# EUR-Lex - 52012SC0400 - EN

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# 52012SC0400

**COMMISSION STAFF WORKING DOCUMENT SITUATION PER SECTOR Accompanying the document REPORT FROM THE COMMISSION 29th ANNUAL REPORT ON MONITORING THE APPLICATION OF EU LAW (2011) /* SWD/2012/0400 final */**

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Agriculture and Rural Development

General statistics

In the area of
agriculture and rural development, 27 infringements were open at the end of
2011. This was the thirteenth-highest number of cases among the Commission’s 20
reporting policy areas. The table below shows the distribution of these cases
according to their origin:

The Commission launched 34 new infringement procedures
in 2011. 20 Member States seem to have violated the EU’s exclusive competences
by passing resolutions in the OIV,[1]
which called into question both the EU’s exclusive competences and the loyal
cooperation principle (Article 4(3) TEU). And France may have contravened EU
rules on wine by authorising the sale of spirit drinks with labels referring to
'wine', though these drinks were distilled from by-products of winemaking.[2]

The Commission brought a Court case against the Czech
Republic for extending the sales designation 'pomazánkové máslo'
(spreadable butter) to products not complying with the EU laws on minimum
milk-fat and maximum water content for butter.[3]

In two agriculture cases, the Commission could not
confirm by the end of 2011 that Member States had complied with an earlier Court
judgment condemning their measures. In the first case, the Commission monitored
whether Portugal had reimbursed (with interest) the charges it had deducted
from the amounts received by beneficiaries from the structural funds.[4]
In the second, the Commission brought an action against Italy for the incorrect implementation of the Directive on cocoa and chocolate products.[5]

Late transposition of directives

Member States had
to transpose the directive on fruit juices[6]
by 1 January 2011. The Commission initiated infringements against 11 Member
States due to late and/or partial transposition of this Directive. Following
rapid Member State compliance, the Commission was able to close all procedures
by the end of 2011.

Complaints handling

There were 86 new complaints
on agricultural issues during 2011 (up from 58 in 2010). Of the 69 complaints processed
by the Commission, 25 resulted in pre-infringement discussions with the Member State concerned.

Complaints mainly targeted the following issues:
protected designations (wine and spirits); temporary exceptional support
measures (fruits and vegetables); and milk designations and milk quotas (animal
products). Several complainants questioned the compatibility of national
provisions with the 'full payment clause'[7]
as well as the selection by national authorities of the beneficiaries of
payments and support measures.

Own-initiative cases

The infringement
procedures that were launched against 20 Member States in parallel because of
their resolutions in the OIV were based on the Commission’s own findings. In
addition, the use of protected geographical indications and Member States’ labelling rules are often subject to  pre-infringement enquiries
by the Commission.

Early resolution of potential infringements

The Commission
opened 32 new files in EU Pilot on agricultural matters and processed 24
dossiers during 2011. In 21 instances, the Commission accepted the Member
States' explanations or undertakings. There were still 16 open files in EU
Pilot related to the agricultural sector by the end of last year.

The EU agricultural disputes that were resolved without
a Court procedure in 2011 included the repeal of Greek laws prohibiting the
repackaging of potatoes (incompatible with the principle of free movement of
goods) and the abolition  of Spanish rules on the geographical indication 'Viñedos
de España' (Member State names may be protected only in exceptional cases).

Prominent judgments

In 2011, the Court
delivered no judgments on EU agricultural law under the Articles 258 and 260
TFEU procedures.

However, preliminary rulings from the Court gave
guidance on: the conditions when beneficiaries of support may be considered as
obstructing on-the-spot checks;[8]
and the registration of a trade mark that contains such geographical indication
with which it cannot comply.[9]

Further information available at:

http://ec.europa.eu/dgs/agriculture/index_en.htm

Climate Action

General statistics

The Commission
managed 61 open infringement cases in the area of climate action at the end of
2011, which is the tenth-highest caseload among the 20 reporting policy areas. The
following table shows the distribution of these cases according to their
origins:

In 2011, the Commission opened 38 new infringement
cases in this area, mostly due to late transposition.

None of the climate action cases reached the stage of
referral to the Court during 2011.

Likewise, there were no Court judgments in 2011 which
the Commission had to follow up in order to ensure Member States’ compliance.

Late transposition of directives

Of the 38 new
cases, 35 infringement cases had to be opened during 2011 because there were no
or only partial national implementing rules.

The Directive on the geological storage of carbon
dioxide[10]
was not transposed in time by 26 Member States. A further nine late
transposition infringements had to be initiated due to delays in notifying
national implementing rules for the Directive on fuel quality.[11] Although a few Member States did
then notify their implementing rules, none of these infringements could be
closed by the end of 2011.

Complaints handling

The Commission received
six complaints on climate matters during 2011. They concerned directives on the
geological storage of carbon dioxide and on the greenhouse gas emission
allowance trading scheme, and the regulation on various fluorinated greenhouse
gases.[12]
One of the complaints has been transferred to EU Pilot.

The Commission also received a petition from the
European Parliament relating to an exploration project for carbon capture and
storage in France, which was followed up by contacts via EU Pilot.

Own-initiative cases

The Commission sent
letters of formal notice to Malta, Luxembourg and Italy for the bad application of the regulation on
various fluorinated greenhouse gases.[13]

The Commission did not receive implementing measures from
some Members States by the initial deadline under the decision on the
allocation of free emission allowances to stationary installations covered by
the EU Emission Trading Scheme. As a result, the Commission has opened a
horizontal investigation in EU Pilot involving 18 Member States.

Early resolution of potential infringements

The Commission
opened 21 climate change files in EU Pilot during 2011 (one complaint and 20
own-initiative files), bringing the number of active EU Pilot cases in the
climate action area to 23. Of these, two dossiers were processed in 2011. One
assessment was positive. The Commission rejected the explanation provided by
the Member State in the other case. 21 climate action files were open at the
end of 2011.

The Commission closed two on-going infringement cases
against Romania and Bulgaria as they had completed their yearly greenhouse gas
emission statements. The Commission also closed an infringement case against Spain, having been reassured by the Member State about effective monitoring of fuel consumption and release
of CO2 emission in line with the directive.[14] An infringement procedure
against Luxembourg was closed as its authorities fulfilled the requirements of
the regulation on various fluorinated greenhouse gases by adopting the
necessary certification and training measures for companies and personnel working
with such gases.

Prominent judgments

The Court delivered
no material judgments in 2011 or preliminary rulings relevant to the application
of EU law by the Member States in the area of climate action.

Further information available at:

http://ec.europa.eu/clima/news/index_en.htm

Communications Networks, Content and Technology

General statistics

The Commission had
62 open infringement cases in the area of communications networks, content and
technology at the end of 2011, making this the ninth-highest caseload among the
20 reporting policy areas. The following table shows the distribution of these
cases according to their origins:

In addition to the 45 new infringements initiated in
this area during 2011, the Commission stepped up its efforts against sector-specific
taxes on telecommunication service providers, on the grounds that they are
incompatible with the administrative charges allowed by EU rules: Hungary
received a reasoned opinion[15]
and both France and Spain were referred to the Court.[16]

Three Member States had to comply with earlier Court
judgments in order to avoid financial sanctions under Article 260(2) TFEU. The
judgments in question related to: the 'must-carry' rules[17] and incorrect implementation
of the Universal Services Directive[18]
under Belgian law; the imposition of retail tariffs for high-speed internet
access without market analysis in Poland;[19]
and the incorrect implementation of the Universal Services Directive under
Portuguese law.[20]

Late transposition of directives

39 infringements
had to be opened during 2011 because there were no or only partial national
implementing rules in the area of communications networks.

