFR(2018)2165), Belgium and Romania for incorrect transposition of Directive 2005/36/EC on professional qualifications into national law.
The Cyprus case concerns the obligation to reside in Cyprus imposed on lawyers wishing to provide their services there, although residence requirements are prohibited under EU rules.
Belgium, Germany, Cyprus and Romania now have two months to reply to the arguments raised by the Commission. otherwise, the Commission may send a reasoned opinion to Germany and refer Belgium, Cyprus and Romania to the CJEU.
– Restrictions on construction and real estate services
The European Commission has also decided to open infringement proceedings by sending a letter of formal notice to Spain for failing to comply with EU rules on services and professional qualifications for the construction sector.
At the same time, the Commission has decided to send a reasoned opinion to Cyprus (INFR(2022)2170) for incorrectly transposing the Services Directive by imposing restrictions that determine who can hold shares in real estate intermediation companies. The Commission has also decided to send a reasoned opinion to Slovenia for failing to address issues relating to the statutory setting of fees for real estate offices.
Cyprus, Spain and Slovenia now have two months to reply to the arguments raised by the Commission. otherwise, the Commission may decide to send a reasoned opinion to Spain and refer Cyprus and Slovenia to the Court of Justice of the European Union.
– Consumer protection
The Commission has also decided to send a reasoned opinion to Cyprus (INFR(2023)0005) as well as to Estonia, Ireland, Latvia, Luxembourg and Poland for failing to transpose EU rules laid down in the Representative Actions Directive (Directive (EU) 2020/1828).
The Directive requires Member States to allow designated consumer organisations and public bodies to bring actions against traders' illegal practices on behalf of consumers. Consumers harmed by an illegal commercial practice can seek redress, such as compensation, replacement or repair.
In January 2023, the Commission sent a letter of formal notice to 24 Member States for failing to notify national measures fully transposing the Directive by the deadline of 25 December 2022. After correspondence with these Member States and after carefully examining their replies, the Commission concluded that Estonia, Ireland, Cyprus, Latvia, Luxembourg and Poland did not provide satisfactory information on their transposition measures.
These six Member States now have two months to address the shortcomings identified by the Commission. In the absence of a satisfactory reply, the Commission may decide to refer them to the Court of Justice of the European Union.
– Accessibility of products and services by persons with disabilities
Cyprus also received a reasoned opinion (INFR(2022)0291), together with Bulgaria [INFR(2022)0290], Ireland [INFR(2022)0309], the Netherlands [INFR(2022)0315] and Poland [INFR(2022)0317], for failing to transpose EU rules on accessibility of products and services by persons with disabilities (Directive (EU) 2019/882).
The European Accessibility Act requires essential products and services, such as telephones, computers, e-books, banking services and electronic communications, to be accessible to persons with disabilities.
Businesses and services must ensure compliance with a set of common EU accessibility requirements by 2025.
In July 2022, the Commission sent a letter of formal notice to 24 Member States, and in April 2023 to three other Member States, for failing to communicate measures to fully transpose the Directive.
Today, the Commission decided to send a reasoned opinion to Bulgaria, Ireland, the Netherlands and Poland for failing to communicate their transposition measures. These five Member States now have two months to reply and take the necessary measures. otherwise, the Commission may decide to refer them to the Court of Justice of the European Union.
– Rules on tax transparency
The Commission has further decided to send a reasoned opinion to Cyprus (INFR(2023)0006), Belgium, Greece, Spain, Poland and Portugal for failing to communicate national measures transposing Council Directive (EU) 2021/514 of 22 March 2021 ("DAC7") amending Directive 2011/16/EU on administrative cooperation in the field of taxation.
Under DAC7, digital platforms, such as websites and mobile applications, that allow taxpayers to sell goods, provide online and offline personal services, or rent real estate or means of transport, must report these taxpayers and their economic activities. This information will help tax authorities to prevent, through the use of digital platforms, tax evasion or incorrect reporting.
The deadline for notifying national transposition measures was 31 December 2022. Belgium, Greece, Spain, Cyprus, Poland and Portugal have two months to reply and take the necessary measures. In the absence of full notification of all national transposition measures, the Commission may decide to refer these cases to the Court of Justice of the European Union.
– Money laundering
As regards the new procedures, the Commission has decided to open the infringement procedure by sending a letter of formal notice to Cyprus (INFR(2023)2063) for incorrect implementation of the 5th Anti-Money Laundering Directive (Directive (EU) 2018/843).
Cyprus had notified full transposition of the Directive, but the Commission identified several cases of incorrect transposition, mainly concerning the functioning of the national beneficial ownership register (the register indicating who has beneficial ownership of the assets concerned).
For example, Cyprus has suspended sanctions if incorrect information is included, has not notified enforcement measures to guarantee the completeness of the register and has not yet established a register of beneficial owners.
Anti-money laundering rules are key to the fight against money laundering and terrorist financing. Legislative gaps in one Member State have an impact on the EU as a whole. Moreover, with regard to sanctions imposed by the EU following Russia's invasion of Ukraine, it is imperative to identify the beneficial owners of sanctioned companies.
If Cyprus does not reply satisfactorily within two months, the Commission may decide to send a reasoned opinion.
– Air traffic management
Finally, the Commission has decided to open the infringement procedure by sending a letter of formal notice to Cyprus (INFR(2023)2046) as well as to Czechia, Denmark, Germany, Estonia, Ireland, Greece, Croatia, Italy, Lithuania, Hungary, the Netherlands, Portugal, Slovenia, Slovakia, Finland and Sweden for failing to ensure that their operational stakeholders comply with certain requirements of the Commission Implementing Regulation (EU) 2021/116 designating the first joint project supporting the implementation of the European Air Traffic Management Master Plan.
The project ensures the synchronised implementation of different procedures and technical solutions, which is essential for good air traffic management across the Single European Sky network.
Some stakeholders in those Member States have not yet implemented some of these procedures, for which the implementation deadline was set at 31 December 2022. The Commission therefore considers that these Member States have failed to ensure that their operational stakeholders comply with the requirements of the Joint Project Regulation.
The Commission is therefore sending a letter of formal notice to the Member States concerned, which now have two months to reply and correct the shortcomings identified by the Commission. In the absence of a satisfactory reply, the Commission may decide to send a reasoned opinion.
