COMMISSION STAFF WORKING DOCUMENT Part II: Policy areas Accompanying the document Report from the Commission Monitoring the application of European Union law 2018 Annual Report
Date: 2019-07-04
Institutions: European Commission, Secretariat-General
Subjects: EU Member State, EU energy policy, EU migration policy, Economic and Monetary Union, activity report, area of freedom, security and justice, digital single market, fundamental rights, infringement procedure (EU), national implementing measure

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 4.7.2019  SWD(2019) 286 final  COMMISSION STAFF WORKING DOCUMENT Part II: Policy areas Accompanying the document Report from the Commission Monitoring the application of European Union law 2018 Annual Report {COM(2019) 319 final} - {SWD(2019) 285 final} - {SWD(2019) 287 final}  
 
 
Monitoring the application of European Union law 
2018 Annual Report 

Agriculture and rural development ................................................................................................... 2 

Communications networks, content and technology ........................................................................ 6 

Employment, social affairs and inclusion ....................................................................................... 12 

Energy ............................................................................................................................................ 19 

Environment ................................................................................................................................... 27 

Financial stability, financial services and Capital Markets Union ................................................... 37 

Health and food safety .................................................................................................................... 44 

Internal market, industry, entrepreneurship and SMEs .................................................................. 51 

Justice and consumers ................................................................................................................... 59 

Maritime affairs and fisheries.......................................................................................................... 67 

Migration and home affairs ............................................................................................................. 71 

Mobility and transport ..................................................................................................................... 80 

Taxation and customs union........................................................................................................... 90 

Methodology and explanations ....................................................................................................... 99 

This document provides an overview of the policy areas in which the most significant developments related to 
infringements of EU law took place in 2018. 

1 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Monitoring the application of European Union law 
2018 Annual Report 

Agriculture and rural development 

I.  COMPLAINTS 

1.  New complaints received from members of the public (2014-2018) 

115 

91 

105 

97 

90 

2014

2015

2016

2017

2018

2.  Public complaints open at year-end 

40 

90 

85 

>  Complaints open at end-2017 

>  New complaints registered in 2018 

>  Complaints handled in 2018 

= 45 

>  Complaints open at end-2018 

3.  New complaints registered in 2018: main policy sectors 

90 complaints in 2018 

Rural 
development 
44 

Direct payments 
22 

Common 
market 
organisation 
(Wine) 
5 

Other 
19 

2 

 
 
 
 
 
Monitoring the application of European Union law 
2018 Annual Report 
Agriculture and rural development 

II. 

EU PILOT 

1.  New EU Pilot files (2014-2018) 

36 

30 

25 

2014

2015

2016

7 
2017

7 

2018

2.  EU Pilot files open at year-end 

At the end of 2018, 13 EU Pilot files remained open. 

3.  EU Pilot files: resolution rate for policies (2014-2018) 

97% 

100% 

95% 

75% 

75% 

72% 

81% 

77% 

89% 

73% 

2014

2015

2016

2017

2018

Agriculture and rural development

General rate for all policy areas

III.  OWN-INITIATIVE CASES 

New own-initiative infringement cases 

In 2018, the Commission opened own-initiative infringement cases for non-compliance with the 
rules on geographical indications.  

IV. 

INFRINGEMENT CASES 

Key infringement cases and referrals to the Court 

a) 

The Commission opened two new infringement cases in 2018. These concern: 

  Bulgaria:  maintaining  a  national  framework  on  geographical  indications,  which  is  not 
compatible  with  the  EU  rules  on  quality  schemes  for  agricultural  products  and 
foodstuffs1; 

  Denmark:  unlawful  use  of  the  protected  designation  of  origin  ‘Feta’,  in  violation  of  the 

EU rules on quality schemes for agricultural products and foodstuffs2. 

1   Regulation (EU) No 1151/2012, MEMO/18/349. 

3 

 
 
 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 
Agriculture and rural development 

b) 

c) 

The Commission did not refer any cases to the Court under Article 258 TFEU. 

The Commission did not refer any cases to the Court under Article 260(2) TFEU. 

V.  EARLY RESOLUTION OF INFRINGEMENT CASES 

Major cases closed without a Court judgment in 2018.  

These concerned: 

  Cyprus,  Italy  and  United  Kingdom:  non-communication  of  national  measures  transposing 

the Directive on caseins and caseinates3. 

VI. 

IMPORTANT JUDGMENTS 

1.  Court rulings4 

The Court gave the following ruling: 

 

Italy failed to recover milk surplus levies from Italian milk producers which exceeded their 
production quotas for the marketing years from 1995/1996 to 2008/20095. 

2.  Preliminary rulings 

The Court gave the following preliminary rulings. 

  France:  Under  the  EU  rules  on  the  common  organisation  of  the  market  in  wine,  the  fact 
that an on-the-spot check can be carried out unannounced means at the very most that it 
can  take  place  at  any  time,  without  the  control  official  having  given  notice  of  his  visit. 
However,  officials  carrying  out  on-the-spot  checks  cannot  enter  agricultural  land  without 
having obtained the vine grower’s permission6. 

  Germany:  The  case  concerns  the  requirement  to  package  a  product  covered  by  a 
protected  geographical  indication,  such  as  ‘Schwarzwälder  Schinken’  ham,  only  in  its 
geographical area of production. The Court ruled that this requirement is compatible with 
EU  law,  despite  its  restrictive  effects  on  trade,  if  it  is  shown  to  be  necessary  and 
proportionate  to  safeguard  the  quality  of  the  product  at  issue,  guarantee  its  origin  or 
ensure the control of the specification of that protected geographical indication7. 

  Spain: Spain’s national legislation may limit the sales designation ‘ibérico de cebo’ to pork 
products complying with certain conditions imposed by that legislation. This is because it 
permits  the  importation  and  marketing  of  products  from  other  Member  States  under  the 
designations they bear pursuant to the rules of the Member State of origin, even if they are 
similar, comparable or identical to the designations provided for in the respective national 
legislation8. 

VII.  OUTLOOK 

Important implementation work in 2019 includes: 

These rulings are almost exclusively handed down on infringement procedures. 

2   Regulation (EU) No 1151/2012, MEMO/18/349. 
3   Directive 2015/2203/EU. 
4  
5   Commission v Italy, C-433/15. 
6   SCI Château du Grand Bois, C-59/17. 
7   S, C-367/17. 
8   Asociación Nacional de Productores de Ganado Porcino, C-169/17. 

4 

 
                                                                                                                                                                                        
Monitoring the application of European Union law 
2018 Annual Report 
Agriculture and rural development 

 

focusing  on  infringements  that  either  challenge  the  application  of  the  mechanisms  of  the 
common  market  organisation9  or  affect  the  correct  application  of  the  direct  payments 
regime10; 

  monitoring compliance with recent rulings of the Court of Justice; 
 

continuing to make use of the clearance of accounts procedure in the agricultural sector to 
convince Member States to adapt their management and control systems if an infringement 
is detected through conformity audit mechanisms. 

9   Regulation (EU) No 1308/2013. 
10   Regulation (EU) No 1307/2013. 

5 

 
 
                                                           
Monitoring the application of European Union law  
2018 Annual Report 

Communications networks, content and technology 

I.  COMPLAINTS 

1.  New complaints received from members of the public (2014-2018) 

78 

66 

84 

50 

18 

2014

2015

2016

2017

2018

2.  Public complaints open at year-end 

105  >  Complaints open at end-2017 

50  >  New complaints registered in 2018 

39  >  Complaints handled in 2018 

= 116  >  Complaints open at end-2018 

3.  New complaints registered in 2018: main policy sectors 

50 complaints in 2018 

Audiovisual and 
media services 
13 

Electronic 
communications 
12 

Copyright 
14 

Other 
11 

6 

 
 
 
 
 
Monitoring the application of European Union law 
2018 Annual Report 
Communications networks, content and technology 

II. 

EU PILOT 

1.  New EU Pilot files (2014-2018) 

30 

12 

12 

2014

2015

2016

2017

2 

2.  EU Pilot files open at year-end 

At the end of 2018, 22 EU Pilot files remained open. 

3.  EU Pilot files: resolution rate for policies (2014-2018) 

75% 

75% 

72% 

74% 

77% 

53% 

56% 

42% 

0 

2018

73% 

14% 

2014

2015

2016

2017

2018

Communications networks, content and technology
General rate for all policy areas

III.  OWN-INITIATIVE CASES 

New own-initiative infringement cases 

In 2018, the Commission opened own-initiative infringement cases over: 

 

failure to comply with the Decision  on the use of the 470-790 MHz frequency band in the 
Union1. 

1   Decision 2017/899/EU. 

7 

 
 
 
 
 
 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 
Communications networks, content and technology 

IV. 

INFRINGEMENT CASES 

1.  Infringement cases open on 31 December (2014-2018) 

67 

58 

42 

31 

14 

2014

2015

2016

2017

2018

2.  Infringement cases open on 31 December 2018: main policy sectors 

67 infringement cases in 2018 

Cybersecurity 
and digital 
privacy 
18 

Data policy and 
innovation 
19 

Other 
11 

Copyright 
19 

3.  New infringement cases opened in 2018: main policy sectors 

56 new infringement cases in 2018 

Cybersecurity 
and digital 
privacy 
17 

Copyright 
17 

Electronic 
communications 
3 

Data policy and 
innovation 
19 

8 

 
 
 
 
 
 
 
Monitoring the application of European Union law 
2018 Annual Report 
Communications networks, content and technology 

4.  Key infringement cases and referrals to the Court 

a)  The Commission opened 56 new infringement cases in 2018. These, and other major 

ongoing infringement cases, include the following: 

  Croatia, Netherlands and Belgium: non-compliance with the Decision on the use of 

the 470-790 MHz frequency band in the Union; 2  

  Croatia  and  Netherlands:  lack  of  adoption  of  a  roadmap,  or  notification  of 

documents which do not fulfil the key requirements for a roadmap. 

b)  The Commission did not refer any cases to the Court under Article 258 TFEU.  

c)  The Commission did not refer any cases to the Court under Article 260(2) TFEU. 

V. 

TRANSPOSITION OF DIRECTIVES 

1.  New late transposition infringement cases (2014-2018) 

50 

53 

17 

0 

0 

2014

2015

2016

2017

2018

2.  New late transposition infringement cases opened in 2018: main policy sectors 

53 new late transposition infringement cases in 2018 

Cybersecurity 
and digital privacy 
17 

Data policy and 
innovation 
19 

Copyright 
17 

2   Decision 2017/899/EU. 

9 

 
 
 
 
 
 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 
Communications networks, content and technology 

3.  Key infringement cases and referrals to the Court 

a)  The Commission opened 53 cases for late transposition in 2018. They concern the 

Directives on: 

 
 
 

security of network and information systems3; 
the accessibility of the websites and mobile applications of public sector bodies4; 
certain  permitted  uses  of  certain  works  and  other  subject  matter  protected  by 
copyright  and  related  rights  for  the  benefit  of  persons  who  are  blind,  visually 
impaired or otherwise print-disabled5. 

b) 

The Commission referred five non-communication cases to the Court under Articles 258 
and 260(3) TFEU: 

  Bulgaria,  Spain,  Luxembourg,  Poland  and  Romania:  for  non-communication  of 
national measures transposing the Directive on collective management of copyright 
and related rights and multi-territorial licensing of rights in musical works for online 
use in the internal market6 . 

VI. 

 EARLY RESOLUTION OF INFRINGEMENT CASES 

Major cases closed without a Court judgment in 2018 

These concerned: 

  Hungary, Romania, Slovenia and Spain: delays in conducting market reviews, in breach of 
the  Directive  on  a  common  regulatory  framework  for  electronic  communications  networks 
and services7; 

  Greece:  lack  of  independence  of  the  National  Regulatory  Authority  and  assignment  of 

rights of use of radio spectrum8; 

  Spain:  non-conformity  with  the  Directive  on  rental  right  and  lending  right  and  on  certain 

rights related to copyright in the field of intellectual property9; 

  Czechia:  non-conformity  with 

the  Directive  on 

the  authorisation  of  electronic 

communications networks and services10. 

VII. 

IMPORTANT JUDGMENTS 

1.  Court rulings11 

There were no major Court rulings in 2018 in this area. 

3   Directive 2016/1148/EU. 
4   Directive 2016/2102/EU. 
5   Directive 2017/1564/EU. 
6   Commission v Bulgaria,  C-27/18 ; Commission v Spain,  C-207/18 Commission v Luxembourg,  C-
20/18, Commission v Poland, C-206/18, Commission v Romania, C-116/18 ; Directive 2014/26/EU. 
Subsequently  these  Member  States  took  the  necessary  steps  to  ensure  compliance  with  EU  law 
and the Commission has therefore withdrawn these cases from the Court.  

7   Directive 2002/21/EC. 
8   Directives 2002/20/EC and 2002/21/EC. 
9   Directive 2006/115/EC. 
10   Directive 2002/20/EC. 
11   These rulings are almost exclusively handed down on infringement procedures. 

10 

 
 
 
 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 
Communications networks, content and technology 

2.  Preliminary rulings 

The Court gave the following preliminary rulings. 

  Austria:  The  owner  of  an  internet  connection  used  for  copyright  infringements  through 
file-sharing  cannot  be  held  liable  to  pay  damages  if  he  can  name  at  least  one  family 
member who might have had access to that connection, without providing further details 
as to when and how the internet was used by that family member12. 

  Germany:  The  case  concerns  the  concept  of  ‘communication  to  the  public’,  within  the 
meaning  of  Article  3(1)  of  the  Directive  on  the  harmonisation  of  certain  aspects  of 
copyright and related rights in the information society. The preliminary ruling found that 
this concept must be interpreted as meaning that it covers the posting on one website of 
a  photograph  previously  posted,  without  any  restriction  preventing  it  from  being 
downloaded and with the consent of the copyright holder, on another website13. 

  Netherlands:  The  taste  of  a  food  product  can  be  protected  by  copyright  if  it  can  be 
classified  as  a  ‘work’  within  the  meaning  of  the  Directive  on  rights  in  the  information 
society.  Classification  as  a  ‘work’  requires  that  the  subject  matter  concerned  is  an 
original  intellectual  creation.  Secondly,  there  must  be  an  ‘expression’  of  that  original 
intellectual creation14. 

VIII.  OUTLOOK 

Important implementation work in 2019 includes: 

  monitoring implementation of the Digital Single Market strategy; 
  monitoring  the  correct  transposition  of  the  Directive  on  security  of  network  and 
information  systems15,  the  Web  Accessibility  Directive16  and  the  Marrakesh  Treaty 
Directive17; 

 

  monitoring  the  application  of  the  Roam-like-at-home rules,  the  Portability  Regulation18, 
the  eIDAS  Regulation19,  the  Geo-blocking  Regulation20  and  the  Regulation  setting  the 
rules for intra-EU calls21; 
further  enforcement  action  to  ensure  correct  implementation  of  the  112  emergency 
number across the EU22; 
continued efforts to free up spectrum by monitoring the implementation of the 700 MHz 
Decision23,  which  will  facilitate  the  further  roll-out  of  fifth-generation  mobile  network 
technologies. 

 

12   Bastei Lübbe C-149/17. 
13   Renckhoff, C-161/17; Directive 2001/29/EC. 
14   Directive 2001/29/EC, Levola Hengelo, C-310/17. 
15   Directive 2016/1148/EU. 
16   Directive 2016/2102/EU. 
17   Directive 2017/1564/EU. 
18   Regulation (EU) No 1128/2017. 
19   Regulation (EU) No 910/2014. 
20   Regulation (EU) No 302/2018. 
21   Regulation (EU) No 1971/2018. 
22   Directive 2002/22/EC. 
23   Decision 2017/899/EU. 

11 

 
 
 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 

Employment, social affairs and inclusion 

I.  COMPLAINTS 

1.  New complaints received from members of the public (2014-2018) 

666 

612 

679 

484 

487 

2014

2015

2016

2017

2018

2.  Public complaints open at year-end 

344 

>  Complaints open at end-2017 

487 

>  New complaints registered in 2018 

546 

>  Complaints handled in 2018 

= 285 

>  Complaints open at end-2018 

3.  New complaints registered in 2018: main policy sectors 

487 complaints in 2018 

Working 
conditions 
129 

Social security 
142 

Labour mobility 
72 

Other 
141 

12 

 
 
 
 
 
Monitoring the application of European Union law 
2018 Annual Report 
Employment, social affairs and inclusion 

II. 

EU PILOT 

1.  New EU Pilot files (2014-2018) 

68 

40 

37 

2014

2015

2016

0 

2017

1 

2018

2.  EU Pilot files open at year-end 

At the end of 2018, 14 EU Pilot files remained open. 

3.  EU Pilot files: resolution rate for policies (2014-2018) 

92% 

93% 

100% 

75% 

75% 

72% 

72% 

77% 

73% 

46% 

2014

2015

2016

2017

2018

Employment policies

General rate for all policy areas

III.  OWN-INITIATIVE CASES 

New own-initiative infringement cases 

In 2018 the Commission opened own-initiative infringement cases on free movement of 
workers and the health of workers at work. 

13 

 
 
 
 
 
 
Monitoring the application of European Union law 
2018 Annual Report 
Employment, social affairs and inclusion 

IV. 

INFRINGEMENT CASES 

1.  Infringement cases open on 31 December (2014-2018) 

75 

83 

60 

46 

2014

2015

2017

2018

2.  Infringement cases open on 31 December 2018: main policy sectors 

60 infringement cases in 2018 

Working 
conditions 
33 

Health & safety 
at work 
11 

Labour mobility 
12 

Social security 
4 

3.  New infringement cases opened in 2018: main policy sectors 

21 new infringement cases in 2018 

Labour mobility 
11 

Health & safety 
at work 
10 

14 

 
 
 
 
 
 
Monitoring the application of European Union law 
2018 Annual Report 
Employment, social affairs and inclusion 

4.  Key infringement cases and referrals to the Court 

a)  The Commission opened 21 new infringement cases in 2018. These, and other major 

ongoing infringement cases, include the following. 

 

Italy and Portugal: Failure to communicate national measures transposing the EU 
rules1  which  ensure  the  right  of  seafarers  to  fair  and  just  working  conditions  as 
well as their right to information and consultation2. 

  United  Kingdom:  Discrimination  on  the  grounds  of  nationality  between  workers 
from  EU  Member  States3.  The  United  Kingdom’s  rules  on  housing  benefit  treat 
beneficiaries  who  temporarily  leave  their  home  but  stay  within  Great  Britain 
(England,  Scotland  and  Wales)  more  favourably  than  those  who  leave  those 
areas during  a temporary  absence. These rules therefore disadvantage  workers 
from  other  Member  States  since  they  are  more  likely  than  workers  of  UK 
nationality to leave the United Kingdom temporarily4. 

b)  The Commission did not refer any cases to the Court under Article 258 TFEU. 

c)  The Commission did not refer any cases to the Court under Article 260(2) TFEU. 

V. 

TRANSPOSITION OF DIRECTIVES 

1.  New late transposition infringement cases (2014-2018) 

39 

17 

14 

18 

20 

2014

2015

2016

2017

2018

1   Directive 2015/1794/EU. 
2   MEMO/18/3446. 
3   Article 45 TFEU and Regulation (EU) No 492/2011. 
4   MEMO/18/6247. 

15 

 
 
 
 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 
Employment, social affairs and inclusion 

2.  New late transposition infringement cases opened in 2018: main policy sectors 

20 new late transposition infringement cases in 2018 

Health & safety 
at work 
10 

Labour mobility 
10 

3.  Key infringement cases and referrals to the Court 

a)  The Commission opened 20 cases for late transposition in 2018. Among the 

directives concerned were those: 

 

 

on minimum requirements for enhancing worker mobility between Member States 
by improving the acquisition and preservation of supplementary pension rights5; 
establishing a fourth list of indicative occupational exposure limit values from the 
risks related to chemical agents at work .6 

b)  The Commission did not refer any cases to the Court under Articles 258 and 260(3) 

TFEU.  

VI. 

EARLY RESOLUTION OF INFRINGEMENT CASES 

Major cases closed without a Court judgment in 2018 

These concerned: 

  Czechia and Luxembourg: failure to communicate national measures transposing 
the Directive on measures facilitating the exercise of rights conferred on workers 
in the context of freedom of movement for workers 7; 

  Denmark: non-conformity of the provisions of national legislation on annual leave 

entitlements with the Working Time Directive;8 

  Greece:  non-conformity  of  the  provisions  of  national  legislation  on  average 
weekly working time and minimium periods of daily rest or of compensatory rest 
with the Working Time Directive in the healthcare sector9. 

VII. 

IMPORTANT JUDGMENTS 

1.  Court rulings 

5   Directive 2014/50/EU. 
6   Directive 2017/164/EU. 
7   Directive 2014/54/EU. 
8   Directive 2003/88/EC. 
9   Directive 2003/88/EC. 

