Nineteenth annual report on monitoring the application of community law (2001) /* COM/2002/0324 final */





NINETEENTH ANNUAL REPORT ON MONITORING THE APPLICATION OF COMMUNITY LAW (2001) TABLE OF CONTENTS 1. Introduction 1.1. Statistics for 2001 1.2. Improvements in the pre-litigation procedure 1.3. Transposal of directives 1.4. Applications for derogations from harmonisation measures - Article 95 of the EC Treaty 1.5. Application of international agreements adopted by the Community and of the law derived from such agreements 1.6. Graphical overview of all the infringement proceedings commenced or handled by the Commission during 2001 1.7. Application by the Commission of Article 228 of the EC Treaty (developments in 2000) 2. Situation sector by sector 2.1. Economic and financial affairs 2.2. Businesses 2.2.1. Chemicals 2.2.2. Pharmaceuticals 2.2.3. Cosmetics 2.2.4. Capital goods 2.2.5. Motor vehicles, tractors and motorcycles 2.2.6. Preventive rules provided for by Directive 98/34/EC 2.2.7. Other sectors 2.3. Competition 2.3.1. Telecommunications 2.3.2. Postal services 2.3.3. State aid 2.4. Employment and social affairs 2.5. Agriculture 2.6. Energy and transport 2.6.1. Internal market for electricity and natural gas 2.6.2. Energy efficiency 2.6.3. Oil and gas 2.6.4. External relations in the energy field 2.6.5. Road transport 2.6.6. Combined transport 2.6.7. Inland waterways 2.6.8. Rail transport 2.6.9. Air transport 2.6.10. Transport by sea 2.7. Information society 2.8. Environment 2.8.1. Introduction 2.8.2. Freedom of access to information 2.8.3. Environmental impact assessment 2.8.4. Air 2.8.5. Water 2.8.6. Nature 2.8.7. Noise 2.8.8. Chemicals and biotechnology 2.8.9. Waste 2.8.10. Environment and industry 2.8.11. Radiation protection 2.9. Fisheries 2.10. Internal market 2.10.1. Free movement of goods 2.10.2. Free movement of services and right of establishment 2.10.3. The business environment 2.10.4. Regulated professions (qualifications) 2.11. Regional policy 2.11.1. Analysis of causes 2.11.2. Effects of infringement situations 2.12. Taxation and customs union 2.12.1. Customs union 2.12.2. Direct taxation 2.12.3. Value added tax 2.12.4. Other indirect taxes 2.13. Education, audiovisual media and culture 2.13.1. Education 2.13.2. Audiovisual media 2.13.2.1. Progress in transposing the revised Directive 2.13.2.2. Application of the Directive 2.13.2.3. Enlargement-related questions 2.14. Health and consumer protection 2.14.1. Veterinary legislation 2.14.2. Plant health legislation 2.14.3. Legislation on seeds and plants 2.14.4. Food legislation 2.14.5. Animal feedingstuffs legislation 2.14.6. Consumer protection 2.14.7. Notification of technical rules 2.15. Justice and home affairs 2.15.1. Establishment of an area of freedom, security and justice 2.15.2. Monitoring the application of instruments based on Title VI of the EU Treaty 2.15.3. The Charter of Fundamental Rights 2.15.4. The right of citizens of the Union to move freely 2.16. Budget 2.16.1. Previously initiated proceedings 2.16.2. New proceedings 2.17. Personnel and administration 2.18. Community statistics ANNEX I: DETECTION OF INFRINGEMENT CASES Annex II: Infringement proceedings - Breakdown by stage reached, legal basis, Member State and sector Annex III: Infringements of Treaties, Regulations and Decisions Annex IV - Progress in implementing directives Part 1: Directives with a deadline for transposal in 2001 Part 2: Notification and non-notification of national measures implementing directives Annex IV - Part 2: Summary table Part 3: Infringements for non-conformity Part 4: Infringements for incorrect application of national measures implementing the directives Annex V: Judgments of the Court of Justice up to 31.12.2001 not yet implemented Annex VI: Application of community law by the national courts: a survey Each year the European Commission draws up a report on the monitoring of the application of Community law, in response to requests made by the European Parliament (Resolution of 9 February 1983) and the Member States (point 2 of Declaration No 19 annexed to the Treaty signed at Maastricht on 7 February 1992). The report also responds to the requests expressed by the European Council or the Council in relation to specific sectors. 1. INTRODUCTION Whereas, as the White Paper published by the Commission in 2001 also emphasises, prime responsibility for applying Community law lies with national administrations and Courts, it falls to the Commission to monitor the transposal of Community law where necessary, the compatibility with Community law of the national provisions transposing that law and the proper application of Community law by various bodies in the Member States. The White Paper on European Governance points out that the impact of Community law "depends on the willingness and capacity of Member State authorities to ensure that they are transposed and enforced effectively, fully and on time". The Commission's activity in monitoring the application of Community law covers Community law in its entirety. As such, it is not unusual for the Commission to take action against a Member State for adopting or maintaining legislation or rules which are contrary to the fundamental principles of Community law as enshrined in the Treaties. Within this framework, cooperation between administrative bodies in the Member States and the Commission forms a vital component of the Commission's remit, as vested in it by the Treaties, to act as the guardian of Community law. In this spirit the Commission seeks to promote, at all stages of infringement proceedings, contacts between its departments and the national administrations. The primary objective of infringement proceedings (Article 226 EC and Article 141 Euratom), particularly in the pre-litigation stage, is to encourage the Member State involved to comply voluntarily with Community law as quickly as possible. Optimal exploitation of the pre-litigation stage is thus the best way of achieving the objectives vested in the Commission by the Treaties. This duty of cooperation is formally enshrined in Article 10 of the EC Treaty. The Commission was obliged to activate these provisions on twenty occasions in 2001 when Member States had failed to cooperate on infringement proceedings. Eight of these sets of proceedings were still ongoing at 31 December 2001. This represents an increase in relation to 2000, when only seven sets of proceedings were started under Article 10; four of them were still ongoing at 31 December 2001. However, the Commission starts Article 10 proceedings only where the Member State in question has repeatedly failed to cooperate; as such, these figures do not include delays in processing files which result from national administrations taking an excessive time to reply within the framework of infringement proceedings. The Article 10 procedure is not necessary - and therefore is not used - where the Commission has the information needed to proceed to the next stage of proceedings. This is why it is vital for the Commission to have the information it needs to carry out its duties, including outside the framework of direct contact with the authorities of the Member States. The numerous complaints received from European citizens constitute essential information which enables the Commission to carry out its duties properly. In the interest of ensuring the greatest possible transparency in the management of complaints submitted by citizens, the Commission is to publish in 2002 a consolidated version of the administrative measures it takes in its relations with complainants in respect of alleged infringements of Community law. The nineteenth annual report on monitoring the application of Community law reports on the Commission's activities in connection with monitoring the application of Community law in 2001. With a view to addressing Parliament's call in its resolution on the eighteenth annual report for a more analytical, less descriptive approach to the Commission's work in this field, this report places the Commission's monitoring of the application of Community law, where possible, in the context of the Community's political and legislative programme. A general description of the use made by the Commission of the infringement procedure as a prelude to formal proceedings takes the following form: -a statistical overview showing the various stages involved in monitoring the application of Community law and statistical trends in relation to the previous year (point 1.1); -improvements in the pre-litigation procedure (point 1.2); -transposal by the Member States of Community Directives (point 1.3); -applications for derogations from harmonisation measures - Article 95 of the EC Treaty; this section is in response to Parliament's requests (point 1.4); -application of the international agreements adopted by the Community and the law derived from those agreements; this section is in response to Parliament's request (point 1.5); -a graphical overview, by Member State, of all the infringement proceedings commenced or handled by the Commission during 2001; -an overview of the use made by the Commission, since the entry into force of the Maastricht Treaty, of the penalty mechanism provided for in Article 228 of the EC Treaty. 1.1. Statistics for 2001 The statistics for 2001 reflect, once again, a degree of stability in the number of complaints registered by the Commission: up slightly on 2000 but still below the number recorded in 1999. Complaints still form the bulk of infringement proceedings initiated by the Commission against the Member States, and a corresponding decline is observed in the number of cases opened by the Commission on the basis of its own investigations. The statistics for 2001 can be summed up as follows: -The total number of infringement cases initiated by the Commission is down 11.65%, the lowest figure since 1999. -The number of complaints registered by the Commission increased in 2001 (6.12% up on 2000) but remains slightly below the 1999 record. In 2001 complaints accounted for six infringement cases out of ten initiated by the Commission in that year. Inversely, the Commission opened a smaller number of cases based on its own investigations than in previous years. In 2001 there were 273 such cases, excluding infringement proceedings for failure to communicate national transposal measures. The number of proceedings for failure to notify is down to the lowest level since 1996. - 1 050 letters of formal notice were issued in 2001, 25.43% down on 2000, when 1 317 notifications were registered. However, it should be emphasised that because the backlog in operations for the issue of formal notice had been cleared by the beginning of 2000, the particularly high number of letters of formal notice based on failure to communicate national transposal measures had inflated the year's figures. The 2001 figure should therefore be compared with the 1999 figure (1075), suggesting a degree of stability. It should be noted that the time necessary for operations for the issue of formal notice based on failure to notify had been considerably reduced in 2000 and that this trend continued in 2001 thanks to the continued development of the Asmodée II "directives" database. - The number of reasoned opinions rose in 2001 from 460 to 569, an increase of 23.7%. However, reasoned opinions as a proportion of outstanding files remains stable (27.80% in 2001 against 23.76% in 2000). The sudden upturn in 2001 therefore seems to be largely due to the considerable increase in the speed of notification to Member States (reduced from 29 calendar days to approximately 24 hours on average): thus, for the first time, the reasoned opinions issued in December 2001 were notified during that same year. Accordingly, the figures for 2001 represent the total number of reasoned opinions issued in December 2000 and those issued in December 2001. Only by examining the 2002 figures can the trend be determined. - The number of cases referred to the Court of Justice fell by 5.82%, from 172 in 2000 to 162 in 2001. But this slight decrease must be seen against the higher number of reasoned opinions in 2001 and the reduction in processing times for reasoned opinion decisions and referral decisions. The rate of referrals is fairly stable (up from 9.77% to 10.33%). - Processing times have increased slightly for letters of notice, 73% of them relating to infringement proceedings commenced in 2001. But they are down for reasoned opinions, with only 23% of reasoned opinions served concerning proceedings commenced in that year, against 14% in 2000. However, the slight increase in processing times for letters of notice must be relativised in view of the significant number of letters of formal notice based on failure to notify issued in 2000; the opening of those files is linked to notification of the letter of formal notice; the only element of complaint, i.e. failure to notify, is established purely on the basis that the deadline for transposal has passed. But overall, processing times have not increased. Whereas 49% of cases opened in 2000 were still pending at 31 December 2000, as at 31 December 2001 the corresponding figure for files opened in 2001 was 45.77%. - At the same time, the efficiency of the pre-litigation procedure was confirmed by the number of termination decisions, which stabilised at 1 915 in 2001 (1 899 in 2000); - Lastly, the Commission's policy of transparency intensified in 2000, chiefly through greater use of the internet as a means of disseminating information (see below). Since 17 January 2001, the Commission has announced all recent decisions to issue letters of formal notice and reasoned opinions, to refer cases to the Court of Justice and to terminate cases on the Secretariat-General's Europa website at: http://europa.eu.int/comm/secretariat_general/sgb/droit_com/index_en.htm - infractions All this information is now freely accessible, whereas it used to be available only to the Member State concerned. The Commission also issued 93 press releases in 2001. 