Tuesday, December 17, 2024

EUROPEAN COMMISSION REFERRING CYPRUS AND BULGARIA TO THE COURT OF JUSTICE OF THE EU

 Filenews 16 December 2024



The European Commission is referring Cyprus, as well as Bulgaria, to the Court of Justice of the EU for failing to correctly transpose the Proportionality Test Directive (Directive (EU) 2018/958), which obliges Member States to check the proportionality of new legislative measures regulating professions before they enter into force.

The decision is part of the December regular package of infringement procedures published by the Commission on Monday, and includes two more reasoned opinion letters (one step before referral to the CJEU) in relation to waste treatment and its compliance with the Data Governance Act.

The Commission is also opening a new infringement procedure against Cyprus and other Member States over the Burden Reduction Directive for professionals wishing to provide services on a temporary and occasional basis.

With the regular package of infringement decisions, the European Commission is taking legal action against Member States for failing to comply with their obligations under EU law. The procedure starts with a letter of formal notice, after which it can send a reasoned opinion in case of non-compliance. The last stage is to appeal to the CJEU which can impose sanctions and fines, however many cases are closed with Member State compliance without having to reach that point.

Proportionality Test Directive

The Commission has decided to refer Cyprus (INFR(2022)2055) and Bulgaria to the Court of Justice of the European Union for failing to correctly transpose the Proportionality Test Directive (Directive (EU) 2018/958).

The Proportionality Test Directive obliges Member States to thoroughly assess the proportionality of new national measures regulating professions before adopting them. The Directive also aims to prevent unnecessary restrictive regulation of professions. Member States had until 30 July 2020 to transpose the Directive into national law.

According to the Commission, Cyprus has failed to ensure that all measures covered by the Directive, in particular those initiated by professional bodies or parliament, are subject to a prior proportionality test. In addition, Cyprus incorrectly applied several proportionality assessment criteria set out in the Directive and failed to ensure appropriate provision of information and stakeholder involvement.

On 18 October 2023, the Commission had sent Bulgaria and Cyprus a reasoned opinion, complemented by an additional reasoned opinion to Bulgaria on 25 July 2024. However, as it considers that the actions taken so far have been insufficient, the Commission refers Bulgaria and Cyprus to the CJEU.

According to the Directive, Member States must carry out a proportionality assessment before adopting new legislation regulating professions. The Directive contains a list of criteria which Member States are obliged to take into account in the evaluation. It also requires the publication of evaluations and the information and involvement of all stakeholders. Finally, once the legislation has been adopted, Member States must continue to monitor their proportionality in the light of relevant developments, such as technology.

Waste treatment

The Commission has also sent a reasoned opinion to Cyprus (INFR(2021)2217) and Greece for failing to correctly implement the Landfill Directive (Directive 1999/31/EC) and the Waste Framework Directive (Directive 2008/98/EC as amended by Directive (EU) 2018/851).

The Landfill Directive sets standards for landfills to protect human health and impacts on water, soil and air. The Waste Framework Directive obliges Member States to take measures to ensure that only waste that has undergone treatment is landfilled. Member States must also recover and dispose of waste in a way that does not endanger human health and the environment by prohibiting the abandonment, dumping or uncontrolled disposal of waste.

In December 2021, the Commission sent a letter of formal notice to Cyprus for failing to ensure that waste is properly treated before being landfilled and for failing to establish a comprehensive and appropriate network of waste management facilities taking into account best available techniques. The shortages concerned three landfills. After assessing the reply submitted by the Greek and Cypriot authorities, and on the basis of recent data, the Commission concluded that all landfills are still non-compliant. In addition, the capacity of waste treatment facilities before landfilling is insufficient in both countries to treat mixed municipal waste.

The two countries have two months to respond and take the necessary measures. Otherwise, the Commission may choose to refer the cases to the CJEU.

Data Governance Act

The Commission has decided to send a reasoned opinion to Cyprus (INFR(2024)2056), as well as to Czechia, Germany, Estonia, Greece, Luxembourg, Austria, Poland, Portugal and Slovenia as they have not designated the competent authorities to implement the Data Governance Act or demonstrated that these competent authorities are authorised to carry out the tasks required by the Act.

The Data Governance Act aims to facilitate data sharing between sectors and EU countries for the benefit of citizens and businesses. The act increases trust in data sharing by introducing rules on the neutrality of intermediaries connecting individuals and businesses to data users.

The Commission sent a letter of formal notice to Czechia, Germany, Estonia, Greece, Cyprus, Luxembourg, Austria, Poland, Portugal and Slovenia on 23 May 2024.

While some Member States notified the Commission of the designation of competent authorities, none has fully empowered them to implement and apply the Data Governance Act. The Commission has therefore decided to send a reasoned opinion to Member States, which now have two months before it can choose to refer cases to the CJEU.

Offload for professionals providing services on a temporary basis

Finally, the European Commission has decided to open the infringement procedure by sending a letter of formal notice to Cyprus, as well as to Belgium, Bulgaria, Czechia, Denmark, Germany, Ireland, Greece, Spain, France, Italy, Latvia, Luxembourg, Hungary, Malta, the Netherlands, Austria, Poland, Romania and the United Kingdom. in Slovenia, Finland and Sweden for non-compliance with EU rules on professional qualifications (Directive 2005/36/EC).

These rules make it easier for professionals to provide their services on a temporary and occasional basis in several Member States, while ensuring consumer and citizen protection.

Member States may, exceptionally for professions involving public health and safety, check qualifications before authorising the provision of services. Such prior controls can significantly delay the start of activities and can therefore only be imposed under strict conditions, in particular where the lack of professional qualifications could cause serious harm to the health or safety of the recipient of the service.

The Commission considers that these 22 Member States unduly require ex-ante controls for several professions that do not fulfil the conditions under which such controls are allowed, and has focused these enforcement actions on three sectors of particular importance, namely construction, transport and business services.

The Commission is therefore sending a letter of formal notice to Member States, which now have two months to reply and correct the shortcomings. In the absence of a satisfactory reply, the Commission may decide to send a reasoned opinion.

CNA