REPORT FROM THE COMMISSION Monitoring the application of European Union law 2021 Annual Report
Date: 2022-07-15
Institutions: European Commission, Secretariat-General
Subjects: EU Member State, EU employment policy, EU environmental policy, activity report, area of freedom, security and justice, citizens' Europe, digital single market, fundamental rights, infringement procedure (EU), national implementing measure

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 15.7.2022  COM(2022) 344 final  REPORT FROM THE COMMISSION Monitoring the application of European Union law            2021 Annual Report {SWD(2022) 194 final}  
 
 
Monitoring the Application of European Union Law 
2021 Annual Report 

FOREWORD ................................................................................................................................................................ 3 

I. 

THE EUROPEAN GREEN DEAL ................................................................................................................. 4 

Clean air and water ..................................................................................................................................... 4 

Protecting biodiversity ............................................................................................................................... 4 

Promoting a circular economy .............................................................................................................. 5 

Clean energy ................................................................................................................................................... 5 

Sustainable agriculture ............................................................................................................................. 5 

Sustainable fisheries and maritime spatial planning ................................................................ 6 

Health and food safety ............................................................................................................................. 7 

II.  A EUROPE FIT FOR THE DIGITAL AGE ................................................................................................. 8 

Technology that works for people ....................................................................................................... 8 

A fair and competitive digital economy ........................................................................................... 8 

Promoting the data economy ................................................................................................................ 9 

Accessibility of websites and mobile applications ...................................................................... 9 

Strengthening cybersecurity and protection from cyber threats ........................................ 9 

An open, democratic and sustainable digital society ............................................................. 10 

Protection for consumers and companies ................................................................................... 10 

Transparent information about and for businesses ............................................................... 11 

Digital transport systems ..................................................................................................................... 11 

III.  AN ECONOMY THAT WORKS FOR PEOPLE .................................................................................... 12 

Working conditions ................................................................................................................................... 12 

Health and safety at work .................................................................................................................... 12 

Labour mobility .......................................................................................................................................... 13 

Social security coordination ................................................................................................................. 13 

Information and assistance for people and businesses ....................................................... 14 

Better regulation of professions and recognition of qualifications ................................ 14 

Sound public procurement and fighting delayed payments ............................................... 14 

Internal energy market .......................................................................................................................... 15 

Keeping nuclear power safe ................................................................................................................ 15 

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Mobility and transport ............................................................................................................................ 16 

Direct taxation ............................................................................................................................................ 17 

Indirect taxation ......................................................................................................................................... 17 

Customs ......................................................................................................................................................... 18 

Competition .................................................................................................................................................. 18 

Financial services ...................................................................................................................................... 19 

Money laundering and terrorist financing .................................................................................... 19 

IV.  PROMOTING OUR EUROPEAN WAY OF LIFE AND EUROPEAN DEMOCRACY ................ 20 

Rule of law and fundamental rights ............................................................................................... 20 

European Union citizenship .................................................................................................................. 20 

Free movement of people .................................................................................................................... 21 

Rights of travellers during the pandemic ..................................................................................... 21 

Safer transport ........................................................................................................................................... 21 

Equality and non-discrimination ....................................................................................................... 22 

Combating racism and xenophobia, including hate speech ................................................ 22 

Improving the protection of personal data .................................................................................. 23 

Justice cooperation and individual guarantees in criminal law ........................................ 23 

Security........................................................................................................................................................... 23 

New Pact on Migration and Asylum ................................................................................................ 24 

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Foreword 

This report comes at a time when European democracy is being challenged, both from outside and 
from within. Russia’s aggression against Ukraine is an attempt to override the rule of law with the 
right  of  might.  The  European  Union  stands  firmly  on  the  side  of  Ukraine  and  of  democracy  over 
autocracy, because the rule of law is the basis for a fair and peaceful international order.  

Ukraine’s fight for freedom is also a reminder of the value of our own democracy. Democracy must 
be  nurtured,  exercised  and  renewed  every  day  for  it  to  thrive.  This  is  what  the  European 
Commission, under my leadership, has strived for since the start of its mandate.  

The Commission has put in place historic measures to strengthen the EU’s capacity to promote and 
protect the rule of law. These measures are based on dialogue with the European Parliament and 
Member States, alongside civil society. The Commission uses its enforcement powers and resorts to 
infringement procedures where this is necessary to protect our commonly agreed rules. This year’s 
report shows how over the past year, the Commission has continued to safeguard EU law to ensure 
that citizens in our Single Market fully benefit from the implementation of key policies. 

Democracy is always a work in progress. The Commission is committed to defending the rights of 
EU  citizens,  wherever  they  live  in  our  Union.  The  rule  of  law  is  the  glue  that  binds  the  European 
Union  together.  It  is  essential  for  the  protection  of  the  values  on  which  the  EU  is  founded: 
democracy, freedom, equality and respect for human rights. And this is what all 27 Member States 
have signed up to as part of the EU as sovereign countries, and free peoples. 

Sincerely,  

Dr. Ursula von der Leyen 

President of the European Commission 

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I.  The European Green Deal  

‘It was Robert Schuman who said: Europe needs a soul, an ideal, and the political will to 
serve this ideal. […] And in the gravest planetary crisis of all time, again we chose to go 
it together with the European Green Deal.’  

- President von der Leyen, in her 2021 State of the Union Address 

The world is facing climate and biodiversity emergencies that are an existential threat to our planet. 
The EU is determined to lead the way in addressing these challenges. The  European Green Deal is 
the  Commission’s  plan  towards  zero  pollution  for  air,  water  and  soil,  and  transforming  the  EU’s 
economy  into  a modern,  resource-efficient  one.  There  is  no  time  for  hesitation:  the  Commission’s 
enforcement efforts aim for swift implementation and rigorous application of the EU rules that will 
make the Green Deal a reality.   

Clean air and water 

Air pollution is among the key factors affecting 
human  health.  The  full  implementation  of  the 
EU’s  air  quality  standards  is  key  to  effectively 
protect  our  well-being  and  safeguarding  the 
natural environment.  

In  addition,  a  large  number  of  people  are  still 
exposed to harmful substances in their drinking 
water,  contrary 
rules.  And  urban 
wastewater  is  still  not  properly  collected  or 
treated in several hundreds of cities across the 
EU.  

to  EU 

The  Commission  has  launched  and  pursued 
infringement  cases  against  several 
further 
Member  States  to  ensure  an  appropriate  level 
of treatment of waste water. 

Protecting biodiversity  

Decisions by the Commission to refer Member 
States to the EU Court of Justice include: 
–  Greece and Portugal for poor air quality due 
to high levels of nitrogen dioxide (NO2);  

  Slovakia 

for  high 

concentrations  of 

particulate matter (PM10);   

  Romania  due  to  the  illegal  operation  of 

industrial plants; 

  Ireland  and  Italy  for  breaches  with  regard 
to  substances  in  drinking  water  that  could 
pose a potential health danger; 

  Spain  for  insufficient  protection  of  waters 

against nitrates pollution; 

–  France,  Hungary  and  Slovenia  over  their 

treatment of waste water. 

Protecting  biodiversity  and  reversing  the  degradation  of  ecosystems  are  key  objectives  under  the 
European Green Deal and the European Biodiversity Strategy. Restoring forests, soils and wetlands 
also plays an important role in fighting climate change.  

The  Commission  referred  Bulgaria  and 
Germany  to  the  Court  of  Justice  over 
their failure to protect and manage their 
Natura 2000 protected areas.  
Germany  was  also  referred  for  not 
flower-rich 
protecting 
sufficiently 
grasslands.  
And Malta was referred to the Court for 
authorising  the  trapping  of  protected 
finches. 