1.2. Improvements in the pre-litigation procedure The two main improvements to infringements proceedings in 2001 concern compliance with decisions and arrangements for notifying them. - As stated in the 18th annual report, the Commission has sought to reduce the time elapsing between the adoption of its infringement decisions and their notification to the Member States. Thus the streamlining work carried out reduced the time taken to issue letters of formal notice and reasoned opinions to the Member States concerned via their Permanent Representation from 29 days to 24 hours. This was made possible by creating standard models for letters of formal notice and reasoned opinions and streamlining administrative procedures between the decision and its notification. The time taken to comply with referral decisions has also been reduced, but this is less significant. In most cases this serves for the last contacts with the Member State concerned in a bid to encourage voluntary alignment rather than refer the matter to the Court of Justice. - Improvements to infringement proceedings were also designed to increase the transparency of decisions adopted by the Commission in the field. As stated in the previous report, all recent decisions to issue letters of formal notice and reasoned opinions, to refer cases to the Court of Justice and to terminate cases are now available on the Secretariat-General's Europa server at: http://europa.eu.int/comm/secretariat_general/sgb/droit_com/index_en.htm - infractions. Making this information available on the internet makes it more accessible to the general public and encourages a "peer pressure" effect between Member States. The frequency of internet updates was also increased; as of July 2001 they take place every six months. 1.3. Transposal of directives The table below gives an overall picture of the rate of notification of national measures implementing all the directives applicable on 31 December 2001. As at 31 December 2001 the Member States had on average notified 97.41% of the national measures needed to implement the directives. This figure represents a clear improvement in the transposal situation in 2000 (96.59%) and is the highest rate achieved since 1992. However, this average rate is below the target of 98.5% set by the Stockholm European Council for the transposal of internal market legislation. In terms of all Community legislation for transposal, only Denmark and Spain have reached that target. >REFERENCE TO A GRAPHIC> The following table provides an overview of the situation for each Member State. The summary table at the end of Part 2 of Annex IV to this report (Volume V) shows the detailed transposal rate for each Member State and each sector in 2001. 1.4. Applications for derogations from harmonisation measures - Article 95 of the EC Treaty Article 95(a) to (b) gives Member States the possibility to maintain or introduce national provisions derogating from harmonisation measures adopted at Community level where this is justified by fundamental requirements, in particular the protection of health or the environment. The Treaty requires the Commission to approve or reject notifications submitted to it within a six month period. When justified by the complexity of the matter and in the absence of danger for human health, the Commission may extend this period with a further six months. In 2001, a total of 7 notifications under Article 95(a) to (b) were submitted by the Member States. They concerned a DE notification under Article 95(5) with regard to new national provisions going beyond the measures of Directive 1999/51/EC (prohibiting the marketing and use of organostannic compounds when acting as biocides in free association antifouling paint), a DE notification under Article 95(4) with regard to maintaining national provisions derogating from Directive 2000/38/EC (remodelling the pharmacovigilance systems), an NL notification under Article 95(5) with regard to new national provisions going beyond the measures of Directive 94/60/EC (harmonising amongst other things the use and marketing of creosote and similar tar distillates, as well as preparations containing them, by limiting the content of B[a]P), a UK notification under Article 95(4) with regard to maintaining national provisions going beyond the measures of Directive 98/79/EC (harmonising the rules for placing on the market and putting into service of in vitro diagnostic medical devices), and A, FI and SV notifications under Article 95(4) with regard to maintaining national provisions derogating from Directive 76/116/EEC as last amended by Directive 98/97/EC (concerning the maximum admissible content of cadmium in fertilisers and the prohibition of marketing fertilisers containing higher cadmium concentrations than nationally fixed in A, FI and SV). The Commission, in 2001, in its Decision of 13 July 2001, rejected the new draft German national provisions regarding the use of organostannic compounds in antifouling products. By its Decision of 18 July 2001, the Commission rejected the maintenance of the DE national provisions on reporting obligations with regard to adverse reactions of medicinal products. Having extended the examination period through its Decision of 13.07.2001, the Commission approved the NL national provisions relating to the placing on the market and use of creosote-treated wood by its Decision of 23.01.2002. Consequently, in accordance with Article 95(7) of the Treaty, the Commission is already examining the appropriateness to adapt to technical progress, for a second time, the provisions of Directive 94/60/EC regarding creosote and creosote-treated wood on the basis of the scientific evidence provided by the Netherlands and the opinion of the CSTEE given in the matter. Finally, in its Decision of 25 January 2002, the Commission declared the UK notification for maintaining the measures in the HIV Testing Kits and Services Regulations 1992, with reference to Article 95(4) of the Treaty, inadmissible. The Commission is in the process of preparing its Decisions on the Austrian, Finnish and Swedish notifications with regard to cadmium contents in fertilisers. 1.5. Application of international agreements adopted by the Community and of the law derived from such agreements Pursuant to Article 300(7) of the Treaty, agreements concluded under the conditions set out in this Article are binding on the institutions of the Community and on Member States. Within that context, the Commission began proceedings against Ireland in 1998 for infringing Article 5 of Protocol 28 of the Agreement on the European Economic Area. In violation of that Article, Ireland has failed to approve the Berne Convention for the Protection of Literary and Artistic Works as amended by the Paris Act (1971). The Commission referred the matter to the Court of Justice on 19 January 2000 and, in a judgment given on 19 March 2002, the Court concluded that Ireland had failed to meet its obligations resulting from the combined provisions of Article 300(7) EC and Article 5 of Protocol 28 annexed to the Agreement on the European Economic Area. It should be noted that Mr Advocate-General Mischko also rejected the United Kingdom's argument concerning the potential impact of the mixed nature of an agreement on the Commission's powers in respect of infringement proceedings. Complaints were also lodged with the Commission concerning the failure by the United Kingdom and the Netherlands to comply with certain provisions relating to freedom of establishment and freedom of movement for workers contained in the European Agreement with Poland. 1.6. Graphical overview of all the infringement proceedings commenced or handled by the Commission during 2001 The three tables below show the numbers of infringement proceedings in motion on 31 December 2001, at the three separate stages: letter of formal notice, reasoned opinion and referral to the Court of Justice. >REFERENCE TO A GRAPHIC> >REFERENCE TO A GRAPHIC> >REFERENCE TO A GRAPHIC> 1.7. Application by the Commission of Article 228 of the EC Treaty (developments in 2000) In 2001 the Commission explained the method whereby it calculated the amount of penalty payments proposed to the Court within the framework of referrals pursuant to Article 228 EC. This method is set out in two Commission notices of 1996 [1] and 1997. [2] In 2001 the Commission clarified how it proceeds in fixing the length of the infringement (from the date of the first Court judgment) at 0.1 point per month of delay as from the seventh month of the judgment's being delivered, within the limits laid down by its 1997 notice. [1] Information from the Commission - Memorandum on applying Article 171 of the EC Treaty OJ C 242, 21.8.1996 p. 6. [2] Information from the Commission - Method of calculating the penalty payments provided for pursuant to Article 171 of the EC Treaty, OJ C 63, 28.2.1997 p. 2. The Commission also adopted three second referral decisions with demands for penalty payments from Spain, France and Luxembourg. The fields covered by these decisions were very diverse: one concerned the environment (Spain), one fisheries (France) and one transport (Luxembourg). The diversity of areas concerned shows that the second referral procedure with penalty payments is no longer, as it once was, mainly limited to the environmental and social fields and therefore covers the whole range of infringements. It should also be noted that the second referral decision against France is the first in the fisheries field. Several files were also wound up in 2001 after the Member States concerned had taken steps to comply with the Court judgment. One such example was the file on the Kouroupitos rubbish tip, the only case to date in which the Court has required a Member State to make penalty payments. Given that measures to implement the first Court judgment were adopted by the Greek authorities on 26 February 2001, the latter paid a total of EUR5 400 000 in penalty payments for the period from July 2000 to March 2001. This case concerned Greece's failure to take the necessary measures to ensure the elimination of toxic and dangerous waste in the Chania region of Crete (more specifically, closure of the illegal rubbish tip located at the mouth of the river Kouroupitos), in violation of the obligations imposed by Council Directive 75/442/EEC of 15 July 1975 on waste and Council Directive 78/319/EEC of 20 March 1978 on toxic and dangerous waste. In 2001 the Commission also closed previous cases for which a solution designed to ensure compliance with the Court judgment was provided by the Member State concerned. No file in which a second referral decision was taken in 2000 or previously is still pending. The summary table below lists the decisions taken by the Commission for second referrals