REPORT FROM THE COMMISSION Monitoring the application of European Union law 2022 Annual Report
Date: 2023-07-14
Institutions: European Commission, Secretariat-General
Subjects: EU Member State, EU control, EU energy policy, EU environmental policy, activity report, area of freedom, security and justice, digital economy, infringement procedure (EU), national implementing measure

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 14.7.2023  COM(2023) 453 final  REPORT FROM THE COMMISSION Monitoring the application of European Union law   2022 Annual Report  
 
 
Monitoring the Application of European Union Law - 2022 Annual Report 

Foreword ...................................................................................................................................... 3 

The European Green Deal ....................................................................................................... 4 

Clean air and water ..................................................................................................................................... 4 
Management of flood risks ..................................................................................................................... 5 
Protecting biodiversity ............................................................................................................................... 5 
Promoting a circular economy .............................................................................................................. 6 
Climate action ................................................................................................................................................ 6 
Clean energy ................................................................................................................................................... 6 
Single market for energy ......................................................................................................................... 7 
Clean transport .............................................................................................................................................. 8 
Sustainable agriculture ensuring food supply .............................................................................. 8 
Sustainable fisheries and maritime spatial planning ................................................................ 9 
Health and food safety .......................................................................................................................... 10 
Preventing tobacco-related diseases.............................................................................................. 10 
Safer transport ........................................................................................................................................... 10 

A Europe fit for the Digital Age ......................................................................................... 12 

Technology that works for people .................................................................................................... 12 
A fair and competitive digital economy ........................................................................................ 13 
Promoting the data economy ............................................................................................................. 13 
An open, democratic and sustainable digital society ............................................................. 13 
Protection for consumers and companies ................................................................................... 14 
Accessible products, services and websites ................................................................................ 14 
Allowing the single market to increase growth ......................................................................... 15 
Transparent information about and for businesses ............................................................... 16 
Digital transport systems ..................................................................................................................... 16 

An economy that works for people .................................................................................. 18 

Working conditions ................................................................................................................................... 18 
Health and safety at work .................................................................................................................... 18 
Labour mobility .......................................................................................................................................... 19 
Social security coordination ................................................................................................................. 20 
Better information and assistance for citizens and businesses ....................................... 20 
Better regulation of professions and recognition of qualifications ................................ 20 
Preventing bankruptcy of viable companies ............................................................................... 21 

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Monitoring the Application of European Union Law - 2022 Annual Report 

Financial services ...................................................................................................................................... 21 
Retail payments ......................................................................................................................................... 22 
Overseeing the application of EU financial services rules by national authorities . 22 
Money laundering and terrorist financing .................................................................................... 22 
Mobility and transport ............................................................................................................................ 23 
Direct taxation ............................................................................................................................................ 24 
Indirect taxation ......................................................................................................................................... 25 
Customs ......................................................................................................................................................... 26 

Promoting the European way of life and democracy ................................................ 27 

Rule of law .................................................................................................................................................... 27 
Protecting people who report breaches of EU law .................................................................. 28 
Combating discrimination, racism and xenophobia ................................................................ 28 
Promoting work-life balance ............................................................................................................... 29 
Protecting personal data ....................................................................................................................... 29 
Protecting EU citizenship ....................................................................................................................... 29 
Judicial cooperation and individual rights in criminal matters ......................................... 30 
Security........................................................................................................................................................... 30 
Migration and Asylum ............................................................................................................................. 31 
Implementing sanctions against Russia ........................................................................................ 31 

Disclaimer: This report sets out the Commission’s actions to monitor and enforce EU law during 
2022. The state of play of infringement cases mentioned may have evolved since then. 

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Foreword 

The year 2022 marked one of the darkest moments in our 
continent's recent history. War returned to Europe with an 
immediate  impact  on  us  all.  Many  feared  not  only  the 
consequences for Ukraine, but also that the rest of Europe 
would  fall  into  economic  recession,  democratic  upheaval 
and  division.  Instead,  we  resisted.  Ukraine's  struggle  for 
freedom  continues  to  inspire  us,  and  to  keep  up  the 
unprecedented financial, military and political support from 
the European Union.  

And  while  we  are,  and  will  remain,  unwavering  in  our 
support  to  Ukraine,  we  are  also  continuing  to  deliver  on 
the transformational changes that we promised at the start 
of  this  Commission’s  mandate,  to  build  a  stronger,  greener  and  healthier  Europe  for  the  next 
generation.  

To  bring  about  these  changes,  we  have  put  forward  a  wide  range  of  ambitious  proposals  and 
strategies. But our ambitions can only become a reality and will only truly benefit all Europeans, 
no matter where they live, if the rules that we propose are not only agreed in Brussels, but are 
also properly applied on the ground in all parts of the EU.  

This  report  sets  out  the  action  that  we  took  in  2022  to  make  sure  that  those  rules  work  in 
practice.  We  enforced  EU  rules  across  all  policy  fields,  focusing  on  the  issues  that  are  most 
important  for  the  everyday  lives  of  people  and  businesses.  Most  of  the  procedures  that  we 
launched in 2022 therefore related to the environment, to justice and fundamental rights, and to 
the single market and employment.  

