REPORT FROM THE COMMISSION Monitoring the application of European Union law 2019 Annual Report
Date: 2020-07-31
Institutions: European Commission, Secretariat-General
Subjects: EU Member State, EU employment 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, 31.7.2020  COM(2020) 350 final  REPORT FROM THE COMMISSION Monitoring the application of European Union law   2019 Annual Report {SWD(2020) 147 final}  
 
 
Monitoring the Application of European Union Law 
2019 Annual Report 

FOREWORD .................................................................................................................................................................................................................................... 2 

I. 

A NEW BOOST FOR JOBS, GROWTH AND INVESTMENT ......................................................................................................................... 3 

Ensuring fair working conditions across the EU .......................................................... 3 
Enforcing environmental rules ................................................................................. 4 
Enforcing agricultural rules ...................................................................................... 5 
Enforcing rules on maritime affairs and fisheries ........................................................ 5 
Enforcing rules on regional policy ............................................................................. 6 
Fighting fraud against the EU budget ........................................................................ 6 
A CONNECTED DIGITAL SINGLE MARKET ........................................................................................................................................................ 7 

Improving connectivity ........................................................................................... 7 
Guaranteeing cybersecurity and trust in online transactions ........................................ 8 
Better accessibility for people with disabilities............................................................ 8 
A RESILIENT ENERGY UNION WITH A FORWARD-LOOKING CLIMATE CHANGE POLICY ........................................................ 9 

Implementing the Paris Agreement on climate change .............................................. 10 
A DEEPER AND FAIRER INTERNAL MARKET WITH A STRENGTHENED INDUSTRIAL BASE ................................................. 12 

Ensuring undistorted competition ........................................................................... 12 
Ensuring free movement of workers ....................................................................... 12 
Ensuring free movement of goods .......................................................................... 13 
Ensuring freedom of establishment and free movement of services ............................ 14 
Improved information and assistance for citizens and businesses ............................... 15 
Enforcing the Capital Markets Union, financial services rules and free movement of capital ......... 15 
Enforcing rules on taxation and customs ................................................................. 16 
Ensuring a high level of protection for consumers .................................................... 18 
Ensuring a high level of protection of public health ................................................... 19 
Enforcing rules on mobility and transport ................................................................ 20 
A DEEPER AND FAIRER ECONOMIC AND MONETARY UNION ............................................................................................................ 22 

Enforcing Banking Union rules ............................................................................... 22 
AN AREA OF JUSTICE AND FUNDAMENTAL RIGHTS BASED ON MUTUAL TRUST ................................................................... 23 

Upholding rule of law and fundamental rights .......................................................... 23 
Cross-border cooperation in criminal and civil justice ................................................ 24 
Improving the protection of personal data ............................................................... 24 
Enforcing rules on security .................................................................................... 25 
TOWARDS A NEW POLICY ON MIGRATION.................................................................................................................................................. 26 

II. 

III. 

IV. 

V. 

VI. 

VII. 

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Monitoring the Application of European Union Law 
2019 Annual Report 

Foreword 

The European Union is founded on the respect of the rule of law. It was no coincidence that the 
first President of the European Commission, Walter Hallstein, referred to the European Union as a 
Community of law (Rechtsgemeinschaft) – bound by rules that Member States agree upon as co-
legislators and subscribe to implement in their national systems. As Guardian of the Treaties, it is 
the Commission’s task to ensure that these rules are upheld to the benefit of our citizens. Whether 
it  concerns  clean  air,  food  safety  or  access  to  health  care  abroad,  the  cooperation  of  Member 
States is key to ensure that EU policies become a reality for people in their every day lives. 

This annual report provides an account of the Commission’s work to ensure the correct application, 
implementation and enforcement of EU law in 2019.  

The year 2019 marked the end of the Juncker Commission and, as of 1 December, the beginning 
of my team’s mandate. In many ways, 2019 has thus been a year of transition. A new team of 
Commissioners  took  up  their  duties,  working  under  new  Political  Guidelines  and  steering  new 
initiatives, such as the European Green Deal and the Digital Agenda.  

Throughout  this transition,  the  foundations that  keep  our Union  together  have  not  changed.  The 
correct  application  and  enforcement  of  EU  law,  including  the  respect  of  fundamental  rights  and 
the rule of law remains a shared responsibility of Member States and EU institutions. Upholding 
EU  law  can  never  be  a  one-way  street  but  is  based  on  the  sincere  cooperation  of  our  Member 
States  –  in  the  interest  of  the  citizens  whom  we  serve.  Nurturing  this  special  partnership,  the 
Commission will continue to provide support and issue guidance to Member States to help them 
implement EU law. We will nevertheless remain vigilant and we will be ready to take determined 
legal action if EU law is breached. There can be no compromise when it comes to the application 
and enforcement of EU law to uphold citizens’ rights that derive from it.   

President of the European Commission 

Ursula von der Leyen 

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Monitoring the Application of European Union Law 
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I.  A new boost for jobs, growth and investment 

The  Commission’s  first  priority  last  year  was  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 the EU 

The European Pillar of Social Rights, proclaimed in November 2017 by the European Parliament, 
the Council and the European Commission, expresses the joint political commitment to a number 
of principles and rights that are essential for fair and well-functioning labour markets and welfare 
systems  in  21st  century  Europe.  One  key  element  is  fair  working  conditions,  which  includes  the 
prevention of employment relationships that lead to precarious working conditions. 

In  July  2019,  the  Commission  took  action  against  Italy,  as  it  considered  that  public  sector 
workers  are  not  sufficiently  protected  against  abusive  successive  fixed-term  contracts  and 
discrimination, as required under EU rules (Council Directive 1999/70/EC). 

During 2019, the Member States, the Commission and social partners continued their cooperation 
to  make  EU  occupational  safety  and  health  legislation  future-proof  and  to  ensure  proper 
compliance.  A  strong  focus  was  on  ensuring  that  Member  States  have  in  place  binding 
occupational safety and health rules in their national legislation and that they communicate them 
to the Commission.  

The  Commission  also  regularly  updates  the  Interpretative  Communication  on  the  Working  Time 
Directive in line with important developments in the case-law of the Court of Justice.  

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2019 Annual Report 

Enforcing environmental rules 

In  2019,  the  Commission  continued  its  legal  action  to  combat  air  pollution,  which  remains  a 
priority.  The  Commission  also  promoted  implementation  through  discussions  with  the  Member 
States on this important topic – a clean air dialogue was held in Italy in 2019.  

In  2019,  the  Commission  took  another  three  Member  States  to  the  Court  of  Justice  over 
excessive  levels  of  nitrogen  dioxide  (NO2)  or  sulfur  dioxide  (SO2)  in  the  air  (Italy,  Spain  and 
Bulgaria). 