16 

 
 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 
Employment, social affairs and inclusion 

The Court gave the following ruling10. 

  Belgium  has  failed  to  comply  with  EU  rules  on  the  coordination  of  social  security 
systems11.  The  Court  invalidated  Belgian  provisions  granting  national  authorities  the 
power to decide unilaterally on the existence of fraud or abuse in the case of posted 
workers without contacting the authorities of the Member State which had issued the 
portable document12. 

2.  Preliminary rulings 

The Court gave the following preliminary rulings. 

  Belgium: On posting of workers, the Court of Justice confirmed the binding nature of 
the  portable  document  delivered  by  the  Member  State  of  the  sending  company13. 
Nevertheless, the receiving Member State can check the validity of that document and 
contact the issuing Member State in case of doubt about its validity or the accuracy of 
the facts on which it is based. The latter is obliged to carry out a proper assessment of 
the facts and ensure that the information is correct, in accordance with the principle of 
cooperation laid down in Article 4(3) TEU. 

  Belgium:  On  the  Working  Time  Directive,  the  Court  of  Justice  clarified  that  that 
voluntary firefighters can be regarded as workers if they pursue real, genuine activities 
for  and  under  the  direction  of  another  person  in  return  for  which  they  receive 
remuneration. The Court further clarified that stand-by time, which the worker spends 
at  home  with  the  duty  to  respond  to  calls  from  his  employer  within  8  minutes  and 
during  which  the  worker's  opportunities  to  carry  out  other  activities  are  significantly 
restricted must be regarded as the ‘working time’ within the meaning of the Directive14. 
  Austria: A  worker posted by  an  employer to carry out work in another Member State 
and  who  is  sent  to  replace  a  worker  posted  by  a  different  employer  cannot  remain 
subject  to  the  social  security  legislation  of  the  Member  States  in  which  his  employer 
usually carries on its activities15. 

  Germany: The Court clarified further the consequences for the right to annual leave of 
terminating  a  contract  and  ruled  that  Article  31(2)  of  the  Charter  of  Fundamental 
Rights  of  the  European  Union  on  the  right  to  a  period  of  paid  annual  leave  has 
horizontal direct effect and that it can be invoked in disputes between a worker and his 
or her private sector employer16. 

  Germany:  The  Court  also  ruled  that  during  their  minimum  period  of  annual  leave 
guaranteed  by  EU  law,  workers  are  entitled  to  their  normal  remuneration,  in  spite  of 
periods  of  short-time  work  during  the  reference  period  for  that  leave.  A  worker  who 
carried  out  lower-paid  short-time  work  during  that  period  may  not  receive  a  lower 
remuneration for the corresponding annual leave17. 
Italy: Workers who have been on abusive successive fixed-term contracts are entitled 
to  two  types  of  compensation  for  the  past  abuse  they  have  faced:  (a)  a  lump  sum 
compensation and (b) an additional possibility to obtain full compensation for the harm 
suffered.  This  harm  is  presumed  to  have  occurred  unless  the  employer  can  prove 
otherwise18. 

 

10   These rulings are almost exclusively handed down on infringement procedures. 
11   Regulation (EC) No 883/2004. 
12   Commission v Belgium, C-356/15. 
13   Altun and Others, C-359/16. 
14   Matzak, C-518/15. 
15   Alpenrind and Others,C-527/16. 
16   Max-Planck-Gesellschaft zur Förderung der Wissenschaften, C-684/16; Bauer C-569/16. 
17   Hein, C-385/17. 
18   Santoro, C-494/16. 

17 

 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 
Employment, social affairs and inclusion 

 

Italy:  National  legislation  which  excludes  certain  sectors  from  effective  sanction  in 
case of misuse of successive fixed-term contracts is not compliant  with the  EU  rules 
on the framework agreement on fixed-term work 19. 

  Romania: The work performed by a foster parent under an employment contract with a 
public authority is not covered by the provisions of the Working Time Directive20. 
  Romania: While on parental leave a  worker does not accrue the right to  paid annual 

leave under the provisions of the Working Time Directive21.  

  Spain:  The  two  types  of  termination  of  the  employment  relationship  (dismissal  under 
objective  reasons  and  termination  of  fixed-term  contract)  are  not  comparable  and, 
therefore, different levels of compensation can be granted22. 

VIII.  OUTLOOK 

Important implementation work in 2019 includes: 

 

 

finalising the assessment of the conformity of national transposition measures with the 
Directives  on  the  free  movement  of  workers  and  the  enforcement  of  posting  of 
workers23;  monitoring  the  complete  and  timely  transposition  of  the  Directive  on 
minimum requirements concerning supplementary pension rights24 and of the Work in 
Fishing Directive25;  
assessing  the  conformity  of  national  transposition  measures  with  the  Directives  on 
working time in inland waterways transport and protection of seafarers26. 

19   Sciotto, C-331/17; Council Directive 1999/70/EC. 
20   Sindicatul Familia Constanţa and Others, C-147/17. 
21   Dicu, C-12/17. 
22   Montero Mateos, C-677/16,Grupo Norte Facility, C-574/16 and de Diego Porras, C-619/17. 
23   Directives 2014/54/EU and 2014/67/EU. 
24   Directive 2014/50/EU. 
25   Directive 2017/159/EU. 
26   Directives 2014/112/EU and 2015/1794. 

18 

 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 

Energy 

I.  COMPLAINTS 

1.  New complaints received from members of the public (2014-2018) 

91 

60 

67 

58 

37 

2014

2015

2016

2017

2018

2.  Public complaints open at year-end 

110 

>  Complaints open at end-2017 

37 

72 

>  New complaints registered in 2018 

>  Complaints handled in 2018 

= 75 

>  Complaints open at end-2018 

3.  New complaints registered in 2018: main policy sectors 

37 complaints in 2018 

Internal energy 
market and 
consumer 
protection 
21 

Renewable 
energy 
6 

Energy 
infrastructure 
4 

Other 
6 

19 

 
 
 
 
 
Monitoring the application of European Union law 
2018 Annual Report 
Energy 

II. 

EU PILOT 

1.  New EU Pilot files (2014-2018) 

124 

88 

65 

44 

33 

2014

2015

2016

2017

2018

2.  EU Pilot files open at year-end 

At the end of 2018, 41 EU Pilot files remained open. 

3.  New EU Pilot files opened in 2018: main policy sectors 

44 EU Pilot files opened in 2018 

Euratom 
3 

Energy 
efficiency 
41 

20 

 
 
 
 
 
Monitoring the application of European Union law 
2018 Annual Report 
Energy 

4.  EU Pilot files: resolution rate for policies (2014-2018) 

75% 

75% 

71% 

72% 

66% 

77% 

68% 

45% 

73% 

51% 

2014

2015

2016

2017

2018

Energy

General rate for all policy areas

III.  OWN-INITIATIVE CASES 

New own-initiative infringement cases 

In 2018, the Commission opened own-initiative infringement cases over: 

  energy efficiency; 
  nuclear safety; 
  basic safety standards. 

IV. 

INFRINGEMENT CASES 

1.  Infringement cases open on 31 December (2014-2018) 

71 

73 

56 

54 

93 

2014

2015

2016

2017

2018

21 

 
 
 
 
 
Monitoring the application of European Union law 
2018 Annual Report 
Energy 
Infringement cases open on 31 December 2018: main policy sectors 

2. 

93 infringement cases in 2018 
Energy 
efficiency 
22 

Internal energy 
market and 
consumer 
protection 
11 

Euratom 
45 

Renewable 
energy 
11 

Security of 
supply and 
offshore safety 
4 

3.  New infringement cases opened in 2018: main policy sectors 

58 new infringement cases in 2018 

Euratom 
42 

Energy 
efficiency 
15 

Security of 
supply 
1 

4.  Key infringement cases and referrals to the Court 

a)  The Commission opened 58 new infringement cases in 2018. These, and other major 

ongoing infringement cases, include the following: 

  Germany,  Ireland,  Greece,  Spain,  Cyprus,  Hungary,  Malta,  Netherlands,  Austria, 
Romania,  Slovakia,  Slovenia,  Finland,  Sweden,  and  United  Kingdom:  non-
compliance with the requirements of the Energy Efficiency Directive1; 

  Spain:  failure  to  ensure  individual  metering  and  billing  for  heat  energy  in  multi-

apartment buildings, as required under the Energy Efficiency Directive2; 

  Greece: failure to adopt and notify the long-term renovation strategy in commercial 

and residential buildings, as required by the Energy Efficiency Directive3; 

  Poland: failure to comply with the EU requirements on the security of gas supply4; 
  Bulgaria:  non-compliance  with  the  requirements  of  the  Third  Energy  Package 

Directives (Electricity and Gas Directives)5; 

1   Directive 2012/27/EU, MEMO/18/4486 and MEMO/18/6247. 
2   Directive 2012/27/EU, MEMO/18/1444. 
3   Directive 2012/27/EU, MEMO/18/1444. 
4   Regulation (EU) No 994/2010, MEMO/18/1444. 
5   Directives 2009/72/EC and 2009/73/EC, MEMO/18/349. 

22 

 
 
 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 
Energy 

  Slovenia  and  Netherlands:  non-compliance  with  the  requirements  of  the  Energy 

Performance of Buildings Directive6; 

  Belgium,  Spain andPoland : lack of transposition measures for the Nuclear Safety 

Directive7; 

  Czechia,  Denmark,  Estonia, 

Italy,  Latvia,  Hungary,  Malta, 
Ireland  Croatia,, 
Netherlands,  Austria,  Poland,  Portugal,  Romania  and  United  Kingdom:  failure  to 
correctly transpose certain  requirements of the Radioactive Waste Directive8; 
  Belgium,  Bulgaria,  Czechia,  Denmark,  Germany,  Estonia,  Ireland,  Greece,  Spain, 
Lithuania,  Malta,  Netherlands,  Poland,  Romania,  Slovenia  and  United  Kingdom: 
failure  to  adopt  a  national  programme  for  the  implementation  of  spent  fuel  and 
radioactive  waste  management  policy  compliant  with  the  requirements  of  the 
Radioactive Waste Directive9; 

  Cyprus, Ireland, Greece, Italy, Luxembourg, Malta, Portugal, Finland and Sweden: 

lack of measures transposing the Basic Safety Standards Directive10. 

b)  The  Commission  referred  five  cases  to  the  Court  under  Article 258  TFEU.  They 

concern 
  Germany11  and  Hungary12:  non-compliance  with  the  requirements  of  the  Third 

Energy Package Directives (Electricity and Gas Directives)13; 

  Croatia14,  Italy15  Austria16,  failure  to  notify  the  national  programme  for  the 
implementation of a spent and fuel and radioactive waste management policy17. 

c)  The Commission did not refer any cases to the Court under Article 260(2) TFEU. 

6   Directive 2010/31/EU, MEMO/18/349, MEMO/18/3446. 
7   Directive 2014/87/Euratom, MEMO/18/3986. 
8   Directive 2011/70/Euratom, MEMO/18/3986, MEMO/18/3446. 
9   Directive 2011/70/Euratom, MEMO/18/3446. 
10   Directive 2013/59/Euratom, MEMO/18/3446. 
11   Commission v Germany, C-718/18; IP/18/4487. 
12   Commission v Hungary, C-771/18; IP/18/4487. 
13   Directives 2009/72/EC and 2009/73/EC. 
14   Commission v Croatia; C-391/18. 
15   Commission v Italy; C-434/18. 
16   Commission  v  Austria,  C-487/18;,  IP/18/3448.  Austria  subsequently  took  the  necessary  steps  to 
ensure  compliance  with  EU  law  and  the  Commission  has  therefore  withdrawn  this  case  from  the 
Court. 

17   Directive 2011/70/Euratom, MEMO/18/3446. 

23 

 
 
 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 
Energy 

V. 

TRANSPOSITION OF DIRECTIVES 

1.  New late transposition infringement cases (2014-2018) 

25 

22 

15 

11 

2014

2015

4 

2016

2017

2018

2.  New late transposition infringement cases opened in 2018: main policy sectors 

All the 11 new late transposition infringement cases opened in 2018 concern Euratom 
legislation. 

3.  Key infringement cases and referrals to the Court 

a)  The Commission opened 11 cases for late transposition in 2018. They concern: 

 
 

the Basic Safety Standards Directive18; 
the Nuclear Safety Directive19. 

b)  The  Commission  did  not  refer  any  case  to  the  Court  under Articles  258  and  260(3) 

TFEU. 

VI. 

EARLY RESOLUTION OF INFRINGEMENT CASES 

Major cases closed without a Court judgment in 2018 

These concerned: 

  France,  Netherlands  and  Portugal:  incorrect  transposition  of  the  Third  Energy  Package 

Directives20; 

  Croatia and Romania: incomplete transposition of the Offshore Safety Directive21; 

  Latvia: failure to communicate  all national measures transposing the Radioactive Waste 

Directive22; 

  Belgium:  incomplete  transposition  of  the  Directive  on  radioactive  substances  in  water 

intended for human consumption23; 

18   Directive 2013/59/Euratom. 
19   Directive 2014/87/Euratom. 
20   Directives 2009/72/EC and 2009/73/EC. 
21   Directive 2013/30/EU. 
22   Directive 2011/70/Euratom. 
23   Directive 2013/51/Euratom. 

24 

 
 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 
Energy 

  Czechia: non-compliance with the Security of Gas Supply Regulation24. 

VII. 

IMPORTANT JUDGMENTS 

1.  Court rulings 

The Court gave the following rulings25.  

 

 

The  General  Court  annulled  the  Regulation26  on  the  energy  labelling  of  vacuum 
cleaners,  because  it  considered  that  the  Commission  had  adopted  a  testing  method 
which was not close enough to the actual conditions of use of the product27; 

The  General  Court  rejected  an  action  for  annulment  of  the  Commission  decisions 
reducing  the  financial  contribution  initially  granted  under  two  projects  in  the  field  of 
trans-European energy networks28.  

2.  Preliminary rulings 

The Court gave the following preliminary rulings. 

 

 

 

Belgium:  The  display  of  the  energy  label  for  vacuum  cleaners  without  specifying  the 
testing conditions that led to the energy classification indicated on the respective label 
does not constitute an unfair commercial practice. Supplementary labels reproducing 
or clarifying the information displayed on the energy label can be misleading in certain 
cases29. 

Slovakia:  Member  States  may  not  impose  a  charge  on  the  export  of  electricity 
generated in their own territory30. 

Spain:  Member  States  may  require  a  contribution  to  an  energy  efficiency  fund  from 
energy  undertakings  designated  on  the  basis  of  explicitly  stated,  objective  and  non-
discriminatory  criteria.  This  obligation,  which  substitutes  an  energy  efficiency 
obligation scheme, should nonetheless comply with all the requirements of the Energy 
Efficiency Directive and reach the same level of savings31. 

VIII.  OUTLOOK 

Important implementation work in 2019 includes: 

 

 

assessing  the  national  energy  and  climate  plans  adopted  by  the  Member  States 
pursuant to the Governance Regulation32; 

issuing  guidance  documents  to  facilitate  implementation  of  the  revised  Energy 
Efficiency Directive33  and the revised Energy Performance of Buildings Directive34 ; 

24   Regulation (EU) No 994/2010. 
25   These rulings do not concern infringement procedures. 
26   Commission Delegated Regulation (EU) No 665/2013. 
27   Dyson v Commission, T-544/13 RENV and Court press release No 168/18. 
28   Terna v Commission, T-387/16. 
29   Dyson, C-632/16 and Court press release No 117/18. 
30   FENS, C-305/17 and Court press release No 189/18. 
31   Directive 2012/27/EU, Saras Energía, C-561/16. 
32   Regulation (EU) No 1999/2018. 
33   Directive 2012/27/EU. 
34   Directive 2010/31/EU. 

25 

 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 
Energy 

 

legal  action  to  ensure  correct  and  complete  transposition  of  the  Radioactive  Waste 
Directive35, the Nuclear Safety Directive36, the Basic Safety Standards Directive37, the 
Indirect Land Use Change Directive38 and the Energy Efficiency Directive39. 

35   Directive 2011/70/Euratom. 
36   Directive 2014/87/Euratom. 
37   Directive 2013/59/Euratom. 
38   Directive 2015/1513/EU. 
39   Directive 2012/27/EU. 

26 

 
 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 

Environment 

I.  COMPLAINTS 

1.  New complaints received from members of the public (2014-2018) 

508 

518 

363 

348 

339 

2014

2015

2016

2017

2018

2.  Public complaints open at year-end 

590  >  Complaints open at end-2017 

339  >  New complaints registered in 2018 

388  >  Complaints handled in 2018 

= 541  >  Complaints open at end-2018 

3.  New complaints registered in 2018: main policy sectors 

339 complaints in 2018 

Impact 
assesment 
129 

Nature 
protection 
142 

Chemicals 
72 

Other 
141 

27 

 
 
 
 
 
Monitoring the application of European Union law 
2018 Annual Report 
Environment 

II. 

EU PILOT 

1.  New EU Pilot files (2014-2018) 

207 

151 

101 

63 

2014

2015

2016

2017

21 
2018

2.  EU Pilot files open at year-end 

At the end of 2018, 180 EU Pilot files remained open. 

3.  New EU Pilot files opened in 2018: main policy sectors 

21 EU Pilot files opened in 2018 

Waste 
management 
14 

Nature 
protection 
4 

Air quality and 
noise 
2 

Water 
management 
1 

4.  EU Pilot files: resolution rate for policies (2014-2018) 

79% 

76% 

75% 

75% 

72% 

65% 

77% 

65% 

73% 

73% 

2014

2015

2016

2017

2018

Environment

General rate for all policy areas

28 

 
 
 
 
Monitoring the application of European Union law 
2018 Annual Report 
Environment 

III.  OWN-INITIATIVE CASES 

New own-initiative infringement cases 

In 2018, the Commission opened own-initiative infringement cases over: 

 

incorrect transposition of the Directive on the protection of animals used for scientific 
purposes1; 
failure to ensure adequate protection of species and habitats; 

 
  non-compliance with EU rules on ambient air quality2; 
 
 

inadequate treatment of urban waste water; 
insufficient protection of waters against pollution caused by nitrates from agricultural 
sources; 
failure to comply with the Water Framework Directive3; 
failure to comply with the requirements of the Floods Directive4; 

 
 
  non-compliance with the EU provisions on waste. 

IV. 

INFRINGEMENT CASES 

1.  Infringement cases open on 31 December (2014-2018) 

322 

307 

298 

276 

269 

2014

2015

2016

2017

2018

2.  Infringement cases open on 31 December 2018: main policy sectors 

298 infringement cases in 2018 

Waste 
management 
57 

Air quality 
67 

Nature protection 
48 

Impact 
assessment 
30 

Other  
29 

Water protection 
and 
management 
67 

1   Directive 2010/63/EU. 
2   Directive 2008/50/EC. 
3   Directive 2000/60/EC. 
4   Directive 2007/60/EC. 

29 

 
 
 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 
Environment 

3.  New infringement cases opened in 2018: main policy sectors 

73 new infringement cases in 2018 

Air quality 
24 

Waste  
management 
22 

Water protection 
and 
management 
7 

Other 
20 

4.  Key infringement cases and referrals to the Court 

a)  The  Commission  opened  73  new  infringement  cases  in  2018.  These,  and  other  major 

ongoing infringement cases, include the following: 

  Estonia, Germany, Portugal, Romania, Spain and Slovakia: incorrect transposition 

of the Directive on the protection of animals used for scientific purposes5; 
  Bulgaria and Czechia: non-compliant transposition of the Air Quality Directive6; 
  Belgium: failure to comply with the nitrogen dioxide (NO2) limit values set by the Air 

Quality Directive7; 

  Bulgaria: failure to comply with a Court judgment finding that the PM10

set by the Air Quality Directive have been exceeded9; 

8 limit values 

  Cyprus and Lithuania: failure to ensure adequate protection of indigenous habitats 
and  species  by  designating  Sites  of  Community  Importance  under  the  Habitats 
Directive10; 

  Greece11 and Ireland12: failure to establish Special Areas of Conservation, as well 
as  conservation  objectives  and  measures  to  maintain  or  restore  the  species  and 
habitats to a favourable condition, as required by the Habitats Directive13; 
Italy and Spain: insufficient protection of waters against pollution caused by nitrates 
from agricultural sources14; 

 

  Cyprus15,  Estonia16,  Italy17,  Poland18,  Romania19  and  Sweden20:  failure  to  ensure 

that urban waste water is adequately treated21 ; 

5   Directive 2010/63/EU, MEMO/18/4486. 
6   Directive 2008/50/EC, MEMO/18/6247. 
7   Directive 2008/50/EC, MEMO/18/6247. 
8   PM10  is  an  air  pollutant  consisting  of  small  particles  with  an  aerodynamic  diameter  less  than  or 
equal to a nominal 10 micrometres. The particles’ small size allows them to penetrate deep into the 
lungs  where  they  may  be  deposited  and  cause  adverse  health  effects.  (Source:  European 
Environment Agency).9  
Directive  2008/50/EC,  MEMO/18/6247,  Commission  v  Bulgaria,  C-
488/15. 

