There are significant efforts by the European Commission to bridge the transposition deficits of several EU directives. At the moment, 26 Member States have still not fully transposed key legislation in the judicial area, financial stability, energy, and the environment. Lack of harmonized national measures has been questioned as acting as a brake on consistent application of law in the EU area with concerns regarding uniformity of enforcement and compliance across the bloc.
Infringement Actions Throughout the EU
The Commission has reported infringement procedures it had transmitted to Member States for failing to include key directives in their national law frameworks: ranging from corporate sustainability reporting to work-life balance, renewable energy projects, and others. All these are critical areas of EU policies that help in the policy integration process.
Member states have often not complied with set transposition deadlines, which obliges the Commission to resort to infringement procedures to enforce compliance with the application of EU law to all member states. If such member states do not comply within the prescribed time limits, the next step for the member state might be the procedure in infringement action possibly leading to a referral to the Court of Justice of the European Union (CJEU).
Justice and Financial Stability: Ireland and Austria at Risk
The European Commission issued formal notices to Ireland and Austria for failure to fully transpose the **Directive on Restructuring and Insolvency (Directive 2019/1023)** that was meant to modernize insolvency proceedings by introducing obligatory electronic communication. It is supposed to increase the legal certainty and efficiency in the EU in matters of insolvency procedures.
The Directive ensures that electronic tools stream-line procedures under insolvency, the Commission said, highlighting this as a requirement in a modern legal framework to be approached with a digital methodology.
Neither Ireland nor Austria has notified the full package of national measures to comply with this directive. Should they fail to respond within the two-month deadline, the Commission would be at liberty to issue reasoned opinions, the final stage before being able to refer it to the CJEU.
Work-Life Balance Directive: Spain Falls Short
Notified by the Commission for full transposition of the Work-Life Balance Directive 2019/1158: This directive is an implementation of minimum standards covering the parent leaving period, including a payment of an allowance for the last two weeks of leave. No national implementation takes place.
The step to equality at work “is to support parents, as the commission said. We urge Spain to translate the directive into national law.” The directive is part of a broader EU campaign aimed at enforcing greater equality between men and women as well as much better balance between working life and family life across the region.
Spain has two months to correct the failing or face further action from the Commission.
Corporate Sustainability Reporting: Prevalence of Non-Compliance
In other words, 17 Member States including some major economies such as Belgium, Germany and Spain have not yet implemented the Corporate Sustainability Reporting Directive 2022/2464, a piece of legislation seen as essential for increasing corporate accountability of large companies related to sustainability. The directive incorporates new reporting obligations that are considered to improve investor trust and enable stakeholders to make more informed decisions based on the actual ESG performance of a company.
Its transposition deadline was July 6, 2024, thus exposing these countries to risk in case of non-compliance. “Harmonized sustainability reporting is key to promoting transparency and trust among stakeholders,” it reiterated. These new rules are very crucial to harmonize corporate practices on the lines of the EU’s Green Deal and its further broadened objectives of sustainability.
Renewable Energy Projects: Delayed Implementation Ends
The most important point concerning the delay is the transposition of the Revised Renewable Energy Directive 2023/2413, which will simplify and expedite permitting for renewable projects, an important aspect of the EU’s strategy for meeting the targets on renewable energy.
While Denmark is the only Member State to have fully complied with the directive, the other 26 EU countries are falling behind. “The deadline for transposing all directives on our renewable energy targets should not be exceeded to avoid slowing the preparation of projects,” said the Commission.
It is an order that will help bring forth the growth of renews sources like wind and solar energies, which the EU heavily relies on in order to reduce the consumption of fossil fuel and meet its climate objectives.
Environmental Directives: Portugal and Slovakia in the Gunsights
Other countries in the risk of failure include Portugal and Slovakia for failing to transpose amendments to RoHS Directive. Amendments provide an exemption that allows the application of certain hazardous substances, such as cadmium and lead, on specific recycled PVC products. This will contribute to achieving the EU circular economy goals since it ensures the recycling of old materials.
Without transposing such provisions into national law, no lawfully marketable products containing substances listed in annexes I or II can be placed on the market, thereby failing in the encouragement of recycling and waste reduction and furtherances. The Commission has requested both to undertake all appropriate steps within two months so as to avoid further legal actions.
Further Measures: Potential Cases to the CJEU
As such, all the involved Member States are expected to take two months from now, submitting their responses and implementing the necessary measures to fully transpose said key directives. The Commission may take this as a step to escalate the infringement procedures, such as issues of reasoned opinions and referring them to the CJEU.
“Compliance with EU law is non-negotiable. The Commission remains committed to enforcing these directives to ensure legal clarity and uniform application across the Union,” the Commission concluded. The uniform application of EU law is critical to ensuring a level playing field across Member States and will continue to propel long-term policy objectives in areas such as sustainability, energy security, and financial stability.
The importance of the on-time and complete transposition of EU directives, which is of outstanding importance in promoting the broader legislative agenda of the Union and ensuring the enforceability of the obligations of the Member States under the EU legal order, thus keeps surfacing in the newest infringement actions taken by the Commission.