since the procedure was introduced by the Maastricht Treaty (and the outcome in each case). >TABLE> 2. SITUATION SECTOR BY SECTOR 2.1. Economic and financial affairs Free movement of capital Broadly speaking, freedom of capital movements is satisfactorily secured both within the European Community and in relation to non-member countries. The number of infringement cases pending fell slightly during the report period, although some of them concern substantial barriers to the smooth operation of the single market and are at an advanced stage in the procedure. The Court gave only one judgment in the field of the free movement of capital, finding that a national rule requiring a mortgage securing a debt payable in the currency of another Member State to be registered in the national currency was incompatible with Community law. [3] [3] Case C-464/98 -'National rules prohibiting the registration of mortgages in foreign currencies' - judgment given on 11 January 2001. A fair number of the significant infringement proceedings concern the special rights enjoyed by Member States to control firms in the public utilities sector (energy, telecoms, etc.), and the issues involved are crucially important from the standpoint of integration of the single market. Following the first judgment [4] handed down by the Court in this area, three other similar infringement proceedings were brought, on which the Advocate General delivered his opinion [5] on 3 July. The Court's judgment will make it possible to fine-tune the interpretation given to the freedom to invest within the Community and determine what action should be taken with regard to other similar cases which are at a less advanced stage in the procedure. [4] Case C-58/99 -'Privatisation of public undertakings - Grant of special powers' - judgment given on 23 May 2000. [5] Cases C-367/98, C-483/99 and C-503/99 -'Privatisation of strategic undertakings - Restrictions on shareholding and involvement in management - Specific holdings and powers of the State' - opinion delivered on 3 July 2001. Proceedings are continuing against a number of restrictions on the acquisition of real property by non-residents in certain Member States. These infringements, which show that the Community real-estate market is still relatively fragmented, seriously limit the exercise of fundamental freedoms by EU citizens. Other cases are still pending against restrictions on the investment activities of supplementary pension funds. The rules applied by one Member State concerning the reporting of cross-border payments, and in particular the proportionality of the fines for non-compliance with this administrative obligation, are also the subject of infringement proceedings in which it was decided to refer the matter to the Court of Justice. 2.2. Businesses Overview As at the end of the report period, the Enterprise DG was responsible for managing 470 directives, of which 452 were in force at that date. Complaints and infringements relating to those directives accounted for nearly 4% of the total number of infringements dealt with by the Commission during the year; the Enterprise DG noted a decrease in its caseload in comparison with the previous year. This is chiefly due to the fact that Member States transposed a large number of directives in respect of which infringement proceedings for failure to transpose had been initiated. Although there were fewer infringement cases, failure to transpose directives continues to be a major problem for both businesses in the sectors concerned (namely motor vehicles, chemicals and capital goods) and consumers of the goods produced, who are unable to take full advantage of the single market. The transposal rate currently varies between 95.19% and 99.12% according to the Member State. Most infringement proceedings for failure to transpose concern the motor vehicle sector, followed by the chemical industry. There is no doubt that full transposal of Community law in the industrial field would enable the single market to function more smoothly. The difficulties encountered in transposing directives can often be ascribed to the fact that the officials responsible for negotiating them are not the same as those in charge of drafting the national transposal measures and subsequently ensuring that they are applied in practice. An increase in instances of incorrect application and faulty transposal was furthermore noted. Most of these cases concerned capital goods. The Enterprise DG reacted to this development by systematically entering cases of incorrect application and faulty transposal on the agenda for package meetings organised by the Secretariat-General concerning the transposal of directives. In statistical terms, it is worth noting that infringement proceedings were opened in 80% of the cases examined by the Enterprise DG, the same high proportion as in 2000. The rate of referral to the Court also remained constant at 8% of the total number of cases examined. Analysis by sector 2.2.1. Chemicals Cases of failure to transpose directives in the chemicals sector fell markedly during the year: proceedings were terminated in 23 cases, 17 of which related to directives whose transposal deadline expired in 2000. However, since there is only one directive with a transposal deadline that expired in 2001, it is too early to conclude that a trend is emerging towards a high transposal rate within a reasonable timescale. This catching-up process appears to confirm that the main reason for the failure to report measures is that the procedures for transposing directives into national law have lagged behind schedule, rather than other factors. The only case of non-transposal that cannot apparently be ascribed to delays in the transposal process relates to explosives (Directive 93/15/EEC). This case is currently being examined under the procedure laid down in Article 228 of the Treaty following the judgment delivered by the Court in March 2000 finding that France had failed to fulfil its obligation to transpose the directive (Case C-327/98). It would nevertheless appear that transposal measures are in the process of being adopted. As far as faulty transposal or incorrect application are concerned, two new infringement cases were opened. These relate to the infringement of certain directives laying down restrictions on the marketing and use of dangerous substances (oil lamps, arsenic compounds) or rules on the labelling of dangerous preparations. Two cases of faulty transposal or incorrect application concern Directive 93/15/EC on the placing on the market and supervision of explosives for civil use and involve France and Germany. In the case of Germany, the Commission decided on 23 October to refer the matter to the Court. 2.2.2. Pharmaceuticals All proceedings for failure to transpose directives in the pharmaceuticals sector were terminated during the year. Nevertheless, problems remain with the interpretation and application of the pharmaceuticals directives by the national authorities, particularly in the case of the "transparency" directive (Directive 89/105/EEC relating to the transparency of measures regulating the prices of medicinal products for human use and their inclusion in the scope of national health insurance systems). The directive offers procedural guarantees, together with precise deadlines, with regard to the setting of prices and the level of reimbursement of medicinal products. Many of the Member States do not comply with the directive's requirements, with special reference to the deadlines for adopting and notifying decisions on prices of medicinal products, the obligation to give reasons for decisions taken that are based on objective and verifiable criteria, the availability of remedies for contesting decisions taken, or the conditions in which positive lists of medicinal products covered by the national health insurance system are drawn up. Among the proceedings initiated against Member States for infringement of Directive 89/105/EEC, it is worth mentioning the judgment delivered by the Court on 27 November against Austria, while a case against Finland is also before the Court. It was also decided to refer the case against Belgium to the Court, whereas the referral decision concerning Greece is currently suspended in view of discussions in progress between the Commission and the Greek authorities. Intensive discussions are also ongoing with other Member States on the subject of application of this directive. Apart from application of the transparency directive, two major proceedings against Belgium and Italy are still ongoing. The cases relate to the application of Directive 89/381/EEC on medicinal products derived from human blood or human plasma and the conditions for suspending marketing authorisations for medicinal products in Italy. In both cases the Commission addressed a supplementary reasoned opinion to the Member State concerned. 2.2.3. Cosmetics The Commission observed real progress during the year in the transposal of Community rules on cosmetics and was able to terminate a large number of infringement proceedings against Member States for failure to notify national measures transposing directives. All Member States have notified national measures implementing Directives 2000/6/EC and 2000/11/EC adapting to technical progress Directive 76/768/EEC and only a few Member States have not yet transposed Directives 97/18/EC and 2000/41/EC postponing the date from which experiments on animals are prohibited for ingredients or combinations of ingredients. It also observed some progress in the application of Community rules on cosmetics, having had to handle no new infringement cases. 2.2.4. Capital goods In the mechanical and electrical engineering sectors (including personal protection equipment), given that the latest directive to be adopted dates from 1999 (Directive 1999/5/EC on radio equipment and telecommunications terminal equipment and the mutual recognition of their conformity), few cases of failure to transpose remain. The situation regarding Directive 1999/5/EC is as follows: -France, Germany, Ireland and Italy have now transposed the directive into their national law, enabling the infringement proceedings against them to be terminated, and only Greece has not yet done so. The Commission brought an action against Greece before the Court of Justice on 18 July for failure to transpose the directive. Major progress was achieved in remedying instances of incorrect application or faulty transposal of directives: over 60% of infringement proceedings pending in this area were terminated during the year. A combination of frequent direct contacts with the officials responsible for the issues involved in the national administrations and strict application of the remedies available to the Commission under Article 226 of the EC Treaty yielded satisfactory results. In the area of market surveillance in particular, Member States acted more effectively than in the past and carried out the necessary checks. In the field of measuring instruments, outstanding infringements usually relate only to failure to transpose directives; as regards pressure vessels and medical devices, most of the infringements involve incorrect application of the directives. And in the case of gas appliances, the infringement proceedings pending relate exclusively to incorrect application of Directive 90/396/EEC on appliances burning gaseous fuels. Regarding cases of failure to notify national transposal measures, the situation is as follows: -It was decided on 20 December to refer Germany's failure to transpose Directive 97/23/EC on pressure vessels to the Court of Justice. -For Directive 98/79/EC on in vitro diagnostic medical devices, all the Member States have notified national transposal measures except for France, which should complete its transposition in 2002. -It was decided to send Greece and Portugal a reasoned opinion on account of their failure to transpose Directive 1999/103/EC on units of measurement. Member States did not usually encounter particular problems in transposing the above three directives into national law; delays in transposal appear to have been caused, at least partly, by the complexity of their procedures. As regards cases where national law conflicts with the directives, the situation is as follows: -A letter of formal notice under Article 228 was sent to Italy concerning the non-conformity of its national rules with Directive 90/396/EEC on appliances burning gaseous fuels in the wake of the judgment delivered by the Court in 1999 finding that Italy's rules were incompatible with Community law (Case C-97/112). -A letter of formal notice was addressed to Portugal concerning non-conformity of national legislation with Directive 93/42/EEC on medical devices. 