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 COM(2019) 319 final  REPORT FROM THE COMMISSION Monitoring the application of European Union law   2018 Annual Report {SWD(2019) 285 final} - {SWD(2019) 286 final} - {SWD(2019) 287 final}  
 
 
Monitoring the application of European Union law 
2018 Annual Report 

Foreword .......................................................................................................................................... 2 

1.  A new boost for jobs, growth and investment ......................................................................... 3 

2.  A connected Digital Single Market .......................................................................................... 8 

3.  A resilient Energy Union with a forward-looking climate change policy ................................ 10 

4.  A deeper and fairer internal market with a strengthened industrial base .............................. 12 

5.  A deeper and fairer Economic and Monetary Union ............................................................. 22 

6.  An area of justice and fundamental rights based on mutual trust ......................................... 24 

7. 

Towards a new policy on migration ....................................................................................... 27 

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Monitoring the application of European Union law 
2018 Annual Report 

Foreword 

We  will  deliver  where  it  matters  most.  These  are  the  words  of  Europe’s  27  leaders  in  the  Sibiu 
Declaration, signed in May 2019 just ahead of the European Parliament elections. Those words go to 
the heart of what this Commission has been doing every day since it took office in November 2014. 

Indeed, we have delivered where it matters. There are people who say that Europe is too slow or too 
complicated to move forward. However, in the last five  years, more than 354 Commission proposals 
have  been  agreed  upon  by  the  co-legislators.  The  results  speak  for  themselves.  Unemployment  is 
down - there are more than 240 million Europeans at work and wages are up by 5.7 %. We now have 
a dedicated European Border and Coast Guard to help protect our borders. We can roam like at home 
wherever  we  are in the  Union  and  we can stream using our subscriptions even  when  in another EU 
country. Our companies can trade tariff-free in markets as far as Canada or Japan.  

This progress is thanks to the many times we agreed on new rules to move Europe forward. But any 
legislation is only ever as good as its implementation and enforcement. This is what brings the words 
on the statute book to life. It is what turns laws into benefits for citizens. It is what ensures that political 
agreements  translate  into  real-life  benefits  for  citizens,  small  and  medium-sized  enterprises  and 
businesses. This is why when I came into office I promised to do less – we made 75% less proposals 
than previous Commissions – but to do it better.  

We  now  work  much  closer  with  national  authorities  to  support  them  in  implementing  European 
legislation. This dialogue has helped solve 90% of infringement cases since 2014 without having to go 
to  the  Court  of  Justice  of  the  European  Union  –  saving  time  and  taxpayer  money  in  the  process. 
Where dialogue did not work, we took strong and effective action where EU law was breached.  

This  report  demonstrates  how  this  more  strategic,  more  open  but  also  stronger  approach  worked  in 
2018. We supported national and regional authorities in implementing clear air and clean water rules. 
We took action against Member States who failed to live up to their commitments and implement the 
EU  rules  on  Passenger  Name  Records,  on  combating  terrorism  and  on  anti-money  laundering.  We 
used our enforcement powers when some countries did not move fast enough to improve access for 
people with disabilities to websites and other mobile applications. We have strengthened our dialogue 
with  Member  States  across  the  board  to  ensure  that  we  work  together  on  implementation  and 
enforcement. I am delighted to report a strong commitment and engagement by Member States.   

All of this shows the real value of work done on implementation and enforcement. It is about upholding 
decisions taken together. Moreover, it is ultimately about ensuring that citizens truly benefit from new 
rules.  Only a Europe that puts citizens’ rights at the core of everything it does, is a Europe that truly 
delivers. There is no more important task.  

As one of my great predecessors, Walter Hallstein, said: Europe is a Community of Law. The law is 
our way to ensure that we can protect and promote our  values and our rights. It is our best asset to 
fight for social justice, equality and fairness for all. This is  why the rule  of law can never be optional 
and this is why the Commission put such an emphasis on enforcement in 2018, as you will see from 
this report. If we want to deliver where it matters the most, as leaders promised in Sibiu, then we must 
continue this approach in 2019 and beyond.  

President of the European 

Commission  

Jean-Claude Juncker 

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2018 Annual Report 

1.  A new boost for jobs, growth and investment 
The Juncker Commission’s top priority is to stimulate investment to create jobs and strengthen Europe’s 
competitiveness.  However,  creating  the  right  regulatory  environment  to  support  businesses  and  job 
creation is undermined if Member States do not implement EU rules correctly and on time.  

Ensuring fair working conditions across EU 

in 

to 

the 
All  workers 
European  Union  have  the 
right 
fair  working 
conditions.  This  right  is 
reflected  in  the  European 
Pillar  of  Social 
rights, 
which  was  proclaimed 
jointly  by  the  European 
Parliament, the Council of 
the  EU and  the European 
Commission  in  November 
2017.  The  Pillar  contains 
chapter 
a 
dedicated  to  fair  working 
conditions. 

specific 

For  the  past  few  years  the  Commission  has  paid  special  attention  to  working  time.  Among  other 
things,  it  has  published  guidance  documents  to  help  Member  States  implement  the  Working  Time 
Directive. 

Following  efforts  by  the  three  Member  States,  the  Commission  closed  infringement  cases  against 
Denmark,  Ireland  and  Greece  over  the  application  of  the  Working  Time  Directive.  The  Commission 
ensured that Denmark respect workers’ right to take their annual leave in the same year in which the 
leave was accrued. As for Ireland and Greece, the necessary measures were taken to comply with EU 
rules on limits to working time for doctors in public health services.  

European Works Councils, which represent the European employees of transnational companies, also 
contribute  to  guaranteeing  fair  work  conditions.  Through  them,  management  inform  and  consult 
workers on the progress of the business and on any significant decision at European level that could 
affect  their  employment  or  working  conditions.  In  2018,  the  Commission  published  a  report  on  the 
implementation  of  the  directive  setting  up  the  European  Works  Councils.  The  report  highlights  the 
benefits  for  both  workers  and  companies  of  having  a  transnational  social  dialogue  at  company  level 
through European Works Councils. 

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Enforcing environmental rules 

to  address 

In  2018,  the  Commission  took  legal 
action 
inadequate 
implementation  of  EU  environmental 
legislation. 

the 

the 

the 
Following 
fitness  check  of 
the 
directives  on  protecting  nature 
Commission’s  action  plan  for  nature, 
people  and  the  economy,  adopted  in 
2018,  aims  to  ensure  a  fully  functional, 
coherent and ecologically representative 
network of protected sites. For instance, 
Member  States  must  complete 
the 
Natura 2000 network of protected areas, 
filling in the existing gaps for the marine 
environment, and putting in place the necessary conservation measures for all sites. In its  Białowieża 
judgment, the Court clarified the obligations for forest management on Natura 2000 sites. This is key 
for the conservation of protected habitats and species. 

In  2018,  the  Commission  took  further  legal  steps  in  the  infringement  procedures  against  Ireland, 
Greece and Portugal to ensure that the Natura 2000 network is completed. Infringement cases against 
seven other Member States remain open. 