9   Directive 2008/50/EC, MEMO/18/6247, Commission v Bulgaria, C-488/15. 
10   Directive 92/43/EEC, MEMO/18/3446. 
11   MEMO/18/1444. 
12   MEMO/18/6247. 
13   Directive 92/43/EEC. 
14   Directive 91/676/EEC, MEMO/18/6247. 
15   MEMO/18/3986. 

30 

 
 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 
Environment 

 

Italy: failure to comply with a Court judgment finding that urban waste water is not 
adequately collected and treated22; 

  Austria23  and  Finland24:  authorising  hunting  of  wild  bird  in  breach  of  the  Birds 

Directive25. 

b)  The Commission referred 10 cases to the Court under Article 258 TFEU. They concern 

  Hungary26,  Italy27  and  Romania28:  exceedance  of  the  PM10  limit  values  set  by  the 

Air Quality Directive29; 

  France30,  Germany31  and  United  Kingdom32:  exceedance  of  the  nitrogen  dioxide 

(NO2) limit values set by the Air Quality Directive33; 

  Portugal:  failure  to  establish  Special  Areas  of  Conservation  for  the  protection  of 
natural  habitats  and  species,  and  to  establish  the  necessary  conservation 
measures for these sites, as required by the Habitats Directive34; 

  Croatia: 

failure 

to  ensure  adequate  protection  of  human  health  and 

the 

environment from industrial waste in Biljane Donje35; 

  Spain:  failure  to  adopt  waste  management  plans  and  to  revise  these  plans  in 

accordance with the Waste Framework Directive36; 

  Spain: failure to adopt and review the river basin management plans for the Canary 

Islands37. 

c)  The Commission referred one case to the Court under Article 260(2) TFEU. It concerns 

 

Ireland: failure to comply with a Court judgment establishing that Ireland had failed 
to  apply  correctly  the  EU  provisions  on  environmental  impact  assessments  in 
relation to the Derrybrien windfarm38. 

IP/18/3449. 
IP/18/1446. 

16   MEMO/18/3986. 
17   MEMO/18/4486. 
18   MEMO/18/349. 
19   MEMO/18/3986. 
20   MEMO/18/6247. 
21   Directive 91/271/EEC. 
22   Directive 91/271/EEC, MEMO/18/3446, Commission v Italy, C-85/13. 
23  
24  
25   Directive 2009/147/EC. 
26   Commission v Hungary, C-637/18; IP/18/3450. 
27   Commission v Italy, C-644/18; IP/18/3450. 
28   Commission v Romania, C-638/18; IP/18/3450. 
29   Directive 2008/50/EC. 
30   Commission v France, C-636/18; IP/18/3450. 
31   Commission v Germany, C-635/18; IP/18/3450. 
32   Commission v United Kingdom, C-664/18; IP/18/3450. 
33   Directive 2008/50/EC. 
34   Directive 92/43/EEC, Commission v Portugal, C-290/18; IP/18/356. 
35   Directive 2008/98/EC, Commission v Croatia, C-250/18; IP/18/1448. 
36   Directive 2008/98/EC, Commission v Spain, C-642/18; IP/18/3987. 
37   Directive 2000/60/EC, Commission v Spain, C-556/18; IP/18/1445. 
38   Directive 85/337/EEC amended by Directive 97/11/EC, Commission v Ireland, C-261/18; IP/18/355. 

31 

 
 
 
                                                                                                                                                                                        
Monitoring the application of European Union law 
2018 Annual Report 
Environment 

V. 

TRANSPOSITION OF DIRECTIVES 

1.  New late transposition infringement cases (2014-2018) 

127 

88 

113 

50 

41 

2014

2015

2016

2017

2018

2.  New late transposition infringement cases opened in 2018: main policy sectors 

41 new late transposition infringement cases in 2018 

Air quality 
21 

Waste  
management 
20 

3.  Key infringement cases and referrals to the Court 

a)  The Commission opened 41 cases for late transposition in 2018. They included: 

 

 

the  Directive  on  the  reduction  of  national  emissions  of  certain  atmospheric 
pollutants39; 
the  Directive  on  the  limitation  of  emissions  of  certain  pollutants  from  medium 
combustion plants40; 
the Directive on end-of-life vehicles41; 

 
  a  Commission  Directive42  amending  for  the  purposes  of  adapting  to  technical 
progress  the  Directive  on  hazardous  substances  in  electrical  and  electronic 
equipment43. 

39   Directive 2016/2284/EU. 
40   Directive 2015/2193/EU. 
41   Directive 2017/2096/EU. 

32 

 
 
 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 
Environment 

b)  The  Commission  did  not  refer  any  cases  to  the  Court  under  Articles  258  and  260(3) 

TFEU.  

VI. 

EARLY RESOLUTION OF INFRINGEMENT CASES 

Major cases closed without a Court judgment in 2018 

These concerned mainly: 

  United  Kingdom:  failure  to  correctly  transpose  and  apply  the  Strategic  Environmental 

Assessment Directive regarding plans decided on by Parliament44; 

  Slovenia: incorrect transposition of the Strategic Environmental Assessment Directive and 
the Environmental Impact Assessment Directive regarding public participation and access 
to justice in spatial planning45; 

  Poland  and  Bulgaria:  incorrect  application  of  the  Nitrates  Directive  through  insufficient 

designation of nitrate vulnerable zones and shortcomings in the action plans46; 

  Belgium: exceedance of the PM10 limit values set by the Air Quality Directive47. 

VII. 

IMPORTANT JUDGMENTS 

1.  Court rulings 

The Court gave the following rulings48. 

 

Bulgaria has failed to fulfil its obligations under the Birds Directive by not having classified 
as a Special Protection Area the entire Important Bird Area covering the Rila Mountains49. 
  Germany  has  failed  to  comply  with  the  Nitrates  Directive  by  not  having  taken  additional 
measures or reinforced action as soon as it became apparent that the action programme  
was  not  sufficient  to  achieve  the  objectives  set  by  the  Directive.  These  are  to  reduce 
water  pollution  caused  by  nitrates  from  agricultural  sources  and  prevent  further  such 
pollution50. 

  Greece has failed to comply with an earlier Court judgment51 that it had failed to fulfil its 
obligations under the Urban Waste Water Treatment Directive by not taking the measures 
necessary  for  the  installation  of  a  collection  system  for  urban  waste  water  from  the 
Thriasio  Pedio  area  and  by  not  subjecting  the  area’s  waste  water  to  more  stringent 
treatment  before  its  discharge  into  the  sensitive  area  of  the  Gulf  of  Elefsina.  The  Court 
ordered Greece to pay a lump sum of EUR 5 million and a sliding-scale periodic penalty 
payment  of  EUR  3  276  000  for  each  six-month  period  of  delay  until  full  compliance  is 
achieved52.  
Italy has failed to comply in full with an earlier Court judgment53 since no proof has been 
provided  of  the  existence  of  appropriate  urban  waste  water  collection  and  treatment 
systems  in  74  of  the  109  agglomerations  concerned  by  the  first  judgment.  The  Court 

 

42   Directive 2017/1009/EU. 
43   Directive 2011/65/EU. 
44   Directive 2001/42/EC. 
45   Directives 2001/42/EC and 2011/92/EU. 
46   Directive 91/676/EEC. 
47   Directive 2008/50/EC. 
48   These rulings are almost exclusively handed down on infringement procedures. 
49   Directive 2009/147/EC, Commission v Bulgaria, C-97/17. 
50   Directive 91/676/EEC, Commission v Germany, C-543/16. 
51   Commission v Greece, C-119/02. 
52   Commission v Greece, C-328/16 and Court press release No 17/18. 
53   Commission v Italy, C-565/10. 

33 

 
                                                                                                                                                                                        
Monitoring the application of European Union law 
2018 Annual Report 
Environment 

found that Italy’s failure to fulfil its obligations is particularly serious in so far as the lack or 
inadequacy  of  urban  waste  water  collection  or  treatment  systems  could  harm  the 
environment. The Court ordered Italy to pay a lump sum of EUR 25 million and a penalty 
payment  of  EUR  30  112  500  for  every  6  months  of  delay  until  full  compliance  is 
achieved54. 

  Malta has failed to comply with the Birds Directive in adopting a certain derogation regime 

allowing the capture of seven species of wild birds55. 

 

  Poland  has  been  persistently  exceeding  the  EU  air  quality  limit  values  for  particulate 
matter  (PM10)  in  several  zones  and  agglomerations  throughout  the  whole  country. 
Furthermore,  Poland  has  failed  to  incorporate  in  its  air  quality  programmes  appropriate 
measures to ensure that the exceedance period is kept as short as possible56.  
Poland  has  incorrectly  transposed  into  national  legislation  the  requirements  of  the 
Environmental  Impact  Assessment  Directive  on  exploratory  drilling.  The  national 
legislation found to be non-compliant excludes exploratory works for shale gas carried out 
at a depth of up to 5 000 m, with the exception of drilling to a depth of at least 1 000 m in 
'sensitive' areas, such as nature protection zones or water protection zones57.    
Poland has failed to fulfil its obligations under the Habitats and Birds Directives regarding 
management of the Białowieża Forest. The operations at issue resulted in the loss of part 
of the Natura 2000 site and therefore could not constitute conservation measures58.  
  Romania  has  breached  the  Landfill  Directive  by  failing  to  close  down  68  landfills  which 

 

 

 

 

had not received authorisation to continue operating59. 
Slovakia has failed to comply with an earlier Court judgment60 that it had failed to fulfil its 
obligations under the Landfill Directive by authorising the operation of the Žilina-Považský 
Chlmec  landfill  site  without  a  site-conditioning  plan  and  in  the  absence  of  a  definite 
decision  on  its  continued  operation  on  the  basis  of  an  approved  site-conditioning  plan. 
The Court ordered Slovakia to pay a lump sum of EUR 1 000 000 and a daily penalty of 
EUR 5 000 until full compliance is achieved61. 
Slovenia  has  failed  to  fulfil  its  obligations  under  the  Landfill  Directive.  Twenty  landfills 
which  had  not  been  granted  authorisation  to  continue  operation  have  not  been  closed 
and  rehabilitated,  and  another  landfill  has  not  been  brought  into  compliance  with  the 
requirements of the Directive62.  
Spain  has  failed  to  comply  with  an  earlier  Court  judgment63  as  17  of  the  43 
agglomerations of over 15 000 population equivalent concerned by the first judgment had 
still  not  been  equipped  with  systems  for  collecting  or  treating  urban  waste  water.  The 
Court ordered Spain to pay a lump sum of EUR 12 million and a penalty payment of EUR 
10 950 000 per six-month period of delay until full compliance is achieved64. 

  United Kingdom has not proposed a sufficient number of Sites of Community Importance 
under  the  Habitats  Directive  for  the  species  harbour  porpoise.  It  has  thereby  failed  to 
contribute to the creation of the Natura 2000 network in proportion to the representation 
of the habitats of that species within its territory65. 

54   Commission v Italy, C-251/17 and Court press release No 74/18. 
55   Directive 2009/147/EC, Commission v Malta, C-557/15 and Court press release No 90/18. 
56   Commission v Poland, C-336/16 and Court press release No 19/18. 
57   Commission v Poland, C-526/16. 
58   Commission v Poland, C-441/17 and Court press release No 48/18. 
59   Directive 1999/31/EC, Commission v Romania, C-301/17. 
60  
61   Directive 1999/31/EC, Commission v Slovakia, C-626/16 and Court press release No 99/18. 
62   Directive 1999/31/EC, Commission v Slovenia, C-506/17. 
63   Commission v Spain, C‑343/10. 
64   Commission v Spain, C-205/17 and Court press release No 120/18. 
65   Directive 92/43/EEC, Commission v United Kingdom, C-669/16. 

 Commission v Slovakia, C-331/11. 

34 

 
 
 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 
Environment 

2.  Preliminary rulings 

The Court gave the following preliminary rulings. 

 

 

 

Belgium:  Regional  town  planning  regulations  laying  down  certain  requirements  for  the 
completion of building projects fall under the definition of ‘plans and programmes’ which 
are  likely  to  have  significant  environmental  effects,  within  the  meaning  of  the  Strategic 
Environmental  Assessment  Directive.  Consequently,  they  must  be  subjected  to  an 
environmental impact assessment.66 

Ireland:  If  a  project  to  be  carried  out  on  a  site  designated  for  the  protection  and 
conservation of certain species includes measures aiming to ensure that  the part of the 
site likely to provide a suitable habitat for the species will not be reduced and could even 
be  enhanced,  those  measures  do  not  constitute  mitigation  measures.  Therefore,  they 
may  not  be  taken  into  account  for  the  purpose  of  the  appropriate  assessment  of  the 
implications  of  the  project  for  the  site.  Such  measures  may  be  seen  as  compensatory 
measures, necessary to protect the overall coherence of the Natura 2000 network67. 
Ireland:  An  ‘appropriate  assessment’  required  under  the  Habitats  Directive68  must  i) 
catalogue all habitat types and species for which the Natura 2000 site is protected and ii) 
examine the implications of the proposed project for the species present on the site (other 
than  those for  which the site has  been listed)  and the implications for habitat types and 
species outside the boundaries of that site, provided that those implications are liable to 
affect  the  conservation  objectives  of  the  site.  The  developer  of  the  project  is  free  to 
determine  later,  after  the  development  consent  has  been  granted,  certain  parameters 
relating  to  the  construction  phase  only  if  those  parameters  will  not  adversely  affect  the 
integrity  of  the  site.  If  a  scientific  expert  opinion  recommends  obtaining  additional 
information and the authority competent to  issue  the  environmental permit rejects these 
findings,  the  ‘appropriate  assessment’  must  present  explicity  and  in  detail  the  reasons 
which led the permitting authority to conclude that there is no reasonable scientific doubt 
over the effects of the work envisaged on the site concerned. The Environmental Impact 
Assessment  Directive69  requires  that  the  project  developer  supplies  information  that 
expressly  addresses  the  significant  effects  of  the  project  on  all  species  identified  in  the 
environmental  impact  statement.  Studying  the  ‘main  alternatives’  means  that  the 
developer  must  indicate  the  reasons  for  his  choice,  taking  into  account  at  least  the 
environmental effects, whether those alternatives were initially envisaged by him or by the 
competent authority or whether they were recommended by some stakeholders70. 

VIII.  OUTLOOK 

Important implementation work in 2019 includes: 

 

legal  action  to  ensure  swift,  complete  and  correct  transposition  of  all  EU  environmental 
directives across the EU, in line with the priorities set out in the Communication ‘EU law: 
Better results through better application’71; 

  pursuing  action  to  ensure  full  implementation  of  the  Natura  2000  network,  including 
designation  of  Sites  of  Community  Importance  and  of  Special  Areas  of  Conservation 
under the Habitats Directive72 across the EU; 
continuing action to ensure full compliance with the Air Quality Directive as regards PM10 
and nitrogen dioxide (NO2) limit values, as well as monitoring systems across the EU73; 

 

66   Directive 2001/42/EC, Inter-Environnement Bruxelles and Others, C-671/16. 
67   Directive 92/43/EEC, Grace and Sweetman, C-164/17. 
68   Directive 92/43/EEC. 
69   Directive 2011/92/EU. 
70   Holohan and Others, C-461/17. 
71   C/2016/8600, OJ C 18, 19.1.2017, p. 10–20. 
72   Directive 92/43/EEC. 

35 

 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 
Environment 

  pursuing  legal  action  to  ensure  full  implementation  of  the  Water  Framework  Directive74, 

the Urban Waste Water Treatment Directive75 and the Nitrates Directive76. 

73   Directive 2008/50/EC. 
74   Directive 2000/60/EC. 
75   Directive 91/271/EEC. 
76   Directive 91/676/EEC. 

36 

 
                                                                                                                                                                                        
Monitoring the application of European Union law 
2018 Annual Report 

Financial stability, financial services and Capital Markets Union 

I.  COMPLAINTS 

1.  New complaints received from members of the public in 2018 

The Commission received 135 complaints from members of the public in this area in 2018 and 
155 in 2017. 

2.  Public complaints open at year-end 

103  >  Complaints open at end-2017 

135  >  New complaints registered in 2018 

127  >  Complaints handled in 2018 

= 111  >  Complaints open at end-2018 

3.  New complaints registered in 2018: main policy sectors 

135 complaints in 2018 

Capital markets 
37 

Insurance and 
pensions 
27 

Retail financial 
services and 
payments 
39 

Other 
32 

II. 

EU PILOT 

1.  New EU Pilot files (2016-2018) 

The Commission opened two new EU Pilot files in this area in 2018. 

2.  EU Pilot files open at year-end 

At the end of 2018 eight EU Pilot files remained open. 

37 

 
 
 
 
Monitoring the application of European Union law 
2018 Annual Report 
Financial stability, financial services and Capital Markets Union 

3.  New EU Pilot files opened in 2018: main policy sectors 

2 EU Pilot files opened in 2018 

Payments 
1 

Securities and 
Investment 
funds 
1 

4.  EU Pilot files: policies’ combined resolution rate in 2015-2018 

75% 

72% 

45% 

54% 

77% 

62% 

80% 

73% 

2015

2016

2017

2018

Financial stability, financial services and Capital Market Union

General rate for all policy areas

III.  OWN-INITIATIVE CASES 

New own-initiative infringement cases 

In  2018  the  Commission’s  own-initiative  infringement  cases  concerned  the  investor 
compensation schemes. 

38 

 
 
 
 
 
 
Monitoring the application of European Union law 
2018 Annual Report 
Financial stability, financial services and Capital Markets Union 

IV. 

INFRINGEMENT CASES 

1.  Infringement cases open on 31 December (2016-2018) 

230 

226 

144 

2016

2017

2018

2.  Infringement cases open on 31 December 2018: main policy sectors 

144 infringement cases in 2018 

Capital markets 
74 

Retail financial 
services and 
payments 
26 

Insurance and 
pensions 
25 

Other 
19 

3.  New infringement cases opened in 2018: main policy sectors 

31 new infringement cases in 2018 

Insurance 
distribution 
14 

Premium CAP 
on MTPL 
insurance 
1 

Payment 
services 
16 

39 

 
 
 
 
 
 
 
Monitoring the application of European Union law 
2018 Annual Report 
Financial stability, financial services and Capital Markets Union 

4.  Key infringement cases and referrals to the Court 

a)  The  Commission  opened  31  new  infringement  cases  in  2018.  These,  and  other 

major ongoing infringement cases, include the following: 

  Belgium,  Bulgaria,  Greece,  Spain,  Croatia,  Cyprus,  Latvia,  Lithuania, 
Luxembourg,  Malta,  Netherlands,  Austria,  Poland,  Portugal,  Romania  and 
Sweden:  non-communication  of  national  measures  transposing  the  Payment 
Services Directive1; 

  Belgium,  Bulgaria,  Germany,  Greece,  Spain,  France,  Croatia,  Cyprus, 
Luxembourg,  Latvia,  Austria,  Portugal,  Romania  and  Slovenia:  non-
communication  of  national  measures  transposing  the  Insurance  Distribution 
Directive;2  

  Bulgaria,  Croatia,  Greece,  Latvia,  Lithuania,  Luxembourg,  Poland,  Portugal, 
Romania,  Slovenia,  Spain  and  Sweden:  non-communication  of  national 
measures transposing the revised Markets in Financial Instruments Directive;3 
  Cyprus: incorrect application of the Investor Compensation Schemes Directive4; 
  Romania: non-conformity of certain provisions of Romanian legislation on motor 
third-party  liability  insurance  with  the  provisions  of  the  Solvency  II  and  Motor 
Insurance Directives5. 

b)  The Commission referred one case to the Court under Article 258 TFEU. It concerns: 

  Slovenia: failure to communicate national measures transposing the Delegated 

Directive implementing the Markets in Financial Instruments Directive6. 

c)  The Commission did not refer any cases to the Court under Article 260(2) TFEU. 

V. 

TRANSPOSITION OF DIRECTIVES 

1.  New late transposition infringement cases (2016-2018) 

116 

84 

2016

2017

30 

2018

1   Directive 2015/2366/EU. 
2   Directive 2016/97/EU. 
3   Directive 2014/65/EU; MEMO/18/349. 
4   Directive 97/9/EC. 
5   Directives 2009/138/EC and 2009/103/EC; MEMO/18/4486. 
6   Commission v Slovenia C-631/18; Directive 2017/593EU. 