In 2011, the transposition deadline expired for two key
directives that modernise the regulatory framework for electronic
communications: (1) infringements had to be launched against 20 Member States
due to the late transposition of the Citizens’ Rights Directive;[21] (2) as regards the
transposition of the Better Regulation Directive,[22] 19 Member States had failed to
notify their national measures by the deadline. However, this poor transposition
record had improved by the end of 2011 for both directives.

A further eight late transposition infringements were
closed under the Audiovisual Media Services Directive[23] (AVMSD) as Member States
notified their national implementing measures.

Complaints handling

The Commission received
32 complaints on matters relating to communication networks during 2011, well
down on 2010 (49 incoming complaints). National telecommunication rules provoked
the most complaints from citizens and organisations in 2011.

The Commission processed 40 complaints in this
policy field last year. Half of the files were closed with the Commission’s
full response to the complainant (21). By contrast, 16 complaints on
communications networks were transferred to EU Pilot for Member States to react
on them.

There was no petition or question from the EP or MEPs
that would have triggered an infringement procedure under EU law on communications
networks.

Own-initiative cases

The Commission has
increasingly used the EU Pilot in order to screen implementation issues
regarding EU laws on electronic communications (e.g. radio spectrum, consumer
protection including privacy). Another initiative was launched to detect implementation concerns surrounding the
Audiovisual Media Services Directive (AVMSD).

Early resolution of potential infringements

The Commission
opened 61 new EU Pilot files on electronic communications issues during 2011
and processed 31 files in this period. 27 assessments were positive, i.e. the
Commission accepted the explanations or the undertakings of the Member State concerned (87 % success rate). Early resolution prevented a few potential
infringements on radio spectrum management and on the ’112’ European emergency
number. 51 EU Pilot files remained open by the end of last year.

Significant infringements on electronic communications were
closed before Court proceedings in 2011 as Latvia, Lithuania Romania and Slovenia ensured the independence of their respective national regulatory authorities.[24]

Prominent judgments

The Court found
that Spanish rules tolerated the broadcasting of advertising spots in excess of
the time limits set by the Directive on television broadcasting activities (89/552/EEC).[25]

In a preliminary ruling, the Court interpreted the
concept of ‘incitement to hatred on grounds of race, sex, religion or
nationality’ in the context of the Directive on television broadcasting
activities.[26]

Further information available at:

http://ec.europa.eu/dgs/connect/index_en.htm

Employment, Social Affairs and Inclusion

General statistics

The Commission
managed 73 open infringement cases on employment matters in 2011 – the seventh-highest
number of cases among the 20 reporting policy areas. The following table shows
the distribution of these cases according to their origins:

Among the 37 new infringements launched by the
Commission, Luxembourg received a letter of formal notice because its study
grants are subject to a residence condition for migrant workers and their
children. The Dutch purchasing power allowance (an old-age benefit) may also be
contrary to EU rules to the extent that it is not 'exportable'.

The Commission decided to refer four cases to the Court
last year, including nationality-based discrimination on the index-linking of
pensions in Belgium;[27]
the preferential treatment afforded by the law of an Italian province to
residents applying for public sector posts;[28]
and non-conformity in the Dutch implementation of employee participation provisions
in the event of cross-border mergers.[29]

There was only one employment case where the Commission
was not able to confirm Member State compliance with a Court judgment: Germany should abolish the residence condition for granting benefits for the blind, the
deaf and the disabled[30]
if it does not want to be exposed to financial sanctions under Article 260(2)
TFEU.

Late transposition of directives

17 infringements
had to be opened during 2011 because there were no or only partial national
implementing rules on employment matters. 10 late transposition infringements
remained open in this policy area by end-2011. 15 infringements were initiated
due to lack of or incomplete Member State notifications under the Directive on
temporary agency work.[31]

Complaints handling

The Commission received 269 complaints during 2011, well
down on 2010 (321). In the area of free movement of workers, most of the
complaints concerned access and working conditions in the public sector, which
is a persistent problem area. Rules on many kinds of social security benefits
provoked complaints: pensions, special non-contributory benefits, restrictive
access to statutory health insurance and residence / presence conditions
for sickness benefits for disabled. In the area of health and safety,
complaints concerned mainly incorrect national provisions or ineffective
application of preventive services, training and responsibilities of the
employer. The Commission processed 260 employment complaints last year, notably
those relating to working time. They included especially the files that had
been closed without further steps due to the Commission’s full response to the
complainant (183) or its lack of competence (7). 26 employment complaints were transferred
to EU Pilot so that Member States could react to them.

Petitions from the European Parliament led to
infringement proceedings against Greece for the inadequate recognition of
foreign professional experience in its public sector; and against Italy due to the incorrect transposition of the workplace health and safety rules[32] into its national law.

Own-initiative cases

In the area of
health and safety at work, own-initiative cases are most frequently linked to
the continuous monitoring of the framework directive on health and safety at work
(as Member States are continuously making amendments to their national
legislation in this field) and the high-risk sectors (e.g. fishing,
construction).

Early resolution of potential infringements

The Commission
opened 35 new files in EU Pilot during 2011 and processed 59 dossiers in this
period. 47 assessments were positive, i.e. the Commission accepted the
explanations or the undertakings of the Member State concerned (80 %
success rate). 56 files remained open in EU Pilot by the end of 2011.

Concerning ongoing infringement cases, there was major
progress, with the closure of 16 infringements on working time.

Prominent judgments

The Court confirmed
that EU citizens are able to enjoy their rights of free movement in the EU
without comprising their social security protection. Requiring a condition of
past presence of the claimant in the State to the exclusion of any other relevant
element to establish a genuine link between the claimant and the social
security system of that Member State is contrary to EU law.[33] The Court also ruled that the
working time directive does not prevent national law limiting the accumulation
of annual leave by setting up a carry-over period, which, once expired, terminates
the right to paid leave.[34]

Further information available at: http://ec.europa.eu/social/home.jsp

Energy

General statistics

The Commission had
149 open infringements in the area of energy at the end of 2011. This was the fifth-highest
number of cases among the Commission’s 20 reporting policy areas. The following
table shows the distribution of these cases according to their origins:

Almost all the 122 new infringements were due to the
late transposition of energy directives by Member States.

The Commission decided to refer three energy-related matters
to the Court, a Spanish case related to shortcomings in the transposition of
the directive on the energy performance of buildings[35] and Bulgarian and Romanian
cases related to lack of compliance with the requirements of the Gas
Regulation.[36]

Despite making significant progress, Belgium was still under possible financial sanctions under Article 260(2) TFEU at the end of 2011
due to the only partial implementation of two Court judgments[37] concerning the Second Energy
Package (Directives 2003/55/EC and 2003/54/EC).

Late transposition of directives

121 infringements
had to be opened in the area of energy during 2011 because there were no or
only partial national transposition rules in all key energy sectors. Member
States have been making rather slow progress with the transposition of energy
directives: 105 such cases remained open by the end of 2011.

The Third Energy Package[38] caused the most transposition
problems in Member States; 38 infringements had to be launched against 19
Member States. No Member State was able to transpose the directive on renewable
energy[39]
in time; accordingly, 27 infringements were launched. Finally, the directive on
nuclear safety[40]
has triggered infringements against 12 Member States due to missing or partial
transposition.

Complaints handling

The Commission
received 57 complaints on energy matters during 2011, a slight increase in comparison
with 2010 (50 incoming complaints). Complaints concentrated on the Third Energy
Package and the renewable energy legislation. The Commission processed 42
energy complaints. It provided most complainants with a full response (27). By
contrast, 11 complaints on energy issues were transferred to EU Pilot so that
Member States could examine the problem.