Air pollution continues to be a considerable public health problem and a priority for the Commission. In 
the  Communication  entitled  ‘A  Europe  that  protects:  Clean  air  for  all’,  adopted  in  2018,  the 
Commission outlined the measures available to help Member States fight air pollution. 

In  2018,  the  Commission  also  took  six  Member  States  (Germany,  France,  Italy,  Hungary,  Romania 
and  the  United  Kingdom)  to  the  Court  of  Justice  over  excessive  levels  of  particulates  (PM10),  or 
nitrogen  dioxide  (NO2)  in  the  air.  The  Commission  will  pursue  the  infringement  cases    against  other 
Member States if they do not make significant progress towards compliance. 

In February 2018, the Court of Justice ruled that Poland had failed to respect EU air quality legislation 
as it had failed to ensure that air pollution would not exceed the legal limits. Moreover, Poland had not 
adopted  adequate  action  plans  to  make sure  that  the  breach  of  those  limits  would  be  for  as  short  a 
period as possible. 

In  September  2018,  the  Commission  published  an  Early  Warning  Report  for  EU  waste  legislation, 
highlighting where Member States risk not meeting the EU waste targets. In parallel, the Commission 
took action in 2018 to remedy structural flaws in the waste legislation of Member States, such as the 
ongoing presence of illegal or substandard landfills or the absence of waste management plans. 

The  Commission  also  adopted  a  nine-point  action  plan  on  compliance  assurance,  looking  at  issues 
such as inspections and governance. 

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Enforcing the agricultural rules 

Two of the main objectives of the common 
agricultural  policy  are  providing  support  to 
farmers and ensuring that consumers have 
a  stable  supply  of  affordable  food.  Other 
goals  include  addressing  climate  change 
in  a 
and  managing  natural  resources 
sustainable  manner,  maintaining 
rural 
areas  and  landscapes  across  the  EU,  and 
keeping 
rural  economy  alive  by 
promoting  jobs  in  farming  and  related 
sectors. 

the 

to 
enforce the agricultural rules focused mostly, as in previous years, on monitoring how Member States 
are correctly implementing the direct payments. 

the  Commission’s  actions 

In  2018, 

Bilateral discussions continued with Member States that were incorrectly using financial aid under the 
Voluntary Coupled Support scheme to support types of farming or sectors facing difficulties other than 
the risk of abandonment or of decline in production. Through dialogue, the Commission persuaded the 
national authorities of one Member State to amend its national rules and bring them into line with EU 
law. 

indications  protect 

Geographical 
their  unique 
characteristics,  linked  to  their  geographical  origin  as  well  as  traditional  know-how.  In  2018,  the 
Commission continued to follow specific situations of incorrect implementation of the EU rules on the 
protection of Protected Designations of Origin and Protected Geographical Indications. 

the  name  of  specific  products  and  promote 

Denmark allowed Danish companies to produce and export white cheese to non-EU countries as ‘feta’ 
even though this cheese does not comply with the product specification for this Protected Designation 
of Origin. 

Bulgaria has maintained its own national register of geographical indications for agricultural products 
and  foodstuffs  since  2008,  disregarding  the  exclusive  character  of  the  EU-wide  registers  for  quality 
schemes. 

In  2018,  the  Commission  closed  the  infringement  procedures  against  Italy,  Cyprus  and  the  United 
Kingdom  as  they  had  implemented  the  marketing  standards  for  caseins  and  caseinates  in  their 
national legislation. 

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Enforcing the rules on maritime affairs and fisheries 

Helping the European fishing industry and 
coastal  areas  thrive,  while  at  the  same 
time protecting the maritime environment, 
are  key  objectives  of  the  EU’s  maritime 
policy. 

The  sustainability  objectives  of  the  EU’s 
common  fisheries  policy  contribute  both 
to  conserving  stocks  and  maximising  fish 
supply  from  fishing.  As  these  objectives 
are  to  be  met  by  2020  at  the  latest,  the 
Commission’s  enforcement  strategy 
in 
2018  continued  to  focus  on  fisheries 
conservation  and  control,  as  well  as  on 

compliance with the EU’s exclusive competence in this area. 

The  national  systems  for  fisheries  control  and  enforcement  must  be  effective  and  must  provide  for 
dissuasive sanctions if the rules are breached. 

The Commission launched an infringement procedure against Ireland to ensure that serious breaches 
of EU rules on fisheries are met with effective sanctions. 

‘Control action plans’ are a specific compliance tool adopted by the Commission in close cooperation 
with  the  Member  State  concerned  in  order  to  promote  the  correct  enforcement  of  the  rules  of  the 
Control Regulation for fisheries. In 2018, the Commission adopted new action plans for a number of 
Member States and monitored their implementation. 

A  well-functioning  system  of  fishery  producer  organisations  is  crucial  for  bringing  those  producers 
together  in  order  to  meet  the  objectives  of  the  common  fisheries  policy  and  of  the  common 
organisation of the markets. 

The Commission launched an infringement procedure against the United Kingdom for failing to ensure 
compliance with the conditions for the recognition of fishery producer organisations. 

Maritime spatial planning helps ensure that all human activity at sea takes place in an efficient, safe 
and  sustainable  way.  The  Commission  monitored  the  correct  implementation  of  the  EU  common 
framework for maritime spatial planning across borders and sectors throughout 2018. 

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Enforcing the rules on regional policy 

The  European  Structural  and 
Investment  Funds 
support  investments  in  key  growth-generating  policy 
areas across the EU. 

An  appropriate  framework  for  investments  is  needed 
to make sure that they are as effective as possible. In 
2018, the Commission specially focused its efforts on 
checking  compliance  with  specific  preconditions,  in 
particular  for  the  areas  of  public  procurement,  State 
aid,  comprehensive  plans  for  transport  investments, 
and in the water and waste sectors. 

When  an  investment  fails  to  meet  the  standards  set 
out  in  EU  legislation,  the  Commission  addresses 
these 
irregularities  by  suspending  payments  or 
applying financial corrections, as necessary. In 2018, 
the  Commission’s  efforts  to  detect  and  take  corrective  action  against  these  kinds  of  irregularities 
continued unabated. 

In 2018, a Commission study assessed whether effective specific systems used by Member States to 
deal with complaints concerning the European Structural and Investment Funds are in place. It found 
that in most cases the Member States have standardised complaints-handling arrangements based on 
national laws or programme documents. The arrangements among the EU Member States are overall 
effective.  Moreover,  the  complaints-handling  arrangements  are  more  developed  in  the  2014-2020 
programming period compared to the arrangements in the 2007-2013 period.  