40 

 
 
 
 
 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 
Financial stability, financial services and Capital Markets Union 

2.  New late transposition infringement cases opened in 2018: main policy sectors 

30 new late transposition infringement cases in 2018 

Insurance 
distribution  
14 

Payment 
services 
16 

3.  Key infringement cases and referrals to the Court 

a)  The Commission opened 30 cases for late transposition in 2018. Most concern 

 
 

the Payment Services Directive7; 
the Insurance Distribution Directive8.  

b)  The  Commission  referred  three  cases  to  the  Court  under  Articles  258  and  260(3) 

TFEU. They concern 

  Spain:  failure  to  communicate  national  measures  transposing  the  Payments 

Accounts Directive9; 

  Slovenia:  failure  to  communicate  national  measures  transposing  the  revised 

Markets in Financial Instruments Directive10;  

  Slovenia:  failure  to  communicate  national  measures  transposing  the  Audit 

Directive. 11 

VI.  EARLY RESOLUTION OF INFRINGEMENT CASES 

Major cases closed without a Court judgment in 2018 

These concerned: 

  Cyprus,  Ireland,  Latvia  and  Portugal:  failure  to  communicate  national  measures 

transposing the Solvency II Directive12; 

  Luxembourg, Croatia, Czechia, Denmark, Greece and Finland: failure to communicate 

national measures transposing  the Mortgage Credit Directive13;  

  Poland:  failure  to  communicate  national  measures  transposing  the  Alternative 

Investment Fund Managers Directive14; 

7   Directive 2015/2366/EU. 
8   Directive 2016/97/EU. 
9   Commission v Spain, C-430/18; Directive 2014/92/EU. 
10   Commission v Slovenia C-628/18; Directive 2014/65/EU. 
11   Commission v Slovenia C-69/18; Directive 2014/56/EU. 
12   Directive 2009/138/EC, MEMO/18/349. 
13   Directive 2014/17/EU, MEMO/18/1444. 
14   Directive 2011/61/EU, MEMO/18/349. 

41 

 
 
 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 
Financial stability, financial services and Capital Markets Union 

  Latvia,  Romania,  Portugal,  Poland,  Greece,  Bulgaria,  Belgium  and  Malta:  failure  to 
communicate  national  measures  transposing  the  Directive  concerning  undertakings 
for collective investment in transferable securities15. 

VII. 

IMPORTANT JUDGMENTS 

1.  Court rulings 

The Court gave the following ruling16: 

  Spain  has  not  fulfilled  its  obligations  as  it  failed  to  take  the  necessary  measures  to 

implement the ‘Whistleblowing’ Directive17 into national legislation on time18. 

2.  Preliminary rulings 

The Court gave the following preliminary rulings. 

  Hungary:  National  legislation  restricting  usufructuary  rights  over  agricultural  land 
breaches  the  free movement  of  capital. The  Court  concluded  that  the  claimants  could 
enjoy  the  property  in  which  they  invested  capital  and  the  national  legislation  was 
potentially  discriminatory  as  it  favoured  close  family  members  of  the  landowners,  who 
were mainly Hungarian citizens19. 

  Germany:  An  arbitration  clause  included  in  a  bilateral  agreement  between  Member 
States which allows EU investors to bring claims against Member States before arbitral 
tribunals is not compatible with EU law20. 

VIII.  OUTLOOK 

Important implementation work in 2019 includes the following. 
  Monitoring  the  timely  implementation  of  the  Insurance  Distribution  Directive21  and  the 

Payment Services Directive22. 

  Assessing  the  conformity  of  national  transposition  measures  with  a  number  of  financial 
services directives. These include the Accounting and Audit Directives23, the Transparency 
Directive24,  the  Mortgage  Credit  Directive25,  the  Payment  Accounts  Directive26,  the 
Payment  Services  Directive27,  the  Directive  on  disclosure  of  non-financial  information  by 
certain large undertakings28, the Alternative Investment Fund Managers Directive29 and the 
UCITS V Directive30. 

15   Directive 2014/91/EU. 
16   These rulings are almost exclusively handed down on infringement procedures. 
17   Commission Implementing Directive 2015/2392/EU on Regulation (EU) No 596/2014. 
18   Commission v Spain, C-599/17. 
19   SEGRO, C-52/16. 
20   Achmea, C-284/16. 
21   Directive 2016/97/EU. 
22   Directive 2015/2366/EU. 
23   Directive 2014/56/EU. 
24   Directive 2013/50/EU. 
25   Directive 2014/17/EU. 
26   Directive 2014/56/EU. 
27   Directive 2015/2366/EU. 
28   Directive 2014/95/EU. 
29   Directive 2011/61/EU. 
30   Directive 2014/91/EU. 

42 

 
 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 
Financial stability, financial services and Capital Markets Union 

  Ensuring  that  Member  States  take  appropriate  measures  to  implement  the  Achmea 

ruling.31 

31   Achmea, C-284/16. 

43 

 
 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 

Health and food safety 

I.  COMPLAINTS 

1.  New complaints received from members of the public (2014-2018) 

198 

89 

2014

74 
2015

94 

2016

109 

2017

2018

2.  Public complaints open at year-end 

81  >  Complaints open at end-2017 

109  >  New complaints registered in 2018 

116  >  Complaints handled in 2018 

= 74  >  Complaints open at end-2018 

3.  New complaints registered in 2018: main policy sectors 

109 complaints in 2018 

Public health 
56 

Animal 
welfare/animal 
health 
34 

Food safety 
19 

44 

 
 
 
 
 
Monitoring the application of European Union law 
2018 Annual Report 
Health and food safety 

II. 

EU PILOT 

1.  New EU Pilot files (2014-2018) 

31 

17 

9 

2014

2015

2016

0 

2017

2 

2018

2.  EU Pilot open at year-end 

At the end of 2018, 13 EU Pilot files remained open. 

3.  EU Pilot files: resolution rate for policies (2014-2018) 

91% 

76% 

75% 

75% 

83% 

72% 

100% 

77% 

83% 

73% 

2014

2015

2016

2017

2018

Health and food safety

General rate for all policy areas

III.  OWN-INITIATIVE CASES 

New own-initiative infringement cases 

In 2018 the Commission opened own-initiative infringement cases over: 

  patient rights under the Cross-border Health Directive1; 
 

trade in equidae intended for competitions2. 

1   Directive 2011/24/EU. 
2   Directive 90/428/EEC. 

45 

 
 
 
 
 
 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 
Health and food safety 

INFRINGEMENT CASES 

IV. 

1.  Infringement cases open on 31 December (2014-2018) 

94 

107 

47 

34 

25 

2015

2014

2016

2017

2018

2.  Infringement cases open on 31 December 2018: main policy sectors 

34 infringement cases in 2018 

Food safety 
23 

Public health 
9 

Animal 
welfare/animal 
health 
2 

3.  New infringement cases opened in 2018: main policy sectors 

50 new infringement cases in 2018 

Food safety 
36 

Public health 
14 

46 

 
 
 
 
 
 
 
Monitoring the application of European Union law 
2018 Annual Report 
Health and food safety 

4.  Key infringement cases and referrals to the Court 

a)  The Commission opened 50 new infringement cases in 2018. These, and other major 

ongoing infringement cases, include the following: 

  Bulgaria,  Czechia,  Denmark,  Spain,  France, 

Italy,  Cyprus, 
Luxembourg,  Poland,  Romania,  Slovenia,  Sweden,  United  Kingdom:  non-
communication  of  national  measures  transposing  the  Commission  Directive 
amending  the  Directive  on  quality  system  standards  and  specifications  for 
blood establishments3; 

Ireland, 

  Bulgaria,  Czechia,  Ireland,  Italy,  Luxembourg,  Hungary,  Malta,  Romania, 
Slovakia,  Sweden,  United  Kingdom:  non-communication  of  national  measures 
transposing  the  Directive  on  protective  measures  against  the  introduction  into 
the Community of organisms harmful to plants4; 

  Bulgaria, Ireland, Cyprus, Luxembourg, Malta, Netherlands, Romania, Slovakia, 
United  Kingdom:  non-communication  of  national  measures  transposing  the 
Directive on the characteristics to be covered as a minimum by the examination 
and the minimum conditions for examining certain varieties of agricultural plant 
species and vegetable species5. 

b)  The  Commission  referred  two  cases  to  the  Court  under  Article  258  TFEU.  They 

concern 

 

 

Italy:  non-communication  of  national  measures  transposing  certain  technical 
requirements on testing of human tissues and cells6; 
Italy:  failure  to  adequately  prevent  further  spread  of  the  quarantine  harmful 
organism Xylella fastidiosa in Apulia7. 

  Slovenia: 8 

c) 

The Commission did not refer any cases to the Court under Article 260(2) TFEU. 

V. 

TRANSPOSITION OF DIRECTIVES 

1.  New late transposition infringement cases (2014-2018) 

128 

147 

62 

50 

18 

2014

2015

2016

2017

2018

3   Commission Directive 2016/1214/EU. 
4   Commission Implementing Directive 2017/1279/EU. 
5   Commission Implementing Directive 2018/100/EU. 
6   Commission v Italy, C-481/18. 
7   Commission v Italy, C-443/18. 
8   Commission v Slovenia, C-631/18. 

47 

 
 
 
 
 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 
Health and food safety 

2.  New late transposition infringement cases opened in 2018: main policy sectors 

50 new late transposition infringement cases in 2018 

Food safety 
36 

Public health 
14 

3.  Key infringement cases and referrals to the Court 

a)  The Commission opened 50 cases for late transposition in 2018. Most concern the: 

  Commission Directive amending the Directive on quality system standards and 

specifications for blood establishments9; 

  Directive on protective measures against the introduction into the Community of 

organisms harmful to plants10; 

  Directive on the characteristics to be covered as a minimum by the examination 
and the minimum conditions for examining certain varieties of agricultural plant 
species and vegetable species11 ; 

b)  The Commission did not refer any cases to the  Court under Articles 258 and 260(3) 

TFEU. 

VI. 

EARLY RESOLUTION OF INFRINGEMENT CASES 

Major cases closed without a Court judgment in 2018 

These concerned: 

  Lithuania:  incomplete  transposition  of  the  Directives  on  the  quality  and  safety  of 

reproductive cells12; 

  Germany:  non-compliance  with 

the  principle  of  mutual  recognition  of 

‘old 

authorisations’ for plant protection products13; 

  Bulgaria,  France,  Latvia,  Hungary  and  Finland:  non-communcation  of  national 

measures transposing the Directive on tobacco products14 ; 

  Bulgaria,  Czechia,  Denmark,  Spain,  France,  Ireland,  Italy,  Cyprus,  Luxembourg, 
Poland,  Romania,  Slovenia,  Sweden  and  United  Kingdom:  non-communication  of 
national measures transposing the Commission Directive amending the Directive on 
quality system standards and specifications for blood establishments15; 

9   Commission Directive 2016/1214/EU. 
10   Commission Implementing Directive 2017/1279/EU. 
11   Commission Implementing Directive 2018/100/EU.  
12   Directives 2004/23/EC, 2006/17/EC and 2006/86/EC. 
13   Regulation (EC) No 1107/2009. 
14   Directive 2014/40/EU. 
15   Directive 2016/1214/EU. 

48 

 
 
 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 
Health and food safety 

  Belgium,  Czechia,  Italy,  Cyprus,  Luxembourg,  Austria,  Slovakia  and  United 
Kingdom: non-communication of national measures transposing the Directive on the 
inclusion  of  new  species  and  the  botanical  name  of  the  species  Lolium  x 
boucheanum Kunth16; 

  Bulgaria,  Czechia,  Ireland,  Italy,  Luxembourg,  Hungary,  Malta,  Romania,  Slovakia 
and Sweden: non-communication of national measures transposing the Directive on 
protective  measures  against  the  introduction  into  the  Community  of  organisms 
harmful to plants17; 
Ireland,  Netherlands  and  Portugal:  non-communication  of  national  measures 
transposing  the  Directive  on  the  movement  of  seeds  of  Solanum  tuberosum  L. 
originating in the Union18. 

 

VII. 

IMPORTANT JUDGMENTS 

1.  Court rulings 

There were no major Court rulings in 2018 in this area. 

2.  Preliminary rulings 

The Court gave the following preliminary rulings. 

  Belgium:  Ritual  slaughter  without  stunning  may  take  place  only  in  an  approved 
slaughterhouse.  The  obligation  to  carry  out  ritual  slaughter  in  an  approved 
slaughterhouse simply aims, from a technical point of view, to organise and manage 
the freedom to carry out slaughter without prior stunning for religious purposes. Such 
a  technical  framework  is  not  in  itself  of  such  a  nature  as  to  restrict  the  right  to 
freedom of religion of practising Muslims19. 

  Germany: Approval granted to chewing tobacco can only cover products that release 

their essential ingredients by being chewed20. 

  France: Organisms obtained by mutagenesis are genetically modified organisms and 
are,  in  principle,  subject  to  the  obligations  laid  down  by  the  GMO  Directive21. 
However,  organisms  obtained  by  mutagenesis  techniques  that  have  conventionally 
been  used  in  a  number  of  applications  and  have  a  long  safety  record  are  exempt 
from  those  obligations.  Member  States  are  neverthless  free  to  subject  them,  in 
compliance  with  EU  law,  to  the  obligations  laid  down  by  the  Directive  or  to  other 
obligations22. 

 

Italy: The organisation and management of health services are  the responsibility of 
the  Member  States,  as  regards  setting  the  prices  of  medicinal  products  and  their 
inclusion  in  the  scope  of  the  national  healthcare  insurance  system.  In  exercising 
those powers, the Member States must comply with EU law23. 

  United  Kingdom:  A  prohibition  on  placing  on  the  market  tobacco  products  for  oral 
use  is  intended  not  to  restrict  the  right  to  health  but,  on  the  contrary,  to  give 

16   Directive 2016/2109/EU. 
17   Directive 2017/1279/EU. 
18   Directive 2017/1920/EU. 
19   Liga  van  Moskeeën  en  Islamitische  Organisaties  Provincie  Antwerpen  and  Others,  C-426/16  and 

press release. 

20   Günter Hartmann Tabakvertrieb, C-425/17. 
21   Directive 2001/18/EC. 
22   Confédération paysanne and Others, C-528/16 and press release. 
23   Novartis Farma, C-29/17 and press release. 

49 

 
 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 
Health and food safety 

expression  to  that  right  and,  consequently,  to  ensure  a  high  level  of  protection  of 
health for all consumers24. 

  United Kingdom: A product composed of several active ingredients with a combined 
effect  is  ‘protected  by  a  basic  patent  in  force’,  even  if  the  combination  of  active 
ingredients  of  which  that  product  is  composed  is  not  expressly  mentioned  in  the 
claims of the basic patent25. 

  United  Kingdom: A supplementary  protection certificate for medicinal products  is to 
be interpreted as meaning  that an end of  procedure notice issued by the reference 
Member State before the expiry of the basic patent may not be treated as equivalent 
to  a  marketing  authorisation.  Consequently,  a  supplementary  protection  certificate 
may not be obtained on the basis of such a notice26. 

VIII.  OUTLOOK 

Important implementation work in 2019 includes: 

  monitoring the timely and correct implementation of Directives on:  

o 
o 

the application of patients’ rights in cross-border healthcare27; 
the manufacture, presentation and sale of tobacco and related products28; 
following up on national authorities’ enforcement of EU rules in the plant health sector, in 
particular the monitoring of cases relating to the Xylella fastidiosa; 
following  up  on  national  authorities’  enforcement  of  EU  rules  on  the  Sustainable  Use  of 
Pesticides Directive29  on the animal welfare issue of ‘tail docking’30. 

 

 

24   Swedish Match, C-151/17 and press release. 
25   Teva UK and Others, C-121/17. 
26   Merck Sharp, C-567/16. 
27   Directive 2011/24/EU. 
28   Directive 2014/40/EU. 
29   Directive 2009/128/EC. 
30   Directive 2008/120/EC. 

50 

 
 
 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 

Internal market, industry, entrepreneurship and SMEs 

I.  COMPLAINTS 

1.  New complaints received from members of the public (2016-2018) 

The  Commission  received  627  complaints  from  the  members  of  the  public  in  the  area  of 
internal market, industry, entrepreneurship and SMEs in 2018, compared with 476 in 2017 
and 483 in 2016. 

2.  Public complaints open at year-end 

641  >  Complaints open at end-2017 

627  >  New complaints registered in 2018 

540  >  Complaints handled in 2018 

= 728  >  Complaints open at end-2018 

3.  New complaints registered in 2018: main policy sectors 

627 complaints in 2018 

Public 
procurement 
72 

Services 
63 

Horizontal 
legislation for 
goods and non-
harmonised 
sectors  
50 

Other 
57 

Regulated 
professions 
385 

II. 

EU PILOT 

1.  New EU Pilot files (2015-2018) 

107 

111 

9 

2015

2016

2017

2 

2018

51 

 
 
 
Monitoring the application of European Union law 
2018 Annual Report 
Internal market, industry, entrepreneurship and SMEs 

2.  EU Pilot files open at year-end 

At the end of 2018, 43 EU Pilot files remained open. 

3.  New EU Pilot files opened in 2018: main policy sectors 

In 2018 the Commission opened two new EU Pilot files on public procurement. 

4.  EU Pilot files: resolution rate for policies (2015-2018) 

75% 

74% 

72% 

62% 

77% 

73% 

73% 

69% 

2015

2016

2017

2018

Internal market, industry, entrepreneurship and SMES

General rate for all policy areas

III.  OWN-INITIATIVE CASES 

New own-initiative infringement cases 

In 2018 the Commission opened own-initiative infringement cases over: 

  Recognition of professional qualifications1.   

IV. 

INFRINGEMENT CASES 

1.  Infringement cases open on 31 December 2018 

270 

158 

172 

2016

2017

2018

1   Directive 2005/36/EC as amended by Directive 2013/55/EU. 

52 

 
 
 
 
 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 
Internal market, industry, entrepreneurship and SMEs 

2.  Infringement cases open on 31 December 2018: main policy sectors 

172 infringement cases in 2018 

Regulated 
professions 
35 

Space and 
defence 
31 

Public 
procurement 
26 

Other 
61 

Innovations 
19 

3.  New infringement cases opened in 2018: main policy sectors 

101 new infringement cases in 2018 

Space & defence 
31 

Other 
23 

Regulated 
professions 
28 

Innovation 
19 

4.  Key infringement cases and referrals to the Court 

a)  The  Commission  opened  101  new  infringement  cases  in  2018.  These,  and  other 

major ongoing infringement cases, include the following: 

  Denmark:  unjustified  restrictions  on  foreign  self-employed  persons  providing 

services in the country;2 

  Austria:  lack  of  equal  access  for  bidders  to  tender  specifications  (public 

procurement);  

  Greece:  delays  in  processing  applications  for  recognition  of  diplomas  from 

other Member States3 ; 

  Belgium,  Bulgaria,  Czechia,  Denmark,  Germany,  Estonia,  Ireland,  Greece, 
Spain, France, Croatia, Italy, Cyprus, , Lithuania, Luxembourg, Hungary, Malta, 
Netherlands,  Austria,  Poland,  Portugal,  Romania,  Slovakia,  Slovenia,  Finland, 

2   MEMO/18/1444. 
3   Directive 2005/36/EC. 

53 

 
 
 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 
Internal market, industry, entrepreneurship and SMEs 

Sweden  and  United  Kingdom:  non-conformity  of  national 
measures with the Directive on the recognition of professional qualifications4;  

transposition 

  Denmark  and  Netherlands:  unjustified  offset 

requirements  demanding 
compensation from non-national suppliers when purchasing defence equipment 
from them5; 
Italy,  Poland  and  Portugal:  direct  award  of  a  number  of  defence  contracts  to 
national suppliers in breach of the Defence Procurement Directive6. 

 

b)  The  Commission  referred  five  cases  to  the  Court  under  Article  258  TFEU.  They 

concern 

 

Italy: delays in payments made by the Italian public authorities to their suppliers 
in  commercial 
in  breach  of 
transactions; 7 

the  Directive  on  combating 

late  payment 

  Greece:  obstacles  to  the  freedom  of  establishment  for  training  bodies  for 
professional  mediators  contrary  to  the  Services  Directive8  and  restrictions  on 
recognising the professional qualifications of mediators9; 

  Austria:  bad  application  of  the  Services  Directive10  by  imposing  unjustified 
requirements  concerning  the  registered  office,  legal  form  and  share  capital 
ownership  for  companies  in  a  number  of  professions  –  architects,  engineers, 
patent attorneys and veterinarians11; 

  Belgium:  a  provision  in  the  code  for  accountants  prohibiting  accountants  from 
carrying  out  any  other  economic  activity  as  an  insurance  broker,  real  estate 
agent and all banking and financial services activities, in breach of the Services 
Directive12; 

  Hungary:  amendments  to  the  Hungarian  Higher  Education  Act  (CCIV),  which 
violate EU law by restricting the operations of EU and non-EU higher education 
institutions13.. 

c)  The Commission did not refer any cases to the Court under Article 260(2) TFEU. 

IP/18/357. 
IP/18/357. 