Own-initiative cases

The Commission continued
investigating the conformity of national transposition rules with EU energy law.
In particular, the Commission pursued infringements against several Member
States which have incorrectly implemented the Second Energy Package and the directive
on buildings’ energy performance.

Early resolution of potential infringements

The Commission
opened 24 new EU Pilot files on energy issues during 2011 and processed 23
dossiers in this period. The Commission accepted the explanations or undertakings
of the Member State concerned in 20 cases (87 % success rate). 43 energy
files remained open in EU Pilot by the end of 2011.

Major infringements that were resolved before Court
proceedings included the Polish rule obliging gas importers to maintain stocks
in home facilities;[41]
and the refusal of the Italian authorities to recognise guarantees of origin
from other Member States for the purposes of renewable electricity production.[42]

Prominent judgments

The Court issued
two preliminary rulings of special importance. In the first case, it gave
guidance on the conditions and limits of state intervention in the internal energy
market. The Court found that the Italian regime on tender obligations of
essential installations was compatible with the EU laws on the electricity
market and dispatching services as long as these rules pass the proportionality
test, which the national courts must carry out..[43] In the second case – an Italian
law imposing an absolute ban on wind turbines (beyond self-consumption) in a
Natura 2000 site (without an impact assessment) – the Court ruled that the ban
was not necessarily contrary to the aim of the directive on renewable energy,
provided that the national law complies with the principles of proportionality
and non-discrimination.[44]

Further information available at:

http://ec.europa.eu/dgs/energy/index_en.htm

Enterprise and Industry

General statistics

The Commission had
111 open infringement cases in the area of enterprise & industry by the end
of 2011. This is the sixth-highest number of cases among the 20 reporting policy
areas. The table below shows the distribution of these cases as per their
origins:

Applying the Treaty provisions on the free movement of
goods continued to represent the bulk of the infringement work. The 125 new infringements
invoking enterprise & industry matters in 2011 included two letters of
formal notice to Greece due to the incorrect implementation of the late payment
directive;[45]
and an infringement against Italy due to the incorrect application of the construction
products directive.[46]

The Commission decided to bring three enterprise &
industry cases before the Court: one against Greece because of the obstacles to
market bake-off products;[47]
and two other cases against Poland and Lithuania due to their ban on
registering cars with the steering wheel on the right.[48]

The Commission urged the Greek authorities to fully
comply with the second Court judgment in order to halt the payment of daily
penalties imposed by the Court due to the total ban on games machines.[49]

Late transposition of directives

In the area of enterprise
& industry, 117 infringements had to be opened during 2011 because there
were no or only partial national implementing rules for various directives.

Fifteen infringements had to be initiated due to late
transposition of the toy safety directive[50],
but all of them were closed before the end of 2011. A further 19 infringements
were launched due to the delayed transposition of the directive on the transfer
of defence-related products;[51]
however, nine Member States had notified their implementing measures before the
end of the year, thus allowing the Commission to close these infringements once
the measures had been assessed. The directives amending the legislation in the
automotive sector[52]
generated 23 late transposition infringements altogether, with 11 of them still
open at the end of 2011.

Complaints handling

The Commission
received 124 complaints in the area of enterprise & industry during 2011, a
moderate decrease over 2010 (156 incoming complaints).

The vast majority of complaints continued to target the
Treaty provisions on the free movement of goods,[53] especially in the motor
vehicles sector (registration, taxes, etc.), pharmaceutical products and foodstuffs
and food supplements.

The Commission processed 117 enterprise and industrial
complaints last year. Most files (66) were closed without further action
following the Commission’s full response to the complainant. 35 complaints were
transferred to EU Pilot so that Member States could react to them.

No petition or question arrived from the EP or MEPs
that would have triggered an infringement procedure.

Own-initiative cases

Only a small number
of own-initiative cases were launched.

Early resolution of potential infringements

The Commission
opened 35 new EU Pilot files on enterprise & industry matters during 2011
and processed 42 dossiers in this period. 35 assessments were positive, i.e. the
Commission accepted the explanations or the undertakings of the Member State concerned (83 % success rate). 48 files remained open in EU Pilot by the
end of last year.

Major infringements in this policy area that were settled
without litigation before the Court included three procedures against France on
adaptations to the regulatory framework for phyto-pharmaceutical products; and
one procedure against Denmark to lift the total ban on the sale of certain energy
drinks.

Prominent judgments

The Court passed
two important judgments in the field of enterprise & industry in 2011. In
the first, it ruled against the sectoral driving ban imposed by Austria for heavy goods vehicles on its A12 motorway.[54]
In the second, it ruled on Poland’s failure to transpose the framework
directive on the approval of motor vehicles.[55]

Further information available at: http://ec.europa.eu/enterprise/index_en.htm

Environment

General statistics

Most of the active
infringement cases in 2011 (299) were in the environment field among the 20
reporting policy areas. The following table shows the origins of these cases:

114 new environmental infringements were initiated
during 2011. The Commission decided to submit 18 environmental cases to the
Court, including four referrals for the late adoption of river basin management
plans under the water framework directive,[56]
three referrals due to the lack of Integrated Pollution Prevention and Control (IPPC)
permits for factories[57],
and two referrals for non-compliance with PM10 limit values.[58] Still, many infringements
remained open due to non-compliance with IPPC permits and PM10 values.

By the end of 2011 56 Court judgments still awaited
full implementation by Member States. The Commission is monitoring closely the
actions taken by Member States which, in some cases, take a certain time to
ensure full compliance. One of the key challenges is the correct implementation
of EU waste law. In 2011 a second referral was decided in three cases, against Ireland (two cases on improper checks on septic tanks and insufficient impact assessment
legislation) and Luxembourg (inadequate urban waste water treatment).[59]

Late transposition of directives

58 infringements were
opened during 2011 because of late transposition of environmental directives.

In particular, the Commission launched infringement
cases against 23 Member States for failure to transpose the waste framework directive
in good time.[60]

Poland
was referred to the Court with a request for financial sanctions under Article
260(3) TFEU[61]
due to the late transposition of the directives on ambient air quality[62]
and marine strategy framework.[63]

Complaints handling

The Commission
received 604 complaints on environmental matters during 2011, a slight decrease
in registered files over 2010 (669 incoming complaints).

The three sectors receiving the most complaints were
nature protection (±200), waste (±100) and water (±60). 605 environmental
complaints were processed last year. Nearly two thirds of them (395) were closed
with a full response, while 149 were transferred to EU Pilot for Member States to
react.

Two infringement cases (against Greece and Cyprus) and 27 bilateral discussions were launched by the Commission upon petitions and
questions from the European Parliament and MEPs, most of them (18) invoking nature
protection and environmental impact policy issues.

Own-initiative cases

The Commission
systematically monitors correct transposition of key environmental directives
especially in the sectors of waste, impact assessment and water and all new EU
legislation. Most of the Commission’s own initiative cases are related to the environment.

Bad application of EU environmental acquis by
the Member States also triggered infringements, for example: failure to close
all sub-standard landfills, non-compliance with EU air quality standards (PM10);
violation of hunting rules or derogation conditions; tolerating installations
without IPPC permits; lack of river basin management plans.

Early resolution of potential infringements

The Commission
opened 358 new environmental files in EU Pilot during 2011 and processed 399
dossiers in this period. 350 assessments were positive, i.e. the Commission
accepted the explanations or the undertakings of the Member State concerned (88 % success rate). 335environment files remained open in EU Pilot by the
end of 2011.