Where problems arise, we first work closely with the Member States to try and resolve them as 
soon as possible. Most often, with success. However, as the report shows, we do not hesitate to 
take enforcement action where necessary to ensure that our Union remains a safe space of shared 
prosperity, a democracy of democracies and a true community of values. 

Sincerely,  

Dr. Ursula von der Leyen 

President of the European Commission 

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The European Green Deal  

‘We must work relentlessly to adapt to our climate – making nature our first ally.’ 

President von der Leyen, in her 2022 State of the Union Address 

Climate change and environmental degradation are an existential threat to Europe and the world. 
The  extreme  heatwaves,  forest  fires  and  unprecedented  droughts  in  2022  made  people  around 
the world feel their increasingly severe effects. Accelerating the EU’s green transition is essential 
for tackling the climate crisis and strengthening the EU’s economy and security. The European 
Green Deal sets out the path towards zero pollution for air, water and soil, and transforming the 
EU’s  economy  into  one  that  is  modern  and  resource-efficient.  In  2022,  the  Commission 
rigorously enforced EU rules to make these objectives become a reality.  

Clean air and water 

Air pollution is the largest environmental health risk in Europe. EU rules on air quality standards 
are crucial for reducing the negative effects of air pollution on human health: in the last 30 years, 
the number of premature deaths due to air pollution in the Member States has decreased by 60%. 
The Commission has continued to enforce these standards relentlessly to protect human health 
and safeguard the natural environment.  

The Commission insisted on appropriate treatment of waste water. It also enforced the Drinking 
Water Directive to ensure that water intended for human consumption is wholesome and clean. 

The Commission  took the next  step in its infringement proceedings against  Croatia for  poor air 
quality due to high levels of particulate matter (PM10) and fine particulate matter (PM2.5). It called 
on  Poland to  remove  barriers  to  access  to  justice  in  relation  to  air  quality  plans  under  the 
Ambient  Air  Quality  Directive.  The  Commission  took  the  next  step  in  the  procedure  against 
Cyprus for  failing  to  fully  transpose  the  Medium  Combustion  Plants  Directive.  The  Directive 
establishes emission limits for medium combustion plants to reduce air pollution. 

The Commission decided to refer Spain, Malta and Poland to the Court of Justice of the European 
Union  over  their  treatment  of  waste  water.  It  also  took  the  next  step  in  the  procedure  against 
Hungary for substances in drinking water that could pose a potential health danger.  

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Management of flood risks 

The catastrophic floods in Germany and Belgium in July 2021 demonstrated the importance of 
assessing flood risks in the  light of climate change. Floods can also release pollutants stored  in 
the ground and spread them even more widely. The Floods Directive requires Member States to 
adopt plans to manage flood risks, critical to swift reaction. The Commission took the next step 
in infringement procedures against Bulgaria, Greece, Cyprus, Lithuania, Romania and Slovakia to 
ensure updated flood risk maps. 

Protecting biodiversity 

and 

The  European  Green  Deal 
the 
Biodiversity strategy for 2030 both aim for the 
EU to halt its biodiversity loss. This should be 
achieved  by  preserving  natural  sites  and 
restoring  damaged  ecosystems  to  favourable 
conservation status in habitats that play a vital 
role  for  biodiversity.  Restoring  forests,  soils, 
wetlands  and  marine  areas  is  essential  for 
achieving the climate change mitigation needed 
by 2030. 

EU  rules  also  provide  for  parties  affected  by 
environmental damage to request the responsible national authority to decide which preventive 
and  remedial  action  the  liable  operator  should  take.  The  Commission  called  on  the 
Netherlands and Sweden to properly transpose these rules. In parallel, the Commission was able 
to close five cases because Member States brought their rules in line with EU law. This ensured 
that all people who should have this right can submit information and request the authorities to 
take action when it comes to environmental damage.  

In a case originating from a petition to the European Parliament, the Commission asked Spain to 
implement  a  judgment  of  the  Court  of  Justice  concerning  the  Doñana  wetlands,  to  safeguard 
protected habitats and sustainably manage the groundwater bodies that feed these wetlands.  

The Commission decided to refer Greece to the Court of Justice for failing to correctly transpose 
the Environmental Impact Assessment Directive. The Commission called on Spain to remedy the 
harmful effects of a hotel complex in the Canary Islands on the environment. The Commission 
also called on France to bring its legislation fully in line with the Directive. Cyprus, on the other 
hand,  aligned  its  national  rules  and  the  Commission  closed  its  infringement  case.  This  will 
strengthen the assessment of consequences of a project for the environment in Cyprus ahead of 
its actual construction, which is fundamental to protecting biodiversity.  