The Court of Justice upheld the action brought by the Commission against France over nitrogen 
dioxide (NO2) pollution and, in another ruling, the Court provided an important interpretation of 
the  Ambient  Air  Quality  Directive  -  national  courts  have  jurisdiction  to  review  the  choice  of 
location of air quality measuring stations. 

The Commission organises  events on circular economy in Member States that are at risk of not 
reaching the new waste recycling targets and other requirements of EU waste legislation. In 2019, 
such events were held in Athens, Lisbon and Budapest, and top experts offered recommendations 
on how best to implement the rules that were revised in 2018.  

The Commission referred Italy, Cyprus and Sweden to the Court of Justice in 2019 for failing to 
meet  their  obligations  on  urban  waste  water  treatment.  Under  EU  legislation,  proper  waste 
water collecting systems must be in place, and this water must be adequately treated. 

Member States must complete the Natura 2000 network of protected areas and put in place the 
necessary  conservation  measures  for  all  sites.  This  is  key  for  the  conservation  of  protected 
habitats and species. In parallel, the Commission took action in 2019 to remedy structural flaws in 
national laws on nature protection and to stop illegal bird hunting. The Commission is also focused 
on  ensuring  that  logging  and  forest  management  activities  are  carried  out  in  compliance  with 
nature protection requirements.  

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The  Commission  launched  infringement  procedures  against  17  Member  States  in  March, 
October  and  November  to  improve  the  implementation  of  the  EU  Environmental  Impact 
Assessment Directive, which was updated in 2014 to reduce administrative burden and improve 
the  level  of  environmental  protection,  while  making  public  and  private  investment  decisions 
more sound, predictable and sustainable. 

Enforcing agricultural rules 

The  common  agricultural  policy  (CAP)  is  built  on  a  partnership  between  agriculture  and  society, 
and between the EU  and its farmers. Its purpose is to support farmers and improve agricultural 
productivity, to ensure a stable supply of affordable food and to make sure that European Union 
farmers  make  a  reasonable  living.  The  CAP  also  addresses  environmental  challenges,  including 
climate change. It aims at managing natural resources in a sustainable manner, maintaining rural 
areas  and  landscapes  across  the  EU,  and  keeping  the  rural  economy  alive by  promoting  jobs  in 
farming and related sectors. 

Geographical  indications protect  the  name  of 
specific  products  and  promote  their  unique 
characteristics,  which  are 
linked  to  their 
geographical  origin  as  well  as  traditional 
know-how  and  are  a  key part  of  maintaining 
high food quality and standards.  

In  2019,  the  Commission  took  action  to 
address  the  incorrect  implementation  of  EU 
rules  on  the  protection  of  designations  of 
origin and geographical indications. 

Denmark allowed Danish companies to produce and export white cheese to non-EU countries 
as  ‘feta’,  even  though  it  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,  contrary  to  the  exclusive  character  of  the  EU-wide 
registers for quality schemes. 

Enforcing rules on maritime affairs and fisheries 

is 

the 

that 
are 

to  ensure 
sectors 

The  primary  goal  of  the common  fisheries  policy 
fishing  and 
(CFP) 
environmentally, 
aquaculture 
economically  and  socially  sustainable.  The  CFP 
therefore includes measures to restrict the fishing 
fleet  capacity  and  to  impose  limits  on  catches 
and  fishing  activities.  In  this  regard,  all  Member 
States  have  agreed  to  bring  commercial  fishing 
down  to  sustainable  levels  by  2020.  In  2019,  a 
particular 
focus  was  placed  on  verifying 
compliance  with  rules  on  by-catches  of  sensitive 
species such as whales, dolphins and other marine mammals.  

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The  Commission  launched  a  series  of  informal  dialogues  on  issues  such  as  engine  power 
verification systems and control of the EU fleet fishing outside EU waters.  

The  success  of  the  CFP  requires  the  design  and  implementation  of  an  effective  and  coherent 
system  of  control  and  enforcement.  For  this  reason,  the  Commission’s  enforcement  strategy  in 
2019 continued to focus on fisheries conservation, control and enforcement by Member States.  

The Commission followed up on its infringement procedure against Denmark over its failure to 
enforce  several  important  provisions  of  the  EU  Control  Regulation.  The  most  serious  issues 
concern fisheries for industrial purposes. Proper controls are essential to make sure that catch 
registration documents are accurate, which is necessary to prevent overfishing.  

The CFP also offers specific tools for enforcement, such as control action plans and administrative 
inquiries. On the basis of verifications and audits carried out by the Commission, the Commission 
adopted and followed up on a variety of control action plans.  

Enforcing rules on regional policy 

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

In  2019,  the  Commission  continued  to  ensure 
that  irregular  expenditure  is  withdrawn  from 
co-financing, either by suspending payments or 
by applying financial corrections in some cases.  

laying  down 

On  14  May  2019,  the  Commission  adopted  a 
the  guidelines  for 
Decision 
determining financial corrections to be made to 
expenditure  financed  by  the  Union  if  public 
procurement rules are not followed. 

This Decision offers more legal certainty for all 
actors  and  a  more  proportionate  approach  in 
the  complex  area  of  public  procurement,  which  remains  a  major  source  of  irregularities  and 
financial corrections for Cohesion Funds.  

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 Directive will also be 
the substantive base for the work of the European Public Prosecutor's Office. The Commission is 
working closely with the Member States to ensure that the Directive is implemented properly. On 
19  September  2019  it  opened  infringement  procedures  against  14  Member  States  for  late 
transposition. 

In  two  cases  brought  to  the  Court  by  the  Commission  against  the  United  Kingdom  and  the 
Netherlands,  the  Court  held  that  these  countries  had  not  complied  with  their  duty  of  sincere 
cooperation under the Treaty as they had failed to compensate for the loss of own resources 
resulting from the wrongful issue of export certificates by the local authorities of their Overseas 
Countries and Territories (OCT). The Court concluded that the two Member States concerned are 
liable,  vis-à-vis  the  European  Union,  for  any  error  committed  by  the  authorities  of  their  OCTs 
that led to a shortfall of traditional own resources. 

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II.  A connected digital single market 

The  digital  single  market  strategy  addresses  the  challenges  and  opportunities  of  the  digital 
transformation by reducing market fragmentation, increasing data flows and market fluidity, and 
adapting  existing  rules  to  the  digital  age.  Consumer  access  has  improved  through  the  ban  on 
unjustified Geo-blocking, portability of content, the end of roaming charges, and WiFi4EU. Market 
framework conditions have been bettered through the  new European Electronic Communications 
Code, the Directive on Audio-visual and Media Services, the updated copyright legislation and the 
Regulation on Platforms. Enforcing these rules will be essential over the coming years.  

Improving connectivity 

High-speed  digital  communications  foster 
the 
innovation  and  better  services  for 
economy  and  for  society  as  a  whole.  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 effective application of rules concerning 
the Europe-wide emergency number 112 will 
to 
deliver  safe  and  effective  access 
emergency  services  for  end  users,  including 
for those with disabilities.  