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Promoting a circular economy  

The European Green Deal and the 2020 circular economy action plan promote waste reduction and 
recovery.  They  aim  for  full  implementation  of  the  EU  waste  management  standards,  to  reduce 
adverse  effects  on  human  health  and  the  environment.  In  November  and  December  2021,  the 
Commission  took  action  against  six  Member  States  for  failing  to  comply  with  their  obligation  – 
under  the  Waste  Framework  Directive  and the  Landfill  Directive  –  to  improve  treatment  of  waste 
before landfilling. In the case of Romania, the Commission decided to refer it back to the Court of 
Justice for failing to fully comply with an earlier Court judgment. 

Clean energy  

Decarbonising  the  EU’s  energy  system  is  critical  to  reach 
the  EU’s  2030  climate  objectives  and  long-term  goal  of 
carbon  neutrality  by  2050.  In  2021,  the  Commission’s 
enforcement  action  continued  to  focus  on  implementing 
the  Clean  Energy  for  all  Europeans  package.  These  rules 
aim  to  lead  the  energy  transition  towards  a  safe,  secure 
and sustainable energy sector that puts consumers first. 

Promoting  renewable  energy  is  crucial  to  reaching  our 
climate objectives. The Renewable Energy Directive sets a 
renewables  target  for  the  EU  for  2030  of  at  least  32%, 
and  includes  measures  to  ensure  the  cost-efficient  and 
sustainable development of renewables. 

Sustainable agriculture  

Commission 

The 
continued 
infringement cases against Greece 
and  Romania  for  not  having  fully 
transposed  the  amending  Energy 
Efficiency Directive.  
infringement 
launched 
And 
procedures  against  all  Member 
States 
fully 
transpose  the  Renewable  Energy 
Directive  by  the  deadline  of  30 
June 2021. 

failing 

for 

to 

it 

The  objectives  of  the  EU’s  common  agricultural  policy  are  to  support  farmers  and  improve 
agricultural  productivity,  feeding  Europe’s  population  with  safe,  affordable  and  quality  food.  The 
policy  aims  to  ensure  that  European  farmers  have  a  fair  income.  It  is  also  designed  to  address 
environmental challenges such as climate change and loss of biodiversity.  

In  2021,  the  European  Parliament  and  the 
Council agreed on a reform of the policy to 
apply  from  1  January  2023.  This  will 
increase  the  contribution  made  by  the 
policy  to  the  ambitions  of  the  European 
Green  Deal,  in  particular  the  farm  to  fork 
and biodiversity strategies.  

The  Commission  continued  to  ensure  a 
thorough  application  of 
the  common 
agricultural  policy’s  rules  (e.g.  on  organic 
farming,  sustainable  use  of  farmland, 
and 
forestry, 
innovation).  

research 

support 

for 

In 2021, new EU rules started to protect European farmers against unfair trading practices by larger 
buyers  in  the  food  supply  chain.  The  Commission  opened  infringement  procedures  against  12 

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Member  States  for  failing  to  transpose  these  rules  into  national  law  in  time.  Eight  of  them  later 
notified complete transposition of the rules, in 2021. 

Sustainable fisheries and maritime spatial planning 

The main goal of the EU’s common fisheries policy is to ensure environmental, social and economic 
sustainability for our fishers and coastal communities. All three aspects are interlinked: there cannot 
be thriving fisheries and aquaculture sectors without healthy fish stocks and adequate conservation 
of marine biological resources. Enforcing the EU’s fisheries rules contributes to the objectives of the 
European  Green  Deal  to  promote  and  increase  the  protection  of  natural  ecosystems  and  the 
sustainable use of resources. 

In  2021,  the  Commission’s  enforcement  action 
focused  on  the  full  implementation  of  the  landing 
obligation.  This  requires  catches  of  certain  species 
of  fish  to  be  brought  on  board  fishing  vessels, 
recorded,  landed  on  shore  and  counted  against 
applicable quotas.  

Accurate  recording  of  catches  is  the  basis  for 
effective 
preventing 
fisheries  management, 
overfishing and reducing unwanted catches.  

The  Commission  also  continued  dialogues  with 
Member States to reduce the by-catch of sensitive 
species, such as dolphins and porpoises, by ensuring the use of acoustic deterrent devices, and to 
improve reporting on catches of species that are returned to the sea.    

The Commission closely monitored the implementation of the  Maritime Spatial  Planning Directive, 
especially  the  obligation  to  establish  maritime  spatial  plans.  These  plans  aim  to  meet  various 
ecological, economic and social objectives. In particular, they aim for sustainable ocean and coastal 
economies and sustainable use of marine resources, 
including  with 
energy 
development.  The  Commission  opened  infringement 
proceedings  against  Greece,  Croatia,  Italy,  Cyprus, 
and Romania for not having established such plans. 

offshore 

regard 

to 

cases  also 

The  Commission  initiated  infringement 
proceedings  against  Belgium,  Ireland, 
France,  Spain,  and  the  Netherlands  for 
not having monitored and enforced the 
landing obligation. 
These 
concern  non-
compliance  with  EU  rules  to  prevent, 
deter  and  eliminate  illegal,  unreported 
and unregulated fishing.  
The  Commission  also  continued  an 
infringement  case  against  Malta  for 
failing  to  comply  with  Bluefin  tuna 
rules.  

Given that fish migrate often long distances and are 
not  constrained  by  national  borders,  EU  vessels’ 
fishing  activities  outside  of  EU  waters  are  based  on 
those 
the  same  principles  and  standards  as 
applicable  within  EU  waters.  To  enforce  these  rules 
for  Member  States’  fleets  operating  outside  EU 
waters,  the  Commission  launched  an  infringement 
procedure  against  France  and  held  a  series  of 
preventive dialogues with other Member States.   

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Health and food safety 

The  legislation  in  this  area  intends  to  make  Europe  a  healthier  and  safer  place.  Proper  and 
consistent  implementation  of  EU  rules  by  national  authorities  is  crucial  to  achieving  these 
objectives.  

The Commission takes a ‘one health’ approach to preparedness and prevention, integrating human, 
animal  and  environmental  health,  as  well  as  food  and  feed  safety.  ‘One  health’  recognises  that 
human health is intimately connected to the health of animals and the environment. 

Audits  remained  a  key  tool  in  enforcing  EU  rules  on  food  and  feed  safety,  animal  health,  plant 
health  and  animal  welfare.  They  also  proved  important  in  the  quality  control  of  pharmaceutical 
products and medical devices. 

Ensuring patients’ rights to access cross-border healthcare remained a priority for the Commission 
in  2021.  Therefore,  the  Commission  continued  to  push  for  the  full  implementation  of  the  Cross-
Border Healthcare Directive, carrying out dialogues with Member States to improve its application.  

Tobacco  consumption  remains  the  single  largest  avoidable  health  risk,  and  the  most  significant 
cause of premature death in the EU. The Tobacco Products Directive contributes to reducing tobacco 
consumption and generates positive outcomes for public health. Its rules ensure that the public is 
made aware of the harmful effects of tobacco and that characterising flavours are banned for the 
main product categories. In 2021, the Commission continued its work to fully enforce the Directive: 
It conducted conformity checks on the national laws transposing the Directive, held dialogues with 
Member States to strengthen its implementation and published a  report on the application of the 
Directive.  

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II.  A Europe fit for the Digital Age 

‘We have to double down to shape our digital transformation according to our own rules and 
values.’  