4   Directive 2005/36/EC. MEMO/18/4486. 
5  
6  
7   Commission v Italy, C-122/18, Directive 2011/7/EU. 
8   Directive 2006/123/EC. 
9   Commission / Greece, C-729/17, Directive 2005/36/EC. 
10   Directive 2006/123/EC. 
11   Commission v Austria, C-209/18. 
12   Commission v Belgium, C-384/18. 
13   Commission v Hungary, C-66/18. 

54 

 
 
 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 
Internal market, industry, entrepreneurship and SMEs 

V. 

TRANSPOSITION OF DIRECTIVES 

1.  New late transposition infringement cases (2016- 2018) 

267 

2016

7 
2017

60 

2018

2.  New late transposition infringement cases opened in 2018: main policy sectors 

60 new late transposition infringement cases in 2018 

Innovation 
19 

Space and 
defence 
31 

Industry sectors 
6 

Chemicals & 
Health 
4 

3.  Key infringement cases and referrals to the Court 

a)  The  Commission  opened  60  cases  for  late  transposition  in  2018.  Among  the 

directives concerned were: 

  a  Commission  Directive14  amending  a  Council  Directive  as  regards  the 
maximum  allowable  pressure  of  aerosol  dispensers  and  to  adapt  its  labelling 
provisions  to  the  Regulation  on  classification,  labelling  and  packaging  of 
substances and mixtures15; 
the Directive16 on control of the acquisition and possession of weapons; 

 
  a  Commission  Directive17  amending  a  Council  Directive  as  regards  the  list  of 

defence-related products. 

b)  The  Commission  referred  nine  cases  to  the  Court  under  Articles  258  and  260(3) 

TFEU. They concern 

14   Commission Directive 2016/2037/EU. 
15   Regulation (EC) No 1272/2008. 
16   Directive 2017/853/EU. 
17   Directive 2017/2054/EU. 

55 

 
 
 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 
Internal market, industry, entrepreneurship and SMEs 

  Austria:  three  cases  for  non-communication  of  national  measures  transposing 
the  Directives  on  the  award  of  concession  contracts18,  public  procurement19, 
and procurement by entities operating in the water, energy, transport and postal 
services sectors 20; 

  Spain: two cases for non-communication of national measures transposing the 
Directives  on  the  award  of  concessions  contracts21  and  on  procurement  by 
entities operating in the water, energy, transport and postal services sectors22; 

  Luxembourg: 

three  cases 

for  non-communication  of  national  measures 
transposing  the  Directives  on  the  award  of  concessions  contracts23,  public 
procurement24,  and  procurement  by  entity  es  operating  in  the  water,  energy, 
transport and postal services sectors25; 

  Slovenia:  non-communication  of  national  measures  transposing  the  Directive 

on the award of concession contracts26. 

VI. 

EARLY RESOLUTION OF INFRINGEMENT CASES 

Major cases closed without a Court judgment in 2018 

These concerned mainly: 

  Romania: restrictions on veterinary surgeons in Romania; 
  Romania: obstacles to the marketing of LPG fuel stations; 
  Spain:  discriminatory  and  excessive 
procurement of ambulance services27;  

requirements 

for  participation 

in  public 

  Poland, Romania, Slovakia, Germany: parallel imports of medicines28; 
  Slovakia: registration of right-hand drive vehicles; 
  Portugal: obligation to notify the export of medicines; 
  France:  import  of  second-hand  cars  which  were  previously  registered  in  another 

Member State. 

VII. 

IMPORTANT JUDGMENTS 

1.  Court rulings 

The Court gave the following rulings29: 

18   Commission v Austria, C-79/18. Austria subsequently took the necessary measures and the case 

has been withdrawn from the Court; Directive 2014/23/EU. 

19   Commission v Austria , C-77/18. Austria subsequently took the necessary measures and the case 

has been withdrawn from the Court. Directive 2014/24/EU. 

20   Commission v Austria, C-76/18. Austria subsequently took the necessary measures and the case 

has been withdrawn from the Court. Directive 2014/25/EU. 

21   Commission v Spain, C-164/18. Directive 2014/23/EU, Directive 2015/720/EU. 
22   Commission v Spain, C-165/18. Directive 2014/25/EU. 
23   Commission v Luxembourg, C-86/18. Luxembourg subsequently took the necessary measures and 

the case has been withdrawn from the Court.  

24   Commission v Luxembourg, C-87/18. Luxembourg subsequently took the necessary measures and 

the case has been withdrawn from the Court.  

25   Commission  v  Luxembourg,  C-88/18,  Directive  2014/24/EU.  Luxembourg  subsequently  took  the 

necessary measures and the case has been withdrawn from the Court. 

26   Commission v Slovenia, C-188/18. 
27   Directive 2014/24/EU. 
28  
29   These rulings are almost exclusively handed down on infringement procedures. 

IP/18/3459. 

56 

 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 
Internal market, industry, entrepreneurship and SMEs 

  Czechia failed to fulfil its obligations under EU law by imposing a condition of nationality 

for access to the profession of notary in the Czech legal system30. 

  Austria  breached  its  obligations  under  the  EU  directives  on  public  procurement  by 
awarding  service  contracts  for  the  production  of  identity  documents  and  other  official 
documents without holding an EU-wide call for tenders 31;  

  Germany  failed  to  take  the  necessary  measures  to  re-establish  conformity  to  their 
approved types of 133 713 vehicles of types 246, 176 and 117 sold by Daimler between 
1 January and 26 June 2013. The vehicles were fitted not with the refrigerant R1234yf 
declared  for  those  approved  types  but  a  different  refrigerant  with  a  global  warming 
potential of over 15032; 

  Hungary  breached  its  obligations  under  the  Services  Directive  by  adopting  legislation 
creating  a  monopoly  by  a  State-owned  entity  on  the  provision  of  mobile  payments 
services for public parking and other activities33.  

2.  Preliminary rulings 

The Court gave the following preliminary rulings. 

  Germany:  This  case  concerns  voluntary  remedial  measures  taken  in  case  where  an 
exclusion  ground  from  participating  in  public  procurement  applies.  The  Court  has 
established  that  it  is  compatible  with  EU  law  to  require  cooperation  with  both 
investigative  and  contracting  authorities,  each  in  their  particular  roles,  to  demonstrate 
reliability of a tenderer despite the existence of a relevant ground for exclusion as long 
as the cooperation with the latter is limited to what is necessary in the framework of the 
examination  of  re-establishing  reliability.  Furthermore,  the  Court  has  ruled  that  the 
maximum period for exclusion by reason of a competition infringement which had been 
penalised by a competent authority is to be calculated from the date of the decision of 
that authority.34  
Italy: Any period of full-time or part-time specialist medical training begun  in 1982 and 
continued  up  to  1990  must  be  subject  to  appropriate  remuneration35.Italy:  Member 
States  whose  legislation  creates  a  requirement  to  pursue  full-time  training  and  a 
prohibition  on  being  enrolled  in  two  courses  at  the  same  time  must  automatically 
recognise qualifications issued by another Member State on the completion of partially 
concurrent training36. 

 

 

Italy:  The  case  concerns  the  compatibility  with  the  freedom  to  provide  services,  the 
freedom  of  establishment  and  the  principles  of  non-discrimination,  transparency  and 
proportionality  of  certain  national  rules  imposing  limits  as  regards  the  concession 
granted  for  the  management  of  the  national  lottery  Lotto.  The  Court  establishes  that 
imposing a sole concessionaire model, a high basic contract value, as well as providing 
for  the  withdrawal  of  the  concession  in  case  of  certain  criminal  or  fraudulent  activities 
can be justified on public policy grounds if they fulfil the principles of proportionality and 
transparency37. 

  Lithuania:  The  ruling  concerns  the  handling  of  potential  collusion  within  a  public 
procurement  procedure.  Although  contracting  authorities  observing  indications  of 
potential  collusion  are  obliged  to  verify  them  sufficiently,  the  related  tenderers 

30   Commission v Czech Republic, C-575/16. 
31   Commission v Austria, C-187/16. 
32   Commission v Germany, C-668/16. 
33   Commission v Hungary, C-171/17. 
34   Vossloh, C-124/17. 
35   Pantuso, C-616/16. 
36   Preindl, C-675/17. 
37   Stanley International Betting and Stanleybet Malta, C-375/17. 

57 

 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 
Internal market, industry, entrepreneurship and SMEs 

submitting  offers  in  the  same  procedure  are  not  obliged  to  spontaneously  disclose 
details of their links38. 

  Lithuania:  Technical  specifications  in  public  procurement  cannot  be  tailored  to  an 
individual provider. It is up to contracting authorities/entities to assure fair competition, 
either through a detailed technical description or functional specification, or by defining 
an outcome, or through a combination of them39. 

  Hungary: The case concerns a national procedural rule which submits the possibility of 
asserting a claim under civil law, in the event of an infringement of the rules governing 
public  procurement  and  the  award  of  public  contracts,  to  the  condition  that  the 
infringement be definitively established by a court decision. The Court ruled that the rule 
can be considered compatible with EU legislation40. 

  Netherlands:  Retail  is  a  service  and  falls  within  the  scope  of  the  Services  Directive41. 
The provisions on the freedom of establishment apply also to situations where only one 
Member State is concerned; the Directive applies also to Member States which regulate 
the establishment of retail shops through planning rules. A zoning plan rule, such as to 
reserve a specific location for the sale of bulky items, does not amount to an economic 
needs test within the meaning of Article 14(5) of the Directive42. 

  Austria: A recipient of services can be ordered to suspend payments and pay a security 
to guarantee payment of a possible fine  which might be imposed by the host Member 
State on a provider of services established in another Member State43. 

VIII.  OUTLOOK 

Important implementation work in 2019 includes: 

continuing  to  monitor  the  enforcement  of  Single  Market  rules  with  the  general  objective  of 
ensuring it functions seamlessly, and in particular 

 
 

continuing to monitor the implementation of EU rules in the automobile sector; 
checking  the  compliance  of  national  measures  with  the  Public  Procurement 
Directives.  

38   Specializuotas transportas, C-531/16. 
39   Roche Lietuva, C-413/17. 
40   Hochtief, C-300/17. 
41   Directive 2006/123/EC.  
42  
43   Čepelnik, C-33/17. 

joinedJoined cases: X, C-360/15 and Visser Vastgoed Beleggingen, C-31/16. 

58 

 
 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 

Justice and consumers 

I.  COMPLAINTS 

1.  New complaints received from members of the public (2014-2018) 

919 

864 

943 

596 

524 

2014

2015

2016

2017

2018

2.  Public complaints open at year-end 

757  >  Complaints open at end-2017 

943  >  New complaints registered in 2018 

1009  >  Complaints handled in 2018 

= 691  >  Complaints open at end-2018 

3.  New complaints registered in 2018: main policy sectors 

943 complaints in 2018 

Cooperation in 
criminal law and 
justice 
126 

Civil justice 
84 

Consumers and 
marketing law 
83 

Other 
105 

Free movement 
and citizenship 
rights 
270 

Fundamental 
rights 
275 

59 

 
 
 
 
 
 
Monitoring the application of European Union law 
2018 Annual Report 
Justice and consumers 

II. 

EU PILOT 

1.  New EU Pilot files (2014-2018) 

103 

74 

50 

2014

2015

2016

2017
0 

2.  EU Pilot files open at year-end 

At the end of 2018, 84 EU Pilot files remained open. 

3.  EU Pilot files: resolution rate for policies (2014-2018) 

0 

2018

76% 

75% 

79% 

80% 

75% 

72% 

88% 

77% 

79% 

73% 

2014

2015

2016

2017

2018

Justice and consumers

General rate for all policy areas

III.  OWN-INITIATIVE CASES 

New own-initiative infringement cases 

In 2018, the Commission opened own-initiative infringement cases over: 

 
 

the Consumer Rights Directive1; 
violation  of  EU  fundamental  rights  in  relation  to  illegal  immigration  and  independence  of 
the judiciary. 

1   Directive 2011/83/EU. 

60 

 
 
 
 
 
 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 
Justice and consumers 

IV. 

INFRINGEMENT CASES 

1.  Infringement cases open on 31 December (2014-2018) 

160 

125 

82 

80 

88 

2014

2015

2016

2017

2018

2.  Infringement cases open on 31 December 2018: main policy sectors 

160 infringement cases in 2018 

Judicial 
cooperation in 
criminal matters 
43 

Criminal law 
20 

Consumer and 
marketing law 
19 

Financial crime 
18 

Other 
25 

3.  New infringement cases opened in 2018: main policy sectors 

56 new infringement cases in 2018 

Judicial 
cooperation in 
criminal matters 
12 

Consumer and 
marketing law 
16 

Fundamental 
rights 
19 

Other 
9 

61 

 
 
 
 
 
 
 
Monitoring the application of European Union law 
2018 Annual Report 
Justice and consumers 

4.  Key infringement cases and referrals to the Court 

a)  The Commission opened 56 new infringement cases in 2018. These, and other major 

ongoing infringement cases, include the following: 
•  Sweden: incorrect transposition of the Unfair Commercial Practices Directive2; 
•  Poland and Finland: non-compliance with Consumer Rights Directive3;   
• 

Lithuania: breach of the right of EU citizens to become members of a political party 
or to form one in the Member State of residence; 

•  Hungary: incompatibility of Hungarian legislation with the EU legislation on asylum 

and free movement and the EU Charter of Fundamental Rights4. 

b)  The  Commission  referred  three  cases  to  the  Court  under  Article  258  TFEU.  They 

concern 

  Hungary:  the  introduction  of  conditions  on  the  transparency  of  organisations 
supported from abroad, in violation of the free movement of capital and the Charter 
of Fundamental Rights 5; 
Poland:  the  adoption  of  provisions  in  the  Ordinary  Courts  Organisation  law 
adversely  affecting  the  independence  of  the  Polish  judiciary,  and  of  provisions 
which are incompatible with the EU legislation on non-discrimination; 6 

 

  Poland:  the  national  law  on  the  Supreme  Court  in  relation  in  particular  to  the 
retirement regime, in breach of the principle of judicial independence, including the 
irremovability of judges7. 

c)  The Commission did not refer any cases to the Court under Article 260(2) TFEU. 

V. 

TRANSPOSITION OF DIRECTIVES 

1.  New late transposition infringement cases (2014-2018) 

34 

41 

52 

38 

30 

2014

2015

2016

2017

2018

IP/18/4522. 

2   Directive 2005/29/EC. 
3   Directive 2011/83/EU. 
4  
5   Commission v Hungary, C-78/18. 
6   Commission v Poland, C-192/18. 
7   Commission v Poland, C-619/18. 

62 

 
 
 
 
 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 
Justice and consumers 

2.  New late transposition infringement cases opened in 2018: main policy sectors 

52 new late transposition infringement cases in 2018 

Consumer and 
marketing law 
14 

Fundamental 
rights 
19 

Judicial 
cooperation in 
criminal 
matters 
12 

Other 
7 

3.  Key infringement cases and referrals to the Court 

a)  The Commission opened 52 cases for late transposition in 2018. Among the directives 

concerned were: 

 
 
 
 

 

the Directive on the presumption of innocence8; 
the fourth Anti-Money Laundering Directive9;  
the Council Framework Decision on the exchange of criminal records10; 
the  Directive  on  the  consular  protection  of  unrepresented  EU  citizens  in  third 
countries11;  
the Data Protection Law Enforcement Directive12.  

b)  The Commission referred two cases to the Court under Articles 258 and 260(3) TFEU. 

They concern: 

  Romania13 and Ireland14: incomplete transposition of the Fourth Anti-Money 

Laundering Directive. 

VI. 

EARLY RESOLUTION OF INFRINGEMENT CASES 

Major cases closed without a Court judgment in 2018 

These concerned: 

  Lithuania and Luxembourg: transposition of Procedural Rights Directives (right to 

interpretation and right to information)15; 

  Hungary: incorrect transposition of the Environmental Crime Directive16; 
  Sweden: incorrect transposition of the Free Movement Directive17. 

8   Directive 2016/343/EU. 
9   Directive 2015/849/EU. 
10   Council framework Decision 2009/315/JHA. 
11   Directive 2015/637/EU. 
12   Directive 2016/680/EU. 
13   Commission v Romania, C-549/18. 
14   Commission v Ireland, C-550/18. 
15   Directives 2010/64/EU and 2012/13/EU. 
16   Directive 2008/99/EC. 
17   Directive 2004/38/EC. 

63 

 
 
 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 
Justice and consumers 

VII. 

IMPORTANT JUDGMENTS 

1.  Court rulings 

There were no major Court rulings in 2018 in this area. 

2.  Preliminary rulings 

The Court gave the following preliminary rulings. 

 

 

Belgium Member States  have to deliver and  notify residence cards to non-EU family 
members of EU citizens within the deadline of 6 months stipulated in Article 10 of the 
Free Movement Directive18. The judicial annulment of the decision does not reopen a 
new period of 6 months as referred to in that Article19. 
Belgium: Restrictions on the freedom of movement and residence of an EU citizen, or 
a family member of an EU citizen, who is suspected of having, in the past, participated 
in  war  crimes  must  also  be  assessed  on  a  case-by-case  basis,  as  required  by  the 
Free  Movement  Directive20.  That  assessment  requires  the  threat  that  the  individual 
concerned represents to the fundamental  interests of the host society to  be  weighed 
against the protection of the rights of EU citizens and their family members21. 

  Denmark:  EU  citizens  have  the  right  to  be  accompanied  or  joined  by  their  non-EU 
national  family  members  when  returning  to  their  home  Member  State  after  having 
exercised  free  movement  rights  in  another  Member  State.  EU  citizens  must  have 
exercised  free  movement  rights  genuinely  and  effectively  in  another  Member  State, 
and must have created or strengthened family life there, before they can invoke similar 
rights of entry and residence for their family members22. 

 

  Germany:  An  administrator  of  a  fan  page  must  be  regarded  as  a  controller  jointly 
responsible, within the EU, with Facebook Ireland for the processing of personal data 
through that kind of page23. 
Ireland:  The  Court  found  that  the  notification  by  a  Member  State  of  its  intention  to 
leave the EU (Article 50 TEU) does not have as a consequence that another Member 
State  must  refuse  to  execute  a  European  Arrest  Warrant  issued  by  the  leaving 
Member  State,  neither  must  it  postpone  its  execution  pending  clarification  of  the  law 
that will be applicable after withdrawal24. 
Spain: EU directives apply to a female security  agent  who does shift  work, including 
night shifts which entail a risk for the agent to breastfeed her baby25.  

 

  Netherlands: A decision rejecting refugee status on the grounds that there are serious 
reasons  to  believe  that  the  applicant  committed  a  war  crime  or  a  crime  against 
humanity  may  fall  within  the  scope  of  the  concept  of  public  policy  or  public  security. 
However,  a  case-by-case  assessment  is  necessary  before  a  measure  based  on 
grounds of public policy or public security is adopted26 

  Romania: The term ‘spouse’ in the Free Movement Directive also applies to a person 
of the same sex as the EU citizen to whom he or she is married. The Court found that 
the  obligation  for  a  Member  State  to  recognise  a  same-sex  marriage  concluded  in 
another Member State, for the sole purpose of granting a right of residence to a non-
EU national, does not undermine the institution of marriage in the first Member State27. 

18   Directive 2004/38/EC. 
19   Diallo, C-246/17. 
20   Directive 2004/38/EC. 
21   Joined cases: K., C-331/16 and H.,C-366/16. 
22   Deha Altiner et Ravn, C-230/17. 
23   Wirtschaftsakademie Schleswig-Holstein, C-2010/16. 
24   PPU - R O, C-327/18. 
25   Gonzalez Castro, C-41/17. 
26   Joint cases: K, C 331/16 and H., C-366/16. 
27   Coman and Others, C-673/16. 

64 

 
 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 
Justice and consumers 

 

 

Finland:  Data  protection  legislation  covers  a  set  of  personal  data  collected  in  the 
course of door-to-door preaching. A religious community is a controller, jointly with its 
members who engage in preaching, of the processing of personal data carried out by 
the latter through door-to-door preaching28. 
Finland: The case concerned a situation where an extradition request has been made 
by a third country for an EU citizen who has exercised his/her right to free movement. 
The  Court  ruled  that  the  requested  Member  State  is  required  to  ensure  that  that  EU 
citizen,  provided  that  he  resides  permanently  in  its  territory,  receives  the  same 
treatment  as  that  accorded  to  its  own  nationals  in  relation  to  extradition29.United 
Kingdom: Extended family members of EU citizens who return to the Member State of 
nationality  from  another  Member  State  can,  like  other  family  members,  such  as 
spouses, also avail themselves of the protection of  EU  law  on free movement  of EU 
citizens and can apply to have their entry and residence facilitated in accordance with 
national law30.  