In  2019,  the  Commission  launched  infringement  proceedings  against  Czechia,  Germany, 
Greece, Spain and Croatia because they had failed to ensure equivalent access for users with 
disabilities, as required by the rules on the 112 emergency number.  

Building  high-speed  electronic  communications  infrastructure  can  be  very  costly.  Therefore,  it  is 
important  to  implement  the  rules  that  make  deployment  cheaper  and  more  efficient,  to  the 
benefit of the public.  

In 2019, the Court imposed, at the request of the Commission, a daily penalty on Belgium for 
having  only  partially  transposed  measures  to  reduce  the  cost  of  deploying  high-speed 
electronic communications networks in the Brussels region.  

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Guaranteeing cybersecurity and trust in online transactions 

In an increasingly digitised economy and society, cybersecurity threats are a growing concern. The 
Directive on the Security of Network and Information Systems (NIS Directive) improves the Union’s 
overall level of cybersecurity. The Commission launched infringements against 6 Member States in 
2019 for not having identified operators of essential services under that Directive. At the end of 

2019,  infringement  procedures  on  the  NIS  Directive  were  still  ongoing  against  the  following 
Member States: Belgium, Hungary, Austria, Romania and Slovenia.  

Better accessibility for people with disabilities 

People with disabilities, especially those with vision or hearing impairments, may have difficulty 
accessing  websites  and  mobile  applications  of  public  bodies.  The  aim  of  the  Web  Accessibility 
Directive is to improve access to these information tools for people with disabilities. Throughout 
2019, the Commission actively pursued the ongoing infringement procedures against 19 Member 
States for their failure to implement the Web Accessibility Directive and eventually closed cases 
against  12  Member  States.  As  a  result,  7  cases  remained  open  at  the  end  of  2019,  against 
Belgium, Bulgaria, Germany, Ireland, Hungary, Austria and Slovakia. 

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

The success of the European Green Deal, a priority area of the Political Guidelines of President von 
der Leyen, relies on the solid foundations of the Energy Union. The EU has a comprehensive set of 
energy  rules.  The  ‘Clean  Energy  for  All  Europeans’  package,  completed  in  2019,  is  central  to 
developing and delivering the Energy Union and the European Green Deal. It will help to lead the 
energy transition towards a safe, secure and sustainable energy sector with the consumer at the 
centre. 

The  Commission’s  role  as  guardian  of  the  Treaties  in  ensuring  the  correct  implementation  and 
application of EU energy rules is vital to achieve EU energy policy goals. The enforcement action in 
2019  focused  on  the  following  main  areas:  the  internal  energy  market,  energy  efficiency, 
renewable energy sources and security of gas supply. 

The Commission decided to refer Czechia and Slovenia to the Court of Justice for the incorrect 
transposition  and  application  of  certain  provisions  of  the  Energy  Performance  of  Buildings 
Directive.  The  Commission  also  decided  to  refer  Spain  to  the  Court  of  Justice  for  failure  to 
comply  with  the  Energy  Efficiency  Directive  and  Belgium  for  the  incorrect  transposition  of 
directives on the internal market for electricity and gas. 

The  Commission  launched  new  procedures  against  13  Member  States,  in  January,  July  and 
November,  for  failure  to  adopt  and/or  notify  transposition  measures  under  the  Indirect  Land 
Use  Change  Directive  and  launched  infringement  procedures  against  15  Member  States  for 
failure to correctly implement the EU rules on energy efficiency. 

Moreover,  infringement  procedures  were  used  to  ensure  a  high  level  of  safety  in  the  nuclear 
sector and to enforce EU rules on nuclear safety, responsible and safe management of spent fuel 
and radioactive waste and the radiation protection of workers, patients and the general public. 

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In 2019, the Commission further pursued the 
infringements  against  5  Member  States  and 
decided  to  refer  Italy  to  the  Court  of  Justice 
for  failure  to  transpose  measures  under  the 
Basic Safety Standards Directive. The Court of 
Justice  also  upheld  the  Commission’s  claims 
Italy  for  having 
in  a 
breached 
the 
under 
Radioactive  Waste  Directive  to  notify  a  final 
adopted  national  programme  for  radioactive 
waste and spent fuel management. 

judgment  against 

requirement 

the 

With the entry into force of the ‘Clean Energy for all Europeans’ package, attention will  focus on 
monitoring the Member States’ progress in reaching the EU’s 2030 targets for renewable energy 
and  energy  efficiency.  The  Commission  will  also  monitor  their  integrated  national  energy  and 
climate plans for 2021 to 2030. Enforcing EU energy rules will remain an essential pillar of the 
Energy Union strategy. 

Implementing the Paris Agreement on climate change 

The Political Guidelines of the von der Leyen Commission call upon Europe to become the world’s 
first climate-neutral continent by 2050. Published in December 2019, the Communication on the 
European Green Deal sets out an ambitious action plan in a number of policy areas to achieve this 
goal. In March 2020, the Commission proposed that the 2050 climate neutrality be enshrined in a 
new  climate  law  and  later  in  the  year  will  present  a  plan  to  increase,  in  a  responsible  way,  the 
current  2030  target  for  reducing  greenhouse  gas  emissions  to  at  least  50%  and  towards  55% 
(from 1990 levels). 

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Fully  implemented  and  enforced  legislation  is  essential  to  reach  the  current  2030  target  of  at 
least a 40% reduction (from 1990 levels) and build a solid basis for raising the level of ambition. 
By October 2019, Member States were meant to have transposed the Directive to enhance cost-
effective emission reductions and low-carbon investments in order to prepare for phase 4 of the 
EU emission trading system (EU ETS) for 2021-2030. The Commission is currently reviewing the 
state  of  transposition  and  will,  where  not  already  under  way,  take  enforcement  action  as 
necessary.  

For shipping, in 2019 the Commission published, for the first time, comprehensive information on 
CO2 emissions from ships calling at ports in the European Economic Area. For aviation, in 2019 the 
Commission  laid  down  a  framework  allowing  for  implementation  in  the  EU  of  the  rules  for 
monitoring, reporting and verification of emissions from airplanes under the global market-based 
measure (CORSIA) of the International Civil Aviation Organisation. 

For  protection  of  the  ozone  layer,  in  2019  the  Commission  completed  the  evaluation  of  the 
implementation  and  performance  of  the  Ozone  Regulation,  and  in  2020  it  will  start  an  impact 
assessment  to  examine  if  and  how  this  Regulation  could  be  further  improved.  In  2020,  the 
Commission will also start the evaluation and impact assessment of the F-Gas Regulation. 

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

The  EU  single  market  remains  Europe’s  most  precious  asset  for  citizens  and  businesses.  It 
provides  enormous  opportunities  for  businesses,  and  a  greater  choice  and  better  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 Commission’s infringement work in the field of competition strengthens the internal market 
by promoting a level playing field. 