- President von der Leyen, in her 2021 State of the Union Address  

Digital technology is changing people’s lives. The COVID-19 pandemic has radically changed the role 
and  perception  of  digitalisation  in  our  societies  and  accelerated  its  pace.  Digital  technologies  are 
central  for  working,  learning,  entertaining,  socialising,  shopping  and  accessing  everything  from 
health  services  to  culture.  Pursuing  and  enforcing  digital  policies  that  empower  people  and 
businesses to embrace a human-centred and prosperous digital future has become more relevant 
than ever before.  

Technology that works for people  

functioning  of 

The  COVID-19  crisis  has  demonstrated  the 
the 
importance  of  proper 
European  emergency  number  112,  identifying 
caller  location  and  ensuring  equivalent  access 
for 
Emergency 
to  emergency 
communications  and  access 
communication  services  via  112  are  just  some 
of  the  things  regulated  by  the  2020  European 
Electronic Communications Code.  

end-users. 

disabled 

As one of the building blocks of the Digital Single 
Market,  the  Code  modernises  the  European 
regulatory framework for electronic communications, to enhance consumers' choices and rights. It 
ensures clearer contracts, quality  of services and 
competitive markets.  

launched 

The  Commission 
infringement 
proceedings against 24 Member States for 
failure  to  transpose  on  time  the  European 
Electronic Communications Code. It pursued 
these  proceedings  further  against  20 
Member States later in 2021.  

Central  objectives  of  the  Code  are  promoting 
connectivity,  and  investment  in  /  access  to  very 
high-capacity  networks. 
for 
transposing  the  rules  in  the  Code  into  national 
legislation expired on 21 December 2020. 

The  deadline 

A fair and competitive digital economy 

The Directive on Copyright in the Digital Single 
Market  and  the  Directive  on  online  television 
and  radio  programmes  modernise  the  EU’s 
copyright rules to make them fit for the digital 
age.  They  allow  for  more  digital  uses  in  core 
areas  of  society  and  facilitate  the  distribution 
of radio and television programmes across the 
EU.  

The  new  rules  will  benefit  creative  industries 
and  citizens  alike,  and  ensure  more  fairness 

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and clarity when copyrighted content is used online. The Commission adopted guidelines to support 
consistent application of the new requirement for online content-sharing service providers to seek a 
licence from rights holders. The deadline for transposing the two directives into national law was 7 
June 2021.  

The Commission launched infringement procedures against  23 Member States for failing to notify 
whether  they  had  completely  transposed  the  Directive  on  copyright.  And  it  started  infringement 
cases against 21 Member States for incomplete transposition of the Directive on online television 
and radio programmes. 

Promoting the data economy  

The  re-use  of  data  produced  by  the  public  sector  has  vast  economic  potential.  The  Open  Data 
Directive  aims  to  make  more  of  the  data  resources  produced  and  funded  by  the  public  sector 
available for reuse.  

At  the  same  time,  it  stimulates  the 
innovative  solutions 
development  of 
increases 
such  as  mobility  apps. 
transparency  by  opening  access 
to 
research  data,  and 
publicly-funded 
supports  new  technologies, 
including 
artificial intelligence.  

It 

The  Commission  launched  infringement 
procedures  against  19  Member  States 
complete 
for  not  having  notified 
transposition of the rules in time. By the 
end  of  2021,  14  Member  States  had 
completed transposition.  

Accessibility of websites and mobile applications  

The  Web  Accessibility  Directive  aims  to  make  websites  and  mobile  applications  of  public  sector 
bodies more accessible to everyone, in particular to persons with disabilities. The Directive requires 
Member States to report on the results of their monitoring and enforcement activities every three 
years.  In  2021,  the  Commission  published  the  first  ever  reports  of  Member  States  to  this  effect. 
Over 10.000 websites and 300 mobile apps were tested by the Member States during this period. 

Strengthening cybersecurity and protection from cyber threats  

The  digital  transformation  of  our  society  has  expanded  the  cyber  threat  landscape,  bringing  new 
challenges that require adapted and innovative responses. The number of cyber-attacks continues 
to rise, with increasingly sophisticated attacks coming from a wide range of sources both inside and 
outside the EU. A high level of protection from external cyber threats strengthens the EU’s resilience 
as a global actor.  

To  adapt  EU  legislation  to  changing  challenges  and  threats,  the  Commission  has  adopted  a  new 
proposal  for  a  high  common  level  of  cybersecurity  across  the  EU.  It  will  replace  the  existing 
Directive  on  security  of  network  and  information  systems,  the  first  EU-wide  legislation  on 

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cybersecurity.  In  2021,  the  Commission  closed  infringement  cases  against  Belgium,  Hungary  and 
Romania as they fulfilled specific obligations under this directive.  

An open, democratic and sustainable digital society  

The 
revised  Audiovisual  Media  Services 
Directive governs EU-wide coordination of all 
audiovisual  media,  both 
traditional  TV 
broadcasts and on-demand services. Its rules 
aim to create a regulatory framework fit for 
the digital age, leading to a safer, fairer and 
more diverse audiovisual landscape. In 2021, 
the  Commission 
infringement 
procedures  further  against  11  Member 
States 
to  notify  complete 
transposition  of  the  Directive.  At  the  same 
time,  the  Commission  closed  infringement 
procedures against nine Member States who had fully transposed the Directive into national law. 

pursued 

failure 

for 

The  Commission  launched  and  pursued  further 
an  infringement  case  against  Hungary  with 
regard to national rules that seek to prohibit or 
limit access to audiovisual content that portrays 
the ‘divergence from self-identity corresponding 
to sex at birth, sex change or homosexuality' for 
minors.  
The  Commission  considered  that  the 
law 
violated  several  EU  rules  as  it  puts  in  place 
unjustified restrictions that discriminate against 
people  based  on  their  sexual  orientation.  The 
law is also considered disproportionate. 

of 

of 

the 

the 

independence 

national 
The 
is  key  to 
telecommunications  regulators 
impartial 
effective  and 
ensuring 
on 
rules 
EU 
application 
telecommunications. 
Commission 
The 
continued  an  ongoing  case  against  Poland 
law  safeguarding  the 
for  breaching  EU 
national 
the  Polish 
of 
independence 
regulatory  authority,  the  Office  of  Electronic 
Communications.  

EU telecommunication rules also apply to the 
conditions  for  using  radio  spectrum  by  EU 
countries. Key elements are the principles of 
proportionality and non-discrimination. To enforce these rules, the Commission opened and pursued 
further an infringement case against Hungary concerning the assignment of radio spectrum rights. 

The Commission considered that the decision by the Hungarian Media Council to refuse renewal of 
a radio station’s rights was disproportionate and non-transparent, and that the Hungarian national 
media law had been applied in a discriminatory way.  

Protection for consumers and companies   

Purchasing  goods,  digital  content  and  digital 
services  from  any  EU  country  should  be  easy 
within the single market, and consumers should 
be certain about their rights.  

The  Digital  Content  Directive  and  the  Sale  of 
Goods Directive align key consumer contract law 
rules  across  the  EU.  The  rules  increase  legal 
certainty  for  both  consumers  and  traders  and 
ensure a high level of consumer protection. The 
deadline  to  transpose  the  directives  into  national  law  expired  on  1  July  2021.  The  Commission 
launched infringement procedures against 20 Member States for not transposing the directives. 

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Transparent information about and for businesses 

With  an  increasing  number  of  cross-border  businesses,  having  easy  access  to  information  on 
companies in different Member States is crucial. EU legislation requires Member States to link their 
national business registers with the business registers interconnection system (BRIS).  