VIII.  OUTLOOK 

Important implementation work in 2018 includes: 

 

closely monitoring application of the: 
o  Maintenance Regulation31; 
o  General Data Protection Regulation32; 

 

closely monitoring the timely transposition of the Directives on: 

o 

the  fight  against  fraud  to  the  Union's  financial  interests  by  means  of  criminal 
law33; 

o  procedural  safeguards  for  children  who  are  suspects  or  accused  persons  in 

criminal proceedings34;  
legal aid35;  
the encouragement of long-term shareholder engagement;36 

o 

o 

  assessing and ensuring correct transposition of the: 

o  Directive  on  right  of  access  to  a  lawyer  in  criminal  proceedings37,  Framework 
Decision  on  the  European  Arrest  Warrant,  Victims'  Rights  Directive38,  and 
European Investigation Order Directive39;  

o  Market Abuse  Directive40  and  Directive  on  the  protection  of  the  euro  and  other 

currencies against counterfeiting by criminal law41; 

o  Data Protection Law Enforcement Directive42; 

28   Jehovan todistajat, C-25/17. 
29   Raugevicius, C‑247/17. 
30   Banger, C-89/17. 
31   Regulation (EC) No 4/2009. 
32   Regulation (EU) No 679/2016. 
33   Directive 2017/1371/EU. 
34   Directive 2016/800/EU. 
35   Directive 2016/1919/EU. 
36   Directive 2017/828/EU. 
37   Directive 2013/48/EU. 
38   Directive 2012/29/EU. 
39   Directive 2014/41/EU. 
40   Directive 2014/57/EU. 
41   Directive 2014/62/EU. 

65 

 
 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 
Justice and consumers 

o  Directive  on  package 

travel  arrangements43,  ensuring 
appropriate  follow-up  to  the  Court’s  preliminary  rulings  of  2018  or  expected  for 
2019  

travel  and 

linked 

42   Directive 2016/680/EU. 
43   Directive 2015/2302/EU. 

66 

 
 
                                                                                                                                                                                        
Monitoring the application of European Union law  
2018 Annual Report 

Maritime affairs and fisheries 

I.  COMPLAINTS 

1.  New complaints received from members of the public (2014-2018) 

12 

12 

12 

8 

6 

2014

2015

2016

2017

2018

2.  Public complaints open at year-end 

24  >  Complaints open at end-2017 

12  >  New complaints registered in 2018 

13  >  Complaints handled in 2018 

= 23  >  Complaints open at end-2018 

3.  New complaints registered in 2018: main policy sectors 

12 complaints in 2018 

Fisheries 
8 

Other 
4 

67 

 
 
 
 
 
Monitoring the application of European Union law   
2018 Annual Report 
Maritime affairs and fisheries 

II. 

EU PILOT 

1.  EU Pilot files open at year-end 

There was one EU Pilot file registered in 2018, and five EU Pilot files remained open at 
end-2018. 

2.  EU Pilot files: policies’ combined resolution rate in 2014-2018 

92% 

88% 

75% 

75% 

90% 

72% 

100% 

77% 

75% 

73% 

2014

2015

2016

2017

2018

Maritime affairs and fisheries

General rate for all policy areas

III.  OWN-INITIATIVE CASES 

New own-initiative infringement cases 

In 2018, the Commission opened own-initiative infringement cases over: 

 
 

non-compliance with the fisheries control obligations; 
non-compliance  with  the  provisions  on  the  common  organisation  of  the  markets  in 
fishery and aquaculture products. 

IV. 

INFRINGEMENT CASES 

Key infringement cases and referrals to the Court 

a)  The  Commission  opened  two  new  infringement  cases  in  2018.  These,  and  other  major 

ongoing infringement cases, concern: 

 

Ireland: Failure to  implement a  point system for fisheries as required under the  EU 
Control Regulation1. A point system is required to deal with serious infringements of 
the common fisheries policy committed by masters and licence holders of vessels2. 

  Portugal:  Non-respect  of  the  EU's  exclusive  competence  for  the  conservation  of 
marine biological resources. Portugal undertook direct démarches towards the North 
East  Atlantic  Fisheries  Commission  (NEAFC)  and  the  International  Council  for  the 
Exploration  of  the  Sea  as  part  of  an  ongoing  process  at  NEAFC  aiming  to  prevent 
significant impacts from bottom-fishing activities on vulnerable marine ecosystems3. 

  United Kingdom: Failure to carry out appropriate checks and ensure compliance with 
the  conditions  for  recognising  fishery  producer  organisations  under  the  Regulation 
on the common organisation of the markets in fishery and aquaculture products4.  

1   Regulation (EC) No 1224/2009. 
2   MEMO/18/3446. 
3   MEMO/18/349. 
4   Regulation (EU) No 1379/2013, MEMO/18/3446, MEMO/18/6247. 

68 

 
 
 
                                                           
Monitoring the application of European Union law   
2018 Annual Report 
Maritime affairs and fisheries 
b)  The Commission did not refer any cases to the Court under Article 258 TFEU. 

c)  The Commission did not refer any cases to the Court under Article 260(2) TFEU. 

d)  The  Commission  referred  two  cases  to  the  Court  under  Article  258  and  260(3)  TFEU. 

They concern 

  Bulgaria  and  Greece:  failure  to  communicate  national  measures  transposing  the 

Maritime Spatial Planning Directive5. 

V. 

EARLY RESOLUTION OF INFRINGEMENT CASES 

There were no major cases closed without a Court judgment in 2018 in this area.  

VI. 

IMPORTANT JUDGMENTS 

1.  Court rulings 

There were no major Court rulings in 2018 in this area. 

2.  Preliminary rulings 

The Court gave the following preliminary rulings. 

  Germany:  The  EU  has  exclusive  competence  for  fisheries  measures  taken  to  
the 
implement  specific  environmental  directives  (the  Habitats  Directive  and 
Environmental Liability Directive)6. 

  Lithuania:  Member  States  can  decide  to  base  the  allocation  of  fishing  quotas  under 
the  Common  Fisheries  Policy  Regulation7  in  connection  with  the  Charter  of 
Fundamental  Rights  of  the  EU,  on  historic  catches,  but  not  exclusively  on  that 
criterion.  Such  an  allocation  method  is  permitted  if  it  pursues  one  or  more  general 
interests recognised by the EU and respects the principle of proportionality8. 

  United Kingdom: The fisheries agreement concluded between the EU and Morocco is 

valid in so far as it is not applicable to Western Sahara and its adjacent waters9. 

VII.  OUTLOOK 

Important implementation work in 2019 includes: 

 

 

 

pursuing  cases  of  non-compliance  by  the  Member  States  with  the  EU’s  exclusive 
competence; 
giving appropriate follow-up to the recommendations formulated in the assessment of 
Member States’ sanctioning systems for contraventions of the common fisheries policy 
rules, with particular focus on how to improve the effectiveness of those systems and 
how to prioritise investigations of the deficiencies found; 
addressing,  through  action  plans  provided  for  by  the  Control  Regulation,  certain 
systemic irregularities in Member States’ fisheries control systems, where appropriate; 
monitoring the implementation of the existing action plans; 

5   Directive  2014/89/EU,  Commission  v  Bulgaria ;  C-61/18 ;  and  Commission  v  Greece,  C-36/18. 
These  Member  States  subsequently  took  the  necessary  steps  to  ensure  compliance  with  EU  law 
and the Commission has therefore withdrawn these cases from the Court. 
6   Directives 92/43/EEC and 2004/35/EC; Deutscher Naturschutzring, C-683/16. 
7   Regulation (EU) No 1380/2013. 
8 
Spika and Others, C-540/16. 
9  Western Sahara Campaign UK, C-266/16 and Court press release No 21/18. 

69 

 
 
                                                           
Monitoring the application of European Union law   
2018 Annual Report 
Maritime affairs and fisheries 

 

 

following  up  on  the  implementation  of  the  constituent  components  of  the  common 
fisheries  policy,  and  more  specifically  on  the  application  of  the  landing  obligation  set 
out in the Common Fisheries Policy Regulation10; 
taking  follow-up  actions  to  ensure  the  correct  transposition  by  the  Member  States  of 
the Maritime Spatial Planning Directive11. 

10   Regulation (EU) No 1380/2013. 
11   Directive 2014/89/EU. 

70 

 
 
                                                           
Monitoring the application of European Union law  
2018 Annual Report 

    Migration and home affairs 

I.  COMPLAINTS 

1.  New complaints received from members of the public (2014-2018) 

212 

137 

100 

89 
2014

90 

2015

2016

2017

2018

2.  Public complaints open at year-end 

117  >  Complaints open at end-2017 

212  >  New complaints registered in 2018 

173  >  Complaints handled in 2018 

= 156  >  Complaints open at end-2018 

3.  New complaints registered in 2018: main policy sectors 

212 complaints in 2018 

Legal migration 
and integration 
32 

Police 
cooperation  
22 

Visa policy 
14 

Organised crime 
and drugs 
13 

Other 
21 

Asylum 
34 

Border 
management and 
Schengen 
36 

Cybercrime 
40 

71 

 
 
 
Monitoring the application of European Union law  
 2018 Annual Report 
Migration and home affairs 

II. 

EU PILOT 

1.  New EU Pilot files (2014-2018) 

60 

37 

35 

2014

2015

2016

6 
2017

16 

2018

2.  EU Pilot files open at year-end 

At the end of 2018, 46 EU Pilot files remained open. 

3.  New EU Pilot files opened in 2018: main policy sectors 

16 EU Pilot files opened in 2018 

Police 
cooperation 
9 

Cybercrime 
2 

Legal migration 
and integration 
5 

4.  EU Pilot files: resolution rate for policies (2014-2018) 

80% 

75% 

80% 

75% 

72% 

77% 

65% 

62% 

95% 

73% 

2014

2015

2016

2017

2018

Migration and home affairs

General rate for all policy areas

72 

 
 
 
 
 
Monitoring the application of European Union law  
 2018 Annual Report 
Migration and home affairs 

III.  OWN-INITIATIVE CASES 

New own-initiative infringement cases 

In 2018, the Commission opened own-initiative infringement cases over: 

 
 

the Reception Conditions Directive1; 
the Asylum Procedures Directive2. 

IV. 

INFRINGEMENT CASES 

1.  Infringement cases open on 31 December (2014-2018) 

138 

129 

145 

109 

79 

2014

2015

2016

2017

2018

2.  Infringement cases open on 31 December 2018: main policy sectors 

145 infringement cases in 2018 
Legal migration 
and integration 
33 

Asylum 
60 

Police 
cooperation 
19 

Terrorism 
16 

Other 
17 

1   Directive 2013/33/EU. 
2   Directive 2013/32/EU. 

73 

 
 
 
 
 
 
                                                           
Monitoring the application of European Union law  
 2018 Annual Report 
Migration and home affairs 

3.  New infringement cases opened in 2018: main policy sectors 

52 new infringement cases in 2018 

Police 
cooperation  
14 

Terrorism 
16 

Asylum 
4 

Legal migration 
and integration 
18 

4.  Key infringement cases and referrals to the Court 

a)  The  Commission  opened  52  new  infringement  cases  in  2018.  These,  and  other 

major ongoing infringement cases, concern:  

  Bulgaria:  deficiencies  in  Bulgaria’s  asylum  system  in  relation  to  the  Reception 
Conditions Directive3, the Asylum Procedures Directive4 and the EU Charter of 
Fundamental Rights5; 

  Bulgaria  and  Romania:  non-communication  of  national  measures  transposing 
the Directive on the freezing and confiscation of instrumentalities and proceeds 
of crime in the EU6; 

  Hungary:  failure  to  fulfil  obligations  under  the  Long-Term  Residents  Directive 
since  Hungarian  law  precludes  third  country  nationals  who  are  long-term 
residents  from  access  to  employment  or  self-employed  activities  in  the 
veterinary sector7;  

  Netherlands: excessive fees for issuing residence permits8.  

b)  The  Commission  referred  two  cases  to  the  Court  under  Article  258  TFEU.  They 

concern 

  Slovakia:  lack  of  proper  judicial  remedies  against  refusals,  annulments  or 

revocation of visas9; 

  Hungary: non-compliance of its asylum and return legislation with EU law10.  

c)  The Commission did not refer any cases to the Court under Article 260(2) TFEU. 

3   Directive 2013/33/EU. 
4   Directive 2013/32/EU. 
5   MEMO/18/6247. 
6   Directive 2014/42/EU. 
7   Directive 2003/109/EC ; MEMO/18/4486. 
8   MEMO/18/3446. 
9   Commission v Slovakia, C-614/18. 
10   Commission v Hungary, C-808/18. 

74 

 
 
 
 
 
                                                           
Monitoring the application of European Union law  
 2018 Annual Report 
Migration and home affairs 

V. 

TRANSPOSITION OF DIRECTIVES 

1.  New late transposition infringement cases (2014-2018) 

48 

50 

37 

39 

17 

2014

2015

2016

2017

2018

2.  New late transposition infringement cases opened in 2018: policy sectors 

50 new late transposition infringement cases in 2018 

Police 
cooperation  
14 

Asylum 
3 

Terrorism 
16 

Legal migration 
and integration 
17 

3.  Key infringement cases and referrals to the Court 

a)  The  Commission  opened  50  cases  for  late  transposition  in  2018.  Among  the 

directives concerned are: 

 
 
 
 

the Students and Researchers Directive11; 
the Asylum Procedures Directive12; 
the Passenger Name Records Directive13; 
the Directive on combating terrorism14.  

b)  The  Commission  referred  one  case  to  the  Court  under  Articles  258  and  260(3) 

TFEU. It concerns 

11   Directive 2016/801/EU. 
12   Directive 2013/32/EU. 
13   Directive 2016/681/EU. 
14   Directive 2017/541/EU. 

75 

 
 
 
 
                                                           
Monitoring the application of European Union law  
 2018 Annual Report 
Migration and home affairs 

  Belgium: failure to transpose the Directive on the conditions of entry and stay of 
third country nationals for the purpose of employment as seasonal workers15. 

VI. 

EARLY RESOLUTION OF INFRINGEMENT CASES 

Major cases closed without a Court judgment in 2018 

These concerned: 

  Cyprus,  Lithuania,  Austria,  Finland  and  Sweden:  non-communication  of  national 

measures transposing the Directive on seasonal workers16; 

 

  Czechia, Germany, Greece, Croatia, Lithuania, Austria, Poland, Portugal, Slovenia, 
Finland  and  Sweden:  non-communication  of  national  measures  transposing  the 
Directive on intra-corporate transfer17; 
Spain and Romania: non-compliance with the Regulation on the marketing and use 
of explosives precursors18; 
  Czechia,  Germany,  Estonia, 

Ireland,  Croatia,  Lithuania,  Hungary,  Sweden, 
Slovenia  and  Slovakia:  non-communication  of  national  measures  transposing  the 
Directive  on  the  freezing  and  confiscation  of  instrumentalities  and  proceeds  of 
crime19; 
Luxembourg: non-communication of national measures implementing the ‘Swedish 
initiative’ on the exchange of information and intelligence between Member States’ 
law enforcement authorities20; 

 

  Bulgaria:  lack  of  implementation  of  certain  obligations  under  document  security 

legislation21. 

VII. 

IMPORTANT JUDGMENTS 

1.  Court rulings 

There were no major Court rulings in 2018 in this area. 

2.  Preliminary rulings 

The Court gave the following preliminary rulings. 

  Bulgaria: An application for international protection cannot be granted  on the ground 
that  one  of  the  applicant’s  family  members  has  a  well-founded  fear  of  being 
persecuted  or  faces  a  real  risk  of  suffering  serious  harm.  Account  must  be  taken  of 
such  threats  in  respect  of  one  of  the  applicant’s  family  members  for  the  purpose  of 
determining  whether  the  applicant  is,  because  of  his  family  tie  to  the  person  at  risk, 
himself exposed to the threat of persecution or serious harm 22. 

  Hungary: Recourse to a psychologist’s expert report for the purpose of assessing the 
veracity of a claim made by an asylum seeker as to his sexual orientation constitutes 

15   Commission v Belgium, C-676/18, Directive 2014/36/EU. 
16   Directive 2014/36/EU. 
17   Directive 2014/66/EU. 
18   Regulation (EU) No 98/2013. 
19   Directive 2014/42/EU. 
20   Framework decision 2006/960/JHA. 
21   Commission decisions C (2013) 6181; and C (2013) 6178. 
22   Ahmedbekova, C‑652/16. 

76 

 
 
                                                           
Monitoring the application of European Union law  
 2018 Annual Report 
Migration and home affairs 

an  interference  with  that  person’s  right  to  respect  for  his  private  life  and  is  not 
consistent with EU law23. 

  Hungary:  Any  decision  to  exclude  a  person  from  refugee  status  or  subsidiary 
protection  must  be  preceded  by  a  full  investigation  into  all  the  circumstances  of  his 
individual case and cannot be taken automatically. The penalty provided for a specific 
crime  under  the  law  of  the  particular  Member  State  may  not  constitute  the  sole 
criterion  to  determine  whether  the  person  claiming  subsidiary  protection  may  be 
excluded from it24. 

  Germany: The case concerns a situation  where  a third country  national  who,  having 
lodged  a  first  asylum    application  in  one  Member  State  (Member  State  ‘A’),  was 
transferred back to Member State ‘A’ following which he immediately returned illegaly  
to  the  second  Member  State  ‘B’.    The  Court  ruled  that  in  such  a  situation  a  return 
procedure  may  be  undertaken  in  respect  of  that  person,  but  it  is  not  possible  to 
transfer them again to Member State ‘A’ without following this procedure25. 

  Germany: The imposition of a requirement on coach transport companies providing a 
regular  cross-border  service  within  the  Schengen  area  to  check  the  passports  and 
residence  permits  of  passengers  before  they  cross  an  internal  border  in  order  to 
prevent  the  transport  of  third-country  nationals  not  in  possession  of  those  travel 
documents  to  the  national  territory  has  an  effect  equivalent  to  border  checks  and  is 
therefore prohibited26.  

  France: An applicant for international protection who moves to another Member State 
after lodging their application cannot be returned to the first Member State before the 
second Member State has agreed to the request to take that person back, explicitly or 
implicitly27.  

  Netherlands: The Member State in which a new application for international protection 
has  been  lodged  is  responsible  for  examining  that  application  when  no  take  back 
request has been made within the periods laid down in the Dublin Regulation28. 

  Netherlands:  For  the  purpose  of  family  reunification  of  refugees,  what  counts  is  that 
the third country national is below 18 at the time of his or her entry into the territory of 
a Member State and of the introduction of his or her asylum application in that State29. 
  Netherlands:  An  application  for  an  autonomous  residence  permit,  lodged  by  a  third 
country  national  who  has  resided  for  over  5  years  in  a  Member  State  by  virtue  of 
family  reunification,  may  be  rejected  on  the  grounds  that  he  has  not  shown  that  he 
has passed a civic integration test on the language and society30. 

  Netherlands: An application for family reunification lodged on behalf of a member of a 
refugee’s family may be rejected on the grounds that the application was lodged more 
than  3  months  after  the  sponsor  was  granted  refugee  status,  whilst  affording  the 
possibility  of  lodging  a  fresh  application  under  a  different  set  of  rules  provided  that 
certain conditions are met31. 

  Austria:  national  legislation  which  provides  that  refugees  with  a  temporary  right  of 
residence in a Member State are to be granted social security benefits which are less 

23   F, C-473/16. 
24   Ahmed C‑369/17. 
25   Hasan, C‑360/16. 
26   Joint cases: Touring Tours und Travel, C-412/17 and Sociedad de Transportes C-474/17. 
27   Hassan, C‑647/16. 
28   X, C-213/17, Regulation (EU) No 604/2013. 
29   A and S, C-550/16. 
30   C and A, C-257/17 and K, C-484/17. 
31   K and B, C‑380/17. 

77 

 
 
 
                                                           
Monitoring the application of European Union law  
 2018 Annual Report 
Migration and home affairs 

than  those  received  by  nationals  of  that  Member  State  and  refugees  who  have  a 
permanent right of residence in that Member State is contrary to EU legislation 32. 
  Sweden:  An  application  for  international  protection  must  not  be  regarded  as 
manifestly  unfounded  when,  firstly,  it  is  apparent  from  the  information  on  the 
applicant’s country of origin that acceptable protection can be ensured for him in that 
country and, secondly, the applicant has provided insufficient information to justify the 
grant of international protection33. 

  Finland: A return decision accompanied by an entry ban may be enforced, against a 
person  holding  a  residence  permit  from  another  Member  State,  even  though  the 
consultation  procedure  with  the  latter  Member  State  is  ongoing,  if  the  third  country 
national is regarded by the Member State issuing the alert as a threat to public order 
or national security, without prejudice to that person’s entitlement to rely on the rights 
he derives from that residence permit after a reasonable time from the initiation of the 
consultation  procedure  and  in  the  absence  of  a  response  from  the  Member  State 
consulted, the Member State issuing the alert for the purposes of refusing entry must 
withdraw  it  and,  if  necessary,  put  the  third-country  national  on  its  national  list  of 
alerts34. 

  Spain:  Access by the police to data for the purpose of identifying the owners of SIM 
cards  activated  with  a  stolen  mobile  telephone  cannot  be  defined  as  ‘serious’ 
interference with fundamental rights. Such data do not allow precise conclusions to be 
drawn about their private lives and such interference may be justified by the objective 
of preventing, investigating, detecting and prosecuting ‘criminal offences’35. 