In 2019, after having verified  the completeness and conformity of the transposing measures of 
the Directive on certain rules governing actions for damages under national law for infringements 
of  the  competition  law  provisions  of  the  Member  States  and  of  the  European  Union,  the 
Commission  concluded  that  the  Directive  was  fully  and  correctly  transposed,  and  closed  all  the 
infringement proceedings it had started in this context.  

The consistent enforcement of negative State aid decisions is essential  for the credibility of the 
Commission's  State  aid  control.  Proceedings  that  require  a  Member  State  to  recover  irregular 
State aid are an important part of the Commission’s infringement work in the field of competition. 

The Commission decided to refer  Greece to the Court  of Justice for failing to comply with a 
2017 ruling. The Court had condemned Greece for failure to implement a 2014 Commission 
Decision requiring it to recover EUR 135.8 million of incompatible State aid from Larco General 
Mining & Metallurgical Company S.A. More than 5 years after the adoption of the Commission 
Decision and following the Court's judgment and the Commission's reminder, Greece had still 
not recovered the incompatible State aid. The Commission has now requested that the Court 
of  Justice  impose  financial  sanctions  on  Greece  for  having  failed  to  implement  the  Court’s 
ruling. 

Ensuring free movement of workers 

The EU has developed an extensive body of rules on the free movement of workers, the posting of 
workers and social security coordination. If these rules are not followed, trust and fairness in the 
single  market  are  undermined.  In  particular,  concerns  have  been  voiced  about  mobile  workers 
being vulnerable to abuse or being denied their rights, and about businesses having to operate in 
an uncertain, unclear or unfair business environment. 

The  Commission  received  complaints  about  Austrian  legislation  making  family  benefits  and 
family  tax  reductions  paid  for  children  residing  in  another  Member  State  dependent  on  the 
cost of living of that Member State. This means that many EU citizens who work in Austria and 
contribute to its social security and tax system in the same way as domestic workers receive 
fewer  benefits  simply  because  their  children  are  living  in  another  Member  State.  The 
Commission found that this indexation mechanism is not compatible with EU law. It therefore 
launched an infringement procedure against Austria.  

In 2019, the Commission continued infringements proceedings against Cyprus, France, Ireland, and 
Romania for failing to implement on time in their national legislation the obligations deriving from 
the Directive on minimum requirements for enhancing worker mobility between Member States by 

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improving  the  acquisition  and  preservation  of  supplementary  pension  rights.  Following  the 
notification by these Member States and the assessment that they had completely transposed the 
Directive, the Commission closed the proceedings against them. 

On 25 September 2019, the 
Commission  published  a 
report on the application and 
implementation 
the 
Enforcement  Directive  on 
Posting of Workers in the EU 
Member States. 

of 

The 
also 
Commission 
published  a  Practical  Guide 
on  Posting  of  Workers.  To 
help workers, employers and 
authorities 
national 
rules  on 
understand 
It 
posting 
ensures  that  workers  are  aware  of  their  rights  and  that  the  rules  are  correctly  and  consistently 
applied by national authorities and employers throughout the EU. 

of  workers. 

the 

In 2018, the Commission proposed the creation of a European Labour Authority (ELA) to promote 
the  fair,  simple  and  effective  enforcement  of  EU  rules  on  labour  mobility.  The  European 
Parliament  and  the  Council  reached  an  agreement  on  this  proposal  in  2019.  The  Labour 
Authority’s activities started in mid-October 2019 with the first meeting of the ELA Management 
Board.  

Ensuring free movement of goods 

that 

to 
The  Commission  works 
ensure 
the  European 
single  market  delivers  its  full 
benefits, that EU citizens have 
a  greater  choice  of  products 
and  better  prices,  and  that 
European  businesses  –  small 
and  large  –  can  expand  their 
trade 
customer  base  and 
products  more  easily  across 
the  EU.  For  example,  in  2019, 
the Commission took action on 
restrictions affecting both the retail sale of agricultural and food products, and the placing on the 
market of lightning conductors.  

The  Commission  referred  Hungary  to  the  Court  of  Justice  because  its  national  rules  on  the 
retail sale of agricultural and food products provide that the profit margin on these products 
must be the same, irrespective of their country of origin. This rule violates EU law on the free 
movement of goods, as it discourages sales of imported products in comparison to domestic 
products. 

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In the pharmaceutical sector, the Commission took action to ensure that Member States comply 
with EU rules on the free movement of goods. 

In  2019,  the  Commission  sent  a  reasoned  opinion  to  Germany  regarding  its  rules  on  fixed 
prices  for  prescription  medicines,  which  hampers  the  sale  of  products  by  pharmacies 
established in other EU Member States. 

The  Commission’s  enforcement  activities  also  led  to  the  successful  closure  of  several 
infringement cases related to free movement of goods in the areas of food supplements, right-
imported  second-hand  ambulances  or  national 
hand  drive  passenger  vehicles,  sale  of 
accreditation bodies.  

Ensuring freedom of establishment and free movement of services 

The Services Directive requires that national authorities review their existing legislation to ensure 
that  any  requirements  they  impose  on  market  access  are  justified  by  a  legitimate  objective.  To 
support the implementation of that Directive, one-stop shops are set up, namely points of single 
contact  (PSCs),  to  make  it  easier  for  businesses  to  establish  themselves  and  expand  in  other 
Member States. In 2019, the Commission took action against all 28 Member States to improve the 
service  provided  by  the  PSCs,  as  required  by  the  Services  Directive  and  the  Professional 
Qualifications Directive. Problems were found related,  in particular, to the online availability and 
quality  of  information  on  the  requirements  and  procedures  that  service  providers  and 
professionals  have  to  fulfil  if  they  want  to  do  business  abroad.  The  Commission  also  drew 
attention to problems with accessing and completing procedures online through the PSCs. 

To create a level playing field for businesses across Europe, the EU has adopted rules on public 
procurement that apply in all Member States. These rules govern the way public authorities and 
certain public utility operators across Europe purchase goods, works and services.  

In  2019,  the  Commission  took  action 
against  8  Member  States  for  not 
awarding  hydropower  authorisations  or 
concessions in line with EU law. All eight 
Member  States  failed  to  respect  the 
principles  of  transparency  and  equal 
treatment 
those 
awarding 
in 
authorisations and concessions. 

The  Commission  considered  that  the 
in  France  and 
procedures  followed 
Portugal 
hydropower 
concessions did not comply with EU rules 

award 

to 

on public procurement.  

The  Commission  also  took  the  view  that  Austria,  Germany,  Italy,  Poland,  Sweden  and  the 
United Kingdom, hydropower authorisations were not awarded in accordance with the Services 
Directive, which requires that when authorisations for a service activity are limited in number 
because natural resources are scarce, the authorisations must be granted for a limited period 
following an impartial and transparent selection procedure. These authorisations must not be 
automatically renewable. 