The Commission  took the next step in the  procedure against  15 Member States to protect the 
environment  against  invasive  alien  species.  It  also  called  on  Slovakia,  Cyprus  and  Portugal to 
protect  and  manage  their  Natura  2000  protected  areas  under  the  Habitats  Directive.  The 
Commission also called on Slovenia to comply with the Birds Directive to protect wild birds.  

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Promoting a circular economy  

The circular economy action plan is a core component of the European Green Deal, paving the 
way for a cleaner and more competitive Europe. It promotes waste recovery and pushes for EU 
waste management standards to be fully implemented. The Commission’s enforcement of these 
rules helps reduce adverse effects of waste on human health and the environment. 

The Commission launched infringement procedures, or pursued them further, against 11 Member 
States  for  failing  to  fully  transpose  the  Directive  on  Single-Use  Plastics.  The  Directive  aims  to 
prevent  and  reduce  the  impact  of  certain  plastic  products  used  for  a  very  short  time  on  the 
environment and on human health. 

On  the  use  of  plastic  bags,  Ireland  brought  its  legislation  in  line  with  the  Directive  on  Plastic 
Bags, as the result of a pre-infringement process initiated by the Commission (EU Pilot).  

On  waste  treatment,  the  Commission  called  on  Portugal  to  improve  its  practice  and  correctly 
apply the Landfill Directive and the Waste Framework Directive. 

Climate action 

The EU has set itself the goal to make Europe the first climate-neutral continent by 2050. The 
European  Climate  Law  established  the  intermediate  target  of  reducing  net  greenhouse  gas 
emissions by at least 55% by 2030, compared to 1990 levels. Long-term strategies are crucial for 
helping  to  achieve  the  economic  transformation  needed  towards  these  climate  goals.  The 
Governance Regulation required Member States to prepare their first long-term strategies with an 
outlook of at least 30 years. In 2022, 
launched 
the 
against 
infringement  proceedings 
Bulgaria, 
and 
Romania  for  failing  to  notify  such 
strategies to the Commission. 

Commission 

Ireland, 

Poland 

Clean energy  

climate 

the  EU’s 

Decarbonising 
energy 
system  is  critical  for  achieving  the 
objectives. 
EU’s 
The 
consequences  of 
the  COVID-19 
pandemic  and  the  Russian  military 
invasion  of  Ukraine  put  this  process  to  the  test.  The  Commission  remained  determined  to 
implement the Clean Energy for all Europeans package: clean energy is at the heart of the energy 
transition towards a safe, secure and sustainable energy sector that puts consumers first.  

Promoting renewable energy is not only fundamental for the EU’s climate objectives but it also 
helps  stabilise  the  energy  sector  by  reducing  market  volatility,  lowering  energy  prices  and 
strengthening  the  EU’s  security  of  supply.  The  Renewable  Energy  Directive  provides  the 
framework for developing renewable energy in the EU, and its enforcement is a priority for the 
Commission. 

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As  Member  States  failed  to  transpose  EU  rules,  the  Commission  took  the  next  step  in  its 
infringement proceedings: 

  against 15 Member States on the amending Energy Performance of Buildings Directive; 
  against 12 Member States on the amending Energy Efficiency Directive; 
  against 15 Member States on the Renewable Energy Directive.  

Single market for energy 

An  integrated  EU  energy  market  is  the  most 
cost-effective  way 
to  ensure  secure  and 
affordable  energy  supplies  for  people  and 
businesses.  Common  rules  and  cross-border 
infrastructure  make 
it  possible  for  energy 
produced in one EU country to be delivered to 
consumers  in  another.  Competition  and  a 
larger choice of energy suppliers for consumers 
keep prices in check. An integrated market also 
contributes 
and 
sustainability. 

security  of 

supply 

to 

The  Electricity  Directive  ensures  such  competitive  markets  across  country  borders  for  the 
electricity sector. The pressure on the energy sector in 2022 made it particularly important that 
the Commission firmly enforced these rules.  

The Commission pursued further the infringement procedure against  Germany and Sweden for 
failing to transpose the Electricity Directive. It launched procedures against eight Member States 
for the same reason. 

Keeping nuclear energy 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 public from ionising radiation and making 
sure radioactive waste is handled safely.  

The  Commission  took  the  next  step  in  the  procedure  against  Croatia,  Estonia,  Italy,  Austria, 
Portugal  and  Slovenia  for  failing  to  adopt  appropriate  national  programmes  to  manage 
radioactive  waste  and  spent  fuel  in  line  with  EU  rules.  It  closed  23  EU  Pilot  cases  on  the 
transposition of the Nuclear Safety Directive after Member States, where necessary, amended or 
adopted new national rules. The Commission concluded that the transposition in these Member 
States was correct, contributing to increased nuclear safety. 

The  Commission  referred  Spain,  Latvia  and  Portugal to  the  Court  of  Justice  for  failing  to  fully 
transpose EU radiation protection legislation. It called on Italy to comply with a judgment by the 
Court  of  Justice  that  found  that  Italy  had  not  transposed  these  rules  into  national  legislation. 
The  Commission  launched  infringement  procedures  against  Belgium  and  Bulgaria for  having 
transposed the rules incorrectly.  