  United  Kingdom:  A  third  country  national  who  in  the  past  has  been  tortured  by  the 
authorities  of  his  country  of  origin  and  no  longer  faces  a  risk  of  being  tortured  if 
returned  to  that  country,  but  whose  physical  and  psychological  health  could,  if  so 
returned, seriously deteriorate, leading to a serious risk of him committing suicide on 
account  of  trauma  resulting  from  the  torture  he  was  subjected  to,  is  eligible  for 
subsidiary  protection.  This  is  conditional  on  a  real  risk  of  him  being  intentionally 
deprived, in his country of origin, of appropriate care for the physical and mental after-
effects of that torture, that being a matter for the national court to determine36. 

VIII.  OUTLOOK 

Important implementation work in 2019 includes: 

  Monitoring of the transposition and  implementation  of important directives such  as 

those: 

  on seasonal workers and on intra-corporate transfer37;  
  on asylum procedures and on reception conditions38; 
  against trafficking in human beings39; 
  on the freezing of proceeds of crime and confiscation of assets40; 
  against sexual exploitation of children41; 

32   Ayubi, C-713/17. 
33   A v Migrationsverket, C‑404/17. 
34   E,  Case C-240/17. 
35   Ministerio Fiscal, C‑207/16. 
36   MP v Secretary of State for the Home Department C-353/16. 
37   Directives 2014/36/EU and 2014/66/EU. 
38   Directives 2013/32/EU and 2013/33/EU. 
39   Directive 2011/36/EU. 
40   Directive 2014/42/EU. 
41   Directive 2011/93/EU. 

78 

 
 
 
                                                           
Monitoring the application of European Union law  
 2018 Annual Report 
Migration and home affairs 
  on attacks against information systems42; 
  on  the  conditions  of  entry  and  residence  of  third  country  nationals  for  the 
purposes  of  research,  studies,  training,  voluntary  service,  pupil  exchange 
schemes or educational projects and au pairing43; 

  on  the  use  of  passenger  name  record  data  for  the  prevention,  detection, 

investigation and prosecution of terrorist offences and serious crime44; 

  on combating terrorism45; 
  on new psychoactive substances46.  
  ensuring  appropriate  follow-up  to  the  Court’s  preliminary  rulings  on  data 

retention47. 

42   Directive 2013/40/EU. 
43   Directive 2016/801/EU. 
44   Directive 2016/681/EU. 
45   Directive 2017/541/EU. 
46   Directive 2017/2103/EU. 
47   Tele2 Sverige, C-203/15 and C-698/15. 

79 

 
 
 
                                                           
Monitoring the application of European Union law  
2018 Annual Report 

Mobility and transport 

I.  COMPLAINTS 

1.  New complaints received from members of the public (2014-2018) 

155 

124 

193 

173 

135 

2014

2015

2016

2017

2018

2.  Public complaints open at year-end 

81 

>  Complaints open at end-2017 

135 

>  New complaints registered in 2018 

125 

>  Complaints handled in 2018 

= 91 

>  Complaints open at end-2018 

3.  New complaints registered in 2018: main policy sectors 

135 complaints in 2018 

Passengers 
rights 
28 

Other 
41 

Road safety 
23 

Road transport 
43 

80 

 
 
 
 
 
Monitoring the application of European Union law   
2018 Annual Report 
Mobility and transport 

II. 

EU PILOT 

1.  New EU Pilot files (2014-2018) 

156 

123 

106 

2014

2015

2016

2017

2018

5 

4 

2.  EU Pilot files open at year-end 

At the end of 2018, 17 EU Pilot files remained open. 

3.  New EU Pilot files opened in 2018: main policy sectors 

4 EU Pilot files opened in 2018 

Maritime safety 
1 

Maritime 
transports and 
logistics 
1 

Aviation policy 
2 

4.  EU Pilot files: resolution rate for policies (2014-2018) 

76% 

75% 

75% 

72% 

84% 

77% 

73% 

71% 

75% 

63% 

2014

2015

2016

2017

2018

Mobility and transport

General rate for all policy areas

81 

 
 
 
 
 
Monitoring the application of European Union law   
2018 Annual Report 
Mobility and transport 

III.  OWN-INITIATIVE CASES 

New own-initiative infringement cases 

In 2018, the Commission opened own-initiative infringement cases over: 

 

Sustainable transport: 
- 

Implementation of legislation on intelligent transport systems1. 

  Road transport: 

- 

Interconnection of the national electronic registers of driver cards to the TACHOnet  
messaging system2; 

-  Restrictions  on  freedom  to  provide  transport  services  by  limiting  truck  parking  by 

non-resident hauliers on state-owned areas to a maximum of 25 hours. 

  Maritime safety: 

-  Training of seafarers3; 
-  Flag State requirements (quality management system certificate)4. 

  Road safety: 

- 
- 

Incorrect implementation of the Directive on driving licences5; 
Incorrect  implementation  of  the  Directive  on  technical  roadside  inspection  of 
commercial vehicles6. 

  Rail sector: 

-  Non-compliance with the Directive establishing a single European railway area7. 

  Aviation safety: 

- 

Incorrect  implementation  of  rules  on  technical  requirements  and  administrative 
procedures related to air operations8. 

  Aviation security: 

- 

Incorrect implementation of aviation security standards9. 

1   Directive  2010/40/EU,  Decision  585/2014/EU,  Commission  Delegated  Regulation  (EU)  No 
885/2013,  Commission  Delegated  Regulation  (EU)  No  886/2013,  Commission  Delegated 
Regulation (EU) No 962/2015. 

2   Commission Implementing Regulation (EU) No 68/2016. 
3   Directive 2008/106/EC. 
4   Directive 2009/21/EC. 
5   Directive 2015/653/EU amending Directive 2006/126/EC. 
6   Directive 2000/30/EC. 
7   Directive 2012/34/EU. 
8   Commission Regulation (EU) No 965/2012. 
9   Regulation (EC) No 300/2008. 

82 

 
 
 
 
                                                           
Monitoring the application of European Union law   
2018 Annual Report 
Mobility and transport 

IV. 

INFRINGEMENT CASES 

1.  Infringement cases open on 31 December (2014-2018) 

241 

248 

244 

223 

191 

2014

2015

2016

2017

2018

2. 

Infringement cases open on 31 December 2018: main policy sectors 

244 infringements cases in 2018 

Sustainable 
transport 
31 

Single 
European Sky 
22 

Aviation 
agreements 
46 

Road transport 
20 

Ports and inland 
navigation 
22 

Road safety 
62 

Other 
41 

3.  New infringement cases opened in 2018: main policy sectors 

97 new infringement cases in 2018 

Ports and inland 
navigation 
22 

Sustainable 
transport 
32 

Road safety 
18 

Road transport 
11 

Other 
14 

83 

 
 
 
 
 
Monitoring the application of European Union law   
2018 Annual Report 
Mobility and transport 
4.  Key infringement cases and referrals to the Court 

a)  The  Commission  opened  97  new  infringement  cases  in  2018.  These,  and  other  major 

ongoing infringement cases, include the following: 

  Belgium: incorrect implementation of EU rules on chartering and pricing in inland 

waterways transport10; 

  Greece:  insufficient  monitoring  of  the  entities  responsible  for  the  implementation 

 

of aviation security standards11; 
Italy,  Latvia  and  Spain:  failure  to  comply  with  EU  rules  on  the  minimum  level  of 
training of seafarers12 ; 

  Germany: failure to ensure that its regional transport  networks are subject to the 

safety requirements set by EU rules on railway safety13; 

  Bulgaria:  failure  to  comply  with  EU  law  on  railway  safety  as  regards  the 

 

independence of the investigating body14; 
Ireland:  incorrect  application  of  the  Directive  on  the  investigation  of  accidents  in 
the maritime transport sector15; 

  Denmark:  discrimination  against  foreign  hauliers  and  violation  of  the  principle  of 

freedom to provide transport services16; 

  Hungary: failure to verify compliance with air safety requirements17; 
  Hungary, Croatia, Cyprus, Czechia and United Kingdom: failure to comply with EU 

legislation on Flag State requirements18;  

  Bulgaria:  incorrect  implementation  of  the  transparency,  consultation  and  non-

discrimination requirements of EU rules on airport charges19. 

b)  The Commission did not refer any cases to the Court under Article 258 TFEU.  

c)  The Commission did not refer any cases the Court under Article 260(2) TFEU.  

10   Directive 1996/75/EC; MEMO/18/349. 
11   Regulation (EC) No 300/2008; MEMO/18/1444. 
12   Directive 2008/106/EC. MEMO/18/3446. 
13   Directive 2004/49/EC; MEMO/18/3446. 
14   Directive 2004/49/EC; IP/18/6252. 
15   Directive 2009/18/EC; IP/18/4492. 
16   Regulation (EC) No 1072/2009; MEMO/18/4486. 
17   Regulation (EU) No 965/2012; MEMO/18/4486. 
18   Directive 2009/21/EC; MEMO/18/4486. 
19   Directive 2009/12/EC; MEMO/18/6247. 

84 

 
 
 
 
                                                           
Monitoring the application of European Union law   
2018 Annual Report 
Mobility and transport 

V. 

TRANSPOSITION OF DIRECTIVES 

1.  New late transposition infringement cases (2014-2018) 

129 

94 

76 

54 

38 

2014

2015

2016

2017

2018

2.  New late transposition infringement cases opened in 2018: main policy sectors 

38 new late transposition infringement cases in 2018 

Inland 
navigation 
21 

Road safety 
14 

Sustainable 
transport 
3 

3.  Key infringement cases and referrals to the Court 

a) 

The  Commission  opened  38  cases  for  late  transposition  in  2018.  Among  the  areas 
covered are: 

 
 
 

technical requirements for inland waterway vessels20; 
road safety21; 
the deployment of alternative fuels infrastructure22. 

b) 

The  Commission  did  not  refer  any  cases  to  the  Court  under Articles  258  and  260(3) 
TFEU. 

20   Directive  2016/1629/EU,  Directive  2018/970/EU  amending  Annexes  II,  III,  V  to  Directive 

2016/1629/EU. 

21   Directive 2015/653/EU, Directive 2016/1106/EU, Directive 2018/217/EU. 
22   Directive 2014/94/EU. 

85 

 
 
 
 
 
 
                                                           
Monitoring the application of European Union law   
2018 Annual Report 
Mobility and transport 

VI. 

EARLY RESOLUTION OF INFRINGEMENT CASES 

Major cases closed without a Court judgment in 2018 

These included the following: 

  Bulgaria: unlawful use of aircraft in breach of noise restrictions set in EU legislation23; 

  Cyprus and Portugal: operation of the Port State Control system24; 

  Denmark: discrimination against foreign hauliers and violation of the principle of freedom 

to provide transport services25;  

  Germany: incorrect transposition of the Directive on railway safety26; 

  Finland: incorrect application of the Airport Charges Directive27; 

  Croatia: incorrect implementation of EU rules on civil aviation security28; 

 

Ireland:  incorrect  application  of  EU  rules  on  the  mutual  recognition  of  seafarers’ 
certificates issued by the Member States29; 

  Malta  and  Romania:  failure  to  notify  the  national  policy  framework  required  by  EU 

legislation on the deployment of alternative fuels infrastructure30; 

 

 Lithuania:  incorrect  application  of  EU  rules  on  the  investigation  of  maritime  accidents 
relating to the independent investigation body31; 

  Lithuania: non-respect of the EU rules on freedom to provide port services32; 

  Portugal:  restricted  access  to  the  groundhandling  market  at  Porto,  Lisbon  and  Faro 

airports33; 

  Portugal:  lack  of  a  quality  management  system  for  the  maritime  administration’s  Flag 

States-related activities34;  

23   Directive 2006/93/EC. 
24   Directive 2009/16/EC. 
25   Regulation (EC) No 1072/2009. 
26   Directive 2004/49/EC. 
27   Directive 2009/12/EC. 
28  Regulation (EC) No 300/2008, , IP/18/1450, MEMO/18/1444. 
29   Directive 2005/45/EC. 
30  Directive 2014/94/EU, IP/18/358, IP/18/358  
31   Directive 2009/18/EC. 
32   Regulation (EEC) No 4055/1986. 
33   Directive 1996/67/EC. 
34   Directive 2009/21/EC. 

86 

 
 
 
 
                                                           
Monitoring the application of European Union law   
2018 Annual Report 
Mobility and transport 

VII. 

IMPORTANT JUDGMENTS 

1.  Court rulings 
The Court gave the following rulings35.  

  Czechia: incorrectly implemented the definitions of categories of motor vehicles set out in 

the Directive on driving licences36. 

  Spain: discriminated against small hauliers, excluding them from the road transport market, 
by  requiring  hauliers  to  own  a  minimum  number  of  vehicles  in  order  to  obtain  a  public 
transport authorisation37. 

  Denmark: The European Commission failed to establish that Denmark had failed to comply 

with EU rules on access to the international road haulage market38. 

  Poland: failed to ensure that the investigating body is independent of railway undertakings 

and rail infrastructure managers controlled by the Minister of Transport39. 

2.  Preliminary rulings 

The Court gave the following preliminary rulings. 

  France:  Member  States  may  prohibit  and  punish  as  a  matter  of  criminal  law  the  illegal 
exercise of transport activities by the UberPop service, without notifying the  Commission 
in advance of the draft legislation laying down criminal penalties for the exercise of such 
activities40. 

  Finland:  Complaints  against  an  air  carrier  under  Article  31  of  the  Montreal  Convention 

must be made in writing41. 

  Germany: An airline which operated only the first leg of a connecting flight in one Member 
State can be sued before the courts of the final destination in another Member State for 
compensation for delays42. 

  Germany: A ‘wildcat’ strike by flight staff after the surprise announcement by an operating 
air carrier of a restructuring is not an ‘extraordinary circumstance’ as restructuring is part 
of  normal  business  management  measures  and  the  risks  arising  from  the  social 
consequences of such measures must be regarded as inherent in the normal exercise of 

35   These rulings are almost exclusively handed down on infringement procedures. 
36  Directive 2006/126/EC nc 2006/126/EC, Commission v Czech Republic, C-314/16. 
37   Regulation (EC) No 1071/2009, Commission v Kingdom of Spain, C-181/17. 
38   Regulation (EC) No 1072/2009, Commission v Kingdom of Denmark, C-541/16. 
39   Directive 2004/49/EC Commission v Republic of Poland, C-530/16. 
40   Directive  98/34/EC  and  Directive  2006/123/EC,  Criminal  proceedings  against  Uber  France,  C-

320/16 and Court press release No 39/18. 

41   Convention  for  the  Unification  of  Certain  Rules  for  International  Carriage  by  Air,  concluded  at 
Montreal  on  28  May  1999  and  approved  on  behalf  of  the  European  Community  by  Council 
Decision 2001/539/EC, Finnair Oyj v Keskinäinen Vakuutusyhtiö Fennia, C-258/16. 

42   Regulation  (EC)  No  261/2004,  flightright  GmbH  v  Air  Nostrum,  Líneas  Aéreas  del  Mediterráneo 
SA,  Roland  Becker  v  Hainan  Airlines  Co.  Ltd  and Mohamed  Barkan  and  Others  v  Air  Nostrum, 
Líneas Aéreas del Mediterráneo SA, joined cases  C-274/16, C-447/16 and C-448/16, and Court 
press release No 28/18. 

87 

 
 
                                                           
Monitoring the application of European Union law   
2018 Annual Report 
Mobility and transport 

the  activity  of  the  airline.  Further,  in  such  circumstances,  a  spontaneous  strike  by  flight 
staff cannot be regarded as beyond the carrier’s actual control43. 

  Germany:  The  common  rules  on  compensation  and  assistance  to  passengers  apply  to 
passenger  transport,  from  a  Member  State  to  a  third  State,  effected  under  a  single 
booking and comprising a scheduled stopover outside the EU with a change of aircraft44. 

  Germany: Compensation rights apply in the event of a flight cancellation less than 7 days 
before the scheduled time of departure where the passenger is subject to a loss of time of 
less than 3 hours but more than 2 hours as a result of re-routing. This is the case if the 
actual arrival time is between 2 and 3 hours later than the scheduled arrival45. 

  Germany: In the case of a long delay, the air company which must pay the compensation 
owed to passengers is the one to perform the flight (and not the company which leased 
the aircraft and its crew)46. 

  Germany: When a flight is cancelled, the air carrier must reimburse commissions paid to 
intermediaries provided that the carrier had prior knowledge of those commissions47. 

  Germany: Airfares for flights within the EU are to be indicated by carriers in euros or in a 

local currency objectively linked to the service offered48. 

  Austria: The obligation to provide prior information laid down in the Regulation on public 
passenger  transport  services  by  rail  and  by  road  also  applies  to  contracts  for  public 
transport  services  by  bus.  However,  an  infringement  of  that  obligation  does  not  always 
entail the annulment of the call for tenders concerned49. 

  Hungary: The requirement of proportionality concerning the system of penalties set out in 
the Directive on the charging of heavy goods vehicles for the use of certain infrastructures 
does not have direct effect50. 

VIII.  OUTLOOK 

Important implementation work in 2019 includes: 

  Monitoring and assessing national measures transposing the Directives on: 

o 

railway safety51; 

43   Regulation  (EC)  No  261/2004,  Helga  Krüsemann  and  Others  v  TUIfly  GmbH,  joined  cases,  C-
195/17, C-197/17 to C-203/17, C-226/17, C-228/17, C-254/17, C-274/17, C-275/17, C-278/17 to 
C-286/17 and C-290/17 to C-292/17, and Court press release No 49/18. 

44  Regulation  (EC)  No  261/2004,  Claudia  Wegener  v  Royal  Air  Maroc  SA,  C-537/17,  and  Court 

press release No 77/18. 

45   Regulation (EC) No 261/2004, flightright, C-130/18. 
46   Regulation (EC) No 261/2004, Wirth and Others, C-532/17 and Court press release No 100/18. 
47   Regulation (EC) No 261/2004, Harms, C-601/17, and Court press release No 128/18. 
48   Regulation  (EC)  No  1008/2008,  Verbraucherzentrale  Baden-Württemberg,  C-330/17,  and  Court 

press release No 176/18. 

49   Regulation (EC) No 1370/2007, Directive 2014/24/EU and Directive 2014/25/EU, Stefan Rudigier, 

C-518/17. 

50   Directive  1999/62/EC,  Dooel  Uvoz-Izvoz  Skopje  Link  LogisticLogistik  N&N  v  Budapest 

Rendőrfőkapitánya, C-384/17. 

51   Directive 2016/798. 

88 

 
 
                                                           
Monitoring the application of European Union law   
2018 Annual Report 
Mobility and transport 

o 
o 

o 
o 

the interoperability of the rail system within the EU52; 
the opening of the market for domestic passenger transport services by rail and the 
governance of the railway infrastructure53; 
the establishment of a single European railway area (recast)54, 
roadworthiness of road vehicles55 

  Closely  monitoring  restrictions  on  market  access,  as  well  as  safety  and  security  in  all 
modes  of  transport,  in  particular  in  the  areas  of  digitalisation  in  road  transport 
(tachographs) and the training of seafarers. 

52   Directive 2016/797. 
53   Directive 2016/2370. 
54   Directives 2012/34/EC and 2016/2370/EU. 
55   Directives 2014/45/EU, 2014/46/EU and 2014/47/EU. 

89 

 
 
 
                                                           
Monitoring the application of European Union law  
2018 Annual Report 

Taxation and customs union 

I.  COMPLAINTS 

1.  New complaints received from members of the public (2014-2018) 

429 

423 

406 

378 

308 

2014

2015

2016

2017

2018

2.  Public complaints open at year-end 

352  >  Complaints open at end-2017 

378  >  New complaints registered in 2018 

399  >  Complaints handled in 2018 

= 331  >  Complaints open at end-2018 

3.  New complaints registered in 2018: main policy sectors 

378 complaints in 2018 

Indirect taxation 
- car taxation 
93 

Direct taxation 
134 

Indirect taxation - 
VAT 
80 

Customs 
32 

Other 
39 

90 

 
 
 
 
 
Monitoring the application of European Union law  
2018 Annual Report 
Taxation and customs union 

II. 

EU PILOT 

1.  New EU Pilot files (2014-2018) 

144 

106 

90 

18 

10 

2014

2015

2016

2017

2018

2.  EU Pilot files open at year-end 

At the end of 2018, 37 EU Pilot files remained open. 