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Freedom  of  establishment  requires  that  the  qualifications  of  professionals,  such  as  doctors  or 
architects,  be  recognised  abroad,  enabling  them  to  set  up  a  practice  anywhere  in  the  EU.  The 
Commission  launched  infringement  procedures  against  all  Member  States  (except  Denmark)  in 
2019 for not bringing their legislation into line with the Professional Qualifications Directive. 

Improved information and assistance for citizens and businesses 

The  Single  Market  will  only  function  well  if  citizens  and  businesses  have  good  access  to 
information and assistance about their rights under EU law. In 2019, the Commission stepped up 
efforts to make Single Market rules better known by upgrading the Your Europe portal, in view of 
its transition to the future  single  digital  gateway in 2020. Your Europe  Advice also continued to 
provide tailor-made  legal  advice to citizens and businesses. The Commission further focused on 
actions to boost the administrative capacity and legal expertise of  SOLVIT in order to effectively 
implement the new business-friendly problem-solving procedure, where SOLVIT helps businesses 
in  case  mutual  recognition  of  their  product  is  denied.  This  new  procedure  started  to  apply  from 
April  2020.  Building  on  preparatory  work  done  in  2019,  the  internal  market  information  system 
will,  as  of  2020,  support  administrative  cooperation  under  the  new  Consumer  Protection 
Cooperation  (CPC)  Regulation.  This  information  system  will  help  the  CPC  Network  of  national 
consumer  authorities  to  protect  consumers  even  better.  Finally,  the  Commission  started  the 
process of upgrading the Single Market Scoreboard to cover more policy areas and to give a fuller 
picture of the state of the single market. 

In  the  field  of  justice,  the  Commission  regularly  updates  the  e-Justice  portal,  which  provides  a 
wealth of information and links on laws and practices in all EU countries.  

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

The  directives  adopted  in  the  wake  of  the  financial  crisis  must  be  properly  implemented  to 
increase the resilience and stability of the financial sector and to improve investor protection. The 
implementation of some of these directives is also important for completing the Capital Markets 
Union. The implementation of these directives (for example the  Solvency II Directive, the revised 
Markets  in  Financial  Instruments  Directive,  the  Occupational  Retirement  Provisions  Directive,  the 
Payment  Services  Directive,  the  Insurance  Distribution  Directive)  is  also  central  to  the  goal  of 
achieving  the  Capital  Markets  Union,  which  will  improve  access  to  finance,  in  particular  for 
innovative  companies,  start-ups  or  small  and  medium-sized  enterprises.  It  also  makes  capital 
markets  more  attractive  for  retail  and  institutional  investors,  and  facilitates  cross-border 
investment. In 2019, the Commission launched infringement procedures as 17 Member States had 
failed to implement the  Occupational  Retirement Provisions Directive in their national  legislation 
on time. 

The  Commission  pursued  the  infringement  procedure  against  Romania  for  not  aligning  its 
legislation  on  third-party  liability  motor  insurance  with  EU  rules.  Romania's  national  rules 
impose strict conditions on insurers in setting their premiums. The Commission considered that 
these  obligations  are  contrary  to  the  Solvency  II  Directive,  regarding  the  principle  of  the 
freedom  of  tariffs.  The  Romanian  legislation  also  obliges  insurers  to  issue,  for  certain 
categories  of  vehicles,  a  policy  valid  only  on  Romanian  territory.  These  provisions  were 
considered  contrary  to the  Motor  Insurance  Directive,  which  requires  the policies  to  cover  the 
whole territory of the Union based on a single insurance premium. 

On the free movement of capital, the Commission had opened infringement procedures against 5 
Member  States  already  in  2015,  requesting  them  to  terminate  intra-EU  bilateral  investment 

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treaties  between  them  (‘intra-EU  BITs’)  because  of  their  incompatibility  with  EU  law.  BITs  are 
agreements establishing the terms and conditions for private investment that apply between two 
EU Member States.  

The Court of Justice in the Achmea case confirmed that investor-State arbitration clauses in intra-
EU BITs are not compatible with EU law. In 2019, the vast majority of EU Member States endorsed 
the text of a plurilateral agreement to terminate the intra-EU bilateral investment treaties among 
them.  In  May  2020,  twenty-three  Member  States  signed  the  agreement  for  the  termination  of 
such treaties. 

Hungary had adopted a law which terminated certain so-called ‘usufruct rights’ – entailing the 
right to use a property and to profit from it - held by investors in Hungary. The law deprived in 
particular  foreign investors  of  their lawfully  acquired  rights  on  farmland,  and  of  the value  of 
their investments, without any compensation. The Commission decided to refer Hungary to the 
Court of Justice. In 2019, the Court ruled that by adopting legislation depriving persons of their 
right of usufruct on farmland, Hungary infringed both the principle of free movement of capital 
and the right to property guaranteed by the Charter of Fundamental Rights.  

Fighting against money-laundering and counter terrorism financing 

The  Commission’s  enforcement  activities  in  this  field  are  focused  on  ensuring  the  timely  and 
correct transposition of the 4th and the 5th Anti-Money Laundering Directive on the prevention of 
the use of the financial system for the purposes of money laundering or terrorist financing. Both 
directives  promote  the  highest  standards  for  anti-money  laundering  and  to  counter  terrorism 
financing.  During  2019,  the  Commission  continued  moving  forward  with  infringement  cases  as 
several  Member States had still  failed to implement the 4th Anti-Money  Laundering Directive in 
their national legislation. 

The  Commission  also  adopted  the  Communication:  Towards  better  implementation  of  the  EU's 
anti-money  laundering  and  countering  the  financing  of  terrorism  framework,  which  was 
accompanied  by  four  reports  to  support  European  and  national  authorities  in  better  addressing 
money laundering and terrorist financing risks. The Communication and reports stress the need for 
the  full  implementation  of  these  two  directives  while  underlining  that  a  number  of  structural 
shortcomings in the implementation of the Union's rules on anti-money laundering still need to be 
addressed. 

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Enforcing rules on taxation and customs 

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

Following the revelations in the Paradise Papers of widespread evasion in the yacht and aircraft 
sectors,  the  Commission  continued  infringement  procedures  against  Italy  and  Cyprus.  These 
Member States had set up tax measures favourable to the pleasure yacht and aircraft industries 
that run counter to EU law and fair taxation.  

Poland  is  currently  exempting  from  energy  taxes  highly  polluting  industries  on  the  ground that 
this  is  covered  by  the  exceptions  under  the  EU’s  emission  trading  scheme  (EU  ETS).  The 
Commission decided to refer Poland to the Court because its actions are contrary to EU law and 
to EU climate objectives. 