BRIS facilitates cross-border operations and makes procedures less costly and time-consuming for 
companies.  It  enables  individuals,  businesses  and  entrepreneurs  to  obtain  information  on 
companies. In 2021, the Commission decided  to refer  Bulgaria to the Court of Justice for not yet 
being  connected  to  BRIS,  while  it  closed  infringement  procedures  against  Ireland  and  France  who 
had completed the connection of their business registers to BRIS. 

The  Commission  continued  existing  infringement  procedures  against  all  Member  States  on  the 
implementation  of  Points  of  Single  Contact.  These  are  e-government  portals  that  allow  service 
providers to get the information they need and complete administrative procedures online.  

Compliance efforts on the application of the Services Directive are at the heart of digitalisation and 
e-government and also aim to support the work under the  Single Digital Gateway. Progress made 
by Member States is substantial but uneven. 

Digital transport systems 

Digitalisation  can  make  transport  safer,  more  efficient  and  more  sustainable.  Information  and 
communication  technologies  offer  new  opportunities  to  all  modes  of  passenger  and  freight 
transport. Moreover, the integration of existing technologies can create new services.  

For  example,  for  road  transport,  the  European 
Electronic  Tolling  Service ensures  tolling  services 
are interoperable across roads in the EU. It makes 
it  possible  for  road  users  to  easily  pay  tolls 
throughout 
the  whole  EU  with  only  one 
subscription  contract  with  one  service  provider 
and a single on-board unit.  

Eliminating 
for 
occasional  users and facilitating daily operations 
for road users improves traffic flow and reduces 
congestion.  To  enforce  the  tolling  service’s  rules,  the  Commission  launched  an  infringement 
procedure against Slovenia and took further steps in a procedure against Hungary. 

cumbersome 

procedures 

the 

voice 

On  aviation  safety,  data  link  services  are  communications  between  aircraft  and  ground  that 
communication 
complement 
traditionally  used  in  air  traffic  control.  They 
improve 
communication 
efficiency,  thereby  increasing  air  traffic  control 
capacity.  

pilot-controller 

The  Commission  pursued  further  infringement 
procedures  against  six  Member  States  for 
failing to provide and operate data link services 
for  all  aircraft  operators  flying  within  their 
airspace.  It  closed  infringement  procedures  on 
the  same issue  against  Bulgaria,  Lithuania  and 
Finland. 

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III. An Economy that Works for People 

‘We have all benefited from the principles of our European social market economy – and we 
must make sure that the next generation can do so, to build their future.’ 

- President von der Leyen, in her 2021 State of the Union Address 

Living  in  the  EU  today  means  having  the  right  to  a  safe  and  decent  living,  and  having  the 
opportunity to succeed. Thanks to the EU’s social market economy, the EU has some of the highest 
standards of living, best working conditions and most effective social protection in the world.  

However, there are still too many cases of incorrect or incomplete application of single market or 
employment  rules.  The  Commission’s  enforcement  policy  addresses  these  shortcomings  so  that 
these rules can deliver their intended effects to the full. 

Working conditions 

Fair and dignified working conditions are a key element of Europe’s social market economy, across 
economic sectors and Member States. The EU has rules on working time, part-time and fixed-term 
work, temporary workers and the posting of workers  – defining minimum requirements that apply 
across the EU. In 2021, the Commission has taken a number of decisions to enforce these rules. 

On  the  application  of  fixed-term  work  rules,  the  Commission  launched  infringement  procedures 
against Italy concerning the working conditions of honorary magistrates. It also took action against 
Portugal  for  the  employment  conditions  of  fixed-term  teachers.  The  Commission  opened  an 
infringement  case  against  Spain  highlighting  conformity  issues  with  national  rules  on  temporary 
agency work. Furthermore, in the sea fisheries sector, the Commission called on Cyprus to transpose 
EU rules on the protection of workers into national legislation.  

Health and safety at work 

launched 

The  Commission’s  enforcement  efforts  continued  to  focus  on  a  timely  transposition  of  EU 
occupational  health  and  safety  rules  into  national  legislation.  The  Commission  closed  12 
infringement  procedures,  as  Member  States 
transposed two directives on the protection from 
exposure  to  carcinogens  or  mutagens  at  work, 
as  well  as  updated  rules.  These  updated  rules 
concerned the addition of the SARS-CoV-2 virus 
to  the  list  of  agents  in  the  Biological  Agents 
Directive,  for  which  the  Commission  was  able 
close four infringement cases. 

The  Commission 
infringement 
procedures  against  Denmark  and  pursued 
further an existing procedure against Cyprus 
rules  on 
for  failing 
protecting  workers 
to 
carcinogens or mutagens at work.  
Furthermore, following information received 
in  a  complaint,  the  Commission  opened  an 
infringement procedure against Germany for 
an  alleged  breach  of  EU  rules  to  protect 
workers'  safety  and  health  at  temporary  or 
mobile construction sites. 

To  ensure  the  conformity  of  national  measures 
with  the  Directive  establishing  a  fourth  list  of 
indicative  occupational  exposure  limit  values, 
the  Commission  launched  dialogues  with  a 
series  of  Member  States.  Five  of  these  were 
successfully concluded in 2021, with national rules brought into line with EU rules. 

from  exposure 

transpose  EU 

to 

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Labour mobility 

Free movement of workers is one of the fundamental  freedoms on which the EU is founded. The 
Commission therefore places particular importance on enforcing the rules on this. During 2021, in 
the context of the COVID-19 pandemic, free movement of workers continued to be put to the test.  

opened 

Commission 

The 
an 
infringement  procedure  against  Italy 
for  failing  to  comply  with  EU  law  on 
free  movement  of  workers  with 
regard  to  foreign  language  assistants 
(‘Lettori’) in universities.  
provides  an 
law 
While 
Italian 
the 
framework 
acceptable 
reconstruction  of  careers  of  foreign 
lecturers,  the  majority  of  universities 
have not implemented it.  

for 

As a rule, every Member State must treat the nationals 
of  other  Member  States  the  same  as  their  own 
nationals.  For  public-sector  positions,  a  generalised 
exclusion  of  EU  workers  from  public  posts  based  on 
their hierarchical level, without carrying out an analysis 
on a case by case basis, is contrary to EU law.  

In  2021, 
further  an 
the  Commission  pursued 
infringement  procedure  against  Greece  for  restricting 
high-level  posts  in  the  public  administration  and  a 
number  of  public  entities  to  candidates  with  Greek 
nationality.  

improvements 

EU  rules  on  posting  workers  regulate  situations 
where  an  employee  is  sent  by  his  employer  to 
carry out a service in another EU Member State on 
a  temporary  basis.  Recently  updated  rules  have 
introduced  significant 
the 
situation  of  posted  workers  and  a  level  playing 
field for service providers. Under the new rules, all 
the  mandatory 
remuneration 
applicable  to  local  workers  will  also  be  applicable 
to  posted  workers.  Following 
infringement 
proceedings  against  14  Member  States  on  the 
transposition  of  the  updated  rules,  all  of  them 
notified complete transposition in 2021.  

elements  of 

to 

The  Commission  launched  infringement 
procedures  against  24  Member  States  to 
bring various national  provisions into line 
with the Enforcement Directive on Posting 
of Workers.   
This  directive  reinforces  the  practical 
rules  on  posting 
application  of 
workers  by  addressing  issues  related  to 
fighting  fraud  and  the  circumvention  of 
information,  and 
rules,  access 
between 
administrative 
Member States. 

to 
cooperation 

the 

Social security coordination 

EU legislation coordinates the national social security systems of the Member States to guarantee 
that  the  right  to  the  free  movement  of  persons  can  be  exercised  effectively.  EU  rules  thereby 
contribute to an improved standard of living and conditions of employment of persons who move 
within the EU. 