Fighting fraud against the EU budget 

The means to combat crime affecting the 
EU  budget  have  significantly  improved 
with  the  adoption  of  the  Directive  on  the 
protection  of the EU’s financial interests. 
The  Commission  is  working  closely  with 
the 
the  Member  States 
directive is implemented properly. 

to  ensure 

The Commission launched an infringement procedure against the United Kingdom because it refused 
to  make  customs  duties  available  to  the  EU  budget,  as  required  by  EU  law.  A  2017  report  by  the 
European Anti-Fraud Office found that importers in the United Kingdom had evaded a large amount of 
customs  duties  by  using  fictitious  and  false  invoices  and  incorrect  customs  value  declarations  at 
importation.  Further  Commission  inspections  brought  to  light  a  dramatic  increase  in  the  scale  of  the 
undervaluation scheme that operated through the UK hub between 2011 and 2017. The UK had failed 
to take action to prevent the fraud even though it had been warned of such a risk in the importation of 
textiles  and  footwear  from  China  since  2007  and  notwithstanding  that  it  had  been  asked  to  take 
appropriate  risk  control  measures.  The  Commission  calculated  that  the  UK’s  infringement  of  EU 
legislation  resulted  in  losses  to  the  EU  budget  of  EUR 2.7  billion  (minus  collection  costs)  between 

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November 2011 and October 2017. 
2.  A connected Digital Single Market 

The Digital Single Market strategy aims to remove online barriers preventing EU citizens from gaining 
access to goods and services. 

Improving connectivity 

digital 

communications 

High-speed 
foster 
innovation  and  better  services  for  the  economy 
and society. The development of 5G connectivity 
is  a  priority  for  the  Commission.  The  aim  is  to 
ensure that 5G radio spectrum is available in the 
whole of the EU by 2020. 

The Commission launched infringement procedures against Belgium, Croatia and the Netherlands for 
missing intermediate deadlines for freeing up spectrum for mobile communications. This could delay 
the development of 5G networks. 

Civil engineering work, such as digging up roads to lay high-speed cables, accounts for up to 80 % of 
the  cost  of  deploying  broadband  networks.  The  tBroadband  Cost  Reduction  Directive  aims  to  foster 
cooperation  across  sectors  such  as  energy,  water  and  transport  providers.  This  can  create  the 
conditions for more efficient deployment of new infrastructure so that the networks can be rolled out at 
lower cost, thereby benefiting the public. 

In  2018,  the  Commission  took  action  to  ensure  that  high-speed  networks  can  be  rolled  out  more 
easily. As a result, almost all Member States have now implemented the  Broadband Cost Reduction 
Directive in their national legislation. 

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Guaranteeing cybersecurity and trust in online transactions 

Building trust in the online environment is key to 
economic  and  social  development.  With  the 
entry  into  force  of  the  Regulation  on  electronic 
identification  and  trust  services  for  electronic 
transactions  in  the  internal  market  (the  eIDAS 
Regulation),  a  common  platform  was  provided 
for  secure  electronic 
interaction  between 
members  of  the  public,  businesses  and  public 
authorities.  The  eIDAS  Regulation  establishes 
a  general  legal  framework  for  the  use  of  trust 
services  in  the  EU.  These  include  electronic 
signatures,  electronic  seals,  electronic  time  stamps,  electronic  registered  delivery  services,  and 
website authentication. 

Cybersecurity  is  an  important  priority  for  the  Commission.  The  Security  of  Network  and  Information 
Systems  Directive  aims  to  achieve  a  uniformly  high  level  of  security  for  network  and  information 
systems across the EU. 

In  2018,  the  Commission  launched  infringement  procedures  against  17  Member  States,  requiring 
them to implement fully this first piece of EU-wide legislation on cybersecurity into their national laws. 

Better accessibility for citizens with disabilities 

People  with  disabilities,  especially  vision  or  hearing  impairments,  may  have  difficulty  accessing  the 
websites and mobile applications of public sector bodies. 

The aim of the Web Accessibility Directive is to 
improve  access  to  these  information  tools  for 
people with disabilities.  

launched 

The  Commission 
infringement 
procedures  against  19  Member  States, 
requiring  that  they  fully  transpose  the  Web 
Accessibility Directive into national laws. 

accessibility, 
the 
To 
promote 
Commission  proposed 
the  Directive  on 
permitted  uses  of  works  and  other  subject 
matter  protected  by  copyright  and  related  rights  for  the  benefit  of  persons  who  are  blind,  visually 
impaired  or  otherwise  print-disabled,  which  establishes  a  mandatory  exception  to  copyright  and 
related rights. Its objective is to allow people who have difficulties reading print to access books and 
other printed material in formats that are accessible to them. 

further 

In 2018, the Commission launched infringement procedures against 17 Member States that had failed 
to implement this directive in their national legislation on time. 

The rules set out in both these directives reflect the Commission’s ongoing work to build a social and 
inclusive European Union, where all Europeans can play a full part in the digital economy and society. 

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3.  A resilient Energy Union with a forward-looking climate change policy 

The  European  Energy  Union  ensures  secure,  affordable  and  clean  energy  for  households  and 
businesses by making the free flow of energy possible across national borders within the EU. It also 
stimulates the development of new technologies and renewed infrastructure in order to cut household 
bills, create jobs and boost growth. The Energy Union will lead to sustainable energy consumption by 
reducing greenhouse gas emissions, pollution and our dependence on fossil fuels. 

Leading the energy transition towards a safe, secure and sustainable energy sector with the 
consumer at its centre 

In 2016, the European Commission 
proposed  the  Clean  Energy  for  All 
Europeans  package.  This  raised 
the EU’s ambitions in rolling out the 
in 
clean  energy 
ensuring 
stays 
that 
competitive  as  global  energy 
markets undergo change. 

transition  and 

the  EU 

In  2018,  the  European  Parliament 
and  the  Council  reached  a  political 
the 
agreement 
Commission’s  proposals 
this 
package. 

on 

all 

of 

in 

The Clean Energy for All Europeans package includes a revision of key EU legislation in areas such 
as the  energy  performance of buildings,  energy  efficiency, renewable energy and governance  of the 
Energy  Union  and  climate  action,  all  of  which  is  already  in  force.  On  the  energy  performance  of 
buildings,  the  aim  is  to  accelerate  the  cost-effective  renovation  of  existing  buildings,  mobilise 
investments  and  support  smart  building  systems.  The  package  also  aims  to  raise  the  share  of 
renewable energy to at  least 32 % by 2030. These targets will be reviewed in 2023.  Member States 
must  establish  integrated  national  energy  and  climate  plans  for  2021  to  2030,  setting  out  how  they 
intend to achieve the 2030 targets. 

The Commission monitored Member States’ progress towards meeting their energy efficiency targets 
and towards making buildings sustainable by using infringement procedures, among other things. 

The  Commission  pursued  further  the  infringement  procedures  against  the  Netherlands  and  Slovenia 
for  not  complying  with  the  Energy  Performance  of  Buildings  Directive.  It  launched  infringement 
procedures against 15 Member States and asked them to correctly implement the EU rules on energy 
efficiency. 

Infringement  procedures  were  also  used  to  protect  the  public  against  radiation  and  ensure  safety  in 
the nuclear sector. 