The  Commission’s  enforcement  action  in  2019  focused  on  ensuring  that  Member  States 
transposed  important  amendments  to  the  Directive  on  administrative  cooperation  into  national 
law.  These  amendments  concern  areas  such  as  access  to  anti-money  laundering  information, 
mandatory automatic exchange of information in the field of taxation, or the automatic exchange 
of financial account information.  

One  of  the  benefits  of  the  internal  market  is  that citizens  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  can  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.  

In addition, the Commission focused on ensuring the proper transposition of the Directive on rules 
against tax avoidance practices that directly affect the functioning of the internal market and the 
Directive on dispute resolution. 

The Commission took action against Spain for failing to implement measures on the mandatory 
automatic  exchange  of  tax  information.  The  Commission  also  took  action  against  Austria  and 
Ireland for failing to transpose the interest limitation rule,  as required by the rules against tax 
avoidance practices that directly affect the functioning of the internal market. 

In  2019,  the  Commission  closed  infringement  procedures  against  Czechia,  Greece,  Poland  and 
Romania  on  access  to  anti-money  laundering  information.  The  Commission  also  closed 
infringement  procedures  against  Belgium,  Czechia,  Greece,  France,  Cyprus,  Portugal,  the  United 
Kingdom and Latvia on rules against tax avoidance practices that directly affect the functioning 
of  the  internal  market,  since  they  had  completely  transposed  these  rules  into  their  national 
legislation. 

The  Commission's  enforcement  strategy  for  customs  focused  on  the  correct  and  uniform 
application of the Union Customs Code (UCC) and on detecting charges with equivalent effect to 
customs duties, even within the EU.  

In  2019,  the  Commission  launched  an  enquiry  across  all  Member  States,  investigating  national 
provisions  on  the  time  limitation  for  notifying  a  customs  debt  and  the  compatibility  of  these 
provisions with the UCC, in order to provide more legal certainty for traders. 

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Following  an  infringement  procedure  launched  by  the  Commission,  Bulgaria  amended  its 
provisions to comply with EU customs law in relation to sanctions for the non-declaration of cash 
and in relation to customs duty relief for certain US products.  

Ensuring a high level of protection for consumers 

The  Directive  on  better  enforcement  and  modernisation  of  EU  consumer  protection  rules  was 
adopted in November 2019. It strengthens consumer rights online, tackles dual quality of products 
and provides for deterrent fines for 'widespread infringements' of consumer rights.  

Furthermore,  the  Commission  launched  the  #YourEURight  campaign  to  raise  the  awareness  of 
consumers of their rights.  

In  July  2019,  the  Commission  issued  guidance  on  the  application  of  the  Unfair  Contract  Terms 
Directive.  It  covers  the  case  law  of  the  Court  of  Justice  on,  for  instance,  the  transparency  of 
contract  terms,  the  effect  of  finding  contract  terms  unfair  and  on  requirements  for  procedures 
before national courts, such as for the review of unfair contract terms.  

By the end of 2019, 13 of the 14 infringement procedures launched for late transposition of 
the 2015 Package Travel Directive had been closed. The Commission has started assessing for 
all Member States whether the national measures correctly transpose this Directive. 

The  Commission  supported  the  enforcement  of  EU  consumer  law  by  national  enforcement 
authorities  under  the  Consumer  Protection  Cooperation  (CPC)  Regulation.  It  assisted  these 
authorities  in  addressing  misleading  practices  of  major  online  operators  (Facebook,  Airbnb  and 
booking.com)  to  improve  the  transparency  of  their  offers  and  the  fairness  of  their  terms  and 
conditions. In addition, the Commission assisted Member States in preparing for the application of 
the revised CPC Regulation from January 2020, including through workshops.  

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The  European  framework  for  alternative  dispute  resolution  (ADR)  and  online  dispute  resolution 
(ODR)  was  made  more  effective,  including  through  an  improved  version  of  the  European  ODR 
platform.  The  Commission  also  released  its  first  implementation  report  on  the  ADR/ODR 
framework.  

For  product  safety,  the  Commission  continued  to  facilitate  cooperation  among  enforcement 
authorities by financing sampling and testing activities on specific products in connection with the 
rapid  alert  system,  RAPEX.  RAPEX  allows  for  a  quick,  Europe-wide  exchange  of  information 
between authorities on products that pose a risk to the health and safety of consumers. 

Ensuring a high level of protection of public health 

Monitoring the implementation of the Tobacco Products Directive in Member States’ national laws 
remained a priority for the Commission in 2019. This Directive aims at putting in the Single Market 
context  efforts  to  reduce  tobacco  use,  particularly  discouraging  young  people  from  taking  up 
smoking, and to ensure that the public is fully aware of the harmful effects of tobacco. Tobacco 
consumption  is  the  single  largest  avoidable  health  risk,  and  the  most  significant  cause  of 
premature death in the EU. In 2019, the Commission carried out conformity checks of the national 
laws  transposing  the  Directive  and  organised  structured  dialogues  with  the  Member  States  to 
ensure its better implementation. 

In  2019,  the  Commission  closed  infringement  procedures  against  Czechia,  Croatia,  Spain  and 
Sweden, as the Member States took measures to implement the Tobacco Products Directive in 
their national law. 

Ensuring patients’ rights to access cross-border healthcare remained a priority for the Commission 
in 2019. The Commission closely monitored the Cross-Border Healthcare Directive and carried out 
structured dialogues with the Member States to ensure better implementation of the Directive. 

The  Cross-Border  Healthcare  Directive  lays  down  patients'  rights  to  choose  to  receive 
healthcare  in  another  Member  State  and  to  claim  reimbursement  for  it  when  returning  back 
home. The level of reimbursement must be up to the level of the costs that would have been 
covered by the patient's own Member State if the healthcare had been provided there, without 
exceeding the actual costs. The Commission launched infringement procedures against Austria 
and the Netherlands because of reduced reimbursement for cross-border health services.  

For the Directive on the sustainable use of pesticides (SUD), the Commission undertook a series of 
initiatives  through  the  SUD  Working  Group,  through  audits,  and  through  the  Better  Training  for 
Safer Food training in order to facilitate the Directive’s implementation.  

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Enforcing rules on mobility and transport 

In 2019, the Commission pursued its monitoring of the implementation of EU transport legislation. 
Its enforcement work covered, in particular, the rules on completing the single market, developing 
intelligent  transport  systems  and  defining  common  requirements  for  safety  in  all  modes  of 
transport. 

The Commission also monitored the national implementing measures aimed at creating  a single 
European  rail  area.  In  particular,  it  monitored  competition  issues,  the  regulatory  oversight  and 
financial  architecture  of  the  railway  sector,  the  power  of  national  regulators,  the  improved 
framework for investment in rail, and the fair and non-discriminatory access to rail infrastructure 
and rail-related services.  