In  2021,  the  Commission  launched  an  infringement  procedure  against  Germany  for  failing  to 
comply with these rules and EU rules on free movement of workers. The German State of Bavaria 
had  introduced  a  new  scheme  of  family  allowances  providing  for  different  amounts  of  family 
benefits  according  to  the  place  of  residence  within  the  EU  of  a  child  concerned.  A  similar  case 
regarding  Austria's  indexation  system  for  family  benefits  was  already  referred  to  the  Court  of 
Justice. 

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Information and assistance for people and businesses 

In 2021, it was more important than ever that individuals and businesses could continue to rely on 
the opportunities offered by the single market and that Member States and the Commission worked 
closely  together  to  address  barriers  to  free  movement.  The  consequences  of  the  COVID-19 
pandemic,  such  as  border  closures,  supply  chain  interruptions  and  uncoordinated  national  and 
regional restrictions, underlined the importance of protecting the functioning of the single market.  

The  pandemic’s  impact  was  particularly  harsh  in  border  regions.  The  EU's  online  problem-solving 
service  SOLVIT  continued  to  work  seamlessly  throughout  the  pandemic  to  help  business  and 
individuals  facing  COVID-19-related  cross-border  difficulties  and  played  an  important  part  in 
ensuring that the single market remained resilient. 

The  single  market  governance  tools  –  such  as  the  Your  Europe  portal,  Your  Europe  Advice  and 
SOLVIT – offer clear information, assistance and problem-solving to both individuals and businesses 
who  have  issues  related  to  the  single  market  and  free  movement.  They  enable  these  groups  to 
make full use of their EU rights in the single market.  

In addition, evidence from the tools helps the Commission identify and correct existing problems. In 
2021,  SOLVIT  assisted  over  2 400  people  and  businesses  by  addressing  their  problem,  and  Your 
Europe Advice gave guidance to individuals and businesses about their single market rights on over 
27 800 occasions.  

 Better regulation of professions and recognition of qualifications 

for 

The  EU  proportionality  test  directive  requires 
Member  States 
that  any  new 
to  ensure 
regulated  professions  are 
requirements 
necessary  and  balanced. 
to  avoid 
burdensome national rules that make it harder for 
qualified  candidates  to  access  or  exercise  a  wide 
range of professions. 

It  aims 

The  Commission  opened 
infringement 
cases  against  18  Member  States  for 
failing 
the 
proportionality  test  directive,  to  achieve 
its 
job 
intended  effect  for  qualified 
candidates. 

to  properly 

implement 

EU rules on the recognition of professional qualifications make it easier for professionals to provide 
services  around  Europe,  while  guaranteeing  improved  protection  for  consumers  and  citizens.  To 
enforce these rules, the Commission opened procedures against  Romania, and followed up on the 
infringement cases against Ireland, Cyprus and Czechia, deciding to refer the latter to the Court of 
Justice.  The  Commission  could  close  infringement  cases  against  eight  Member  States  as  they 
correctly implemented the directive that applies across professions. 

Sound public procurement and fighting delayed payments 

To  create  a level  playing field  for  businesses  across  Europe,  EU  rules  set minimum  standards  for 
the way public authorities and certain public utility operators purchase goods, works and services. 
The Commission enforced these common rules, in 2021, by either opening infringement procedures 
or  taking  another  step  in  on-going  cases,  against  eight  Member  States,  including  the  decision  to 
refer Poland to the Court of Justice. 

EU rules also require that public authorities pay businesses and SMEs on time. However, too often 
payments  in  the  EU  do  not  respect  the  deadline  agreed.  To  counter  this  problem,  which  has 

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aggravated during the COVID-19 pandemic, and to prevent losses for businesses,  in particular for 
small  and  medium-sized  businesses  (SMEs),  the  Commission  opened  infringement  cases  against 
Belgium, Greece and Italy, and continued procedures against Spain and Slovakia and for failing to 
apply the EU rules correctly. 

Internal energy market 

EU  energy  market  legislation  is  essential for 
removing  barriers  to the  cross-border  exchange 
of electricity,  ensuring affordable energy prices, 
securing  energy  supplies  and  achieving  a  clean 
and fair energy transition.  

In  particular,  the  Electricity  Directive  lays  down 
key  rules  relating  to  the  organisation  and 
functioning  of  the  EU’s  electricity  sector,  with  a 
view  to  creating  truly  integrated,  competitive, 
consumer-centred,  flexible,  fair  and  transparent 
electricity markets in the EU.   

Commission 

The 
launched 
infringement  procedures  against 
19  Member  States  for  failing  to 
fully  transpose  EU  rules  on  the 
single  market  for  electricity  into 
national  law  by  the  transposition 
deadline of 31 December 2020.  

In  2021,  the  Court,  in  an  infringement  case  previously 
referred  to  it  by  the  Commission  regarding  Germany's 
compliance with the Third Energy Internal Market Package 
of  2009,  issued  an  important  judgement  to  ensure  that 
national  energy  regulatory  authorities  can  fulfil  all  their 
tasks  under  EU  law,  in  full  independence  and  without 
intervention by private parties or the state, under the sole 
control of the national and EU Courts. 

Keeping nuclear power safe 

Nuclear  energy  can  play  a  positive  role  in  meeting  climate  targets  and  ensuring  energy  security, 
provided that the highest level of nuclear safety and radiation protection are met. The Commission 
continued  to  focus  on  the  effective  implementation  of  the  Euratom  legal  framework  on  nuclear 
safety, protecting workers, patients and the general public from ionising radiation and making sure 
that radioactive waste is handled safely.  

It launched infringement procedures against  five Member States, and pursued existing procedures 
against  four  other  Member  States,  requesting  the  correct  or  complete  transposition  of  the  Basic 
Safety Standards Directive. Of these, only cases against Greece, Latvia and Malta remain open – all 
other  cases  were  closed  in  2021.  The  Commission  also  opened  infringement  procedures  against 
three Member States to ensure the correct transposition of the Euratom Drinking Water Directive. 

Moreover, the  Commission  followed  up  on  infringement  procedures  against  seven  Member  States 
regarding the Radioactive Waste Directive, either for incorrectly transposing the directive or failing 
to adopt an appropriate national programme for the management of radioactive waste.  

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Mobility and transport 

Rail is a sustainable, smart and safe means of transport. 
Completing the single market in the rail sector brings the 
full  benefits  of  rail  market  liberalisation  to  citizens  and 
businesses.  To  this  end,  it  is  crucial  to  ensure  that  the 
Single  European  Railway  Area  Directive  is  correctly 
transposed  into  national  laws.  This  enables  Member 
States  to  transpose  and  implement  more  recent  acts 
adopted  as  part  of  the  Fourth  Railway  Package  in  a 
consistent manner.  

The Commission launched infringement 
procedures  against  Czechia,  Denmark, 
Lithuania  and  Hungary,  and  pursued 
further  proceedings  against  Greece, 
Spain,  Luxembourg  and  Austria  for 
their  failure  to  correctly  transpose 
certain  provisions  of  the  EU  rules 
establishing a Single European Railway 
Area.  

This  directive  aims  to  create  a more  competitive  framework  by  covering  regulatory  oversight  and 
financial architecture within the railway sector, the power of national regulators, the framework for 
fair  and  non-
rail,  and 
investment 
discriminatory access to rail infrastructure and 
rail-related services. 

in 

The  market pillar  of the  4th  Railway  package 
establishes  the  general  right  for  railway 
undertakings  based  in  one  Member  State  to 
operate  all  types  of  passenger  services 
everywhere in the EU. It is expected to deliver 
more choice and better quality of rail services 
for travellers.  

infringement 
procedures  against  Bulgaria,  Denmark,  Germany,  Ireland,  Luxembourg  and  the  Netherlands,  and 
further pursued proceedings against Austria for incorrectly transposing EU rules on market opening 
and infrastructure governance. 