2.2.5. Motor vehicles, tractors and motorcycles A satisfactory pace has been reached in the transposal of directives governing the type-approval of motor vehicles, agricultural or forestry tractors and motorcycles. A major reason for this appears to be that, in contrast to the previous year, 2001 witnessed a smaller number of directives (11) reaching transposition deadlines. This resulted in a markedly lower legislative burden in the Member States. The initiation of infringement proceedings is generally sufficient to secure the transposition of directives within a reasonable deadline, obviating the need for further action in the Court of Justice. Nonetheless it is to be noted that on 15 March the Court delivered a judgment in Case C-83/00 declaring that, by failing to adapt its laws, regulations and administrative measures in order to fulfil the requirements of Directive 97/24/EC on certain components and characteristics of two or three-wheel motor vehicles, the Netherlands had failed to comply with its obligations under the EC Treaty. Thanks to the adoption of road traffic amending legislation in Austria, a number of infringement cases arising from that Member State's failure to transpose directives on time can now be closed. Owing both to the complexity of legislation and to constantly evolving technology, the type-approval of vehicles gives rise to frequent difficulties in interpretation. The Commission notes with satisfaction that the type-approval authorities themselves make frequent recourse to well-established mutual information and discussion networks in order to resolve potential difficulties in the application of the legislative provisions. The Commission works closely with Member States in order to identify those instances where the legislative framework is in possible need of amendment. 2.2.6. Preventive rules provided for by Directive 98/34/EC The Enterprise DG is also responsible for administering Directive 98/34/EC. The directive establishes a notification procedure which requires Member States to submit to the Commission, and to each other, their drafts of new technical regulations for monitoring of compliance with internal market rules before they are finally adopted. The notification procedure is an essential tool for preventing barriers to trade being created and for sharing information. During the year the Commission received 530 drafts of technical regulations (of which 25 relating to rules on information society services and the rest relating to products) which were scrutinised by the relevant departments. These were fewer than in 2000, chiefly as a result of the drop in the number of notifications in the telecommunications sector: Directive 1999/5/EC on radio equipment and telecommunications terminal equipment, which had to be transposed by April 2000, required Member States to notify their radio interfaces, something which they did mainly in 2000. Nevertheless, there was a slight increase in the number of cases which prompted the Commission to issue a detailed opinion recommending changes to the planned measure in order to eliminate any unjustified barriers to the free movement of goods or information-society services which might arise as a result. This shows that, although the number of draft technical regulations fell, their complexity and the barriers to free movement which they are liable to create was on the increase. Alongside infringements of the EC Treaty a large proportion of the detailed opinions issued by the Commission pointed out that the projects notified could breach Community directives connected with the free movement of information-society products or services. In fifteen or so cases the directive also helped to facilitate Community harmonisation by precluding the adoption of national measures that could have entrenched the positions of certain Member States when common solutions were being sought. Most of these cases concerned matters covered by the proposal for a directive on measuring instruments (COM(2000) 566 final) and the proposal for a directive on the animal-health requirements applicable to non-commercial movement of pet animals (COM(2000) 529 final). When the Commission discovers a breach of Directive 98/34/EC, either because a legislative instrument containing technical regulations has been adopted without being notified under the directive, or because the standstill periods provided for by the directive have not been complied with, it starts a dialogue with the Member State concerned in order to see that the situation is rectified (e.g. through the notification of a new draft) or commences infringement proceedings. At the end of the year preparatory work was under way on around fifteen procedures of this type, notably in the field of information-society services, which have also been subject to the notification procedure since 5 August 1999. The increase in the number of infringements in the information-society services field is due to the fact that this is a new and complex sector in which the Member States are still having difficulty in ensuring that Directive 98/34/EC is correctly applied. In its judgment of 15 February in Case C-230/99 Commission v France, the Court of Justice spelled out the relationship between detailed opinions issued under Directive 98/34/EC and letters of formal notice sent to Member States pursuant to Article 226 of the EC Treaty as part of infringement proceedings. The Court held that a detailed opinion under Directive 83/189/EEC (consolidated by Directive 98/34/EC) could not be regarded as equivalent to a letter of formal notice since, when it was issued, the Member State to which it is addressed could not have committed an infringement of Community law as the instrument in question existed only in draft form. To improve the dialogue with firms, projects notified are accessible at http://europa.eu.int/comm/enterprise/tris/index_en.htm. 2.2.7. Other sectors In the other sectors for which the Enterprise DG is responsible (such as textiles, toys, construction, tourism, etc.) very few infringements were observed. The following three cases are to be mentioned: -The Commission sent Belgium a letter of formal notice for incorrect application of Directive 94/25/EC on recreational craft. -The last set of infringement proceedings still ongoing in the construction sector regarding quality controls on certain steel imports into Greece was terminated following the adoption by the Greek authorities of a ministerial decision amending the legislation at issue. -It was decided to refer to the Court the case against Italy concerning concessions on entrance fees for Italian museums and monuments applicable only to Italian nationals. 2.3. Competition In 2001 the Commission took decisions on 36 cases dealt with by the Directorate-General for Competition. [6] In 32 of them the case was closed and in the remaining ones it was decided to bring the defaulting Member State before the Court of Justice. Although it is hard to draw any wide-ranging conclusions from these figures, it is safe to state that in general, Member States take steps to comply with EC competition law. Indeed, competition cases represent no more than a small fraction of the alleged infringements of EC law by Member States which the Commission is currently examining. Most of the complaints lodged with the Commission appear unfounded, do not take priority as they have no Community dimension or can be dismissed because they are being dealt with appropriately by the Member State concerned at the time the Commission makes its assessment. A large proportion of the infringement cases examined by the Directorate-General for Competition relate to the enforcement of competition directives in the telecommunications field or on the transparency of financial relations between Member States and their public undertakings. Finally, there is a growing number of cases concerning services of general interest, where the Commission needs to ensure that restrictions of competition do not exceed what is necessary to guarantee the effective performance of the tasks assigned to the service operators. [6] Please note that this report does not cover the Commission's examination of alleged infringements of EC state aid rules. 2.3.1. Telecommunications The Commission continued to monitor the effective implementation in the Member States of directives in the competition field based on Article 86(3) of the EC Treaty, as well as establishment of the regulatory framework in Greece following the full liberalisation of telecommunications markets which took effect from 1 January. It pressed ahead with proceedings under Article 226 already initiated against certain Member States. It also examined closely effective application of the directives in conjunction with the Member States and other interested parties as part of the preparation of the seventh report, adopted on 28 November, on the implementation of the telecommunications regulatory package. [7] [7] COM(2001) 706 final. At the end of the year 20 infringement proceedings were still ongoing against Member States that had failed to transpose the directives correctly or to notify any transposal measures, and proceedings were terminated in six cases. The Commission pressed ahead in particular with proceedings against Luxembourg concerning rights of way and brought an action against that Member State before the Court of Justice in February for having failed to adopt clear-cut rules ensuring non-discriminatory treatment of operators with regard to rights of way. On 16 October the Court of Justice held in the Commission's favour in the proceedings it had brought against Portugal and Greece. In the judgment concerning Portugal (Case C-429/99) the Court confirmed that call back services did not constitute voice telephony within the meaning of Directive 90/388/EEC and that the Portuguese Government was therefore wrong to reserve them for the incumbent operator pending telecoms liberalisation. In the judgment concerning Greece (Joined Cases C-396/99 and C-397/99) the Court confirmed that in accordance with Directive 90/388 access to the telecommunications market could be restricted only on the grounds of a lack of available frequencies. Where access was conditional on obtaining a licence, the Member State had to ensure that the procedures for obtaining a licence were transparent and made public and that they were applied on the basis of objective criteria and in a non-discriminatory manner. On 6 December the Court ruled in a dispute between the Commission and France concerning the arrangements for financing the universal service in force in that country since 1997. The Commission had referred the dispute to the Court in April 2000. The Court upheld the Commission's view entirely, finding that the French arrangements did not comply with the principles of proportionality, objectivity and transparency required by the directives and that France had also failed to fulfil its obligations as regards tariff rebalancing. Again on the issue of the tariff rebalancing required by Directive 96/19/EC, the Commission moved forward in the infringement proceedings against Spain by sending it a supplementary reasoned opinion in July. This document laid particular emphasis on the inconsistency between the completely unbundled tariffs for access to the local loop, set in December 2000, and the price cap scheme adjusted in May 2001, which continued to risk causing a cost/price squeeze until 2003, thereby undermining the results of unbundling. The measures announced by the Spanish authorities in their response to the supplementary reasoned opinion were unsatisfactory and the Commission accordingly referred the matter to the Court of Justice on 21 December. In July a reasoned opinion was issued to Italy for failure to communicate before the prescribed deadline its measures transposing Directive 1999/64/EC on cable television networks. No reaction to its reasoned opinion having been received, the Commission decided on 20 December to refer Italy to the Court. 