The Commission decided to launch infringement procedures against  Denmark, Germany, Ireland, 
the  Netherlands  and  Poland  for  failing  to  transpose  certain  provisions  of  the  EU  rules  on 
establishing  a  single  European  railway  area.  The  procedures  against  France  and  Spain  were 
pursued further for their failure to fully comply with specific provisions, notably those regarding 
access  to  rail-related  services  and  guarantees  of  independence  for  the  station  manager.  The 
Commission  also  pursued  further  the  infringement  procedures  launched  against  Greece  and 
Ireland for failing to communicate national measures to transpose EU rules on the opening of the 
market  for  domestic  passenger  transport  services  by  rail  and  the  governance  of  the  railway 
infrastructure. 

The  European  Registers  of  Road  Transport  Undertakings  (ERRU)  allows  for  the  exchange  of 
information between Member States on road transport undertakings set up within the EU. It is an 
essential  instrument  to  ensure  that  the  relevant  EU  legislation  is  properly  enforced.  The 
implementation  of  a  new  and  enhanced  version  of  the  ERRU  requires  Member  States  to  adapt 
their  national  systems.  The  Commission  pursued  infringement  cases  against  Belgium,  Cyprus, 
Czechia, Denmark, Hungary, Malta, the Netherlands, Portugal, and the United Kingdom to upgrade 
the  connection  between  their  national  registers  on  road  transport  undertakings  and  the  new 
version of ERRU, as required by the relevant regulation. 

Safety and security are of primary concern for any transport system. Creating an environment for 
safe transport is essential for European citizens. One of the Commission’s roles is to respond to 
these expectations by ensuring that there are  satisfactory standards in the whole  EU for safety 
and security in all modes of transport. Europe’s railways are among the safest in the world. EU 
policies aim to maintain high standards and to align safety requirements across the EU.  

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The  Commission  launched  an  infringement  procedure  against  Spain  for  its  failure  to  fully 
transpose EU  legislation on railway  safety. The Directive requires Member States to establish 
an independent safety authority and an independent accident and incident investigation body. It 
also requires Member States to allocate tasks and safety responsibilities coherently. Moreover, 
Member States are required to define common railway safety principles. The independence of 
investigation bodies is crucial to ensure effective investigations and prevent future accidents.  

Road  transport  is  the  most  widely  used  means  of  travel  and  a  primary  cause  of  accidents.  The 
Commission has been very active in promoting rules, technical standards, and awareness-raising 
campaigns  to  decrease  the  number  of  fatalities  caused  by  road  accidents.  The  Commission 
monitored,  in  particular,  the  safety  requirements  for  tunnels  and  decided  to  pursue  Belgium, 
Bulgaria,  Croatia,  Italy  and  Spain  for  not  complying  with  the  Directive  on  minimum  safety 
measures relating to the infrastructure and operation of tunnels 

In  maritime  transport,  the  safety  of  both  passenger  and  merchant  ships  is  of  paramount 
importance. The common EU safety rules concern equipment, such as life jackets, sewage cleaning 
systems and radars, on board EU-flagged ships.  

The Commission launched infringement procedures against Malta and Bulgaria for their failure 
to comply with EU law on marine equipment. Malta and Bulgaria had notably failed to ensure 
that  marine  equipment  (on  board  their  flagged  vessels)  was  always  accompanied  by  a 
declaration of conformity and had not conducted market surveillance on an adequate scale. 

Aviation is a form of transport requiring dedicated safety rules. EU air safety policy ensures a high 
level of safety for passengers.  

The Commission further pursued the infringement procedure against Hungary for its failure to 
comply  with  EU  rules  on  technical  requirements  and  administrative  procedures  related  to  air 
operations.  These  rules  address  in  detail  air  operations  with  aeroplanes,  helicopters,  balloons 
and sailplanes, including ramp inspections of aircraft of operators under the safety oversight of 
another  state.  Due  to  a  lack  of  sufficient  personnel,  Hungary  had  failed  to  verify  compliance 
with the safety requirements applicable to organisations or to types of operations. 

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V.  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  need  to  promote  growth  and  jobs.  This  policy  aims  at  strengthening  the  EU 
economy in a way that creates more employment and improves people’s living standards. 

Enforcing Banking Union rules 

Under the Banking Union, the Commission continued to check the Member States’ implementation 
of  the  Capital  Requirements  Directive  IV,  the  Deposit  Guarantee  Schemes  Directive  ,  the  Bank 
Recovery and Resolution Directive and the Bank Creditor Hierarchy Directive. These EU instruments 
are  set  up  to  ensure  that  banks  are  stronger  and  better  supervised  and  that  problems  can  be 
resolved more easily without using taxpayers’ money. In 2019 the Commission adopted a report 
assessing the implementation of the Bank Recovery and Resolution Directive. 

In  2019,  the  Commission  launched  infringement  procedures  against  12  Member  States  for 
failing  to  adopt  the  necessary  measures  to  fully  transpose  the  Bank  Creditor  Hierarchy 
Directive.  

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

Full  respect  for  the  rule  of  law  and  the  Charter  of  Fundamental  Rights  is  at  the  heart  of 
Commission priorities. Specific rights must also be ensured, such as the right of free movement, 
the protection of personal data, 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. 

Under the European Semester exercise, the Commission continued to encourage Member States to 
improve  the  effectiveness  of  their  enforcement  capacities.  This  particularly  concerns  the 
independence, quality and efficiency of their national justice systems. To this end, the Commission 
proposed  country-specific  recommendations  for  seven  Member  States.  Through  the  EU  Justice 
Scoreboard,  the  Commission  monitors  the  independence,  quality,  and  efficiency  of  the  Member 
States’ justice systems.    

Upholding rule of law and fundamental rights 

In April 2019, the Commission set out its reflections on  strengthening the rule of law in the EU, 
sparking  contributions  from  over  60  stakeholders  contributed.  The  results  were  reflected  in  the 
July  Communication  on  Strengthening  the  rule  of  law  within  the  Union  -  A  blueprint  for  action, 
which put forward a new rule of law mechanism. The Commission’s Political Guidelines announced 
a new annual rule of law review cycle and an annual report, which will summarise the situation in 
each Member State. The Commission also announced that it will pursue a strategic approach to 
infringement proceedings and build on the case law of the Court of Justice.  

On  24  June  and  5  November  2019,  the  Court  of  Justice  issued  rulings  in  infringement 
proceedings  initiated  by  the  Commission  against  Poland,  confirming  that  Polish  legislation 
lowering the retirement age of Supreme Court judges and ordinary court judges is in violation 
of EU law requirements regarding judicial independence.  

On 10 October 2019, the Commission referred Poland to the Court of Justice in infringement 
proceedings  concerning  the  new  disciplinary  regime  for  judges,  as  this  regime  undermines 
judicial independence by not offering the necessary guarantees to protect Polish judges from 
political control.  