In 2011, important cases were closed due to Member State compliance, e.g. the corrections made in Polish law increased the compliance
with the environmental impact assessment rules and the Czech authorities
correctly designated special protection areas for birds.[64]

Prominent judgments

The Court delivered
four major environmental rulings in 2011. It confirmed that Ireland incorrectly transposed the environmental impact assessment directive,[65] and ruled against Spain for lack of conservation measures in the Macaronesian bio-geographical region.[66] Two important judgements
interpreted the Environmental Impact Assessment Directive. In the first the
Court ruled that this directive did not apply to projects that had been adopted
by a specific legislative act, if the directive's objectives have been achieved
in the law-making process.[67]
The second confirmed that NGOs may contest a decision on a project's environmental
effects by relying on rules protecting only the general public interest
(without defending individual interests).[68]

Further information available at:

http://ec.europa.eu/dgs/environment/index_en.htm

Home Affairs

General statistics

The Commission had
60 open infringement cases in the area of home affairs at the end of 2011. This
is the eleventh-highest number of cases among the 20 reporting policy areas,
broken down as follows:

The 78 new infringements initiated by the Commission in
relation to home affairs included three cases against Germany, Romania and the Czech Republic on the data retention directive.[69] In October 2011, the
Commission sent a reasoned opinion to Germany and Romania.[70]

The Court had already ruled against Greece, Ireland, Sweden and Austria due to their failure to transpose the same directive.[71] In the absence of compliance
with the judgment, the Commission decided to refer Sweden to the Court for the
second time under Article 260(2) TFEU with a request for financial penalty.[72] Austria made significant
progress on complying with the judgment by the Court. After adoption of
national legislations transposing the directive, the proceedings against Greece and Ireland were closed.

Late transposition of directives

76 infringements
had to be opened during 2011 because there were no or only partial national
implementing rules for directives.

Member States had to transpose key home affairs
directives in 2011. However, 20 of them missed the deadline for the Blue Card
directive;[73]
20 infringements each were launched due to the late transposition of the
directive on employer sanctions[74]
and of the return directive[75];
and 13 such infringements were launched under the critical infrastructures
directive.[76]

Complaints handling

The Commission received
123 home affairs complaints during 2011, a significant increase over 2010 (72
incoming complaints). Most complaints concerned visa policy ('unfair' visa imposition
on third-country nationals, visa facilitation agreements with Eastern
Partnership countries and Russia). Of the 73 complaints processed, more than
half (44) were closed after a full reply had been sent to the complainant. 10
complaints were transferred to EU Pilot so that Member States could react to
them.

The Commission launched investigations upon a petition
from the European Parliament on the functioning of the EU-Russia Visa Fee
Waiver Agreement, which was later closed due to the compliance of the Member State. Investigations on the application of the Long-Term Residents Directive[77] in a Member State were still open at the end of the year.

Own-initiative cases

The Commission
launched investigations against five Member States in order to examine whether
their border measures (obstacles to fluid traffic flow, camera surveillance and
the application of carrier's liability on intra-Schengen
flights) were compatible with the Schengen Borders Code. The investigations
were still open by the end of the year.

Commission investigations regarding the use of
phallometric testing in asylum procedures were closed as the Member State concerned ceased the practice.

Early resolution of potential infringements

The Commission
opened 19 new home affairs files in EU Pilot in 2011. It processed ten dossiers
in this period; six of them with a positive result, i.e. the explanations or undertakings
of the Member State were accepted (60 % success rate). 22 home affairs
files remained open in EU Pilot by the end of last year.

Two infringement proceedings could be closed without
the need to refer the Member States to the Court: France removed the obstacles
to fluid traffic flow at its internal borders with Belgium, Spain and Luxembourg[78]; and Austria amended its laws on foreign students’ access to the labour market in order to make
it compatible with the Students Directive. [79]

Prominent judgments

Two preliminary
rulings from the Court clarified the extent to which the Return Directive
allows national laws to criminalise irregular stays in a Member State. In principle, imprisonment may not be imposed on the sole ground that a person remains
on the territory of a Member State contrary to a leave order;[80] however, the unjustified
illegal stay may lead to such sanction, if the person concerned was subject to
the return procedure.[81]

Further information available at:

http://ec.europa.eu/dgs/home-affairs/index_en.htm

Justice, fundamental rights and citizenship

General statistics

The Commission had
72 open infringement cases in this area at the end of 2011. This was the eight-highest
number of cases among the 20 reporting policy areas, broken down as follows:

Out of 87 new infringements initiated in the area of
justice, 12 concerned a general action against 12 Member States relating to citizens’
rights to free movement.[82]
In addition, infringements were launched concerning the draft Hungarian
legislation on the retirement age of judges and prosecutors, and on the independence
of the data protection supervisory authority and of the judiciary.

The Commission referred two cases to the Court claiming
that the Belgian doorstep selling ban on goods or services in excess of
€ 250 breached the directive on unfair commercial practices[83], and contesting the Italian
laws for failing to grant reasonable accommodation at work to disabled persons.

In the only case where a Member State did not comply
with a previous Court judgment, [84]
Commission action led Germany to take measures to ensure the independence of
its data protection supervisory authority in order to avoid financial sanctions
under Article 260(2) TFEU.

Late transposition of directives

71 infringements were
opened because there were no or only partial national rules transposing justice
directives.

In particular, 19 Member States missed the
transposition deadline for the directive on mediation in civil and commercial
matters[85]
(but only four received reasoned opinions). 15 Member States failed to
transpose the directive on timeshares[86]
on time, but almost all took action by the end of 2011.

Complaints handling

The Commission received
433 complaints on justice matters during 2011, a slight decrease over 2010 (456
incoming complaints). Justice complaints covered all policy areas, especially
the right to free movement (residence cards, family members’ rights, and
expulsions), discrimination and consumer protection (unfair contract terms and
practices, faulty products). Citizens are increasingly raising fundamental
rights issues, such as manifestations of racism and xenophobia or access to
justice. The first Annual Report on the Charter of Fundamental Rights[87] serves also as guidance for
complainants on how the rights and freedoms in the Charter are protected.

The Commission processed 524 justice complaints
last year. In most cases, the Commission delivered a full response to
complainants (338). Ten complaints were transferred to EU Pilot for Member
States’ reaction.

Upon petitions and questions from the European
Parliament and MEPs, the Commission launched two infringements against the UK
(on visa requirements and the acquisition of permanent residence by EU citizens
from new Member States) and three preliminary investigations (on issuing civil
status certificates in view of same-sex marriages or partnerships, on storage
of biometric data in travel documents and on residence right for third-country
family members of EU citizens).

Own-initiative cases

Besides the above general
action against 12 Member States, the Commission verified the correctness of national
transposition measures for the anti-discrimination and unfair commercial
practices directives.[88]

Early resolution of potential infringements

The Commission
opened 54 new files in EU Pilot and processed in total 59 files in 2011. In 48 cases,
the Commission accepted the Member States’ explanations or undertakings (81%
success rate). By end 2011, 62 files remained open in EU Pilot.

Concerning the repatriation of Roma, the action taken
by France ensured compliance with the free movement directive. Other
infringements settled out of Court included the cases on belated delivery of
residence documents in the UK and the non-enforceability of a judgment issued
by an Italian court in Latvia in a case of child abduction.

Prominent judgments

Greece had to pay a penalty of € 3 million for
the late transposition of the directive on compensation to crime victims.[89]

In preliminary rulings, the Court held that: a
derogation from the unisex rule in individuals’ insurance premiums and benefits
is invalid as of end 2012;[90]
Member States cannot take measures forcing EU citizens to leave the EU;[91] they are obliged to respect
the Charter of Fundamental Rights when implementing EU law.[92]

Further information available at:

http://ec.europa.eu/justice/index_en.htm

Internal Market and Services

General statistics

The Commission was managing
262 open infringement cases in the area of internal market & services by
the end of 2011. This is the third-highest caseload among the 20 reporting policy
areas, broken down as follows:

The 228 new internal market infringements launched by
the Commission during 2011 included letters of formal notice against Malta (due
to incorrect transposition of the directive on new public procurement
remedies), Poland (on the possibly unjustified exclusion criteria in the national
procurement law), and the UK (public bids for software submitted to the Office
of Government Commerce).