2.3.2. Postal services In the postal sector, on 23 October the Commission adopted a decision under Article 86(3) of the EC Treaty on scrutiny of the relations between the French postal operator La Poste and firms specialised in providing mail preparation services. The Commission found that La Poste faced a conflict of interests in its relations with private mail preparation firms in that it was both a competitor and, on account of its postal monopoly, an unavoidable partner for such firms. The Commission took the view that this conflict of interest encouraged La Poste to abuse its dominant position. As French law did not provide for sufficiently effective or independent scrutiny to neutralise this conflict of interest, the Commission concluded that France had infringed Article 86 read in conjunction with Article 82 of the EC Treaty. 2.3.3. State aid The Commission examined the transposal of Directive 2000/52/EC [8] by Member States and opened infringement proceedings against all of them for failure to communicate such measures within the deadline laid down by the directive. On 20 December it was able to drop the proceedings against Austria, Denmark, Germany and the United Kingdom following the notification of such measures. [8] Commission Directive of 26 July 2000 amending Directive 80/723/EEC on the transparency of financial relations between Member States and public undertakings. 2.4. Employment and social affairs The cases for which the Directorate-General for Employment and Social Affairs is responsible relate to a range of different fields (free movement of workers, equal treatment of men and women, working conditions and health and safety at work) and legal instruments (the Treaty, regulations and directives). The following general remarks can be made: in the field of the freedom of movement for workers, the problems encountered are above all specific issues relating to the incorrect application of certain Treaty provisions and regulations, whereas in other areas (equal treatment of men and women, working conditions and health and safety at work) problems have to do mainly with the non-conformity, and occasionally the failure to communicate, national measures transposing directives. Analysis of experience in dealing with infringements nevertheless reveals that their causes and origins are varied. The role of the social partners, who participate fully in the preparation and implementation of social legislation, is also worth mentioning in this context. There would therefore seem to be no "one size fits all" solution, and a case-by-case approach is called for. The most significant individual cases are outlined below. In the field of the free movement of persons, problems remain here and there owing to incorrect application of the relevant provisions of the Treaty and Regulations Nos 1408/71 and 1612/68. A large number of proceedings already opened were continued. One example is the difficulty of obtaining recognition of work experience in the public service in several Member States (a reasoned opinion was sent to Belgium, France and Germany, while the case against Austria is continuing and it was decided to refer Ireland to the Court of Justice). The cases against France concerning the deduction of the "contribution sociale généralisée" and the "contribution pour le remboursement de la dette sociale" from the income of frontier workers are being pursued under Article 228 of the Treaty following the judgments delivered by the Court. [9] Although steps have since been taken to comply with the Court's judgments, there are still practical problems to do with the reimbursement arrangements and limitation periods which have prevented the cases being closed. Italy having failed to communicate any national measures taken in order to comply with the Court's ruling [10] against that Member State for non-recognition of the acquired rights of former foreign-language assistants by certain Italian universities, the proceedings in question are also continuing under Article 228 of the Treaty. On the other hand, infringement proceedings against Belgium [11] concerning reimbursement of university registration fees unduly charged to students from other Member States, which were being continued under Article 228, were closed following positive developments. [9] Judgments of 15 February 2000 in Cases C-169/98 and C-34/98. [10] Judgment of 26 June 2001 in Case C-212/99. [11] For failure to comply with the judgment of 3 May 1994 in Case C-47/93. As regards equal treatment of men and women, the proceedings against France under Article 228 of the Treaty concerning the ban on night work for women in industry were finally terminated following the adoption of national measures lifting the ban. France also having communicated national measures transposing Directive 96/97/EC [12] and complied with the Court's judgment, [13] the proceedings still ongoing against it under Article 228 were closed. Proceedings against Greece for failure to comply with the Court's judgment finding that it had failed to communicate measures transposing the same directive [14] are continuing, however. The case against Greece for incorrect application of Directives 75/117/EEC and 79/7/EEC (failure to repeal, with retroactive effect, provisions of collective agreements making the payment of family and marriage allowances to female workers subject to conditions not required of married male workers) [15] is also being pursued under Article 228 of the Treaty. A reasoned opinion was addressed to the UK authorities concerning faulty transposal of Directive 96/34/EC on parental leave. [16] [12] Amending Directive 86/378/EEC on the implementation of the principle of equal treatment for men and women in occupational social security schemes. [13] Judgment of 8 July 1999 in Case C-354/99. [14] Judgment of 14 December 2000 in Case C-457/98. [15] Judgment of 28 October 1999 in Case C-187/98. [16] See also the request for a preliminary ruling in Case C-243/00, still pending. On working conditions, there are still problems to do with the non-conformity of measures transposing Directive 77/187/EEC [17] in Italy (where it does not apply in certain crisis situations, such as a court-approved composition with creditors or the special administration procedure) and it was decided to refer the matter to the Court. Proceedings against France were dropped following the steps it took to comply with Court rulings against it for failure to communicate measures transposing Directives 94/33/EC [18] and 93/104/EC, [19] while those against Italy for failing to comply with the Court's judgment finding that it had not communicated national measures transposing Directive 93/104/EC [20] are being pursued under Article 228 of the Treaty. [17] Relating to the safeguarding of employees' rights in the event of transfers of undertakings. [18] On the protection of young people at work. Judgment of 18 May 2000 in Case C-45/99. [19] Concerning certain aspects of the organisation of working time. Judgment of 8 June 2000 in Case C-46/99. [20] Judgment of 9 March 2000 in Case C-386/98. As regards Directive 93/104/EC (working time), a reasoned opinion was sent to Denmark, which had transposed the instrument by means of collective agreements that do not cover all workers. On the transposal of Directive 98/59/EC (collective redundancies) by Italy and Portugal, infringement proceedings for non-conformity continued and it was decided to make referrals to the Court of Justice. It was also decided to refer the problems to do with the incorrect transposal by Germany of Directive 96/71/EC [21] to the Court, thereby affording the latter an opportunity to rule on the interpretation of the concept of "minimum rates of pay". [21] Concerning the posting of workers in the framework of the provision of services. In the field of health and safety at work, the Court's rulings against Austria for failure to communicate all the national measures transposing Directives 95/30/EC [22], 97/59/EC [23] and 97/65/EC [24] (on risks related to exposure to biological agents at work) reveal a serious structural problem. Most infringement proceedings nevertheless concern the non-conformity of national measures transposing the basic directives and a number of specific directives which have the same legal status but are confined to the hard core of those directives. Taking as an example transposition of the Framework Directive 89/391/EEC, proceedings for incorrect transposal are continuing against France, Spain, Sweden and the UK. A reasoned opinion was addressed to Finland and Ireland, while it was decided to refer the cases concerning Luxembourg, the Netherlands and Portugal to the Court. The Commission was able to terminate proceedings concerning transposition by Belgium after satisfactory national measures were adopted. By judgment of 15 November [25] the Court ruled against Italy on the grounds that it had incompletely transposed the same directive. The issue of the non-conformity of the Italian measures transposing Directive 90/270/EEC (work with display screen equipment) was also referred to the Court of Justice. [26] [22] Judgment of 14 June 2001 in Case C-473/99. [23] Judgment of 11 October 2001 in Case C-110/00. [24] Judgment of 11 October 2001 in Case C-111/00. [25] Case C-49/00. [26] Case C-455/00. 2.5. Agriculture In the farm sector monitoring of the application of Community law was a two-pronged effort aimed at removing barriers to the free movement of agricultural products and ensuring effective and correct application of more specific provisions of the agricultural rules. As far as the free movement of agricultural products is concerned, the general downward trend in conventional trade barriers - such as systematic import checks and demands for certificates - was confirmed. The monitoring effort focused on measures taken by Member States reserving the use of quality labels or descriptions for products of their own regions or countries. In this area the Commission has traditionally been faced with a number of initiatives taken by Member States or their regional authorities with the aim of raising awareness of the quality of agricultural products and foodstuffs, inter alia by encouraging the creation of specific labels or descriptions. It has of course taken a favourable view of any schemes designed effectively to promote the intrinsic quality of the agricultural products or foodstuffs in question and thereby to create new outlets, improve producers' incomes and offer consumers a wider choice. It has, however, systematically initiated infringement proceedings against quality labels or descriptions which, in breach of Article 28 of the EC Treaty as interpreted by the Court in its judgments of 12 October 1978 in Case C-13/78 Eggers and 7 May 1997 in Case C-321/94 Montagne, are reserved, in law or in fact, for national or regional products whereas such products do not display any intrinsic qualitative characteristic that is duly recognised as such. Labels or descriptions of this nature give rise to arbitrary discrimination against producers and operators from other Member States and unjustified barriers to the free movement of goods. In this context the Commission referred to the Court the case of the German CMA label carrying the indication "Markenqualität aus deutschen Landen", which requires at least part of the production process for agricultural products and foodstuffs to be located in Germany in order to qualify (Case C-325/00, pending); it also decided to refer France to the Court in connection with 11 regional labels, [27] and addressed a reasoned opinion to Italy on the subject of two regional quality labels. [28] [27] In the case of France the infringement proceedings relate to the following regional quality labels: "Normandie", "Nord-Pas-de-Calais", "Ardennes de France", "Limousin", "Languedoc-Roussillon", "Lorraine", "Savoie", "Franche-Comté", "Corse", "Midi-Pyrénées", "Salaisons d'Auvergne" and "Qualité France". [28] In the case of Italy the infringement proceedings relate to the regional quality labels "Regione Siciliana-Marchio Qualità" and "Abruzzo Qualità". Regarding less traditional forms of barriers to trade, such as the repeated acts of violence committed by individuals in France against fruit and vegetable imports from other Member States, in particular from Spain, and the authorities' failure to take measures to prevent such acts, it is worth recalling the judgment given by the Court of Justice on 9 