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Clean transport 

The  transport  sector  can  drive  the  EU  towards  meeting  its  objective  on  climate  neutrality.  All 
modes of transport need to become  more  sustainable. Green alternatives  need  to be  accessible 
and the right incentives need to be put in place 
to drive the transition. 

lorries  and  buses, 

In the road sector, the Clean Vehicles Directive 
sets national targets for the public procurement 
of clean vehicles. Specific targets are set for cars 
and  vans, 
including  an 
objective for zero-emission buses. To make sure 
these rules are applied in all Member States, the 
its  procedure 
Commission  further  pursued 
against Bulgaria,  Czechia, Cyprus, Hungary and 
Sweden,  which  had  not  turned  the  rules  into 
national law. 

In  the  maritime  sector,  the  Directive  on  port  reception  facilities  is  designed  to  prevent  sea 
pollution  from  ships.  It  requires  that  waste  generated  on  board  is  not  thrown  into  the  sea  but 
collected  in  ports,  which  must  offer  appropriate  facilities  to  collect  and  process  waste.  The 
Commission  took  the  next  step  in  the  procedures  against  Cyprus,  the  Netherlands,  Austria, 
Poland and Sweden for failing to transpose these rules. 

Sustainable agriculture ensuring food supply  

The EU’s common agricultural policy ensures 
food supply in the EU, stabilises markets and 
helps  farmers  receive  a  fair  income.  The 
policy  also  helps  address  environmental 
challenges such as climate change and loss of 
biodiversity.  

The  consequences  of  Russia’s  military 
aggression  against  Ukraine  put  the  EU’s 
supply chain, and global food security, under 
strain.  The  EU’s  common  organisation  of 
markets in agricultural products bolstered the 
EU’s reply to this threat. A resilient and efficient agri-food system ensured that safe, affordable 
and high-quality food remained available in all Member States. The Commission acted forcefully 
to avoid any undermining of the common agricultural market.  

Hungary  introduced  a  prior  notification  scheme  for  cereal  exports  that  made  it  possible  for 
Hungarian authorities to pre-empt the sale or to purchase the cereals before export takes place. 
The Commission deemed this scheme incompatible with EU rules on the common organisation of 
agricultural  markets  and  on  common  rules  for  exports.  The  Commission  therefore  initiated  an 
infringement procedure against Hungary.  

The  Commission also continued  to ensure  the correct application of  rules on financial support 
for  farmers  applicable  in  2022,  as  well  as  other  legislation  linked  to  the  common  agricultural 
policy’s rules,  such  as that for  i) organic farming, ii) protecting  geographical indications and  iii) 

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prohibiting  unfair  trading  practices  in  the  agricultural  and  food  supply  chain. The  Commission 
closed infringement cases against 11 Member States as they have fully incorporated these rules to 
avoid unfair trading practices into national law. However, the Commission identified instances of 
incorrect  transposition;  to  address  them  quickly,  the  Commission  launched  pre-infringement 
processes (EU Pilot) with 16 Member States.  

Sustainable fisheries and maritime spatial planning 

The  primary  objectives  of  the  EU’s  common  fisheries  policy  is  to  ensure  that  fishing  and 
aquaculture  are  sustainable  and  contribute  to  the  socio-economic  development  of  coastal 
communities  and  the  availability  of  food  supplies.  Bringing  fish  stocks  to  healthy  levels  and 
maintaining them is at the core of the policy. This is why EU rules restrict fleet capacity and limit 
catches and fishing activities. To ensure these rules are fully implemented, Member States must 
put in place appropriate control and enforcement systems. 

focuses 

therefore 

The  Commission 
its 
enforcement action on checking that the rules 
are  enforced  by  Member  States.  The 
obligations  to  accurately  weigh,  record  and 
report catches were at the centre of its action. 
Accurate recording of catches is the basis for 
effective  fisheries  management,  preventing 
overfishing  and  reducing  unwanted  catches. 
Appropriate 
systems  and  a 
harmonised  system  to  share  fisheries  data 
between  Member  States  and  with 
the 
Commission  are  key.  The  Commission  held 
pre-infringement dialogues (EU Pilot) with Member States to address problems identified in this 
respect.  

sanctioning 

The Commission continued to monitor how the Maritime Spatial Planning Directive was being 
implemented,  especially  the  obligation  to  draw  up  maritime  spatial  plans.  This  obligation  is 
designed  to  promote  the  sustainable  development  and  use  of  marine  areas  and  resources 
Maritime  spatial  plans  can  also  be  an  essential  tool  to  facilitate  offshore  renewable  energy 
deployment. The Commission opened infringement proceedings against Bulgaria and Spain, for 
lacking such plans.  

Member States must also control EU vessels’ fishing activities outside of EU waters and ensure 
compliance  with  rules  of  the  common  fisheries  policy.  The  Commission  further  pursued  an 
infringement procedure against France for failing to adequately control part of its external fleet.  