The  Commission  called  on  Belgium,  Spain  and  Poland  to  implement  the  EU  nuclear  safety  rules.  It 
launched  infringement  procedures  against  22  Member  States  for  not  correctly  implementing  the 
Radioactive  Waste  Directive.  The  Commission  also  launched  infringement  procedures  against  nine 
Member States as they failed to implement the Basic Safety Standards Directive. 

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Implementing the Paris Agreement on climate change 

The  2015  Paris  Agreement  sets  out  a  global 
action plan to limit climate change. 

The European Union is the first major economy to 
translate  its  promises  under  the  Paris  Agreement 
into binding legislation. 

In 2018, the European Parliament and the Council 
adopted  the  main  legislation  to  implement  the 
2030  climate  and  energy  framework.  This  sets  a 
target  of  reducing  greenhouse  gas  emissions  by 
at  least  40 %  (from  1990  levels)  by  2030.  The 
Commission is already looking further ahead, with 
the  presentation  in  2018  of  its  vision  for  a  prosperous,  modern,  competitive  and  climate-neutral 
economy by 2050. 

Achieving these targets, as well as the 2020 targets, requires legislation that is fully implemented and 
enforced.  In  2018,  the  enforcement  and  monitoring  measures  included  infringement  procedures  and 
informal dialogues with Member States. 

Informal dialogues with Member States focused on the Carbon Capture and Storage Directive, the F-
gas  Regulation  and  the  Regulation  on  monitoring,  reporting  and  verification  of  emissions  from 
maritime transport. 
During  2018,  the  Commission  actively  pursued  the  ongoing  infringement  procedures  over  certain 
Member States’ failure to  implement the  Directive on  fuel quality. The majority  of cases were closed 
and only five cases remained open at the end of the year. 

In  2018,  the  EU  made  important  progress  towards  putting  in  place  strong  rules  to  decarbonise  and 
modernise the  transport sector. In May, the Commission presented the first-ever legislative  proposal 
on  carbon  dioxide  emission  standards  for  heavy-duty  vehicles.  Moreover,  the  European  Parliament 
and  the  Council  adopted  the  legislation  on  monitoring  and  reporting  carbon  dioxide  emissions  from 
heavy-duty  vehicles  and  reached  a  political  agreement  on  carbon  dioxide  emission  (CO2)  standards 
for cars and vans for the period after 2020. The full and effective implementation of these measures 
will be key to tackling CO2 emissions from road transport, which still account for around one fifth of the 
EU’s total CO2 emissions. 

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4.  A deeper and fairer internal market with a strengthened industrial base 

The  EU  Single  Market  remains  Europe’s  most  precious  asset  for  individuals  and  businesses.  It 
provides  enormous  opportunities  for  businesses  as  well  as  greater  choice  and  lower  prices  for 
consumers.  It  enables  people  to  travel,  live,  work  and  study  wherever  they  wish.  But  these  benefits 
cannot be enjoyed if Single Market rules are not applied or implemented, or if they are undermined by 
other barriers. 

Ensuring undistorted competition 

The internal market is stronger when competition is undistorted. 

States 

In  2018,  the  Commission  verified  that  all 
completed 
Member 
implementation  of  the  Antitrust  Damages 
Directive  and  closed  the  18  remaining 
infringement procedures. 

had 

The  Commission  also  accepted  the  final 
remedies  submitted  by  Greece  in  a  case 
concerning 
the  award  of  exclusive 
exploitation  rights  of  lignite  to  the  main 
incumbent  on 
the  Greek  electricity 
market, in breach of EU competition rules. 

Consistently  launching  infringement  procedures  to  ensure  compliance  with  Commission  State  aid 
decisions is essential for the credibility of the Commission’s State aid control regime. 

The Commission took Italy to Court for a second time, as the Italian authorities did not comply with a 
Court  earlier  ruling.  In  that  ruling,  the  Court  confirmed  that  Italy  had  granted  illegal  state  aid  to  the 
hotel  industry  in  Sardinia.  The  Commission  ordered  Italy  to  recover  illegal  aid  amounting  to  close  to 
EUR 15 million. Still today, almost EUR 13 million have not been recovered.  

The Court of Justice imposed financial sanctions in a  case against Greece for failing to implement a 
Commission decision of 2008 requiring it to recover illegal State aid granted to the company Hellenic 
Shipyards. 

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Ensuring the free movement of workers 

People  in  the  EU  can  only  benefit 
from  the  opportunity  to  work  in 
other  Member  States  if  the  rights 
their  home 
of  workers  outside 
Member  State 
properly 
protected. 

are 

Supplementary  pension  schemes 
employment 
an 
linked 
to 
discourage 
can 
relationship 
workers’ mobility. The EU rules on 
the  acquisition  and 
improving 
supplementary 
preservation  of 
to  address 
pension  rights  aim 
these obstacles. 

In 2018, the Commission initiated legal action against 10 Member States for not implementing the  EU 
rules on enhancing worker mobility between Member States in their national legislation on time. By the 
end of 2018, the Commission ended its actions against six Member States (Czechia, Greece, Spain, 
Luxembourg, the Netherlands and Austria) as they had brought their legislation into line  with the EU 
rules.  

The EU has clear rules on the free movement of workers, the posting of workers and the coordination 
of social security. Failure by Member States to comply with these rules puts trust and fairness in the 
internal  market  at  risk.  In  particular,  concerns  have  been  voiced  that  mobile  workers  may  be 
vulnerable to abuse or may be denied their rights. 

In  2018,  the  Commission  proposed  the  creation  of  a  European  Labour  Authority  to  ensure  that  EU 
rules on labour mobility are enforced in a fair, simple and effective way. The European Parliament and 
the Council have in the meantime reached a provisional agreement on this proposal.  

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Ensuring the free movement of goods 

to 

the 

penalties 

automotive 

sector, 
the 
In 
Commission  concluded 
that  several 
Member States had failed to establish or 
car 
apply 
manufacturers 
car 
from 
emissions  legislation.  This  followed  the 
2015  revelations  that  the  Volkswagen 
dodge 
Group 
used 
emissions  standards 
for  certain  air 
pollutants.  

deter 
violating 

software 

to 

In  2018,  the  Commission  took  further  steps  in  the  infringement  procedures  against  Germany,  Italy, 
Luxembourg  and  the  United  Kingdom  as  they  failed  to  meet  their  obligations  under  the  EU  vehicle 
type-approval legislation. 

The  Commission  is  also  making  sure  that  Member  States  do  not  instate  quantitative  restrictions  on 
trade  within  the  EU.  In  2018,  the  Commission  took  action  regarding  car  registrations  and 
pharmaceuticals. 

In France, the registration of second-hand vehicles previously registered in other Member States has 
at times been difficult. Following action by the Commission, France amended its legislation in 2018 to 
allow for the online registration of imported second-hand vehicles. 
The  Commission  took  action  against  Latvia  for  not  accepting  the  registration  of  right-hand  drive 
vehicles. 