Four Member States were referred to the Court due to internal
market infringements: Greece (restricted investment in strategic companies),[93] Italy (the state’s special
rights under the privatisation law),[94]
 Cyprus (restrictions on buying secondary residences)[95] and Slovenia (incorrect
transposition of the Third Non-Life Insurance Directive).[96]

There were 28 internal market infringements at the end
of 2011 where the Court had ruled against the Member States but they had not
complied with the judgments. Depending on the Member States’ progress in
implementing these judgments, financial sanctions under Article 260(2) TFEU may
be requested by the Commission.

Late transposition of directives

198 infringements were
initiated during 2011 due to no or only partial national implementing rules in
the internal market area.

In particular, 23 infringements were initiated under
each of the following three key directives: one on defence and security
procurement,[97]
another on the powers of the European Supervisory Authorities for Banking,
Insurance, Pensions, and Securities,[98]
and a third implementing the UCITS IV rules.[99]
Besides, infringements were pursued against the three Member States which had
still not transposed the Services Directive.[100]

Efforts had to be maintained at a very high level in
the financial services sector (due to a new wave of directives) and in the field
of public procurement.

Complaints handling

The Commission received
530 complaints on internal market matters during 2011, a slight decrease over 2010
(597 incoming complaints).

Public procurement, freedom to provide services, freedom
of establishment and regulated professions (mutual recognition of diplomas)
attracted the most complaints in 2011.

The Commission processed 531 internal market complaints
last year. Many of them (378) had been followed up and closed with the
Commission’s full response to the complainant. 97 complaints had been
transferred to EU Pilot for Member States to consider.

Own-initiative cases

The Commission’s 39
own-initiative infringements covered problems in the areas of public procurement,
free provision of services, insurance and pensions and free movement of capital.

Early resolution of potential infringements

The Commission
opened 128 new internal market files in EU Pilot during 2011 and processed 188
dossiers in this period. 168 assessments were positive, i.e. the Commission
accepted the explanations or the undertakings of the Member State concerned (89 % success rate). 129 internal market files remained open in EU Pilot
by the end of last year.

The internal market developments taken during 2011
before a Court ruling included the adoption of a new Czech law on the public
procurement of certain goods to be used in the military sector;[101] the decision of the Portuguese
authorities to organize a public tender for the supply of notebooks to students
and teachers;[102]
the elimination of the ban on foreign currency mortgages by Hungary; and the
new Austrian laws on agricultural land acquisition in Vorarlberg.

Prominent judgments

In a series of
judgments, the Court found that the nationality requirement imposed on public
notaries was incompatible with the Treaty.[103]
However, the Court dismissed a Commission action against Spain because the contracts within the framework of 'integrated action programmes' in the Valencian
Community did not aim primarily at the performance of works that required
public tendering.[104]
By contrast, the Court found that several Spanish restrictions on the opening
of hypermarkets in certain areas were contrary to the freedom of establishment.[105]

Further information available at:

http://ec.europa.eu/dgs/internal_market/index_en.htm

Mobility and Transport

General statistics

The Commission had
287 open infringement cases in the area of mobility and transport at the end of
2011. This is the second-highest number of cases among the 22 reporting policy
areas. The following table shows the distribution of these cases according to
their origins:

284 infringements were initiated in relation to
transport issues during 2011, including two general actions: one against 22 Member States for their bilateral air services agreements with Russia[106], and another involving 12 Member States for excluding self-employed drivers from the scope of the drivers’ working
time directive (2002/15/EC).

Five transport-related infringements were referred to
the Court in 2011. In particular, Italy and Luxembourg were claimed to have
improperly implemented the First Railway Package.[107]

In the only transport-related case where Member State compliance with a previous Court judgment was still lacking, Spain made significant efforts to follow the Court ruling[108]
on service provision in ports of general interest (harbour dues).

Late transposition of directives

The 12
transport-related directives with transposition deadline in 2011 triggered 240 infringements
because there were no or only partial national implementing rules. By the end
of the year, 190 late transposition infringements remained open.

Late transposition of the directive on driving licences[109] called for infringement
procedures against 20 Member States. 21 late transposition infringements were
started under the airport charges directive[110]
and another 15 under the directive on ship owners’ insurance against maritime
claims.[111]

The Commission decided to refer to the Court two
further cases with a proposal for financial sanctions under Article 260(3) TFEU:
both cases are related to railway transport and are against Germany.[112]

Complaints handling

The Commission
received 65 complaints on mobility and transport matters during 2011, a notable
decrease over 2010 (93 incoming complaints).

Most of the complaints claimed a violation of passenger
rights, especially the rights of air passengers. The road safety sector likewise
attracted numerous complaints, in particular on driving licence matters.

The Commission processed 76 transport complaints last
year. Most files were closed without further steps due to the Commission’s full
response to the complainant (48). Nine transport complaints were transferred to
EU Pilot so that Member States could react to them.

No petition or question arrived from the EP or MEPs
that would have triggered an infringement procedure under EU transport law.

Own-initiative cases

Both general actions
highlighted in the first section (bilateral air services agreements with Russia and self-employed drivers) were started at the Commission’s own initiative. In
addition, the Commission launched infringements against five Member States on
bad application of quality control rules in the civil aviation security sector.

Early resolution of potential infringements

The Commission
opened 170 new mobility and transport files in EU Pilot during 2011 and
processed 58 dossiers in this period. 37 assessments were positive, i.e. the
Commission accepted the explanations or the undertakings of the Member State (64 % success rate). 129 mobility and transport files remained open in EU
Pilot at the end of last year.

Significant infringements in the field of transport
that the Commission was ready to close upon Member States' compliance in 2011
included the dispute on the Irish air travel tax;[113] the discriminatory treatment
of 'Class 66' locomotives by Polish authorities; and the Greek rules
restricting the freedom to provide services related to maritime cabotage.

Prominent judgments

The Court did not
hand down any major judgment in the transport field in 2011. Judgments are
awaited on a series of cases relating to the First Railway Package.

Further information available at:

http://ec.europa.eu/transport/index_en.htm

Health and Consumers

General statistics

The Commission had
51 open infringement cases in the area of health & consumers at the end of
2011.This is the twelfth-highest number of cases among the 20 reporting policy
areas, which broke down according to origin as follows:

The 174 new infringements that the Commission launched
in the field of health & consumers in 2011 included actions due to the
non-cooperation of German customs services with the Food and Veterinary Office
and the incorrect Slovak and Slovene transposition of the directive that
protects consumers’ interests with injunctions.[114]

The Commission decided to refer five disputes to the
Court on points of EU health & consumer law in 2011: the Polish ban on
genetically modified (GM) feed[115]
and the incorrect transposition of the directive on the contained use of GM
micro-organisms;[116]
the French refusal to apply the decision on scrapie,[117] and the incorrect Italian and
Swedish transpositions of the directive on distance marketing of financial
services.[118]

In six cases, Member States failed to comply by the end
of2011 with a Court judgment condemning their measures. To avoid penalties
under Article 260(2) TFEU, Greece has to apply correctly the regulation on animal
by-products not intended for human consumption,[119] improve animal welfare[120] and increase its control
resources;[121]
and Poland has to abolish its ban on GM seed varieties.[122]

Late transposition of directives

164 infringements were
opened during 2011 due to no or only partial national transpositions in the health
& consumers area.