3.  New EU Pilot files opened in 2018: main policy sectors 

10 EU Pilot files opened in 2018 

Indirect taxation: 
excise duties 
2 

Direct taxation 
2 

Indirect taxation: 
VAT 
2 

Indirect taxation: 
car taxation 
4 

4.  EU Pilot files: resolution rate for policies (2014-2018) 

75% 

68% 

75% 

69% 

79% 

72% 

88% 

77% 

80% 

73% 

2014

2015
Taxation and customs

2016

2017

2018

General rate for all policy areas

91 

 
 
 
 
 
Monitoring the application of European Union law  
2018 Annual Report 
Taxation and customs union 

III.  OWN-INITIATIVE CASES 

New own-initiative infringement cases 

In 2018, the Commission opened own-initiative infringement cases over: 

 
 

incorrect application of EU VAT rules1; 
incorrect implementation in national legislation of the Directives on automatic exchange 
of financial account information and administrative cooperation in the field of taxation2. 

IV. 

INFRINGEMENT CASES 

1.  Infringement cases open on 31 December (2014-2018) 

130 

118 

108 

100 

90 

2014

2015

2016

2017

2018

2.  Infringement cases open on 31 December 2018: main policy sectors 

100 infringement cases in 2018 

Indirect taxation: 
VAT 
33 

Direct taxation 
42 

Indirect taxation: 
excise duties 
15 

Other 
10 

1   Directive 2006/112/EC. 
2   Directives 2014/107/EU and 2011/16/EU. 

92 

 
 
 
 
 
 
                                                           
Monitoring the application of European Union law  
2018 Annual Report 
Taxation and customs union 

3.  New infringement cases opened in 2018: main policy sectors 

41 new infringement cases in 2018 

Indirect taxation: 
VAT 
17 

Direct taxation 
19 

Indirect taxation: 
excise duties 
4 

Indirect taxation: 
car taxation 
1 

4.  Key infringement cases and referrals to the Court 

a)  The  Commission  opened  41  new  infringement  cases  in  2018.  These,  and  other  major 

ongoing infringement cases, include the following: 

 

 
 
 

Belgium: failure to comply with the Court of Justice judgment on the evaluation of 
rental income from immovable property3; 
Italy: incorrect application of the VAT rules on the lease of yachts4; 
Italy: illegal excise duty exemption for fuel used by private pleasure craft5; 
Italy: use of ‘fast corridors’ to move goods long distances without presentation to 
customs authorities upon arrival and assigning the goods to a customs procedure 
at the customs office of entry; 

  Greece: incorrect application of the VAT rules for the lease of yachts6; 
  Malta, Cyprus: incorrect application of the  VAT rules for the lease of yachts and 

incorrect taxation of purchases of yachts7; 

  Romania:  application  of  a  split-payment  mechanism  for  VAT  in  breach  of  EU 

rules8; 

  Germany: application of a flat-rate scheme for farmers in breach of EU rules9; 
Latvia: application of a VAT reverse-charge mechanism in breach of EU rules10; 
 
  United  Kingdom:  abusive  VAT  practices  in  the  Isle  of  Man  in  the  supply  and 

leasing of aircraft11. 

b)  The Commission referred one case to the Court under Article 258 TFEU. It concerns 

 

Greece:  wrong  imposition  of  a  reduced  rate  of  50%  of  the  standard  rate  of 
excise duty on the spirit drinks Tsipouro and Tsikoudia, in breach of EU law. 12 

3   MEMO/18/6247; Commission v Belgium, C-110/17. 
4  
IP/18/6265. 
5  
IP/18/6265. 
6  
IP/18/1451. 
7  
IP/18/1451. 
8   MEMO/18/6247. 
9   MEMO/18/1444. 
10   MEMO/18/3986. 
11  
IP/18/6265. 

93 

 
 
 
                                                           
Monitoring the application of European Union law  
2018 Annual Report 
Taxation and customs union 
c)  The Commission did not refer any cases to the Court under Article 260(2) TFEU. 

V. 

TRANSPOSITION OF DIRECTIVES 

1.  New late transposition infringement cases (2014-2018) 

34 

11 

16 

14 

0 

2014

2015

2016

2017

2018

2.  New late transposition infringement cases opened in 2018: main policy sectors 

14 new late transposition infringement cases in 2018 

Direct taxation 
11 

Indirect 
taxation - VAT 
3 

3.  Key infringement cases and referrals to the Court 

a)  The Commission opened 14 cases for late transposition in 2018. These concerned the 

directive on: 

 

the access to anti-money laundering (AML) information13. 

b)  The  Commission  did  not  refer  any  cases  to  the  Court  under Articles  258  and  260(3) 

TFEU.  

12   Commission v Greece, C-91/18, IP/17/242. 
13   Directive 2016/2258/EU. 

94 

 
 
 
 
 
 
                                                                                                                                                                                     
Monitoring the application of European Union law  
2018 Annual Report 
Taxation and customs union 
EARLY RESOLUTION OF INFRINGEMENT CASES 

VI. 

Major cases closed without a Court judgment in 2018 

These concerned the following: 

  France: 

incorrect  application  of  VAT  rules  on  aesthetic  medicine  and  surgery 

procedures; 

 

Italy: unjustified restrictions on VAT reimbursement; 

  Malta:  exemption  from  excise  duty  for  fuel  used  by  private  pleasure  craft  destined  to 

leave EU waters, in breach of EU law; 

  Belgium: imposition of higher yearly tax rate on foreign professional investment funds, in 

breach of EU law; 

  Denmark: a nut tax with equivalent effect to a customs duty. 

VII. 

IMPORTANT JUDGMENTS 

1.  Court rulings 

The Court gave the following rulings14. 

  Belgium  has  failed  to  fulfil  its  obligations  under  EU  law  in  the  way  it  calculates  rental 
income.  It  calculates  the  rental  income  of  Belgian  taxpayers  from  immovable  property 
located abroad on the basis of the actual value, while rental income on property located 
in  Belgium is based on the cadastral  value, i.e. calculated  by reference to the  property 
description and valuation15. 

  Germany  excludes  sales  of  travel  services  to  taxable  undertakings  from  the  special 
scheme  for  travel  agents.  Moreover,  when  applying  the  special  scheme,  Germany 
allows an overall taxable amount to be calculated either for groups of services or for all 
services  provided  within  a  tax  period.  The  Court  decided  that  both  measures  are 
incompatible with the VAT Directive16. 

  Greece: The Greek rules allowing the sale of tax-exempt fuel by filling stations located 
in certain border posts at frontiers with third countries are contrary to the EU provisions 
on general arrangements for excise duty17. 

 

 

Ireland does not properly apply the EU rules on fiscal marking of fuels. The Court found 
that Ireland has failed to ensure that the minimum levels of taxation applicable to motor 
fuels are applied and that fuel is marked only when it is subject to an exemption from or 
reduction in excise duty18. 

France  has  failed  to  fulfil  its  obligations  under  EU  law  over  the  way  it  applied  the 
mechanism  for  the  avoidance  of  economic  double  taxation  of  distributed  foreign 
dividends19. 

14   These rulings are almost exclusively handed down on infringement procedures. 
15   Commission v Belgium, C-110/17. 
16   Commission v Germany, C-380/16. 
17   Commission v Greece, C-590/16. 
18   Commission v Ireland, C-504/17. 
19   Commission v France (Précompte mobilier), C-416/17. 

95 

 
 
                                                           
Monitoring the application of European Union law  
2018 Annual Report 
Taxation and customs union 

 

Austria levies VAT on the royalties paid to the author of an original artistic work upon its 
resale,  within  the  framework  of  the  resale  right.  However,  the  royalty  depends  entirely 
on the price paid in the resale, the amount of which cannot be influenced by the author. 
The author (or his heirs) is entitled to the royalty without having to, or even being able 
to,  undertake  any  service,  either  by  action  or  by  inaction.  The  Court  decided  that  the 
resale right is not subject to VAT 20. 

  United  Kingdom  has  not  properly  applied  the  EU  rules  on  fiscal  marking  of  fuels.  The 
Court found that the UK has failed to ensure that fuel is marked only when it is subject 
to an exemption from or reduction in excise duty21. 

2.  Preliminary rulings 

The Court gave the following preliminary rulings. 

 

  Denmark:  A  resident  company  which  has  not  opted  for  an  international  joint  taxation 
scheme  may  deduct  from  its  taxable  profits  losses  incurred  by  a  permanent 
establishment  in  another  Member  State.  This  is  subject  to  two  conditions:  i)  the 
company has exhausted the possibilities for deducting those losses available under the 
law of the Member State in which the establishment is situated; and ii) it has ceased to 
receive any income from that establishment, so that there is no longer any possibility of 
the losses being taken into account in that Member State22. 
Ireland:  When  a  company  intends  to  acquire  the  shares  of  another  company  in  order 
provide management services subject to VAT to that other company, input VAT paid on 
consultancy services received in the context of the takeover bid can be deducted, even 
if ultimately that economic activity was not carried out23. 
Italy:  The  ne  bis  in  idem  principle  may  be  limited  for  the  purpose  of  protecting  the 
financial interests of the EU. The objective of ensuring the collection of all the VAT due 
in the territories of Member States can justify a duplication of proceedings and penalties 
of a criminal nature. However, such a limitation on the principle must not exceed what is 
strictly necessary to achieve those objectives24. 

 

  Germany:  Certain  cross-border  transactions  need  to  be  carried  out  at  ‘arm’s  length’, 
whereas identical domestic transactions are considered to be without any tax effect (i.e. 
they could also be made not at arm’s length). In fact, the tax authorities responsible for 
enforcing  the  legislation  at  stake  afford  the  resident  taxpayer  the  opportunity  to  prove 
that the terms were agreed on for commercial reasons which could result from its status 
as a shareholder in the non-resident company25. 

  Germany: The German anti-abuse measures concerning dividend  payments to foreign 
companies without genuine activity were incompatible, as of 2012, with both the Parent-
Subsidiary Directive and the freedom of establishment26. 

  Austria: In the case of two successive supplies giving rise to only one intra-Community 
transport,  only  one  of  the  two  supplies  can  give  rise  to  the  intra-Community  transport 
and be exempted from VAT27. 

20   Commission v Austria, C-51/18. 
21   Commission v United Kingdom, C-503/17. 
22   Bevola, C-650/16. 
23   Ryanair, C-249/17. 
24   Menci, C-524/15. 
25   Hornbach, C-382/16. 
26   GS, C-440/17. 
27   Kreuzmayr, C-628/16. 

96 

 
 
                                                           
Monitoring the application of European Union law  
2018 Annual Report 
Taxation and customs union 

  Hungary:  When  businesses  fulfil  the  conditions  of  the  special  exemption  scheme  for 
small  enterprises,  for  the  scheme  to  apply  the  taxable  person  must  opt  for  its 
application. In the absence of doing so, the normal VAT obligations apply by default28. 
  France: Only part of the French public electricity service tax (CSPE) may be considered 
as another indirect tax for specific purposes, namely its environmental objective (and in 
the proportion in which revenue raised from the tax was allocated to this objective). The 
taxable persons concerned are entitled to a reimbursement of the other part of the tax, 
provided that they did not directly pass on that tax to their own consumers29. 

  France:  French  withholding  tax  on  dividends  received  by  loss-making  non-resident 
companies is incompatible with free movement of capital. The Court ruled that different 
ways  to  collect  taxes  between  resident  and  non-resident  taxpayers  are  allowed  only  if 
they do not result in heavier taxation of the latter30. 

  Poland:  In  Poland,  to  determine  the  basis  for  assessing  flavoured  beers  according  to 
the  Plato  scale,  the  dry  extract  of  the  finished  product  including  aromatic  substances 
and  sugar  syrup  added  after  the  completion  of  the  fermentation  process  is  taken  into 
consideration.  However,  the  Court  decided  that  in  such  cases  the  dry  extract  of  the 
original wort must be taken into consideration but not the aromatic substances or sugar 
syrup added after the completion of fermentation31. 

  Spain: A fine for not declaring cash upon entering or leaving the EU which may be up to 
double  the  undeclared  amount  is  contrary  to  EU  law,  including  the  Cash  Control 
Regulation32. 

  Slovakia:  A  Member  State  regulation  imposing  a  pecuniary  charge  on  electricity 
exported to another Member State or to a third country only  when electricity has been 
produced in the national territory is in breach of EU law33. 

VIII.  OUTLOOK 

Important implementation work in 2019 includes: 

 

Indirect taxation: 

 

focusing  on  infringements  with  a  strong  impact  on  the  functioning  of  the  internal 
market and the economy, and implementation of Court judgments; 

  monitoring  cases  affecting  the  economic  situation  of  businesses  (VAT  refunds, 
including by following up on the VAT Refund Directive Study) and cases aiming to 
remove distortions of competition in the internal market and ensure fair taxation. 

  Direct taxation: 

  assessing the conformity of national measures with the EU rules on exchange of 

information on taxation. This will concern in particular the Directives on: 

o 

the  automatic  exchange  within  the  EU  of  information  relative  to 
financial  income,  including  dividends  and  capital  gains,  and  account 
balances34; 

28   Vámos, C-566/16. 
29   Messer, C-103/17. 
30   SOFINA, C-575/17. 
31   Kompania Piwowarska, C-30/17. 
32   Zheng, C-190/17. 
33   FENS, C-305/17. 
34   Directive 2014/107/EU. 

97 

 
 
                                                           
Monitoring the application of European Union law  
2018 Annual Report 
Taxation and customs union 

o 

the  mandatory  automatic  exchange  of  information  in  the  field  of 
taxation35;  

o  country-by-country  reporting  of  information  by  multinationals  to  tax 

authorities36; 

o  access to anti-money laundering information37. 

  assessing  the  conformity  of  national  rules  against  tax  avoidance  and  practices 

that directly affect the functioning of the internal market, namely 38: 

o  an  Interest  Limitation  Rule  by  limiting  the  deductibility  of  interest 

payments; 

o  a  General  Anti-abuse  Rule 

tackling  abusive  practices  where 

arrangements are put in place to obtain a tax advantage; 

o  a  Controlled  Foreign  Company  Rule  affecting  the  income  re-
attribution  of  the  low-taxed  controlled  subsidiary  to  the  parent 
company. 

  Customs: 

 

 

carrying  out  a  series  of  monitoring  activities  in  cooperation  with  the  Member 
States  to  help  them  implement  the  Union  Customs  Code,  which  has  now  been 
applicable for more than 2 years;   
focusing on cases where there is a significant financial impact and it is considered 
that the Commission’s exclusive competence in the area of customs needs to be 
defended.  

35   Directive 2015/2376/EU. 
36   Directive 2016/881/EU. 
37   Directive 2016/2258/EU. 
38   Directive 2016/1164/EU. 

98 

 
 
 
                                                           
Monitoring the application of European Union law 
2018 Annual Report 

Methodology and explanations 

I. 

ANNEX I — POLICY AREAS 

1.  Complaints 

First chart: New complaints received from members of the public (2014-2018) 

This  shows  the  number  of  public  complaints  the  Commission  registered  in  the  given  policy  field  in 
2014-2018. 

Second chart: Public complaints open at year-end 

This  starts  with  the  number  of  open  complaints  carried  over  from  2017  (first  column).  The  second 
column shows the number of new complaints registered in 2018. The third column shows the number 
of complaints on which the Commission took a decision in 2018. The fourth column shows the number 
of  complaints  open  at  the  end  of  2018  (calculated  by  taking  the  first  figure,  adding  the  second  and 
subtracting the third). 

Third chart: New complaints registered in 2018: main policy sectors 

The number of registered complaints for the current reporting year is broken down by policy sector. In 
general, this breakdown shows the three policy sectors in which the most complaints were received in 
2018.  Four  (or  more)  policy  sectors  are  mentioned  if  two  (or  more)  policy  sectors  attracted  the  third 
highest number of complaints. The number of sectors covered varies according to the breadth of each 
policy area. 

2.  EU PILOT 

First chart: New EU Pilot files (2014-2018) 

This  shows  the  number  of  EU  Pilot  files  the  Commission  opened  in  the  given  policy  area  in  2014-
2018. 

Second chart: New EU Pilot files opened in 2018: main policy sectors 

The number of new EU Pilot files opened in the current reporting year is broken down by policy sector. 
This breakdown shows the three policy sectors in which the most EU Pilot files were opened in 2018. 
Four  (or  more)  policy  sectors  are  included  if  two  (or  more)  policy  sectors  tied  for  the  third  highest 
number of new EU Pilot files. 

Third chart: EU Pilot files: resolution rate for policies in 2014-2018 

The resolution rate in the given policy field is the percentage of EU Pilot files handled in that field for 
which the Commission accepted the Member States’ responses. The chart shows the resolution rate 
for the last 5 years. 

99 

 
Monitoring the application of European Union law 
2018 Annual Report 
Methodology and explanations 

3.  OWN-INITIATIVE CASES 

New own-initiative cases 

This section contains a list of the most important infringement cases the Commission launched in the 
given policy area in 2018. The list is not exhaustive. 

4. 

INFRINGEMENT CASES 

First chart: Infringement cases open on 31 December (2014-2018) 

These figures include all procedures the Commission initiated in the policy area by sending a letter of 
formal  notice  under  Article 258  TFEU.  It  covers  letters  sent  in  2018  or  before,  irrespective  of  the 
stages the cases have reached. Only cases which have not yet been closed by a formal decision are 
shown. 

Accordingly, this number includes all cases that, on 31 December of the years 2014 to 2018: 

  were in the pre-litigation phase (letter of formal notice, reasoned opinion or decision on referral 

to the Court under Article 258 TFEU); 

  were pending before the Court under Article 258 TFEU and Article 260(3) TFEU; 
 

the Court had ruled on but where the Commission could not yet confirm that the Member State 
had implemented the judgment correctly; 

  were  in  the  second  pre-litigation  procedure  (letter  of  formal  notice  or  referral  decision  under 

Article 260(2) TFEU); 

  were pending before the Court due to a second referral; and 
 

the Court had ruled on for the second time but where the Commission could not yet confirm 
that the Member State had implemented the second judgment correctly. 

This figure does not include, for example, open EU Pilot files in the policy area. It also does not include 
EU Pilot files for which the Commission had already rejected a Member State’s response but had not 
yet sent a letter of formal notice under Article 258 TFEU. 

Second chart: Infringement cases open on 31 December 2018: main policy sectors 

This shows, for the given policy area, the sectors in which the most infringement cases were still open 
on 31 December 2018. The number of sectors shown varies according to the breadth of each policy 
area. 

Third chart: New infringement cases opened in 2018: main policy sectors 

This shows, for the given policy area, the sectors in which the most infringement cases were launched 
in 2018. 

Key infringement cases and referrals to the Court 

This section has three parts. 

Part a) shows the number of new infringement cases launched in the policy area in 2018 and lists the 
most important new cases under Article 258 TFEU. 

Part b) lists the cases which the Commission referred to the Court  solely under Article 258 TFEU by 
31 December  2018.  The  cases  submitted  to  the  Court  under  Article 258  and  260(3)  TFEU  are 
discussed in the ‘transposition of directives’ section (see below). 

Part c) contains the cases which the Commission referred to the Court under  Article 260(2) TFEU by 
31 December 2018. 

100 

 
 
 
Monitoring the Application of European Union Law 
2018 Annual Report 
Methodology and explanations 

5.  TRANSPOSITION OF DIRECTIVES 

First chart: New late transposition infringement cases (2014-2018) 

This shows the number of letters of formal notice sent to Member States under Article 258 TFEU for 
missing or partial notification of national measures transposing directives in the given policy area. This 
figure is already included in the total number of new infringement cases initiated in the policy area in 
2018, so it should not be added to the figure shown in the first chart of the general statistics section. 

Please  note  that  not  all  of  these  new  infringement  cases  for  late  transposition  were  necessarily  still 
open on 31 December 2018. For example, if the Commission opened a late transposition infringement 
procedure  in  March  2018  by  sending  a  letter  of  formal  notice,  this  would  be  added  to  the  new 
infringement cases even if the Commission closed the case in October 2018 as a result of the Member 
State notifying complete transposition. 

Second chart: New late transposition infringement cases opened in 2018: main policy sectors 

This shows the policy sectors in which the most late transposition procedures were launched in 2018. 

Key infringement cases and referrals to the Court 

This section has two parts: 

Part a) lists, for the given policy area, the most important directive(s) over which the Commission had 
to launch infringement procedures against a relatively high number of Member States. 

Part  b)  lists  the  cases  which  the  Commission  referred  to  the  Court  under  Article 258  TFEU  and 
Article 260(3) by 31 December 2018. 

6.  EARLY RESOLUTION OF INFRINGEMENT CASES 

Major cases closed without a Court judgment in 2018 

This  section  contains  a  list  of  the  most  important  infringement  cases  the  Commission  closed  in  the 
given policy area in 2018 without a Court judgment. The list is not exhaustive. 

7. 

IMPORTANT JUDGMENTS 

This section contains two lists, neither of which are necessarily exhaustive. 

The  first  list  contains  the  Court’s  most  important  judgments  in  the  given  policy  area  in  2018.  These 
judgments are almost exclusively handed down under Article 258 or Articles 260(2) TFEU. 

The second list contains the most important preliminary rulings  that the Court issued to the Member 
State’s judiciary in the given policy area. 

101