The Commission followed up on two opened infringements against Belgium and the Netherlands 
for failing to control and enforce accurate weighing and registration of catches. The Commission 
also opened an infringement procedure against Croatia to follow up on identified shortcomings 
in their control system for bluefin tuna farms. It also closed a case against Malta on bluefin tuna 
as the Maltese authorities addressed the shortcomings identified. 

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Monitoring the Application of European Union Law - 2022 Annual Report 

Health and food safety 

EU rules on health and food safety aim to secure 
a  high level  of  protection  of  human, animal and 
plant  health,  safeguarding 
interests  of 
consumers.  Integrating  human,  animal  and 
environmental  health,  as  well  as  food  and  feed 
safety,  the  Commission  takes  a  ‘One  Health’ 
approach to preparedness and prevention. 

the 

In  addition,  to  protect  human  health  and 
contribute  to  a  sustainable  food  system,  the 
Commission  helps  Member  State  enforce 

legislation, for example, on products placed on the EU market that are in contact with food. 

Between  May  2021  and  April  2022,  the  Commission  and  Member  States  worked  together  to 
remove a significant number of unsafe kitchen and tableware products from the EU market. This 
joint  enforcement  action,  called  ‘Bamboo-zling’,  focused  on  plastic  items  containing  bamboo, 
often  imported  to  the  EU  from  non-EU  countries.  These  products,  misleadingly  presented  as 
natural  or  sustainable,  could  provoke  migration  of  cancer-causing  substances  at  levels  that 
exceed  limits  under  EU  rules.  Many  such  illegal  and  fraudulent  products  were  withdrawn  from 
the market. 

Preventing tobacco-related diseases 

Tobacco consumption continues to be the leading cause of preventable cancer, with 27% of all 
cancers attributed to it. The Tobacco Products Directive aims to improve the functioning of the 
internal market for tobacco and related products, while ensuring a high level of health protection 
for people It generates positive outcomes for public health. In 2022, the Commission continued 
its work to fully enforce the Directive, supporting the implementation of Europe’s beating cancer 
plan.  It  further  assessed  if  national  laws  transposed  the  Directive  correctly.  Dialogue  with 
Member  States  has  also  been  central  in  improving  the  application  of  the  Directive  and  its 
implementing acts. 

Safer transport 

Road transport is the most widely used means 
of travel by Europeans and a primary cause of 
accidents.  Creating  an  environment  for  safe 
road  transport  is  a  high  priority  for  the 
Commission.  The  Commission’s  enforcement 
of  EU  rules  and  technical  standards  helps  to 
drive down the number of fatalities caused by 
road accidents.  

In  2022, 
the  Commission  continued  an 
infringement  procedure  against  Czechia  for 
failing  to  correctly  transpose  EU  rules  on  the 

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minimum  standards  of  fitness  for  driving,  in  relation  to  cardiovascular  conditions.  It  also 
continued infringement procedures against Greece, The Netherlands, Poland, Portugal, Slovakia 
and Slovenia for failing to fully transpose EU law on road infrastructure safety management.  

In  the  rail  sector,  the  Commission  took  the  next  step  in  the  infringement  procedures  against 
Sweden  regarding  its  failure  to  notify  the  Commission  of  transposition  measures  for  the  rail 
interoperability and railway safety rules. These rules are part of the Fourth Railway Package, the 
implementation of which is a priority for the Commission. On aviation safety, the Commission 
opened an infringement procedure against Spain for incorrectly applying EU legislation on civil 
aviation and on civil aviation aircrew. 

In  the  maritime  sector,  the  Commission  continued  to  focus  on  enforcing  EU  rules  on  a 
minimum  level  of  training  for  seafarers.  In  particular,  it  took  further  steps  in  the  infringement 
procedures against Czechia and Cyprus to ensure that they implement these rules. 

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A Europe fit for the Digital Age 

‘The digital transition needs clear rules. People need to know that they can trust the 
technology in their hands. Businesses need predictability to plan their investment. And this 
is exactly why we have come up with the most ambitious agenda for digital reforms and 
investment in our Union's history.’ 

President von der Leyen, in her speech at the 'Masters of Digital 2022' event 

The  Commission  is  determined  to  make  this  decade  Europe's  ‘Digital  Decade’.  The  EU  is 
determined to set digital standards, with a clear focus on data, technology, and infrastructure. To 
lead the  way  in  the global race  for  trustworthy, secure  and human-centric technology, Member 
States must fully and rapidly implement commonly agreed rules. The Commission therefore took 
swift  action  against  any  late  transposition  of  new  rules.  It  also  acted  firmly  to  protect  the 
fundamental rights of individuals. 

Technology that works for people  

The 2020 European Electronic Communications Code is a central building block of the Digital 
Single  Market,  as  it  boosts  connectivity  and  better  protects  consumers  throughout  Europe.  It 
ensures clearer contracts, quality of services and competitive markets.  