Of the key policy instruments in this field with
transposition deadline in 2011, 19 Member States failed to notify their
national transposition measures for the directive on the sustainable use of
pesticides.[123]
The directive on derogations for the marketing of fodder plant seed mixtures triggered
late transposition infringements against 14 Member States.

Complaints handling

The Commission received
99 complaints on health & consumers matters during 2011, a slight decrease over
2010 (121 incoming complaints).

Complaints targeted the public health, food safety and animal
welfare sectors.

The Commission processed 130 health & consumers
complaints last year. Most of the files (79) were closed with the Commission’s
full response to the complainant. 36 complaints were transferred to EU Pilot so
that Member States could react to them.

At the initiative of the European Parliament, the
Commission investigated six petitions, claiming an infringement of EU rules on
animal by-products, plant health, pet transport, medical devices, public health
and food safety.

Own-initiative cases

Two general actions
were prepared in the health & consumers field during 2011: one aimed at
monitoring compliance with the prohibition on rearing laying hens in
un-enriched cages;[124]
the other targeted the correct transposition of the directive on protecting consumers’
interests with injunctions. In addition, sustained efforts were necessary to
ensure the proper transposition of directives on consumer protection and GM
organisms.

Early resolution of potential infringements

The Commission
opened 63 new EU Pilot files on health & consumers matters during 2011 and processed
86 dossiers in this period. 67 assessments were positive, i.e. the Commission
accepted the explanations or the undertakings of the Member State concerned (78 % success rate). 94 files remained open in EU Pilot by the end of last
year.

Of the infringements in this field that were closed
without Court proceedings in 2011 it is useful to note the corrections made by
the Czech Republic, Ireland and the United Kingdom to comply with the directive
on the contained use of GM micro-organisms;[125]
similar efforts were made by the Netherlands, Spain and Slovenia to achieve
correct transposition of the directive on distance marketing of financial
services.[126]

Prominent judgments

The Court ruled
that Portugal and Luxembourg have to refund the costs of non-hospital medical
care[127]
and medical biology analyses,[128]
respectively, when done in another Member State.

The Court dismissed the French application for the
partial annulment of the TSE Regulation[129]
by confirming that  determining what risk is deemed unacceptable for society is
a policy choice and not a court decision.[130]

Further information available at:

http://ec.europa.eu/dgs/health_consumer/index_en.htm

Taxation and Customs Union

General statistics

The Commission was managing
215 open infringement cases in the taxation area at the end of 2011. This is
the fourth- highest number of cases among the 20 reporting policy areas. The
following table shows the distribution of these cases according to their
origins:

In addition to the 80 new tax cases initiated during
2011, the Commission delivered reasoned opinions to Ireland and Spain due to their tax rules on leased or rented cars.[131]

The Commission decided to take 23 tax cases to the
Court last year, including referrals against nine Member States for incorrectly
applying the special VAT margin scheme for travel agencies;[132] and against Spain for its discriminatory tax on inheritance and gifts.[133]

In 16 tax cases,
the Commission was unable to confirm that Member States had complied with the Court
judgment condemning their measures. These Member States might be exposed to
financial sanctions under Article 260(2) TFEU.

Late transposition of directives

38 infringements
had to be opened during 2011 because there were no or only partial national
implementing rules in the area of taxation. Thanks to rapid compliance, only
two such cases remained open by the end of last year.

As a particular example, the transposition of VAT
refund rules[134]
into national law required particularly serious efforts from national
authorities. Even though 12 infringements had to be launched because of partial
or no notifications by the deadline (end of 2010), the Commission was able to
close all cases by mid-2011.

Complaints handling

The Commission
received 411 complaints on taxation matters during 2011. This is a notable
increase i over 2010 (375 incoming complaints) and is probably due to the fact
that some Member States introduced tax measures during the financial crisis
that were questionable under EU law.

Tax-related complaints echo the public opinion that car
registration taxes are contradictory to the idea of an internal market.[135] Many citizens’ complaints concerned
discriminatory taxation of cross-border workers. And many complaints concern Member
States’ double taxation treaties.

The Commission processed 384 tax complaints last
year. This included especially the files that had been closed without further
steps due to the Commission’s full response to the complainant (244) or its lack
of competence (6). 70 tax complaints were transferred to EU Pilot so that
Member States could react to them.

In all tax issues raised by the European Parliament in
complaints or petitions during 2011, the Commission had already engaged in
discussions with the Member State.

Own-initiative cases

Because of their
potential impact on the EU’s own resources, the Commission closely scrutinises
tax exemptions. It also monitored the correct application of the Court’s case
law on the leasing and use of company cars. Discriminatory taxes on inheritance
and gifts as well as 'exit taxes' (payable when companies' headquarters or
individuals’ residences are transferred) continue to trigger many own-initiative
cases.

Early resolution of potential infringements

The Commission
opened 169 new tax files in EU Pilot during 2011 and processed 94 dossiers in
this period. 70 assessments were positive, i.e. the Commission accepted the
explanations or the undertakings of the Member State (74 % success rate). 117
tax files remained open in EU Pilot by the end of last year.

Significant tax problems that were resolved during the
formal infringement procedure included the discriminatory tax amnesty in Greece[136] and the VAT exemption granted
for postal services in Spain, Austria, Finland, Italy and Slovenia.

Prominent judgments

The Court confirmed
that a reduced VAT rate could not be applied to the sale of race-horses[137]. A German dividend tax was
also judged to be contrary to the free movement of capital[138] because it was higher on dividends
that were paid to foreign companies than those due on dividends paid to
domestic companies.

Further information available at:

http://ec.europa.eu/taxation_customs/index_en.htm

Financial Programming and Budget

General developments

In 2011, the
Commission detected 309 anomalies in the area of traditional own resources and
set 67 VAT reservations[139].
Subsequently, 844 accounting actions for traditional own resources and 185 for
VAT were generated for potential corrective payments (principal amounts and
belated interest) by Member States. Most of the newly detected anomalies were
solved at an early stage in bilateral discussions with Member States, including
senior- level management meetings, or in the Advisory Committee on Own
Resources.

However, a letter of formal notice was sent to Portugal because it changed its GNI data for a period subject to a Commission reservation
without adjusting the GNI- and VAT-based contributions to be paid to the EU
budget accordingly.

Prominent judgments

The Court passed
two important judgments in the field of financial programming and the budget in
2011. In the first case, it held that the Court of Auditors cannot be hindered
by Member States in conducting audits of VAT cooperation mechanisms between
Member States, as they are linked to

the EU’s own
resources.[140]
In the second case, the Court held Member States financially responsible for
administrative errors (such as the acceptance of customs declarations which do
not state the real weight of the imported goods), which result in the loss of
traditional own resources for the EU budget.[141]

Follow-up of Court judgments

The Commission
referred several infringements to the Court because of loss of traditional own
resources related to the importation of military and dual-use goods by seven
Member States (Denmark,[142]
 Finland,[143]
 Germany,[144]
 Greece,[145]
 Italy,[146]
 Portugal[147]
and Sweden[148]).
While all Member States concerned paid the principal amount after the
judgments, they still owed the EU the belated interest, which amounted to
approximately € 300 million. The Commission requested data from these
Member States in order to calculate the accurate amounts of belated interest.  By
the end of 2011, all the Member States paid the amounts of interest due to the
EU budget.

Further information available at:

http://ec.europa.eu/dgs/budget/index_en.htm

Competition

General developments

In 2011 a key
priority for the Commission in the area of compliance with competition rules were
the substantial spectrum resources (the ‘digital dividend’) freed up by the
introduction of digital terrestrial television broadcasting. This provides an
opportunity to authorise further television channels and increase competition
and consumer choice. The Commission continued investigating several Member
States that have assigned parts of the ‘digital dividend’ to incumbent
operators under procedures which do not appear, prima facie, to be based
on transparent, objective and non-discriminatory criteria.

