In its monthly package of infringement decisions, the European Commission is pursuing several legal actions against Member States for failing to comply properly with their obligations under EU law. These decisions covering many sectors aim to ensure proper application of EU law for the benefit of citizens and businesses.
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The Commission took 98 decisions on 26 March, including 11reasoned opinions and 8referrals to the European Union’s Court of Justice. The Commission is also closing a certain number of cases where the issues with the Member States concerned have been solved without the Commission needing to pursue the procedure further.
Below is a summary of the main decisions.
1. Referrals to the Court of Justice
Employment: Commission refers BELGIUM to Court for refusing certificates of workers affiliated in another Member State
The European Commission has decided to refer Belgium to the Court of Justice for refusing to recognise mobile workers’ documents certifying that they pay social security in another Member State. It considers that the current rules in Belgium, which allow the authorities not to recognise such documents and unilaterally subject such workers to Belgian social security, are in breach with EU law.
The case concerns the so-called “Portable Documents A1”, which are issued to workers temporarily posted to another Member State and to people working in several countries at the same time. The document certifies that these workers pay their social security contributions in the issuing Member State. According to EU law, consistently confirmed by the Court of Justice, other Member States are obliged to accept such documents as long as they have not been withdrawn or declared invalid by the issuing Member State.
In order to guard against abuse or fraud, there are specific and clearly established EU rules to verify that these documents are valid. These rules fix deadlines for other Member States to respond to requests of verification and provide a conciliation procedure in cases of disagreement.
Energy: Energy efficiency: Commission refers HUNGARY to Court and proposes fines for failing to fully transpose EU energy efficiency rules
The European Commission is referring Hungary to the Court for failing to transpose the Energy Efficiency Directive. Under this directive EU Member States must meet certain energy savings targets from 1 January 2014 until 31 December 2020. They have to do this by using energy efficiency obligations schemes or other targeted policy measures to drive energy efficiency improvements in households, buildings, industry and transport sectors. Member States had to transpose the obligations of that Directive by 5 June 2014.
By referring Hungary to the Court, the Commission proposes a daily penalty of 15,444 per day. The level of this penalty is set taking into account the duration and the seriousness of the infringement. In case of an affirmative judgment of the Court, the daily penalty would have to be paid from the date as set in the judgment until the transposition is completed. The final amount of the daily penalty will be decided by the Court.
Furthermore, several procedures for non-transposition of the Energy Efficiency Directive have been launched concerning other Member States. Overall, for 27 EU Member States (all except Malta ) an infringement procedure for not having notified the Commission as regards the national measures to transpose the directive into national law were launched (deadline: 5 June 2014). The Commission continues to monitor transposition and reporting progress and will address any shortcomings in the coming cycles.
Environment: Commission refers GERMANY to Court over coal power plant in Moorburg
The European Commission is taking Germany to Court over its failure to apply the requirements of the Habitats Directive in relation to the authorisation of a coal power plant in Hamburg/Moorburg. The project in question risks having a negative impact on a number of protected fish species including salmon, European river lamprey and sea lamprey, which pass near the power plant when migrating from the North Sea to some 30 Natura 2000 sites on the Elbe, upstream of Hamburg. The species are harmed by the water abstraction process used to cool the power plant. When authorising the plant, Germany failed to carry out an appropriate assessment as required by the Directive, and to assess alternative cooling processes which could avoid the killing of the protected species concerned.
Environment: Commission refers the UNITED KINDGDOM to Court over poor waste water collection and treatment
The European Commission is referring the United Kingdom to Court over its failure to ensure that urban waste water is adequately treated in 17 agglomerations. In the EU, Member States need adequate collection and treatment systems for urban waste water, as untreated water poses risks to human health, inland waters and the marine environment.
EU legislation on urban waste water treatment dates back to 1991, with long lead times for the implementation deadlines. Member States had until the end of 1998 to ensure stringent treatment for wastewater from agglomerations discharging into sensitive areas. They had until end 2000 for ensuring appropriate treatment from large agglomerations discharging into undesignated waters and until the end of 2005 for discharges from medium-sized agglomerations and discharges to freshwater and estuaries from small agglomerations.
Environment: European Commission takes the UNITED KINGDOM to Court over power plant emissions
The European Commission is referring the United Kingdom to the European Court of Justice (ECJ) due to the absence of a reduction in emissions by the Aberthaw coal-fired power station in Wales. Emissions for nitrogen oxides (NOx), at the power station were found to exceed the permissible limits.
Under EU legislation on emissions from large combustion plants, Member States had until 1 January 2008 to reduce emissions of a number of pollutants from power plants. The Aberthaw power plant does not meet the requirement of the Directive, as it currently operates under a permit which sets a NOx emission limit of 1200 mg/Nm3, as opposed to the legally applicable 500 mg/Nm3 limit set in the Directive. The Commission first raised its concerns in a letter of formal notice in June 2013, followed by a reasoned opinion in October 2014.
Environment: Commission refers SLOVENIA to Court for failure to clean up highly flammable waste tyres
The European Commission is taking Slovenia to Court for its failure to comply with the requirements of EU waste legislation. The case concerns an illegal landfill in Lovrenc na Dravskem polju, where more than 40 000 tons of waste have been stored since 2006. Large fires broke out at this location in 2007 and 2008.
Landfills operating in breach of EU waste legislation can pose a threat to human health and the environment. In addition to the fire risk, the site is particularly ill-suited for landfill, due to the close vicinity of a high-voltage electricity power line, and the fact that the area contains one of the biggest sources of fresh water in the country. Slovenia had agreed to address the problem and clean up the waste tyres, but the very slow rate of progress has led the Commission to call Slovenia before the Court of Justice.
Taxation: Commission refers GREECE to Court regarding the inheritance tax treatment of bequests to non-profit organisations
The European Commission has decided to refer Greece to the Court of Justice of the European Union regarding its inheritance taxation of bequests to non-profit organisations in another EU Member State or EEA State.
The Greek legislation treats legacies bestowed on certain non-profit entities established in Greece more favourably than those bestowed on similar entities established in other EU/EEA States. A preferential tax rate of 0.5% is automatically available to certain Greek non-profit entities, whereas similar non-profit entities established in other EU/EEA States can only benefit from the preferential tax rate if legacies to Greek non-profit entities also have access to a preferential tax treatment in such other EU/EEA State. If this reciprocity condition is not met, the applicable tax rate varies between 20-40%, depending on the taxable value of the property.
Taxation: Commission refers GREECE to Court regarding the discriminatory tax exemption for primary residences
The European Commission has decided to refer Greece to the Court of Justice of the European Union regarding its inheritance tax exemption for primary residences which is applicable only to EU nationals permanently residing in Greece.
The Greek legislation favours exclusively those taxpayers (heirs) who already live in Greece and who typically are Greek nationals. By contrast, the legislation penalises those beneficiaries who inherit a property in Greece but live outside of the country, and who are normally non-Greek nationals or Greek nationals who have exercised their fundamental freedoms by working, studying or living abroad.