‘Parallel  trade’  allows  wholesalers  to  buy  medicinal  products  in  one  Member  State  (typically  where 
prices  of  medicines  are  also  lower),  and  sell  into  other  Member  States  (where  prices  are  higher). 
‘Parallel  trade’  in  pharmaceuticals  is  a  lawful  economic  activity  within  the  internal  market.  Parallel 
imports can benefit patients and public healthcare systems if they result in cheaper prices and lower 
reimbursement  costs.  At  the  same  time,  there  are  concerns  in  certain  Member  States  that  parallel 
exports could result in shortages of medicines for patients, putting their health and even their lives in 
danger.  Member  States  are  therefore  allowed  to  restrict  parallel  trade  in  medicinal  products  if  it 
constitutes  a  risk  to  the  protection  of  human  health  and  life  or  to  the  protection  of  industrial  and 
commercial property. 

In  2018,  the  European  Commission  closed  the  infringement  procedures  and  complaint-handling 
procedures  against  Poland,  Romania  and  Slovakia  over  parallel  trade  in  medicines  for  human  use. 
The  Commission  decided  that  it  was  necessary  to  look  for  other  ways  to  address  Member  States’ 
concerns  in  this  area.  To  this  end,  the  Commission  considered  that  a  structured  dialogue  should 
rapidly take place. The Commission remained committed to support Member States in their efforts to 
ensure  that  citizens  have  timely  access  to  affordable,  preventive  and  curative  healthcare  of  good 
quality. To do so, it decided to gather more information in order to discuss the export restrictions with 
the Member States in the Commission Working Group on Pharmaceuticals. 

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Ensuring freedom of establishment 

in 

their 

line  with 

legislation 

On  freedom  of  establishment  and  provision  of 
services, the Commission took action against all 
Member States (except Lithuania) in 2018 for not 
the 
bringing 
Professional  Qualifications  Directive.  Several 
national  rules  do  not  comply  with  the  directive. 
These  concern  the  introduction  of  the  European 
professional  card,  the  alert  mechanism,  the 
possibility 
to  a 
the  proportionality  of 
professional  activity, 
the  setting  up  of 
language 
requirements, 
assistance  centres  and 
reporting  and 
the 
notification obligations. 

to  have  partial  access 

Improved information and assistance for citizens and businesses 

In  2018,  the  25th  Anniversary  of  the  Single 
Market, the Commission focused on ensuring 
that Single Market rules deliver on the ground. 
The Commission increased its efforts to make 
citizens  and  businesses  aware  of  their  rights 
and  obligations  via  the  Your  Europe  portal, 
the  cornerstone  of  the  future  single  digital 
gateway. Individuals and businesses can only 
enjoy the many benefits of the Single Market if 
the  rules  that  have  been  jointly  agreed  are 
applied  in  practice.  In  line  with  this  political 
priority,  and  as  a  follow-up  to  the  SOLVIT 
action  plan,  Member  States  have  used  the 
evidence  provided  by  SOLVIT  and  Your 
Europe Advice to address recurrent breaches 
of EU law. The Your Europe Advice database 
contains  more  than  265,000  real-life  cases, 
which  provide  an  excellent  overview  of  the 
various ways that citizens and businesses can 
benefit from the Single Market. 

The interconnection of business registers, which makes it easier to find company information in the EU 
via a single European e-Justice portal, was widely used in 2018. There were over 372,000 searches 
for company information and over 241,000 requests for company details. 

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Enforcing the Capital Markets Union, financial services rules and the free movement of 
capital 

improve 

The  directives  adopted  in  the  wake  of 
the  financial  crisis  need  to  be  properly 
implemented  to  increase  the  resilience 
and  stability  of  the  financial  sector  and 
investor  protection.  The 
to 
these 
implementation  of  some  of 
directives is also important for achieving 
the Capital  Markets Union. This aims at 
improving  access 
in 
innovative  companies, 
particular 
start-ups    or  small  and  medium-sized 
enterprises. 
It  also  makes  capital 
markets  more  attractive  for  retail  and 
facilitates 
investors,  and 
institutional 
cross-border investment. 

finance, 

for 

to 

In  2018,  the  Commission  launched  infringement  procedures  as  some  Member  States  had  failed  to 
implement  the  Insurance  Distribution  Directive  and  the  Payment  Services  Directive  in  their  national 
legislation on time. 
The Commission also further pursued the infringement procedures against Spain and Slovenia as they 
did not implement the Accounting and Audit Directives and the Payment Accounts Directive on time. 

The  Markets  in  Financial  Instruments  Directive  aims  to  improve  investor  protection,  strengthen  the 
Single  Market  and  create  transparent,  well-supervised,  competitive  and  stable  trading  conditions  in 
markets across the whole of the European Economic Area. 

The  Commission  pursued  the  infringement  procedure  against  Slovenia  for  not  implementing  the 
Markets in Financial Instruments Directive in its national legislation on time. 

EU  rules  ensure  that  investors make  informed  decisions  and  feel  confident  that  they  are  adequately 
protected and entitled to compensation if something goes wrong. 

The  Commission  launched  infringement  procedure  against  Cyprus  for  postponing  the  payment  of 
compensation indefinitely, in breach of the Investor Compensation Schemes Directive. 

On free movement of capital, the Commission had opened infringement procedures in the past against 
five Member States over the system contained in intra-EU Bilateral Investment Treaties that allow EU 
investors to bring claims against Member States before arbitration tribunals. 

In 2018, the Court of Justice ruled in the  Achmea case that this arbitration system is not compatible 
with EU law. The Commission closely monitors the follow-up to the Court ruling by Member States. 

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Enforcing the rules on taxation and customs 

The Commission’s enforcement strategy in the area 
of customs focused on ensuring that Member States 
the  Union  Customs  Code  correctly  and 
apply 
uniformly,  and  on  detecting  charges  with  equivalent 
effect to customs duties, even within the EU. 

After  the  Commission  had  opened  an  investigation, 
the  Belgian  authorities  amended  their  rules  to 
remove a restriction of direct customs representation 
that was contrary to the Union Customs Code. 

The Commission carried out an enquiry to check on 
postal fees in the Member States. Such fees can be 
contrary  to  EU  customs  law,  namely  the  rules  on  customs  representation  and  the  prohibition  on 
imposing charges for customs formalities. 

On indirect taxation, the Commission gave priority in its enforcement efforts to pursuing infringements 
that distort competition in the internal market or that go against fair taxation. 

Following  the  revelations  in  the  Paradise  Papers  of  widespread  evasion  in  the  yacht  and  aircraft 
sectors,  the  Commission  took  legal  action  against  Greece,  Italy,  Cyprus,  Malta,  and  the  United 
Kingdom.  These  Member  States  had  set  up  tax  measures  favourable  to  the  pleasure  yacht  and 
aircraft industries that run counter to EU law. 

The VAT Directive allows for a special VAT scheme intended for farmers who are likely to encounter 
administrative  difficulties  in  applying  the  normal  VAT  rules.  The  Commission  took  action  against 
Germany,  which had applied this special scheme by  default to all farmers, including owners of large 
farms who would not encounter any such difficulties. 