Commission 

opened 

The 

On  road  transport,  the  Commission  called  on  France  to  comply  with  internal  market  rules  and 
opened infringement proceedings regarding its national legislation prohibiting daily and weekly rest 
periods inside light commercial vehicles (e.g. vans), which is in breach of  EU law. The Commission 
called on Lithuania to duly implement EU rules on the maximum weights and dimensions of certain 
road vehicles.  

On maritime transport, the Commission launched infringement procedures against Germany, Greece 
and  Cyprus,  for  incorrect  implementation  of  EU  safety  and  environmental  rules  on  marine 
equipment.  

In other transport areas, the Commission took issue with a diverse array of national measures that 
hinder  the  full  functioning  of  the  single  market.  For  instance,  it  decided  to  refer  Denmark  to  the 
Court of Justice, due to a 25-hour limit it imposed on lorries for parking in state-owned rest areas, 
as this creates barriers to foreign hauliers carrying out international operations.  

In a case that relates to the freedom to provide services, the Commission asked Denmark to ensure 
that all cabotage operations in transport services provided by bus and coach that are temporary in 
nature are treated as such.  

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In the port services area, EU  rules intend to level 
the playing field, provide port operators with legal 
certainty, and create a climate more conducive to 
efficient  public  and  private  investment.  For  not 
having 
notification 
obligations,  the  Commission  opened  infringement 
cases  against  Croatia,  Italy  and  Slovenia  and 
pursued  existing  proceedings  against  Belgium, 
Cyprus and Portugal. 

complied  with 

certain 

Direct taxation  

The single market guarantees that citizens and businesses have the freedom to move, operate and 
invest across national borders. However, as national legislation in the field of direct taxation is not 
aligned  across  the  EU,  these  freedoms  can  open 
avenues 
tax 
avoidance.  To  prevent  inadvertent  non-taxation  as  a 
result  of  such  practices,  Member  States,  by  way  of  a 
number of directives, have agreed to cooperate closely 
and to approximate their rules. 

tax  planning  and 

for  aggressive 

The  Commission  took  action  against 
an 
and  Czechia 
Germany 
for 
the 
transposition 
incomplete 
of 
tax  avoidance 
Directive  against 
practices 
the 
that  directly  affect 
functioning of the single market.  
launched 
Commission 
The 
infringement  cases  against  Bulgaria 
and Cyprus, and further pursued cases 
against  Belgium  and  Luxembourg,  for 
transpose  or 
failing 
implement  certain  provisions  of  the 
directive.  

to  correctly 

The Commission’s enforcement action in 2021 focused 
on  ensuring  the  effective  transposition  into  Member 
States’  national  legislation  of  updated  rules  against 
tax  avoidance  and  the  Directive  on  administrative 
cooperation.  

infringement  procedures 
their 
following 
States 
transposition  of  rules  against  tax  avoidance  practices.  Similarly,  nine  Member  States  introduced 
adequate  transposition  measures  regarding  mandatory  automatic  exchange  of  information  on 
reportable  cross-border  arrangements,  while  Belgium,  Greece,  Hungary,  Romania  and  Sweden 
remedied shortcomings in the transposition of EU rules on tax dispute resolution mechanisms. 

The  Commission  closed 
against 

six  Member 

Indirect taxation 

The  Commission  opened  infringement 
procedures  against  seven  Member 
States  for  failing  to  communicate  their 
national measures transposing the new 
VAT  e-commerce  rules,  and  it  took  the 
next  step  in  its  proceedings  against 
Cyprus. 

On  indirect  taxation,  the  EU  coordinates  and  aligns 
law  on  VAT,  excise  duties  and  car  taxation.  Full 
application  of  the  rules  helps  avoid  distorting 
competition  on 
the  single  market  by  giving 
businesses  in  one  country  an  unfair  tax  advantage 
over others. 

The  Commission  placed  particular  importance  on 
supporting  and  monitoring  Member  States’  efforts  to  implement  the  new  VAT  e-commerce  rules, 
applicable since 1 July 2021. These rules also create a fairer business environment for EU sellers 
and  simplify  the  VAT  obligations  of  traders  involved  in  cross-border  online  sales  of  goods  and 
services to consumers in the EU.  

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fiscal  measures 

The  Commission’s  enforcement  activities  also 
targeted  national 
that  distort 
competition  in  the  single  market.  For  example,  the 
Commission 
incorrect 
took  action  against 
application by Greece of the VAT exemption on certain 
postal services supplied by the Greek universal service 
provider ‘ELTA’.  

the 

The Commission acted against Lithuania for excluding 
certain  businesses  from  the  benefit  of  the  VAT 
scheme for small and medium companies. 

The  Commission  opened  an  infringement 
case  against  Greece  and  further  pursued 
for 
proceedings 
their 
against  Malta 
discriminatory 
regarding 
second  hand  vehicles  purchased  in  other  EU 
Member States.  

treatment 

tax 

The  Commission  also  followed  up  on  requests 
from  EU  citizens  and  businesses  to  address 
serious  cross-border  obstacles  resulting  from 
diverging  car-related  taxation,  for  example 
when  purchasing  a  car  in  another  Member 
State.  

Customs  

The  Commission's  enforcement  action  in  the  field 
of  customs  focused  on  the  correct  and  uniform 
application of the Union Customs Code, the EU’s set 
of  customs  rules  and  procedures  for  its  customs 
territory.  

Another priority was detecting charges between EU 
countries that have an equivalent effect to customs 
duties. These are prohibited.  

The  Commission  continued  existing  dialogues  with 
Member  States  to  remedy  possible  situations  of 
infringements and opened a new dialogue on implementing the Import One-Stop Shop, an electronic 
portal  that  businesses  have  been  able  to  use  since  1  July  2021  to  comply  with  their  VAT  e-
commerce obligations on distance sales of imported goods. 

Competition 

The Commission’s competition policy ensures that markets work better for consumers, business and 
society.  Companies  should  compete  on  equal  terms  and  consumers  should  benefit  from  lower 
prices, greater choice and better quality. 

Competition authorities in Member States play an important role in enforcing EU competition rules. 
The ECN+ Directive aims to empower national competition authorities to be more effective in doing 
so.  The  Commission  opened  infringement  procedures  against  22  Member  States  for  failing  to 
communicate complete national transposition measures on time, namely by 4 February 2021. 

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Financial services   

launched  96 
The  Commission 
infringement  procedures  against 
Member  States  for  failing  to 
adopt  the  necessary measures  to 
fully  transpose  the  Directives, 
which further unify the regulatory 
framework  for  credit  institutions 
and investment firms. 

Financial  services  are  a  key  pillar  of the  single  market.  EU 
legislation  covers  all  financial  intermediaries  and  capital 
markets.  Credit  institutions  and  investment  firms  are 
important  actors  of  the  EU  financial  system.  The  EU  rules 
ensure that banks and investment firms are even stronger 
and better supervised, to increase their capacity to support 
the post-COVID recovery.  

There  are  four  directives  of  particular  interest  for  credit 
institutions  and  investment  firms,  on  which  the  Commission  focussed  its  enforcement  efforts  in 
2021:  the  Capital  Requirements  Directive  V,  the  Bank  Recovery  and  Resolution  Directive  II,  the 
Covered  Bonds  Directive  and  the  Investment  Firms  Directive.  Timely  and  full  implementation  of 
these directives is important for completing the single market in financial services and keeping the 
financial system sufficiently robust to weather the consequences of the pandemic.   