November 1997 in Case C-265/95, [29] where it held that "by failing to adopt all necessary and proportionate measures in order to prevent the free movement of fruit and vegetables from being obstructed by actions by private individuals, the French Republic has failed to fulfil its obligations under Article 30 of the EC Treaty [now Article 28 EC], in conjunction with Article 5 of that Treaty [now Article 10], and under the common organisations of the markets in agricultural products". The fact that in the most recent marketing years movements of imported fruit and vegetables, notably from Spain, went unhindered suggests that the measures taken by the French Government to comply with the Court's judgment were more effective than before. A major incident nevertheless occurred during the report period, when beef producers attacked a processing plant using meat from other Member States. [29] [1997] ECR I-6959. In monitoring the application of specific market organisation mechanisms, the Commission continued to keep a close watch on the use of production control mechanisms and the integrated management and control system for certain Community aid schemes. In the milk sector infringement proceedings focused on deficiencies in implementation of the milk quotas scheme and in particular the failure of the Italian and Spanish authorities fully to implement it, with special reference to their delay in definitively passing on the supplementary levy to the producers responsible for the excesses. In the case of Italy, the proceeding initially concerned that Member State's failure to ensure that the supplementary levy deducted by purchasers where producers' individual quotas were exceeded during the 1995/96 and 1996/97 marketing years was paid to the competent authority. The Italian authorities had taken the view that amounts collected by buyers could not be paid to the competent authority until there had been an in-depth inquiry into the level of the individual reference quantity for each producer and the level of their actual production. A commission of inquiry had revealed suspicions of major irregularities in this area, to such an extent that the very existence of excess production was called into question. The Commission closely followed the inquiries conducted by the Italian authorities and itself carried out several on-the-spot inspection visits. The work involved redetermining each individual quota and production, again cross-checking deliveries during each period on that basis and issuing a fresh notification of the amount of levy due. It was informed of the reasons for certain delays in the procedures, due in particular to the need to consult the Council of State on some of the arrangements. When it became apparent that, despite the closure of these operations with a new notification of the amount of levy due, the amounts (other than those whose immediate recovery was prevented by court rulings suspending the payment orders, representing between one and two thirds of the total depending on the period concerned), the Commission decided to continue with the proceedings and to extend them to cover periods up to 1999/2000. A supplementary reasoned opinion was issued in December. General permission to pay in instalments, which was also the subject of these proceedings, was recently withdrawn. In Spain, only a fraction of the levy payable for 1993/94, 1995/96 and 1996/97 was actually paid by producers. Both producers and purchasers brought large-scale actions against decisions affecting them. Following commencement of infringement proceedings, the Spanish authorities adopted new measures for managing the scheme, aimed in particular at avoiding large-scale recourse to the courts in the future. The key elements consisted of a compulsory scheme for collecting advance payments from producers who exceed their quota during the period and the imposition of restrictive conditions governing the approval of purchasers. The scheme's management since 1998/99 has not produced the widespread problems that were encountered in previous years. Regarding actions commenced earlier, the Spanish authorities caused sureties to be established for the sums in dispute in the numerous cases where this had not already been done. They now consider that the levy still due is fully covered, either by these sureties or by compulsory recovery orders. The delay by the Greek authorities, owing to internal administrative difficulties, in implementing the integrated management and control system for certain Community aid schemes under Regulation (EEC) No 3508/92 prompted the Commission to refer the matter to the Court of Justice. The Regulation is aimed at harmonising and rationalising administration and control measures for certain Community aid schemes, in particular for arable farming and meat production (beef and veal, sheepmeat and goat's meat) to boost efficiency and profitability by means of a policy of preventing and punishing irregularities in EAGGF-financed operations. Article 2 of Regulation 3508/92 as amended requires each Member State to establish by 1 January 1997 an integrated system comprising: a computerised database, an alphanumeric identification system for agricultural parcels, an alphanumeric system for the identification and registration of animals, aid applications and an integrated control system. The Greek authorities have not fully met all these requirements, the aim of which is to ensure that payments made by Community bodies are in accordance with the regulations. The fact is that the identification and numbering of agricultural land parcels has not even been commenced and the procedure for registering and identifying animals is no more than embryonic. High-performance databases do not therefore exist. Lastly, following the Court's judgment of 16 July 1998 in Case C-136/96, [30] the French authorities stopped allowing the marketing and presentation, in breach of Regulation (EEC) No 1576/89, of spirits made by adding a percentage of water to whisky and using the word "whisky" as a generic sales description. The infringement proceeding initiated on account of this practice was closed. The Commission had addressed a reasoned opinion to France for authorising the marketing of spirits made in this way and bearing the word "whisky" as a generic sales description. Regulation (EEC) No 1576/89 provides that whisky must have an alcoholic strength of at least 40% and no water may be added to an alcoholic drink, to prevent the nature of the product being changed. [30] [1998] ECR I-4571. With regard to the transposition of directives in the agricultural sector, the Commission opened infringement proceedings against seven Member States for failing to transpose on time Parliament and Council Directive 1999/4/EC of 22 February 1999 relating to coffee extracts and chicory extracts. The national transposal measures have now been communicated and the Commission has been able to terminate the proceedings. In 2001 as in previous years, the Commission received notification of a great many draft instruments pursuant to Directive 98/34/EC, which requires the Member States and EFTA countries to give notice prior to the adoption of any draft rules containing technical standards or regulations which might impede intra-Community trade. In agriculture, 143 draft instruments notified by the Member States and the EFTA countries were scrutinised during the year in the light of Article 28 of the EC Treaty and relevant secondary legislation. 2.6. Energy and transport A total of 230 infringement cases were handled during the year by the Directorate-General for Energy and Transport, of which 126 involved failure to communicate measures transposing directives and 104 concerned the faulty transposal of directives or incorrect application of Community law. The number of proceedings pending declined considerably, an increasing number of cases having been closed in the report period (114, of which 62 involving the non-communication of transposal measures). This is the direct result of the spectacular improvement in the rate of transposal of directives in the transport field, which rose from 88.5% at 31 December 2000 to 94% at 31 December 2001. 62 new infringement proceedings were initiated (including 48 cases of non-communication of transposal measures) and 10 complaints were investigated by the Energy and Transport DG. The Court ruled against Member States in 10 cases. Energy 2.6.1. Internal market for electricity and natural gas Parliament and Council Directive 96/92/EC of 19 December 1996 concerning common rules for the internal market in electricity was transposed by all the Member States. Belgium should have transposed the directive by 19 February 1999 but had not done so entirely: implementing decrees were still awaited and the Commission therefore decided to refer the matter to the Court of Justice. The infringement proceedings against France for incomplete transposal of the directive and non-conformity of its national implementing measures were closed. Parliament and Council Directive 98/30/EC concerning common rules for the internal market in natural gas had to be transposed by 10 August 2000. France has still not done so and the Commission consequently decided to bring an action against it before the Court of Justice. The proceedings against Luxembourg and Portugal for failure to communicate transposal measures were closed. Germany has transposed only part of the directive, and infringement proceedings have been commenced accordingly: a reasoned opinion was addressed to the German authorities on 13 June. The Commission is continuing its analysis of the conformity of national measures implementing the two directives in all the Member States. 2.6.2. Energy efficiency All the directives implementing Directive 92/75/EEC of 22 September 1992 on the indication by labelling and standard product information of the consumption of energy and other resources by household appliances [31] have now been transposed by all the Member States. [31] Directives 94/2/EC, 95/12/EC, 95/13/EC, 96/60/EC, 96/89/EC, 97/17/EC, 98/11/EC and 1999/9/EC on the energy labelling of various household electrical appliances. The deadline for transposing Parliament and Council Directive 2000/55/EC of 18 September 2000 on energy efficiency requirements for ballasts for fluorescent lighting expired on 20 November and only four Member States have communicated transposal measures. The infringement proceedings for incorrect application of Council Directive 93/76/EEC of 13 September 1993 to limit carbon dioxide emissions by improving energy efficiency (Save) were closed following the receipt of reports on application of the directive by Member States, except for Ireland and Luxembourg, to which reasoned opinions were addressed on 23 October. 2.6.3. Oil and gas Council Directive 98/93/EC of 14 December 1998 amending Directive 68/414/EEC imposing an obligation on Member States to maintain minimum stocks of crude oil and/or petroleum products, due for transposal by 31 December 1999, has been transposed by all the Member States. Nevertheless, infringement proceedings were commenced against Greece for incorrect application of the directive and a letter of formal notice was sent to the Greek authorities on 23 October. 2.6.4. External relations in the energy field The Commission decided on 20 December to initiate infringement proceedings by issuing a letter of formal notice to Ireland for violation of the obligation of unity in the Community's international representation within the International Energy Agency as enshrined in Article 10 of the EC Treaty. Transport In the field of Community transport law six new directives became due for transposal during the year, but there was a marked improvement in the transposal rate. The year-on-year figures for complaints received (10) by the Commission remained stable, although the number of infringement proceedings which the Commission referred to the Court of Justice was still high at 24 (as against 39 in 2000 and 30 in 1999), bringing to 61 the total number of cases pending that the Commission has decided to refer to the Court. There were also a large number of Court rulings against Member States not complied with (15, up from 9 in 2000). Six of these cases concerned Ireland. [32] [32] Three cases involving non-compliance with a Court judgment could be definitively closed in the first quarter of 2002. 