One  of  the  benefits  of  the  internal  market  is  that  individuals  and  businesses  have  the  freedom  to 
move, operate and invest across national borders. As direct taxation is not harmonised across the EU, 
this  freedom  can  mean  that  some  taxpayers  manage  to  avoid  or  evade  tax  in  their  country  of 
residence. Tax authorities in the EU have therefore agreed to cooperate more closely to ensure that 
taxes  are  paid  and  to  fight  tax  fraud  and  tax  evasion.  This  cooperation  has  been  enshrined  in  the 
Directive  on  administrative  cooperation.  In  an  increasingly  globalised  environment,  this  directive 
enables  Member  States  to  ensure  that  all  their  taxpayers  pay  their  fair  share  of  taxes.  It  is  the  core 
transparency tool to combat tax evasion practices brought to light by the cases of LuxLeaks as well as 
the Panama and Paradise Papers. 

The Commission’s enforcement action in 2018 focused on ensuring that Member States implemented 
important amendments to the directive on administrative cooperation concerning access to anti-money 
laundering  information,  the  automatic  exchange  of  financial  account  information  and  administrative 
cooperation on taxation. 

The  European  Commission  pursued  further  the  infringement  procedures  against    Ireland,  Greece, 
Cyprus,  Luxembourg  and  Romania  for  failing  to  implement  measures  on  access  to  anti-money 
laundering  information  on  time.  The  Commission  also  took  action  against  Czechia  for  not  correctly 
implementing EU rules on the automatic exchange of financial account information. 

In 2018, the Commission closed infringement procedures against Belgium (over the higher yearly tax 
rate on foreign professional investment funds) and Portugal (regarding exit taxes for individuals) after 

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they aligned their tax rules with the requirements of EU legislation. 

Ensuring a high level of protection for consumers 

In  April  2018,  the  Commission  proposed  a 
New  Deal  for  Consumers  to  ensure  that  all 
European  consumers  fully  benefit  from  their 
rights  under  EU  law.  Under  the  proposed 
New  Deal,  qualified  entities,  such  as 
consumer  organisations,  will  be  able  to  seek 
compensation,  replacement  or  repair  on 
behalf  of  a  group  of  consumers  that  have 
suffered  grievances  by  illegal  commercial 
practices. 

For example, in a Dieselgate-type scenario, victims of unfair commercial practices, such as misleading 
advertising  by  car  manufacturers  that  is  not  in  line  with  type-approval  or  environmental  legislation, 
would, under the proposed New Deal, be able to obtain remedies collectively through a representative 
action. At present, EU law does not yet offer the possibility of collective redress. 

The New Deal for Consumers will strengthen consumer rights online, tackle dual quality of consumer 
products and improve conditions for businesses. 

In  2018,  the  Commission  also  monitored  how  Member  States  implemented  the  Linked  Travel 
Arrangements Directive into their national laws. 

The  Commission  launched  infringement  procedures  against  14  Member  States  that  failed  to  comply 
with their obligations under this directive. 

During  2018,  the  Commission  also  took  measures  to  improve  the  application  of  EU  legislation  on 
consumer  alternative  and  online  dispute  resolution.  This  included  improvements  to  the  European 
Online  Dispute  Resolution  platform.  The  Commission  organised  the  first-ever  Assembly  of  the 
European  Alternative  Dispute  Resolution  community,  with  more  than  350  participants.  It  also  held 
workshops  with  national  consumer  authorities  to  prepare  for  the  new  Consumer  Protection 
Cooperation Regulation, which will become applicable in 2020. 

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Ensuring a high level of protection of public health 

In  2018,  the  Commission  continued 
to  monitor  how  Member  States 
implemented  the  provisions  of  the 
Tobacco  Products  Directive  in  their 
national  law.  This  directive  aims  to 
reduce  tobacco  use,  particularly  by 
discouraging  young  people 
from 
taking up smoking, and ensuring that 
the  public 
the 
is 
harmful effects of tobacco.  

fully  aware  of 

A  reduction  in  tobacco  consumption 
of  just  2 %  translates  into  annual 
healthcare  savings  of  approximately 
€506 million across the EU. 

In  2018,  the  Commission  closed  infringement  procedures  against  Bulgaria,  France,  Latvia,  Hungary 
and Finland as they took measures to implement the Tobacco Products Directive in their national law. 

The  right  of  patients  to  access  safe  and  high-quality  healthcare  in  other  EU  countries  remained  a 
priority  for  the  Commission  in  2018.  The  Commission  closely  monitored  the  implementation  of  the 
Cross-border Healthcare Directive. 

The European Citizens Initiative in 2017 calling for the prohibition of glyphosate showed  that there is 
widespread public interest in the safe and sustainable use of pesticides. For the Commission, this is 
an  important  public  health  and  environmental  issue.  In  2018,  the  Commission  undertook  a  series  of 
audits  of  Member  States  to  check  on  their  use  of  pesticides.  The  Commission  will  report  to  the 
European Parliament and Council on progress in implementing the Directive on the sustainable use of 
pesticides later in 2019. 

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Enforcing the rules on mobility and transport 

In  2018,  the  Commission  focused  its 
enforcement  efforts  on  three  areas: 
transport  safety,  digitalisation  through 
the development of intelligent transport 
systems,  and  completion  of  the  Single 
Market in transport. 

Safety  remains  of  primary  concern  for 
transport  system.  Creating  an 
any 
environment 
is 
for  safe 
essential  for  the  public.  One  of  the 
roles  of  the  Commission  is  to  respond 
to  these  expectations  by  ensuring  that 
standards  are 
satisfactory 
implemented  in  the  entire  EU  for  all 
modes  of  transport.  These  safety  standards  help  to  significantly  reduce  the  number  of  transport 
accidents. 

transport 

safety 

In rail transport, EU rules require Member States to establish an independent safety authority and an 
independent  accident  and  incident  investigation  body.  Moreover,  Member  States  are  required  to 
define common railway safety principles. 

The  Commission  requested  Germany  and  Bulgaria  to  fully  implement  EU  legislation  on  rail  safety. 
Germany  had  failed  to  ensure  that  its  regional  transport  networks  are  subject  to  the  safety 
requirements set out by EU rules. Bulgarian legislation still does not guarantee that investigations into 
serious rail accidents and incidents are carried out by an independent investigating body. 

In  the  maritime  sector,  EU  rules  aim  to  ensure  that  seafarers’  training  standards  are  respected 
across the EU and are in line with standards already agreed at international level. 

The Commission urged Spain, Malta and Latvia to comply with the EU rules on the minimum level of 
training  of  seafarers.  Latvia  did  not  apply  relevant  international  standards  to  near-coastal  voyages, 
while  Spain  presented  a  number  of  shortcomings  regarding  seafarer  certification  and  the  design  of 
maritime  programmes.  In  Malta’s  case,  the  quality  management  system  implemented  by  one  of  its 
approved maritime training and education institutions did not cover all its maritime training courses. 