In  April  2022,  the  Commission  decided  to  refer  10  Member  States  to  the  Court  of  Justice  for 
failing  to  fully  transpose  the  Code  into  national  law.  At  the  same  time,  during  2022,  the 
Commission  closed  infringement  procedures  against  eight  Member  States  as  they  had 
completed transposition. Eventually, only Ireland, Latvia, Poland, Portugal and Slovenia had not 
notified  transposition  measures  and  were  referred  to  the  Court  with  a  request  to  impose 
financial sanctions. 

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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 for consumers and creators, so they 
can make the most of the digital world. They protect rights-holders, stimulating the creation and 
circulation  of  more  high-value  content.  They  bring  greater  choice  of  content  for  users  by 
lowering  transaction  costs  and  facilitating  the  distribution  of  radio  and  television  programmes 
across the EU. 

The Commission pursued further infringement procedures against 14 Member States for failing 
to  transpose  the  Directive  on  copyright  in  the  Digital  Single  Market  and  against  11  Member 
States for failing to transpose the Directive on online television and radio programmes.  

In  a  case  brought  by  Poland  against  the  European  Parliament  and  the  Council,  the  Court  of 
Justice of the European Union confirmed the validity of Article 17 of the Copyright Directive. 
This article prohibits platforms from displaying unlicensed copyrighted content on behalf of their 
users. Member States are therefore required to implement the article in national law. 

Promoting the data economy  

The  Open  Data  Directive  aims  to  make  more  of  the  data  produced  and  funded  by  the  public 
sector available for reuse by anyone for any new purpose. It stimulates the development of data-
intensive  innovations  such  as  weather  or  mobility  apps.  It  increases  transparency  by  opening 
access  to  publicly  funded  research  data,  and  supports  new  technologies,  including  artificial 
intelligence. 

In 2022, the Commission took the next step in the infringement procedures against 12 Member 
States  for  failing  to  transpose  the  Directive  into  national  law.  At  the  same  time,  infringement 
proceedings against eight Member States were closed as they had notified complete transposition 
to the Commission.  

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.  

The  Commission  continued  to  enforce  the 
Directive as a matter of priority in 2022. It was 
able  to  close  cases  against  seven  Member 
the  Directive. 
transposed 
States as 
However,  this  was  not  the  case  for  Ireland, 
which  the  Commission  had  to  refer  to  the 
Court of Justice.  

they 

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Making it possible for media service providers  to work freely and independently everywhere in 
the  EU  lies  at  the  heart  of  media  pluralism. EU  telecommunication  rules  set  out  that  media 
service  providers  must  be  able  to  access  the  market  under  non-discriminatory,  objectively 
justified and proportionate terms, and under conditions known in advance.  

The  Commission  decided  to  refer  Hungary  to  the  Court  of  Justice  over  how  it  assigns  radio 
spectrum  rights.  The  Commission  considered  the  decision  by  the  Hungarian  Media  Council  to 
refuse  renewal  of  a  radio  station’s  rights  to  be  disproportionate  and  non-transparent  and  is 
therefore  in breach  of  EU law.  The  Commission also  argued  that  through its  conduct,  Hungary 
had also violated the freedom of speech as enshrined in the EU Charter of Fundamental Rights. 

Protection for consumers and companies  

EU  rules  provide  for  a  high  level  of  protection  for  consumers  when  purchasing  goods,  digital 
content and digital services within the single market.  

The  Better  Enforcement  and  Modernisation  Directive  has  strengthened  existing  rules.  It 
increased transparency in the digital environment and in price reduction announcements. It also 
strengthened  penalties  and  remedies  in  the  case  of  breaches  of  consumer  law.  The  new  rules 
increase legal certainty for both consumers and traders. The Commission launched infringement 
procedures against 22 Member States for not transposing the  Directive on time. Eight of these 
cases could already be closed later in 2022. 

The Digital Content Directive and the Sale of 
Goods Directive apply to consumer contracts 
concluded since 1 January 2022. In 2022, the 
Commission  took  the  next  step 
in  the 
infringement  procedures  against  Poland, 
Slovenia and Slovakia for failing to fully turn 
these  EU  rules into national legislation. As a 
result  of  the  Commission’s  enforcement 
actions,  all  Member  States  except  Slovakia 
had  notified  full  transposition  of  these  rules 
by  the  end  of  2022.  This  has  improved 
protection  for  consumers  when  purchasing 

goods or digital content from any Member State and increased legal certainty for businesses. 

Accessible products, services and websites 

The  European  Accessibility  Act  seeks  to  establish  common  rules  for  accessible  products  and 
services  in  the  EU,  leading  to  cost  reductions.  Persons  with  disabilities  and  elderly  people  will 
benefit from more accessible products and services in the market.  

The Commission opened 24 infringement procedures as Member States failed to transpose these 
rules  by  the  deadline.  The  Commission  also  continued  its  support  to  Member  States  on  their 
efforts to finalise the transposition by organising workshops with national administrations. 