2.6.5. Road transport The transposal of Directive 98/76/EC, which seeks to promote the exercise of the freedom of establishment of road haulage operator in national and international transport by amending Directive 96/26/EC on admission to the occupation of road haulage operator and road passenger transport operator, is still worrying as four proceedings against Belgium, France, Luxembourg and Sweden [33] for failure to notify transposition measures were still continuing before the Court of Justice. The Court gave a ruling against Luxembourg on 13 December. The proceedings against Greece and Italy were closed during the year. The Finnish authorities notified provisions transposing Directive 96/26/EC in the Åland Islands, and the case against Finland was therefore closed. [33] The proceedings against Sweden could be closed in the first quarter of 2002. Regarding safety in the transport of dangerous substances by road, Ireland has still not complied with the two Court rulings [34] against it given in 2000 for failure to communicate national measures implementing Directives 94/55/EC and 96/86/EC on the approximation of the laws of the Member States with regard to the transport of dangerous goods by road or Directive 95/50/EC on uniform procedures for checks on the transport of dangerous goods by road. Directive 99/47/EC adapting for the second time to technical progress Directive 94/55/EC on the transport of dangerous goods by road has not been transposed by Ireland, and the Commission therefore decided to refer the matter to the Court. It should be noted, as pointed out last year, that Ireland has not transposed any of the directives on road or rail transport of dangerous goods; however, three cases could be closed in the first quarter of 2002. [34] Judgment of 26 September 2000 in Case C-408/99. In the same area, the rules on the appointment and vocational qualification of safety advisers for the transport of dangerous goods by road, rail and inland waterway (Directives 96/35/EC and 2000/18/EC) have been transposed by all Member States. Ireland is the only Member State which has not yet transposed Directive 1999/52/EC adapting to technical progress Council Directive 96/96/EC on the approximation of the laws of the Member States relating to roadworthiness tests for motor vehicles and their trailers. The Commission decided on 20 December to bring the case before the Court of Justice. As for road taxation, the infringement proceedings against Belgium for non-conformity of measures implementing Directive 93/89/EEC (taxes, tolls and charges) were terminated. The Court's judgment in the case against Austria regarding tolls at the Brenner pass [35] has not been fully complied with, and the Commission therefore issued a letter of formal notice under Article 228(2) on 20 December. Parliament and Council Directive 99/62/EC of 17 June 1999 on the charging of heavy goods vehicles for the use of certain infrastructures has been transposed by all the Member States except Belgium. [35] Judgment of 26 September 2000 in Case C-205/98. Concerning driving licences, the conformity of measures transposing Directive 91/439/EEC still gives serious cause for concern. Examination of national transposal measures reveals that in six Member States (Denmark, France, Germany, Greece, [36] the Netherlands and Spain) there are many discrepancies in such matters as the minimum age for a vehicle category, renewal of licences for EU citizens no longer residing in the Member State of issue, criteria for test vehicles, the duration of the practical test and minimum requirements in terms of physical and mental aptitude. The procedures for automatic registration of licences belonging to drivers who move from one country to another are incompatible with the principle of mutual recognition of driving licences. [36] The proceedings against Greece could be closed in the first quarter of 2002. The Court's judgment of 29 January 1998 [37] finding against Italy for failing to comply with Decision 93/496/EEC on state aid illegally granted to road haulage firms in Italy has still not been complied with, and a reasoned opinion under Article 228 of the Treaty was therefore addressed to the Italian authorities on 11 July. This is the first time in the history of Community law that proceedings for failure to recover illegal aid have reached this stage. [37] Case C-280/95. 2.6.6. Combined transport The Court ruled [38] in proceedings against Italy for non-conformity of national measures implementing Directive 92/106/EEC on the establishment of common rules for certain types of combined transport of goods between Member States. This case could, however, be closed in the first quarter of 2002 following the adoption during the year of amending legislation by Italy. [38] Judgment of 10 May 2001 in Case C-444/99. 2.6.7. Inland waterways The Commission started proceedings against Finland for failure to transpose five directives in the inland waterways sector [39] and decided on 21 December to issue reasoned opinions. Transposal of Directive 96/50/EC on harmonisation of the conditions for obtaining national boatmasters' certificates for inland waterway navigation, which was due for transposal in 1998, has given rise to non-notification proceedings. The Court of Justice ruled against France on 20 September, [40] while the case against the Netherlands was finally closed. [39] Directives 76/135/EEC, 82/714/EEC, 87/540/EEC, 91/672/EEC and 96/50/EC. [40] Case C-468/00. Proceedings against Germany and Luxembourg, which have concluded bilateral inland waterways agreements with third countries, are continuing with the Commission's decision to refer the two cases to the Court of Justice on the grounds that this is exclusively a matter for the Community. The decision has, however, been suspended until the Court gives a ruling on pending open skies cases. 2.6.8. Rail transport In the field of carriage of dangerous goods by rail, Directive 96/49/EC as amended by Directive 96/87/EC provides for the approximation of the laws of the Member States with regard to the transport of goods, laying down uniform safety rules in this sector to improve safety and facilitate movement of rolling stock and equipment throughout the Community. These directives, which apply to transport of dangerous goods by rail in or between Member States, have still to be transposed in Ireland, which has furthermore not complied with the Court's judgment [41] finding that it had failed to adopt measures transposing the two directives. Directive 1999/48/EC adapting for the second time to technical progress Council Directive 96/49/EC on the approximation of the laws of the Member States with regard to the transport of dangerous goods by rail has not been transposed by Ireland or Italy, and the Commission has accordingly decided to refer the two cases to the Court of Justice. [41] Judgment of 20 September 2001 in Case C-370/00. Directive 1999/36/EC on transportable pressure equipment and Directive 2001/2/EC on the same topic, which were due for transposal by 1 July 2001, have not yet been transposed by Belgium, Germany, Greece, Ireland, Italy or Portugal. The situation regarding Directive 96/48/EC on the interoperability of the trans-European high-speed rail system, the purpose of which is to promote interconnection and interoperability between national high-speed rail networks at different stages of design, construction and entry into service, but also of operation and access to networks, remains highly preoccupying despite some improvement during the year. Four Member States (Austria, Finland, Ireland and the United Kingdom) have still not notified transposal measures, and the Commission has had to refer the cases against all of them to the Court of Justice. The proceedings against France, Greece and Sweden were terminated during the year. The Court ruled against Ireland on 13 December. It should be stressed in this connection that the directive must be transposed even if there are no high-speed trains in Ireland and that it does not require technical specifications for interoperability (STIs) to be drawn up prior to transposal. 2.6.9. Air transport The rate of transposal of air transport directives is highly satisfactory at nearly 98%. This is chiefly due to the fact that no new directives fell due for transposal in 2000 and 2001. The rate of transposal is actually 100% for all Member States except Ireland and Luxembourg. Ireland has still not transposed Directives 98/20/EC and 1999/28/EC on the limitation of the operation of subsonic civil aeroplanes, despite the undertakings it gave last year, and both cases were referred to the Court. Directive 94/56/EC establishing the fundamental principles governing the investigation of civil aviation accidents and incidents had not been transposed by Luxembourg, prompting the judgment given on 16 December 1999 [42] and the Commission's decision to bring an action before the Court under Article 228 of the Treaty. [42] Case C-138/99. The Commission was finally able to terminate proceedings against France for incorrect application of Directive 91/670/EEC on mutual acceptance of personnel licences for the exercise of functions in civil aviation. Complaints about incorrect application of Directive 96/67/EC on groundhandling at airports have prompted infringement proceedings against Germany and Italy. A reasoned opinion was issued to the latter on 24 July. The infringements noted in connection with airport taxes also continued. Imposition by Member States of varying rates of tax depending on passenger destinations (internal flights/intra-Community and/or international routes) is incompatible with the principle of freedom to provide services stipulated in the field of air transport by Regulation (EEC) No 2408/92. The Court found against Italy and Portugal, [43] but those judgments were not complied with and proceedings are therefore continuing under Article 228(2) of the Treaty. The case against the Netherlands is still pending before the Court, while those against Greece and Spain were terminated. [43] Judgments of 4 and 26 July 2001 in Cases C-447/99 and C-70/99 respectively. The infringement proceedings against Belgium, Denmark, Germany, Finland, Luxembourg, Austria and Sweden relating to bilateral open-skies agreements with the United States and the proceedings against the United Kingdom relating to the Bermuda II bilateral agreement are continuing in the Court of Justice. Referral decisions were taken in the infringement proceedings against France and the Netherlands concerning the open-skies agreements. Lastly, proceedings are still pending against Greece for incorrect application of Regulation 3922/1991 on the harmonisation of technical requirements and administrative procedures in the field of civil aviation. 