Money laundering and terrorist financing 

Money laundering and terrorist financing pose a serious threat to the integrity of the EU economy 
and  financial  system,  and  the  security  of  European  citizens.  These  illicit  financial  flows  have 
continued during the COVID-19 pandemic. EU legislation is designed to prevent the financial market 
from being misused for these purposes. 

laundering  and 

For  late  or  incorrect  transposition  into 
national  law  of  the  EU’s  rules  to  fight 
financing  of 
money 
terrorism (Directives 2015/849, 2018/843 
and  2019/2177),  the  Commission  took 
formal  steps  in  41  infringement  cases, 
including the closure of 19 cases.  

In 2021, the Commission focused on enforcing the 
4th and the 5th anti-money laundering directives, 
as well as the rules concerning a new role for the 
European  Banking  Authority  in  preventing  the 
financial  system  from  being  used  to  launder 
money or finance terrorism. 

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IV. Promoting our European Way of Life and European Democracy 

‘Societies  that  build  on  democracy and  common  values  stand  on  stable  ground.  They 
have  trust  in  people.  This  is  how  new  ideas  are  formed,  how  change  happens,  how 
injustices are overcome.’  

- President von der Leyen, in her 2021 State of the Union Address 

The EU is built on common values which are anchored in the EU’s Treaties and laws, and which are 
are safeguarded by the judgments of the Court of Justice. The rule of law is at the heart of those 
values. Consequently, threats to the rule of law challenge the legal, political and economic basis of 
the EU. Therefore, protecting the rule of law is one of the priorities of the Commission, which also 
include promoting equality, tolerance and non-discrimination across the EU.  

The Commission also acted in 2021 to protect consumers and ensure the freedom of movement of 
people, put to the test by the COVID-19 pandemic. 

Rule of law and fundamental rights 

The  Commission  makes  use  of  several  tools  to  protect  and  promote  the  rule  of  law  in  the  EU.  It 
publishes  an  annual  rule  of  law  report  in  which  it  presents  positive  and  negative  developments 
across  the  Member  States.  The  report  is  the  cornerstone  of  the  rule  of  law  mechanism,  a  yearly 
cycle to promote the rule of law and prevent problems from emerging or deepening.  

January 

2021, 
regulation 

the 
Since 
conditionality 
has 
been  in  force,  to  protect  the  EU 
budget  from  being  affected  by 
breaches of the rule of law.  

The  Commission  may  also  take 
action  as  regards  rule  of  law 
infringement 
issues 
proceedings.  

through 

In March 2021, the Commission decided to refer Poland to 
the  Court  of  Justice  due  to  a  new  law  on  the  judiciary 
affecting the independence of the judges. In this case, the 
Commission requested interim measures to protect judicial 
independence, which were granted by the Vice-President of 
the  Court  on  14  July  2021,  ordering  Poland  to  suspend  a 
number of the law’s provisions.  
In  another  case  concerning  the  Polish  disciplinary  regime 
for  judges,  in  September  2021  the  Commission  pursued 
infringement proceedings further in view of Poland’s failure 
to implement a judgment by the Court of Justice of 15 July 
2021 in that case.  
In  December  2021, 
launched  an 
infringement  procedure  against  Poland  concerning  the 
Polish  Constitutional  Tribunal  and 
law  that 
adversely affects fundamental tenets of the EU legal order. 

the  Commission 

In  2021,  the  Commission  took 
action  against  Hungary  for  non-
compliance  with  a  ruling  by  the 
Court of Justice on the Hungarian 
law on foreign-funded NGOs. The 
Court had found the law to be in 
breach  of  EU  rules  on  the  free  movement  of  capital  and  the  fundamental  rights  to  protection  of 
personal data and freedom of association, protected by the EU Charter of Fundamental Rights. 

its  case 

European Union citizenship 

In June 2021, the Commission took further steps in the infringement procedures against Cyprus and 
Malta  regarding  their  investor  citizenship  schemes, also  known  as  ‘golden passport’  schemes.  The 
schemes  offer  citizenship  in  exchange  for  pre-determined  payments  and  investments  without  a 

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genuine link with the naturalising Member State. The Commission considers that by establishing and 
operating such schemes, the two Member States fail to fulfil their obligations under the principle of 
‘sincere cooperation’ and the notion of citizenship of the EU, as laid down in the Treaties. 

Free movement of people  

The  Commission  continued 
its  work  to 
facilitate  free  travel  by  EU  citizens  around 
the bloc during the COVID-19 pandemic. 

As  a  cornerstone  initiative,  the  Commission, 
together  with  Member  States,  put  in  place 
the  EU  Digital  COVID  Certificate.  The 
Commission  monitored  Member  States’ 
implementation  of  the  certificate  and  the 
coordinated  approach  to  travel  restrictions 
as a matter of priority.  

On  18  October  2021,  the  Commission 
reported  on  the  implementation  of  the  certificate  across  the  EU.  By  the  end  of  2021,  Member 
States had issued more than 1 billion certificates. 

Rights of travellers during the pandemic 

Following  the  COVID-19  outbreak,  many  travellers  did  not  receive  refunds  in  accordance  with  EU 
rules on package travel. Several Member States adopted national rules that allowed package travel 
organisers  to  postpone  reimbursement  or  to 
issue  mandatory  vouchers  instead.  Dialogue 
with the Commission led to the swift reversal 
of many of these measures. 

to 

due 

unavoidable 

To  protect  the  right  of  travellers  to  a  refund 
within  14  days  if  their  package  holiday  is 
cancelled 
and 
extraordinary  circumstances,  the  Commission 
further  pursued 
infringement  proceedings 
against  four  Member  States.  While  it  referred 
Slovakia to the Court of Justice, it was able to 
close  cases  against  three  Member  States  as 
they repealed the infringing national rules. 

In February 2021, the Commission adopted a 
report on the application of the 2015 Package 
Travel  Directive.  The  report  highlights  certain 
challenges that had emerged before and after 
the outbreak of the pandemic and informs the 
planned review of the Directive.  

Safer transport 

European citizens expect high safety and security standards on all modes of transport. EU policies 
aim at maintaining and developing these standards and at ensuring their full alignment across the 
EU.  

Safety  is  a  key  component  of  the  promotion  of  maritime  transport.  Having  in  mind  that  human 
action continues to play a major role in marine accidents, the Commission focussed on enforcing EU 
rules on a minimum level of training for seafarers. It launched infringement procedures against the 
Netherlands and Poland, and further pursued a case against Spain in this area.  

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In the air sector, the Commission  took another step in the procedures against Austria, Cyprus and 
Greece  for  their  failure  to  designate  a  ‘just-culture’  body.  Such  body  shall  ensure  that  individuals 
reporting  safety-relevant  occurrences  in  civil  aviation  are  not  penalised  by  their  employers  or 
national authorities. The Commission also called on Belgium to duly implement EU rules in the flight 
licensing  domain.  According  to  these  rules,  the  competent  aviation  authority must  have  sufficient 
personnel to perform its tasks. The staff must also be qualified to perform their allocated tasks and 
have the necessary knowledge, experience, and training. 

Equality and non-discrimination 

The Commission strives for a Union of Equality – a Union where all women and men, girls and boys, 
in all their diversity, are equal. 

In  March  2021,  the  Commission  presented  a  report  on  the  application  of  the  Racial  Equality 
Directive and the Employment Equality Directive.   