In the air transport sector, the Commission ensured that Member States are correctly implementing 
the EU rules on aviation statndards.   

The Commission called on Hungary to step up its monitoring of the way air operations are carried out. 
It also took action against Ireland for failing to comply with some of the European requirements on the 
reporting, in particular by aviation professionals, of incidents in civil aviation, and on the analysis and 
follow-up of these incidents. 

A  Commission  inspection  of  the  Greek  civil  aviation  authority  revealed  that  entities  responsible  for 
implementing  aviation  safety  standards  in  Greece  were  not  regularly  monitored.  The  Commission 
requested Greece to carry out appropriate monitoring. 

 In  the  coming  years,  the  digitalisation  of  transport  is  expected  to  take  a  leap  forward  and  to  make 
transport safer, more efficient and more sustainable. Intelligent transport systems are gradually being 
developed.  However,  the  potential  of  such  systems  can  be  achieved  only  if  they  are  deployed 
effectively and if travel information and management are coordinated at EU level. 

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The Commission opened infringement procedures against  nine Member States that failed  to  provide 
minimum  universal  traffic  information  on  road  safety  to  users  for  free.  It  also  pursued  infringement 
procedures against seven Member States that failed to fulfil their obligations to provide EU-wide real-
time  traffic  information  services.  Finally,  it  called  on  six  Member  States  to  implement  rules  on  the 
Intelligent Transport Systems. 

The  Commission  also  verified  that  Member  States  could  effectively  exchange  information  on 
tachograph cards through the European TACHOnet system. The tachograph is a device that records 
the driving time, the breaks and rest periods and the periods of other work done by a driver. 

The Commission requested 10 Member States to comply with EU rules on the interconnection of the 
national electronic registers of tachograph cards. 

A fully functioning internal transport market can be achieved only if there are no unjustified obstacles 
to the provision of transport services. In the road sector, the haulier market is crucial for the transport 
of goods in the EU and is an important sector for small and medium-sized companies. 

The Court of Justice confirmed that Spain discriminated against small hauliers by excluding them from 
the  road  transport  market.  Spain  required  them  to  have  a  fleet  of  at  least  three  vehicles  to  obtain  a 
transport licence. Moreover, the Commission took action against Denmark, whose truck-parking rules 
limit the parking time to 25 hours. These rules make it difficult for truck drivers to respect rest rules. As 
these  rules  mainly  affect  non-resident  hauliers,  they  constitute  unjustifiable  indirect  discrimination  on 
grounds of nationality. 

Greater integration of the transport sector is essential to completing the internal market. Railways are 
a  vital  part  of  the  EU  transport  sector  and  of  the  move  towards  sustainable  mobility.  In  2018,  the 
Commission  launched  an  overall  assessment  of  the  conformity  of  national  laws  with  the  EU  legal 
instrument establishing a single European railway area. 

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5.  A deeper and fairer Economic and Monetary Union 

A  ‘deeper  and  fairer  Economic  and  Monetary  Union’  is  a  fundamental  part  of  the  Commission’s 
response to the economic and financial crisis. This policy aims to strengthen the EU economy in a way 
that creates more jobs and improves people’s living standards. 

Enforcing the Economic and Monetary Union rules 

The Economic and Monetary Union is at the core of 
integration  process.  Achieving  an 
the  EU’s 
Economic and Monetary Union is not an end in itself 
but  a  means  to  provide  stability  and  stronger, 
sustainable  and  inclusive  growth  across  the  euro 
area and the EU as a whole. 

In 2018, the Commission continued to pay  particular  attention to the  implementation of the  Directive 
on requirements for budgetary frameworks of the Member States. 

Moreover,  the  euro  can  only  be  a  strong  and  trustworthy  currency  in  the  eyes  of  the  public  and 
businesses if it is adequately protected against counterfeiting. 

In  2018,  the  Commission  continued  its  legal  action  against  Belgium,  Bulgaria,  Croatia,  Ireland, 
Greece,  Luxembourg,  Malta,  Slovakia  and  Slovenia  for  not  implementing  the  EU  rules  on  the 
protection of the euro and other currencies against counterfeiting by criminal law. 

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Enforcing the Banking Union rules 

the  Banking  Union, 

Under 
the 
Commission  continued  to  check 
Member  States’  implementation  of 
the Capital Requirements Directive 
IV, 
the  Deposit  Guarantee 
Schemes  Directive  and  the  Bank 
Recovery and Resolution Directive. 
These  EU 
to 
ensure that banks are stronger and 
that 
better 
problems  can  be  resolved  more 
easily  without  using 
taxpayers’ 
money. 

instruments  aim 

supervised 

and 

In  July  2018,  the  Commission  decided  to  refer  Spain  to  the  Court  of  Justice  of  the  EU  for  failing  to 
adopt the national measures necessary to fully transpose the Capital Requirements Directive. As the 
Spanish  authorities  took  steps  to  ensure  full  transposition  of  the  directive,  the  Commission  decided 
that the execution of the referral should be put on hold, pending the adoption of the amending laws.  

The  Commission  also  continued  to  verify  that  Member  States  respect  the  independence  and 
autonomous functioning of central banks. 

In  2018,  the  Commission  continued  its  legal  action  against  Slovenia  for  failing  to  respect  the 
inviolability of the European Central Bank’s archives. 

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2018 Annual Report 

6.  An area of justice and fundamental rights based on mutual trust 

In the area of justice, the Commission makes sure that the rule of law and the Charter of Fundamental 
Rights  are  fully  respected.  It  also  ensures  the  respect  of  specific  rights,  such  as  the  right  of  free 
movement,  data  protection,  gender  equality,  non-discrimination,  victims’  rights  and  the  right  to  a  fair 
trial in criminal proceedings. These topics are high on the Commission’s agenda as they directly affect 
people’s lives. 

the  effectiveness  of 

their  enforcement  capacities.  This  particularly  concerns 

Under the  European  Semester exercise, the Commission continued to  encourage Member States to 
improve 
the 
independence,  quality  and  efficiency  of  their  national  justice  systems.  To  this  end,  the  Commission 
proposed  country-specific  recommendations  for  five  Member  States,  then  adopted  by  the  Council. 
Through  the  EU  Justice  Scoreboard,  the  Commission  monitors  the  independence,  quality,  and 
efficiency  of  national  justice  systems.  In  May  2018,  the  Commission  also  proposed  a  Regulation  on 
the protection of the Union’s budget in case of generalised deficiencies as regards the rule of law in 
the  Member  States.  Respect  for  the  rule  of  law  is  an  essential  condition  for  sound  financial 
management. 

Upholding the rule of law and fundamental rights 

the  Commission 
In  2018, 
pursued  its  efforts  to  promote 
and uphold respect for the rule 
of law across the EU. 

In  particular,  the  Commission 
continued its dialogue with the 
Polish  authorities  under  the 
rule  of  law  framework.  The 
General  Affairs  Council  held 
three  hearings  with  Poland 
under this framework. 