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The Web Accessibility  Directive  requires  public  bodies’  websites  and  mobile  applications  to 
be accessible to everyone, including people with disabilities and older people. For example, these 
sites  and  apps  must  have  an  accessibility  statement  providing  contacts  for  feedback  and 
complaints in case of inaccessible content. 

The  Commission  published  its  assessment  of  the  impact  and  the  implementation  of  the 
Directive, including easy to read summaries. The findings show the Directive was designed and 
implemented efficiently and improved access to online public services and information inside the 
EU, strengthening social and digital inclusion. The results also revealed practical progress still to 
be made for all public sector websites and mobile applications, if they are to be fully accessible to 
people with disabilities and older people. 

Allowing the single market to increase growth 

The incorrect or incomplete application of EU 
rules  continues  to  create  barriers  within  the 
single  market.  This  comes  at  a  cost  for 
businesses and consumers.  The  misapplication 
of  rules  creates  complexity  and  administrative 
burdens and distorts competition, undermining 
the level playing field for businesses across the 
EU. 

Enforcement action has also focused on those 
cross-cutting  areas  with  a  potential  to  ease 
investment  to  speed  up  the  recovery  across 
different  economic  ecosystems,  such  as  in  the 
area  of  services,  including  professions,  free 
movement of goods and public procurement. 

The Commission also continued its enforcement efforts so that public authorities pay on time for 
the  goods  and  services  they  procure,  avoiding  cascading  delays  in  payments  along  the  supply 
chain,  notably  in  the  health  sector.  The  Commission  proactively  monitors  progress  as  regards 
Belgium,  Greece,  Spain,  Italy,  Portugal  and  Slovakia,  which  still  fail  to  meet  the  targets  of  the 
Late Payments Directive.  

To  ensure  that  public  authorities  pay  in  time  for  the  goods  and  services  they  procure,  the 
Commission  acted  firmly  against  two  Member  States:  it  pursued  further  the  infringement 
procedure against Greece on persistent shortcomings in the health sector. And it called on Italy 
to comply with the judgment of the Court of Justice that had confirmed Italy’s violation of EU 
law  by  paying  late.  Following  efforts  made  to  align  its  verification  procedure  with  the  Late 
Payments Directive, the Commission closed another infringement procedure against Italy. 

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The Commission also stayed vigilant to counter export restrictions by Member States in the wake 
of the invasion of Ukraine. Swift and firm enforcement action by the Commission meant that the 
single market kept functioning. 

The  Commission  took  the  next  step  in  the  procedure  against  Hungary  for  limiting  exports  of 
construction  materials.  The  Commission  also  launched  a  procedure  against  Hungary  for 
imposing  higher  fuel  prices  on  vehicles  with  non-Hungarian  number  plates  compared  to  the 
vehicles registered in Hungary. At the end of 2022, Hungary put an end to this breach. 

Transparent information about and for businesses 

With an increasing number of businesses 
operating  across  borders,  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). 
cross-border 
facilitates 
operations  and  makes  procedures  less 
costly 
for 
companies. It enables individuals, businesses and entrepreneurs to get information on companies. 
EU  rules  also  introduced  digital  tools  and  processes  in  company  law.  Entrepreneurs  can  now 
create limited liability companies online.  

time-consuming 

and 

It 

In 2022, the Commission opened infringement procedures against 10 Member States for failing 
to  turn  the  Company  Law  Digitalisation  Directive  into  national  law  in  time.  As  a  result  of  the 
Commission’s  swift  enforcement  action  on  these  and  other  cases,  19  Member  States  had 
completed  transposition  of  the  rules  by  the  end  of  2022.  The  Commission  also  closed  an 
infringement  procedure  against  Bulgaria  as  it  had  completed  the  connection  of  its  business 
register to the business registers interconnection system (BRIS). 

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,  integrating  existing  technologies  into  new  technologies  can  create  new 
services. 

For example, for road transport, the European Electronic Tolling Service Directive ensures that 
tolling services are interoperable across roads in the EU. Road users benefit as they can pay tolls 
throughout  the  EU  with only  one  subscription  contract  with  one  service  provider  and  a  single 
on-board unit. The Commission enforced the Directive through several infringement procedures.  

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On  aviation  safety,  data 
link  services  are 
communications  between  aircraft  and  ground 
staff that complement the voice communication 
traditionally  used  in  air  traffic  control.  The 
Commission  closed  its  infringement  procedures 
this  area. 
against  France  and  Cyprus 
Compliance  brings  concrete  benefits  to  the 
public:  as  voice  communication  channels 
become increasingly congested, data link services 
make  pilot-controller  communication  more 
efficient, thereby accommodating increases in air 
traffic levels within Europe. 

in 

On  electronic  tolling,  the  Commission  opened  infringement  procedures  against  Germany,  Italy 
and Finland for failing to fully transpose EU rules. It pursued other infringement cases against 
11 Member States in this area.  
On  data  link  services,  the  Commission  referred  Greece,  Malta  and  Slovakia  to  the  Court  of 
Justice for failing to provide and operate  these services for aircrafts flying within the airspace 
under their responsibility. 