In  one  case,  the  Commission  launched  an  infringement  procedure  against  Hungary  to  ensure 
compliance with the rights to freedom of expression and non-discrimination in the implementation 
of the Unfair Commercial Practices Directive. The 
case  centred  around  a  book  for  children  that 
presents  LGBTIQ  people,  in  which  the  publisher 
was  obliged  to  include  a  disclaimer  that  this 
depicted  forms  of  ‘behaviour  deviating  from 
traditional  gender 
roles'.  The  Commission 
considered this contrary to EU law, including the 
EU Charter of Fundamental Rights. 

The  Commission  also  launched  an  infringement 
procedure  against  Poland  for  violating  the 
principle  of  sincere  cooperation  under  the 
to  fully  and 
Treaties,  due 
appropriately respond to the Commission’s inquiry regarding the nature and impact of the ‘LGBTI-
ideology free zones’ resolutions adopted by several Polish regions and municipalities.  

its  failure 

to 

Combating racism and xenophobia, including hate speech 

The  Commission  continued  to  fight  racism  and 
xenophobia  through  its  enforcement  work  in 
2021.  The  Framework  Decision  on  combating 
racism  and  xenophobia  by  means  of  criminal 
law aims to ensure that serious manifestations 
of  racism  and  xenophobia,  such  as  public 
incitement  to  violence  or  hatred,  and  hate 
crimes, 
effective, 
punishable 
proportionate  and  dissuasive  criminal  penalties 
throughout the EU.  

are 

by 

The  Commission  opened  infringement  cases 
against  11  Member  States  for  not  fully  and 
accurately transposing the Framework Decision. 

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2021 Annual Report 

Improving the protection of personal data 

Data  protection  is  a  fundamental  right  enshrined  in  the  EU  Charter  of  Fundamental  Rights.  The 
Commission  continued  monitoring  the  implementation  of  data  protection  legislation  in  Member 
States.  

The  Commission  followed  up  on  a 
judgement by the Court of Justice of 
25  February  2021  that 
imposed 
financial  penalties  on  Spain  for 
the 
failure 
law 
transpose 
enforcement  directive 
for  data 
protection.  

It  assessed  the  compliance  of  national  legislation  with 
the  General  Data Protection Regulation (GDPR) and the 
Data  Protection  Law  Enforcement  Directive,  pursuing 
infringement  procedures  where  necessary.  National 
data  protection  authorities  monitor  and  supervise  the 
application  of  the  data  protection  rules  in  the  Member 
States,  and  exercise  their  powers  independently.  In 
infringement 
2021, 
proceeding  against  Belgium  to  ensure  the  Belgian  Data  Protection  Authority  is  fully  independent. 
The  Commission  closed  infringement  proceedings  against  Germany  and  Slovenia  once  they  had 
transposed the law enforcement directive. 

the  Commission  opened  an 

to 

Justice cooperation and individual guarantees in criminal law 

On cooperation by Member States in criminal justice, the Commission continued monitoring national 
compliance  with  EU  rules  on  the  European  arrest  warrant,  launching  infringement  procedures 
against 15 Member States.  

To  enforce  EU  law  on  the  exchange  of  information  on  criminal  records  throughout  the  EU,  the 
Commission  opened  five  infringement  cases  for  incorrect  application  of  the  requirements  of  the 
European Criminal Records Information System.  

The Commission’s monitoring of the implementation of the  Directive on the fight against fraud to 
the  EU’s  financial  interests  continued.  On  the  basis  of  an  implementation  report  adopted  in 
September  2021,  it  opened  infringement  proceedings  against  eight  Member  States  for  non-
conformity of national transposition measures with that directive.  

The  Commission  also  continued to monitor  the transposition  of the  procedural  rights  directives.  It 
pursued infringement proceedings against 18 Member States for partial or incorrect transposition of 
the  Directive  on  the  right  to  have  a  lawyer.  Infringement  proceedings  for  non-compliant 
transposition were also started against Belgium, Portugal, Latvia and Sweden regarding the right to 
interpretation  and  translation,  and  against  Bulgaria,  Ireland,  Latvia  and  Portugal  on  the  right  to 
information  in  criminal  proceedings.  The  Commission  also  opened  infringement  cases  against 
Estonia, Finland and Poland for failing to fully transpose EU rules on strengthening the presumption 
of innocence.  

Security 

Security is  not only  the basis for personal  safety, it also protects fundamental  rights. It acts as a 
foundation for confidence and dynamism in our economy, our society and our democracy. The  EU 
Security  Union  Strategy  aims  to  increase  the  resilience  of  our  societies  against  organised  crime, 
terrorism and radicalisation; as well as addressing the risks to security in the digital age.  

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2021 Annual Report 

On  the  EU’s  set  of  rules  on  firearms,  the 
Commission  was  able  to  close  34  infringement 
their 
cases  as  Member  States 
transposition  into  national  legislation.  However,  it 
decided  to  refer  Luxembourg  to  the  Court  of 
Justice  for  not  having  transposed  the  Firearms 
Directive.  

completed 

EU  rules  to  fight  terrorism  criminalise 
conduct such as training and travelling for 
terrorism,  as  well  as  terrorist  financing. 
The  Commission  opened  22  infringement 
cases  for  incorrect  transposition  of  the 
Directive on combating terrorism.  
The 
launched 
infringement  procedures  against  seven 
Member  States  for  incorrect  transposition 
the  Directive  on  attacks  against 
of 
information systems. 

Commission 

also 

In the area of drugs, all Member States completed 
transposition  of  EU  rules  on  the  inclusion  of  new 
psychoactive substances in the definition of ‘drug’; 
infringement procedures could therefore be closed. 
The  Commission  pursued  further  its  infringement 
case  against  Hungary  for  failure  to  follow  the  EU  position  (binding  on  Member  States)  on  the 
international  scheduling  of  cannabis  and  related  substances  at  the  UN  Commission  on  Narcotic 
Drugs.  

New Pact on Migration and Asylum 

including 

of  migration, 

The  Commission’s  migration  policy  covers  all 
aspects 
border 
management,  visa  policy,  irregular  migration, 
asylum  and  legal  migration.  Consistent  and 
effective  implementation  in  full  respect  of 
individuals’  fundamental  rights  is  critical  to  the 
success of the policy.  In 2021, the Commission 
continued its work on the implementation of the 
new Pact on Migration and Asylum.  

opened 

Commission 

infringement 
The 
procedures  against  Lithuania  and  Slovenia,  and 
took the next step in the case against Malta, for incorrect transposition of the Long-Term Residence 
Directive. The Commission also started infringement procedures against Bulgaria and Germany for 
failure  to  use  the  new  format  for 
residence  permit  cards  for  non-EU 
nationals, as established by EU rules.  

To  enforce  the  EU’s  asylum  rules,  the  Commission 
referred  Hungary  to  the  Court  of  Justice  for  its 
failure  to  comply  with  an  earlier 
judgement. 
Hungary  had  not  addressed  several  aspects  of  it, 
such  as  ensuring  effective  access  to  the  asylum 
procedure  and  clarifying  the  conditions  of  the  right 
to remain on the territory, in the event of an appeal 
in the asylum procedure.  
In  another  case,  the  Commission  decided  to  refer 
Hungary  to  the  Court  of  Justice  for  unlawfully 
restricting access to the asylum procedure, in breach 
of the Asylum Procedures Directive. 

The  Court  of  Justice  ruled  in  favour  of 
the  Commission 
in  a  case  against 
Hungary  on  the  procedures  for  granting 
international protection. The Court found 
that by criminalising activities in support 
of  asylum  applications,  Hungarian 
legislation breached  EU  rules. Hungarian 
rules were also found to unlawfully limit 
the right to asylum, in breach of EU law. 

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