Accordingly, the Commission sent a letter of formal
notice to Bulgaria because the national law that governed the tenders for the
assignment of the digital terrestrial broadcasting spectrum potentially violates
the directives on electronic communications[149]
and the competition directive.[150]
In addition, a reasoned opinion was sent to France requiring it to allocate digital
TV broadcasting frequencies in a non-discriminatory fashion.[151]

Follow-up of State aid decisions

Ordering a Member State to recover incompatible State aid following a Commission decision and Court
judgment under Article 108 TFEU constitutes an important component of the infringement
work in the area of competition. These proceedings are governed by Article 260(2)
TFEU, which means that the Commission may request financial sanctions against
the defaulting Member State.

One of the infringement procedures against Spain regarding the fiscal aid schemes in the three Basque Provinces (Álava, Guipúzcoa and Vizcaya) was
closed since the entire aid plus recovery interest had been recovered from all
beneficiary companies.

Prominent judgments

The Court ruled
against Italy because of its failure to recover illegal State aid for
employment under training and work experience contracts and imposed a lump sum
penalty of € 30 million as well as periodic penalties, which can decrease
proportionately to any aid still unrecovered.[152]

Further information available at:

http://ec.europa.eu/dgs/competition/index_en.htm

Maritime affairs and Fisheries

Verifying compliance with Court judgments

In the field of EU
law related to maritime affairs and fisheries the following developments are
worth noting:

The Court ruled against Spain finding that it did not carry
out sufficient controls on landings and marketing of undersized fish and did
not take the necessary repressive action against those acting in breach of the
corresponding EU rules.[153]
The Spanish authorities have notified the Commission the measures they have
taken in order to apply the judgment. The Commission carried out an inspection
in late 2011 to verify whether these measures were being fully implemented. The
results were under assessment at the end of 2011.

The Court found that France breached the EU rules
relating to the restricted use of driftnets by not monitoring the relevant
fishing activities sufficiently thoroughly and not enforcing the corresponding
rules properly.[154]
The Commission has launched a procedure to verify the correct application of
the Court judgment. It was found that the French authorities had introduced legislative,
administrative and control measures for the purpose of ensuring full compliance
with the EU rules. The French authorities indicated that they had strengthened their
national 
regulatory framework on driftnets and tightened up their checks. The Commission’s
on-site inspections confirmed the effectiveness of these measures; the
infringement procedure was therefore closed in 2011.

Non-compliance with Court judgments

The Court ruled
against Italy for failing to apply effectively the EU rules restricting the use
of driftnets and failing to control the corresponding fishing activities.[155] In response to the
Commission’s inquiry, the Italian authorities provided information on the
measures they had taken in order to comply with the judgment. However, the
subsequent Commission inspections concluded that those measures were not
satisfactory; it therefore maintained the infringement procedure against Italy by sending a letter of formal notice under Article 260(2) TFEU.[156]

Further information available at:

http://ec.europa.eu/dgs/maritimeaffairs_fisheries/index_en.htm

Regional policy

General remarks

In the area of
regional policy, the number of complaints received by the Commission over
recent  years has increased considerably. Accordingly, the number of EU Pilot
files on regional policy is also significant. However, with many complaints
still at the preliminary investigation phase, the Commission did not open any
infringement procedures in this area in 2011.

Complaints handling

The Commission registered
92 new complaints in 2011. Even if 137 were submitted in 2010, the number of
complaints has increased by around 65% since 2009.

Complainants typically claimed that their application
for financial support had been erroneously rejected or that certain projects
were not in line with EU law (especially environmental or public procurement rules)
or that the projects selected for co-financing suffered from other defects
(e.g. poor performance of installations).

The Commission processed 53 complaints related to
regional policy in 2011. Several files were closed without further steps due to
the Commission’s response to the complainant (22) or its lack of competence (14).
Eleven complaints were transferred to EU Pilot so that Member States could
react to them.

The European Parliament submitted eight petitions to
the Commission in relation to regional policy. Some of them were not related to
projects co-financed by the EU; for the rest, there was no evident breach of EU
law.

Own-initiative cases

The Commission opened
an EU Pilot file against a Member State as a preparatory step for a possible
infringement procedure for non-cooperation (Article 4(3) TEU) in the closure of
the projects co-financed by the Cohesion Fund for the programming period
2000-2006. An assessment of the Member State’s response was pending at the end
of 2011.

Early resolution of potential infringements

The Commission
opened 11 new files in EU Pilot during 2011 and processed 13 dossiers in this
period. 12 processed files had a positive assessment, i.e. the Commission
accepted the explanations or the undertakings made by the Member State concerned (83 % success rate). 14 regional policy files remained open in EU Pilot by the
end of last year.

Prominent judgments

Five judgments[157] were handed down by the Court
on regional policy issues in 2011. In all of these, Member States had appealed against
Commission decisions ordering financial correction measures due to irregular
public procurement procedures and/or ineligible expenditures in various
projects co-financed by the European Regional Development Fund.

Further information available at:

http://ec.europa.eu/regional_policy/index_en.cfm

Other policy areas

Education and Culture

In the area of EU
legislation related to education and culture, five infringement procedures were
open at the end of 2011.

The Commission closed two procedures following
compliance by Member States during 2011.

In one case, a UK university was charging higher fees
for its distance learning courses if the student was a resident outside the UK. Following the intervention of the Commission, the university agreed to limit the
additional charges to no more than could be justified by objective reasons
(such as the extra cost of running examination centres in other countries).

In the other case, Germany eliminated the restriction
making study grants available only for residents who wished to follow distance
learning courses at German institutions. They extended the grant’s availability
to distance learning courses offered by foreign institutions so long as the
foreign studies fulfilled all other support conditions.

Enlargement

In this area there
is one case worthy of particular mention: An earlier Court judgment had ruled
that the Netherlands was charging disproportionately high fees for issuing
residence permits for Turkish nationals who had acquired the right of residence.[158] The Dutch authorities aligned
the fees charged for 
provisional residence permits and residence permits issued to Turkish citizens
with those charged for similar documents issued to EU citizens. The Commission is
examining whether these measures are sufficient to fully comply with the
judgement.

Statistics on Europe

With regard to
legal obligations on Member States to provide sound statistics to the
Commission, the following case is worthy of mention: The Commission sent a
reasoned opinion to Greece because it appeared that Greece had failed to
provide the Commission with data on its government deficit and debt for the
purposes of the Excessive Deficit Procedure. To deal with the problems raised
by the Commission, Greece had to review its legislation and administrative
structure. It adopted a law on the Hellenic Statistical System and established the
independent Hellenic Statistical Authority, which were significant steps
forward. However, the Commission also has to monitor the effective
implementation of the new Greek legislation.

Further information available at:

http://ec.europa.eu/dgs/agriculture/index_en.htm

[1]                       Organisation internationale de la vigne et du vin.

[2]                       IP/12/179.

[3]                       IP/10/1224.

[4]                       Commission v Portugal, C-83/04.

[5]                       Commission v Italy, C-47/09.

[6]                       Directive 2009/106/EC.

[7]                       The aid coming from
the EU directly to producers may not be subject to deductions due to national,
regional or local rules.

[8]                       Marija Omejc, C-536/09.

[9]                       Bureau National
Interprofessionnel du Cognac, C-4/10
and C-27/10.

[10]                     Directive 2009/31/EC.

[11]                     Directive
2009/30/EC.

[12]                     Regulation
842/2006.

[13]                     More detailed overview in IP/12/415
(Malta and Italy).

[14]                     Directive 1999/94/EC.

[15]                     IP/11/308
and IP/11/1108.