Negotiations  on  the  Commission’s  proposal  for  a  regulation  on  the  protection  of  the  Union’s 
budget in case of generalised deficiencies as regards the rule of law are ongoing in the Council. 
Respect for the rule of law is essential to ensure sound financial management and to protect the 
Union’s budget. 

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Cross-border cooperation in criminal and civil justice 

Procedural 

The Commission continued 
its  efforts  to  monitor  the 
complete  transposition  of 
Rights 
the 
Directives.  In  2019,  the 
main  focus  was  on  the 
Directive  on  procedural 
for  children 
safeguards 
and  the  Directive  on  legal 
suspects  and 
aid 
for 
accused 
in 
persons 
criminal  proceedings  and 
for  requested  persons  in 
European  arrest  warrant 
proceedings.  

In 2019, the Commission launched infringement procedures against  7 Member States for not 
communicating their national transposition measures on the Directive on procedural safeguards 
for children and against 4 Member States for not doing so for the Directive on legal aid.  

The  Commission  continued  infringement  procedures  against  16  Member  States  and  launched 
infringement  procedures  against  9  Member  States  which  had  not  communicated  all  the 
national  measures  necessary  to  transpose  the  Victims’  Rights  Directive.  The Commission  also 
continued  its  infringement  procedures  against  2  Member  States  in  relation  to  mutual 
recognition  instruments  for  transfers  of  prisoners,  probation  measures,  supervision  measures 
and cross-border enforcement of financial penalties.  

Improving the protection of personal data 

Following  the  entry  into  application  of  the  General  Data  Protection  Regulation  (GDPR)  in  May 
2018, the Commission focused on implementing the new data protection rules in 2019 through a 
multi-faceted approach. In particular, it engaged in bilateral dialogues with national authorities on 
the  compliance  of  national  legislation  with  the  GDPR,  worked  closely  with  the  data  protection 
authorities  cooperating  within  the  European  Data  Protection  Board,  and  exchanged  with 
stakeholders  notably  through  a  dedicated  multi-stakeholder  group.  The  Commission  also 
continued to financially support national data protection authorities through grants, and conducted 
awareness-raising  campaigns  for  citizens  and  businesses.  The  Commission  also  carried  out  a 
stock-taking exercise of the first year of implementation of the GDPR, the results of which were 
presented in a communication issued in July 2019.  

Member States were required to transpose the Data Protection Law Enforcement Directive by May 
2018,  and  the  Commission  has  begun  assessing  the  compliance  of  the  national  transposition 
legislation  notified  by  the  Member  States  with  this  Directive.  In  2019  the  Commission  closed 
several  of  the  19  infringement  procedures  launched  in  2018  for  non-communication  of  the 
transposing  measures,  while  it  launched  an  infringement  procedure  against  Germany  and  took 
Spain and Greece to Court (in the meantime Greece has notified the Directive’s full transposition). 
At the end of 2019, infringement procedures were pending against four Member States. 

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Enforcing rules on security 

In  2019,  enforcement  work  continued 
under  the  European  agenda  on  security 
and  the  development  of  the  Security 
Union. The implementation of 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  reflect  the  ongoing  efforts  to 
ensure  full  and  correct  implementation 
of the rules. 

Furthermore, the Commission monitored the implementation of the  Directive on the inclusion of 
new  psychoactive  substances  in  the  definition  of  ‘drug’  and  of  the  first  delegated  directive 
adopted under the latter. The Commission also continued infringement procedures for the failure 
to  notify  national  transposition  measures  for  two  key  directives  on  security  and  on  the  fight 
against  serious  crime:  the  Passenger  Name  Records  Directive  and  the  Directive  on  Combatting 
Terrorism. The Commission further pursued cases against  Spain, the Netherlands and Finland on 
the  Passenger  Name  Records  Directive.  On  the  Combatting  Terrorism  Directive,  the  Commission 
further pursued infringement cases against Greece and Luxembourg. 

The  Commission  also  launched  infringement  procedures  to  safeguard  the  Union’s  exclusive 
external competence for security under the EU rules in this area.  

Infringement  procedures  were  launched  against  Bulgaria,  Hungary,  Austria  and  Romania  for 
having  signed  a  multilateral  international  agreement  on  the  exchange  of  DNA,  fingerprints  and 
vehicle  registration  data,  which  contain  provisions  in  violation  of  the  EU’s  exclusive  external 
competence by virtue of the Prüm Decisions. These decisions provide for a mandatory automatic 
exchange  and  comparison  of  DNA  data  between  national  databases  to  combat  terrorism  and 
cross-border crime. 

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VII.  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  the  full  range  of  relevant  issues,  including 
border  management,  visa  policy,  irregular  migration,  asylum  and  legal  migration.  Consistent, 
humane and effective implementation is critical to the success of the policy. 

In 2019, the Commission continued to monitor Member State implementation of EU migration and 
asylum law, in particular the Asylum Procedures Directive, the Reception Conditions Directive, the 
Qualification  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,  lay  down 
rules  for  recognising  third-country  nationals  as  refugees  and  set  common  standards  and 
procedures under which non-EU nationals staying illegally may be removed from the territories of 
EU countries. 

The  Commission  referred  Hungary  to  the  Court  of  Justice  for  legislation  which  effectively 
criminalises activities intended  to assist persons initiating applications for asylum in Hungary. 
The law is considered incompatible with the right of asylum applicants to access counselling or 
legal advice offered in particular by non-governmental organisations. It prevents anyone who is 
subject  to  a  criminal  procedure  for  having  provided  such  assistance  from  approaching  the 
transit zones at Hungary's borders, where asylum seekers are held. The Commission concluded 
that the Hungarian legislation does not comply with the  Asylum Procedures Directive and the 
Reception Conditions Directive. 

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On legal migration, the Commission’s priority is to ensure that there are genuine legal pathways to 
the EU, namely by improving the EU’s ability to attract and retain highly-skilled workers as well as 
students and researchers. 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, simplify and harmonise migration procedures and provide rights to 
equal treatment as EU nationals in a number of areas. 

In  2019,  the  Commission  further  pursued  the  pending  infringements  for  failure  to  notify 
national  measures  to  implement  the  Students  and  Researchers  Directive,  for  which  five 
Member States (Belgium, Greece, France, Slovenia and Sweden) still had cases open at the end 
of the year. 

An  infringement  procedure  was  launched  against  Sweden  for  its  incorrect  implementation  of 
several directives on legal migration as regards the processing of applications for permits, and 
for restrictions to equal treatment of certain categories of non-EU nationals.  

The correct application of Union rules on Schengen borders and visas was also a priority for the 
Commission in 2019. 

The  Commission  further  pursued  an  infringement  case  against  Estonia  because  its  ‘Go-Swift’ 
queue management system is considered incompatible with the Schengen Borders Code. It also 
took further steps in the infringement procedure against Czechia on the right to appeal against 
a decision refusing, revoking or annulling a Schengen visa. 

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