The  Commission  referred  Poland  to  the  Court  of  Justice  for  breaches  of  the  principle  of  judicial 
independence caused by the Polish law on the Supreme Court. The Commission asked the Court to 
order interim measures until it has issued a judgment on the case. The Court granted the requested 
interim measures. 

On  12 September  2018,  the  European  Parliament  triggered  the  ‘rule  of  law’  procedure  against 
Hungary  under  Article 7(1)  of  the  Treaty  on  European  Union  (TEU).  The  Commission  shares  the 
concerns  expressed  in  the  Parliament’s  report,  in  particular  over  fundamental  rights,  corruption, 
treatment of Roma and the independence of the judiciary. Under the Article 7(1) TEU procedure, and 
at  the  request  of  the  Council,  the  Commission  provided  factual  information  on  the  relevant  ongoing 
infringement proceedings against Hungary. 

The  Commission  launched  a  further  infringement  procedure  against  Hungary  over  its  legislation 
criminalising activities in support of asylum and residence applications and further restricting the right 
to request asylum. 

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Monitoring the application of European Union law 
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Improving data protection 

States 

support  Member 

In 2018, the Commission  pursued its  work 
to 
and 
stakeholders  in  applying  the  new  rules  of 
the  General  Data  Protection  Regulation, 
applicable  since  25 May  2018.  The  single 
set  of  data  protection  rules  is  directly 
throughout 
the  EU  and 
applicable 
guarantees 
flow  of  data, 
free 
the 
strengthens  individuals’  trust  and  security 
and establishes uniform rules for business. 
The  Commission  organised  meetings  with 
national  authorities,  industry,  practitioners  and  the  European  Data  Protection  Board.  It  also  adapted 
the Internal Market Information system (IMI), which can be used by data protection authorities to assist 
each other and to coordinate decision making in cross-border cases. 

By  May  2018,  Member  States  needed  to  implement  the  Directive  concerning  processing  and  free 
movement of personal data for the purposes of the prevention, investigation, detection or prosecution 
of criminal offences or the execution of criminal penalties. Victims, witnesses and suspects of crimes 
are duly protected under a criminal investigation or  a law enforcement action. At the same time, the 
new  provisions  facilitate  cross-border  cooperation  by  police  or  prosecutors  in  combating  crime  and 
terrorism. 

In July 2018, the Commission initiated legal action against 19 Member States for not transposing this 
directive in their national legislation on time. 

Combating discrimination 

equality 

In  June  2018, 
the  Commission 
adopted  a  Recommendation  on 
standards  for  equality  bodies.  It 
encourages  the  Member  States  to 
strengthen 
bodies’ 
independence  and  effectiveness. 
This  should  help  the  bodies  in 
carrying  out 
tasks  of 
offering  independent  assistance  to 
victims  of  discrimination,  promoting 
equality,  conducting 
independent 
surveys  and  issuing  independent 
reports and recommendations. 

their  key 

The  Commission  closely  monitored  the  application  of  the  Racial  Equality  Directive,  a  key  EU  legal 
instrument for combating discrimination on grounds of racial or ethnic origin. The Commission focused 
its efforts on the Roma community’s access to education and housing. To this end, it organised fact-
finding missions in the Member States and meetings with stakeholders and with the relevant high-level 
groups of experts (including a subgroup focusing on equality data). 

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Monitoring the application of European Union law 
2018 Annual Report 

Enforcing the rules in the area of security 

In 2018, enforcement work continued under the European Agenda on Security and the development of 
the Security Union. The implementation of the EU rules in this area is key to ensuring a high level of 
security throughout the EU. The regular progress reports on the Security Union refer to ongoing efforts 
to ensure the full and correct implementation of the rules. 

The  directives  on  the  European  Investigation 
Order  in  criminal  matters  and  the  Fourth  Anti-
Money Laundering Directive are essential tools for 
effective  cooperation  in  combating  cross-border 
crime and terrorism. These directives contribute to 
the goals of the security agenda. 

In  2018,  the  Commission  pursued  infringement  procedures  against  the  Member  States  that  failed  to 
transpose the Fourth Anti-Money Laundering Directive in their national legislation. It took  Ireland and 
Romania to the Court of Justice for this reason. 

The  European  Investigation  Order  simplifies  the  work  of  judicial  authorities  when  they  request 
evidence located in another EU country. 

The  Commission  took  further  action  in  the  infringement  procedures  against  Bulgaria,  Spain, 
Luxembourg  and  Austria  for  not  implementing  the  EU  rules  on  the  European  Investigation  Order  in 
criminal matters. 

In 2018, the Commission monitored Member States’ implementation of two key directives on security 
and  fighting  serious  crime:  the  Passenger  Name  Record  Directive  and  the  Directive  on  combating 
terrorism. 

The  Commission  launched  infringement  procedures  against  14  Member  States  for  not  transposing  
the  Passenger  Name  Record  Directive  on  time.  It  also  launched  procedures  against  16  Member 
States for failing to transpose the Directive on combating terrorism on time. 

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Monitoring the application of European Union law 
2018 Annual Report 

7.  Towards a new policy on migration 

The  Commission’s  migration  policy  seeks  to  equip 
the EU with the tools to better manage migration in 
the  medium  and  long  term.  It  covers  irregular 
migration,  border  protection,  asylum  and  legal 
migration. 

In  2018,  the  Commission  continued  to  monitor 
Member  States’  implementation  of  EU  migration 
and  asylum 
the  Asylum 
Procedures  Directive,  the  Reception  Conditions 
Directive and the Return Directive. These directives 
establish  rules  on  processing  asylum  claims, 
guarantee a dignified standard of living for asylum seekers in the EU and set common standards and 
procedures under which non-EU nationals staying illegally may be removed from the territories of EU 
countries. 

in  particular 

law, 

The Commission referred Hungary to the Court of Justice over its 2017 asylum and return legislation. 
The  Commission  considers  that  the  Hungarian  legislation  does  not  comply  with  the  Asylum 
Procedures  Directive,  the  Reception  Conditions  Directive,  the  Return  Directive  and  with  several 
provisions  of  the  Charter  of  Fundamental  Rights.  The  Commission  also  initiated  an  infringement 
procedure against Bulgaria on the compatibility of Bulgarian asylum legislation with EU law. 

On legal migration, the Commission’s priority is to improve the EU’s ability to attract and retain highly-
skilled  workers.  It  is  therefore  important  to  ensure  that  the  directives  on  legal  migration  are 
implemented fully and correctly. They establish common conditions for the admission and residence of 
non-EU nationals. 

In  2018,  the  Commission  launched  infringement  procedures  against  17  Member  States  for  failing  to 
implement the Students and Researchers Directive on time. 

The Commission also continued to check that Member States do not charge disproportionate fees for 
issuing residence permits to non-EU nationals. 

The Commission launched an infringement procedure against the Netherlands for charging excessive 
and disproportionate fees for residence permits under EU legal migration rules. 

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