[16]                     IP/11/309.

[17]                     Commission v Belgium, C‐134/10.

[18]                     Commission v Belgium, C‐222/08.

[19]                     Commission v Poland, C‐545/08.

[20]                     Commission v Portugal, C‐154/09.

[21]                     Directive
2009/136/EC.

[22]                     Directive 2009/140/EC.

[23]                     Directive
2010/13/EU.

[24]                     For example, IP/11/412.

[25]                     Commission v Spain, C‐281/09.

[26]                     Commission v Poland, C‐244/10.

[27]                     IP/11/165.

[28]                     IP/11/1269.

[29]                     IP/11/1422.

[30]                     Commission v Germany, C‐206/10.

[31]                     Directive 2008/104/EC.

[32]                     Directive 89/391/EEC.

[33]                     Lucy Stewart., C‐503/09.

[34]                     KHS AG, C-214/10.

[35]                     Directive 2009/21/EC.

[36]                     Regulation 1775/2005
(replaced by Regulation 715/2009).

[37]                     Commission v Belgium, C-475/08
and C-474/08.

[38]                     Directives 2009/72/EC
and 2009/73/EC.

[39]                     Directive 2009/28/EC.

[40]                     Directive 2009/71/Euratom.

[41]                     IP/10/945.

[42]                     IP/09/1799.

[43]                     Enel Produzione SpA, C‐242/10.

[44]                     Azienda Agro-Zootecnica Franchini,
C‐2/10.

[45]                     Directive 2000/35/EC.

[46]                     Directive 89/106/EEC.

[47]                     IP/11/1415.

[48]                     IP/11/1111
and IP/11/1251.

[49]                     Commission v Greece, C‐65/05
and C‐109/08.

[50]                     Directive 2009/48/EC.

[51]                     Directive 2009/43/EC.

[52]                     Directives 2010/62/EU,
2010/52/EU,
2010/22/EU
and 2010/19/EU.

[53]                     Articles 34-36
TFEU.

[54]                     Commission v Austria, C‐28/09.

[55]                     Commission v Poland, C‐311/10.

[56]                     IP/11/438.

[57]                     IP/11/305, IP/11/433 and IP/11/593.

[58]                     IP/11/435 and IP/11/596.

[59]                     IP/11/168, IP/11/592 and IP/11/1273.

[60]                     Directive 2008/98/EC.

[61]                     IP/11/1434.

[62]                     Directive 2008/50/EC.

[63]                     Directive 2008/56/EC.

[64]                     IP/07/938.

[65]                     Commission v Ireland, C-50/09.

[66]                     Commission v Spain, C-90/10.

[67]                     Boxus and Others, C-128/09.

[68]                     Trianel, C-115/09.

[69]                     Directive 2006/24/EC.

[70]                     IP/11/1248 (the
reasoned opinion to the Czech Republic was sent in March 2012).

[71]                     Commission v Greece, C-211/09,
Commission v Ireland, C-202/09,
Commission v Sweden, C‐185/09
and Commission v Austria, C-189/09.

[72]                     Commission v Sweden, C‐270/11.

[73]                     Directive 2009/50/EC.

[74]                     Directive 2009/52/EC.

[75]                     Directive 2008/115/EC.

[76]                     Directive 2008/114/EC.

[77]                     Directive 2003/109/EC.

[78]                     Regulation 562/2006

[79]                     Directive 2004/114/EC.

[80]                     PPU – El Dridi, C‐61/11.

[81]                     Achughbabian, C-329/11.

[82]                     IP/11/981
and IP/12/75.

[83]                     IP/11/1096.

[84]                     Commission v Germany, C‐518/07.

[85]                     Directive 2008/52/EC.

[86]                     Directive 2008/122/EC.

[87]                     Report
on the Application of the EU Charter of Fundamental Rights.

[88]                     Directives 2000/43/EC,
2000/78/EC
and 2005/29/EC.

[89]                     Commission v Greece, C‐407/09
and IP/12/168.

[90]                     Association Belge des Consommateurs
Test-Achats, C‐236/09.

[91]                     Ruiz Zambrano, C‐34/09.

[92]                     N. S. and Others, C‐411/10
and C‐493/10.

[93]                     IP/11/179.

[94]                     IP/11/1443.

[95]                     IP/11/1442.

[96]                     IP/11/181.

[97]                     Directive 2009/81/EC.

[98]                     Directive 2010/78/EU.

[99]                     Directive 2009/65/EC.

[100]                    Directive 2006/123/EC.

[101]                    IP/11/1440.

[102]                    IP/11/83.

[103]                    Court press release no. 50/11.

[104]                    Commission v Spain. C‐306/08.

[105]                    Commission v Spain. C‐400/08.

[106]                    IP/11/186.

[107]                    A detailed description is available
here.

[108]                    Commission v Spain, C‐18/09.

[109]                    Directive 2006/126/EC
(recast).

[110]                    Directive 2009/12/EC.

[111]                    Directive 2009/20/EC.

[112]                    Directive 2008/57/EC
and Directive 2008/110/EC.

[113]                    IP/11/734.

[114]                    IP/12/184.

[115]                    IP/11/292.

[116]                    IP/11/293.

[117]                    IP/11/601.

[118]                    IP/11/1091
and IP/11/98.

[119]                    Commission v Greece, C‐248/08.

[120]                    Commission v Greece, C‐416/07.

[121]                    Commission v Greece, C‐331/07.

[122]                    Commission v Poland, C‐165/08.

[123]                    Directive 2009/128/EC.

[124]                    Directive 1999/74/EC.

[125]                    Directive 2009/41/EC.

[126]                    Directive 2002/65/EC.

[127]                    Commission v Portugal, C‐255/09,
IP/08/1517.

[128]                    Commission v Luxembourg, C‐490/09,
IP/08/1517.

[129]                    Regulation 999/2001.

[130]                    France v Commission, T‐257/07,
IP/11/601.

[131]                    IP/11/1281.

[132]                    IP/11/76
and IP/11/716.

[133]                    IP/11/1278.

[134]                    Directive 2010/66/EU.

[135]                    The Council did not
support the Commission’s 2005 proposal for a Directive abolishing car
registration taxes.

[136]                    IP/11/161.

[137]                    Commission v the
Netherlands, C-41/09;
Commission v Austria, C‐441/09
 and Commission v Germany, C-453/09.

[138]                    Commission v Germany, C-284/09.

[139]                    Regulation 1553/1989
and Regulation 1150/2000.

[140]                    Commission v Germany, C‐539/09.

[141]                    Commission v Portugal, C‐23/10.

[142]                    Commission v Denmark, C‐461/05.

[143]                    Commission v Finland, C‐284/05.

[144]                    Commission v Germany, C‐372/05.

[145]                    Commission v Greece, C‐409/05.

[146]                    Commission v Italy, C‐387/05
and C‐239/06.

[147]                    Commission v Portugal, C‐38/06.

[148]                    Commission v Sweden, C‐294/05.

[149]                    Directives 2002/21/EC
and 2002/20/EC.

[150]                    Directive 2002/77/EC.

[151]                    IP/11/1115.

[152]                    Commission v Italy, C‐496/09.

[153]                    Commission v Spain, C‐189/07.

[154]                    Commission v France, C‐556/07.

[155]                    Commission v Italy, C‐249/08.

[156]                    IP/11/1088.

[157]                    Provincie Groningen and
Provincie Drenthe v Commission, T‐69/09;
the Netherlands v Commission, T‐70/09;
Portugal v Commission, T‐387/07;
Caixa Geral de Depósitos, SA v Commission, T‐401/07
and Greece v Commission, T‐81/09.

[158]                    Commission v the Netherlands, C‐92/07.