2.6.10. Transport by sea The Commission notes that there has been considerable progress in implementing Community sea transport law in the whole area of safety at sea, but the situation regarding freedom to provide services is less satisfactory. The rate of transposal rose from 88% in 2000 to 96.9% in 2001. No new directives fell due for transposal during the year. The Netherlands has transposed none of the directives that were adopted in 1999 and whose transposition deadline expired in 2000. Directive 99/35/EC on a system of mandatory surveys for the safe operation of regular ro-ro ferry and high-speed passenger craft services has been transposed by all Member States [44] (except for Austria, Finland, Luxembourg, the Netherlands and Portugal) and Directive 99/97/EC on port State control has yet to be transposed in Luxembourg and the Netherlands. [44] The proceedings against Sweden will be terminated in early 2002. Regarding the safety of passenger transport by sea, Directives 98/18/EC and 98/41/EC have finally been transposed in all Member States. Infringement proceedings against Portugal will be terminated in early 2002. These directives seek to improve safety and likelihood of rescue for passengers and crew on passenger ships bound for or leaving Community ports and to ensure more effective action in the event of an accident. However, proceedings for incorrect transposal are continuing against France and Italy, with those against Belgium still pending before the Court. On the other hand, all the infringement proceedings for incorrect transposal of Directive 94/57/EC on common rules and standards to be observed by the Member States and ship-inspection, survey and certification organisations so as to ensure compliance with international conventions on maritime safety and marine pollution were terminated during the year. Directive 95/21/EC (port State control), which harmonises ship inspection criteria, including rules for detention and/or refusal of access to Community ports, was finally transposed in all Member States and proceedings against Italy were terminated. Italy has also transposed the amending Directives 98/25/EC and 98/42/EC (port State control). The cases commenced against France and Ireland for incorrect application of Directive 95/21/EC requiring Member States to inspect at least 25% of all ships flying foreign flags that land in their ports or navigate waters under their jurisdiction are continuing. As for the human element, Luxembourg and the Netherlands have still not yet notified full measures transposing Directive 98/35/EC amending Directive 94/58/EC on the minimum level of training of seafarers. The Court of Justice ruled on 3 July against Luxembourg. [45] [45] Case C-297/00. The transposal of Directive 97/70/EC setting up a harmonised safety regime for fishing vessels of 24 metres in length and over, as amended by Directive 1999/19/EC, is still creating numerous difficulties in the Netherlands, which has not yet transposed the two directives, and both cases are before the Court. Proceedings against Belgium for failure to notify measures transposing the amending directive will be terminated in early 2002. Proceedings are still in motion against Italy for non-conformity. Compliance with Community legislation on registration and flag rights continues to be a problem. Arrangements for entering vessels in shipping registers and granting flag rights remain discriminatory in the Netherlands, against which proceedings are continuing before the Court. As regards right of establishment, the Commission has decided to refer to the Court the case against Italy for non-conformity with Articles 43 and 48 of the Treaty of its national legislation specifying the conditions on which shipping lines lawfully established in another Member State may participate on the same terms as Italian shipping lines in the Italian conference traffic quota. As regards maritime cabotage, proceedings are in hand against several Member States (Denmark, Germany, Greece, Portugal and Spain) for maintaining or adopting national rules in breach of Regulation (EEC) No 3577/92, which provides for maritime cabotage to be opened up to Community shipowners operating ships registered in and flying the flag of a Member State. The case against France for incorrect transposal of the maritime cabotage rules was closed. The principle of freedom to provide services where cargo-sharing agreements between Member States and third countries are concerned, enshrined in Regulation (EEC) No 4055/86, is not yet respected by all Member States. Proceedings initiated in 2000 against Italy are still ongoing. Proceedings are continuing against Belgium. [46] It was reported last year that cases might be closed in 2001, but protocols with the relevant non-member countries have not yet entered into force and the procedure is therefore moving forward with the issue of reasoned opinions under Article 228(2) of the Treaty. The case concerning the cargo-sharing agreement between Portugal and Yugoslavia [47] is still being pursued, although it might be closed in the first half of 2002. The case concerning Angola was closed. [46] Judgments of 14 September 1999 in Cases C-170/98 and C-171/98. [47] Judgments of 4 July 2000 in Cases C-62/98 and C-84/98. The Commission also pays special attention to the application of Regulation (EEC) No 4055/86, given the possible forms of discrimination on grounds of nationality between operators and types of transport and the barriers they can raise. Two infringement proceedings are in motion concerning the discriminatory dock dues imposed in Greece and Italy. The dues vary in accordance with the port of destination: the amounts are lower for shipping between two ports in national territory than for international shipping. The case against Italy is currently before the Court of Justice. Several similar cases involving other Member States are under scrutiny. Lastly, infringement proceedings against Finland were commenced (and will be opened formally in early 2002) for failing to take the necessary steps to prevent blockades of Finnish ports against certain ships from non-member countries. 2.7. Information society The Lisbon European Council was a key stage in the convergence of the European electronic communication sector. The Heads of State and Government reaffirmed their determination to see Europe evolve towards a digital, paperless economy, an intention which has since been given substance in the eEurope Action Plan. Another important event is now approaching: the adoption by Parliament and the Council of a new regulatory framework. [48] The aim of this is to increase competition within and convergence of, markets, and forms part of the complete, coherent implementation of the current European legislation. [48] Cf. http://europa.eu.int/information_society/topics/telecoms/new_rf/index_en.htm As far as the transposal of the regulatory framework (thirteen directives, one regulation and four decisions) is concerned, the Seventh Report on the Implementation of the Telecommunications Regulatory Package [49] notes that, in 2001, at least three States (France, Italy and Luxembourg) had notified their new legislation to the Commission, thus responding to its main concerns. In Greece, the national legislation was consolidated following full liberalisation, thus providing greater clarity and legal certainty. [49] COM(2001) 706 of 26 November 2001; the electronic version is available at: http://europa.eu.int/information_society/topics/telecoms/implementation/annual_report/7report/index_en.htm. As a result, of the cases concerning failure of national implementing measures to comply with Community law or incorrect application of Community law, in 2001 a significant number were closed (thirteen) or suspended (four) in view of the progress made by the Member States in transposing Community law. Germany is the most notable example. Proceedings had been launched pursuant to the provisions of Directive 97/13/EC on licences, because the level of fees set exceeded the level necessary to cover administrative costs. However, the German administrative courts repealed the national legislation on the level of these fees, and the action undertaken before the EC Court of Justice was consequently suspended. In addition, six ongoing procedures for failure to transpose have been closed on the basis of the provisions set out by Directive 97/51/EC on leased lines (France and Italy), Directive 98/10/EC on voice telephony (Italy) and Article 5 of Directive 97/66/EC concerning the processing of personal data and the protection of privacy in the telecommunications sector (France, Ireland, United Kingdom). At the end of the year, following a ruling by the EC Court of Justice (case C-319/99), France also notified its implementing measures for Directive 95/47/EC on the use of standards for the transmission of television signals. However, in two cases concerning France on the one hand (C-151/00), and the Netherlands on the other (C-254/00), there has still been no notification, even though the Court of Justice noted the failure to transpose in 2001. Consequently, the Commission took steps pursuant to Article 228 of the Treaty and, on 21 December 2001, sent France a reasoned opinion. The Court has ruled against Luxembourg (Case C-448/99) and France (Case C-146/100) in other cases for non-conformity of the national legislation with, in the first case, Directive 97/13/CE on licences and, in the second, with Directive 97/33/CE on interconnection. The second case had particular relevance to the requirements of the universal service fund. Thus, because of the growing body of case law in the sector, the Information Society Directorate-General now publishes on its website a Guide to the Case Law of the European Court of Justice in the field of Telecommunications, [50] which is regularly updated. [50] http://europa.eu.int/information_society/topics/telecoms/implementation/infringement/doc/guidecaselaw.pdf At the end of 2001, there were sixty-nine ongoing infringement procedures, twelve of which had been opened on the basis of complaints lodged by the Directorate-General for the Information Society. There are still a considerable number of ongoing actions which have been brought for failure to notify implementing measures (fourteen since the entry into force of the Directive on electronic signature [51] on 18 July 2001). Furthermore, the number of cases relating to non-conformity of Community law (nineteen) or to the incorrect application of the latter via implementing measures (thirty-six) is constantly rising. [51] Directive 1999/93/EC of the European Parliament and of the Council of 13 December 1999 on a Community framework for electronic signatures, OJ L 13, 19/01/2001, p. 12. It should also be noted that, at the end of 2001, a significant number of infringement proceedings had been closed by a judgment by the Court of Justice (three for failure to notify, three for non-conformity, three for incorrect application) or had been the subject of a reasoned opinion (one for failure to notify, five for non-conformity and three for incorrect application). The principal questions pending are now the following. After proceedings were initiated in 2000 against nine Member States pursuant to Directive 98/61/EC on number portability, reasoned opinions were sent to the Netherlands and the United Kingdom, and cases were referred to the Court of Justice concerning Germany and Sweden, on the one hand, for failure to preselect an operator for local calls, and France, on the other, for lack of total portability of the number. In 2001, in order to ensure a minimum level for the free detailed invoices provided to consumers, thus enabling them to check the cost of calls, proceedings were initiated against six Member States under the new Directive 98/10/EC on voice telephony. Reasoned opinions were sent to Luxembourg and Austria on the same subject before the end of the year. There still remains a fairly small number of cases of incomplete transposition or failure to notify. These mainly concern Directives 97/66/EC and 95/47/EC, as referred to above. Six infringement proceedings for failure to notify national implementing measures were opened in 2001 pursuant to the Directive on electronic signature. Letters of formal notice were therefore sent to Ireland, Italy, the Netherlands, Finland, Portugal and the United Kingdom. The European Commission also decided to open infringement proceedings against Greece, Portugal and Germany for not ensuring that shared access to the local loop was offered to competitors in conformity with the Regulation on unbundled access to the local loop [52], which has applied since 2 January 2001 (cf. IP/01/1896). [52] Regulation No 2887/2000 of the European Parliament and of the Council of 18 December 2000 on unbundled access to the local loop, OJ L 336, 30/12/2000, p. 4. Overall, given the extent of the current legislation in telecommunications and the relatively short time which has elapsed since it was adopted in its entirety, there has been a remarkable degree of transposal, thanks to the efficiency of infringement proceedings (more than two hundred cases have been closed in the last three years). 2.8. Environment 2.8.1. Introduction The environment sector represented over a third of the complaints and infringement cases concerning instances of non-compliance with Community law investigated by the Commission in 2001. During this year, the Commission brought 71 cases against Member States before the Court of Justice and delivered 197 reasoned opinions (on the basis of either Article 226 or 228). This marks an increase of approximately 40% on the corresponding figures of the previous year. In this respect, it must be borne in mind that the Commission aims to settle suspected infringements as soon as they are identified without it being necessary to initiate formal infringement proceedings. The increasing number of environmental cases is due to several factors: -The Commission's regular monitoring of the conformity of the national implementing meas