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An economy that works for people 

‘Our social market economy encourages everyone to excel, but it also takes care of our 
fragility as human beings.’ 

President von der Leyen, in her 2022 State of the Union Address 

People  and  businesses  in  the  EU  can  only  thrive  if  the  economy  works  for  them.  The  EU’s 
unique  social  market  economy  helps  economies  grow  while  tackling  poverty  and  inequality. 
Incomplete  implementation  or  incorrect  application  of  commonly  agreed  rules  undermines  the 
potential of our economies and burdens small and medium-sized enterprises. This also weakens 
the rights of consumers and workers. The Commission enforced EU law across a wide range of 
policies to tackle these risks. 

Working conditions 

Fair and dignified working conditions are a key component of Europe’s social market economy. 
The EU has adopted minimum standards that apply across Member States on working time, part-
time and fixed-term work, and temporary agency work. In 2022, the Commission took a number 
of  actions  to  enforce  these  rules.  It  opened  infringement  cases  against  19  Member  States  for 
failing  to  transpose  EU  rules  on  transparent  and  predictable  working  conditions  in  due  time. 
Following  a  complaint,  the  Commission  also  took  action  against  Ireland  concerning  its 
enforcement  of  workers’  rights  under  the  European  Works  Council  Directive,  which  aims  to 
ensure that staff working for companies operating 
across the EU have the right to be informed and 
consulted on transnational issues.  

Health and safety at work 

The EU has developed an extensive body of rules 
on health and safety at work to ensure a high level 
of  protection  for  workers.  Healthy  and  safe 
working  conditions 
to  a  healthy  and 
lead 
productive  workforce.  The  Commission’s 

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Monitoring the Application of European Union Law - 2022 Annual Report 

enforcement measures focused on the timely transposition of EU occupational health and safety 
rules  into  national  legislation.  The Commission  closed  19  infringement  procedures,  as  Member 
States had transposed the relevant directives. These rules concerned updates of the Carcinogens 
and  Mutagens  Directive,  a  Fifth  List  of  Indicative  Occupational  Exposure  Limit  Values  and 
technical  adaptations  of  directives  in  the  fields  of  personal  protective  equipment,  biological 
agents, and medical treatment on board vessels.  

To  bring  national  measures  swiftly  in  line  with  the  Fourth  List  of  Indicative  Occupational 
Exposure Limit Values, the Commission pursued  the pre-infringement process (EU Pilot) with 
13  Member  States.  Thanks  to  this  dialogue,  two  Member  States  achieved  conformity  with  the 
Directive in 2022. All other Member States, except one, have committed themselves to bringing 
their national laws into line with EU rules. The Commission also used the EU Pilot process with 
15  Member  States  regarding  the  conformity  of  their  transposition  of  the  updated  Carcinogens 
and Mutagens Directive (Directive 2017/2398). Two Member States already adapted their rules in 
late 2022 to ensure they were compliant.  

Labour mobility 

Free  movement of workers is one  of the EU’s fundamental freedoms. It  involves not only the 
right to work in another Member State but also the right to look for a job  in another Member 
State and reside in that Member State for that 
purpose.  

EU citizens have the right to reside in another 
Member  State  for  three  months,  the  only 
requirement  being  to  hold  a  valid  identity 
document.  After  three  months,  EU  countries 
must  allow  EU  jobseekers  to  stay  for  a 
reasonable  period  of  time  after  they  have 
registered  with  the  employment  services.  This 
should  allow 
that 
corresponds to their qualifications and take the 
necessary steps to start the job. It is only once the reasonable time period has elapsed that host 
Member  States  may  require  jobseekers  to  prove  their  genuine  chances  of  finding  a  job  if  they 
want to stay longer. 

to  find  a 

them 

job 

Following a complaint from a citizen, the Commission opened an infringement procedure against 
Belgium since Belgian law requires EU jobseekers to prove that they have genuine chances of 
finding a job immediately after the first three months of residence in Belgium. 

In another labour mobility case brought to the Commission’s attention by complainants, Greece 
agreed  to  change  its  legislation  after  the  Commission’s  infringement  steps,  allowing  EU 
nationals to access managerial positions in its Parliament. 

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Monitoring the Application of European Union Law - 2022 Annual Report 

Social security coordination  

EU  law  coordinates  the  Member  States’  national  social  security  systems  to  guarantee  that  the 
freedom of movement of people is exercised effectively. It helps improve the standard of social 
security protection of people who move within the EU.  

On 16 June 2022, the Court confirmed the Commission’s position in an infringement procedure 
against  Austria.  Austria  had  introduced  an  indexation  of  family  allowances,  providing  for 
different amounts of these benefits according to the place of residence within the EU of a child 
concerned.  The  Court  ruled  that  this  indexation  is  contrary  to  EU  law  on  free  movement  of 
workers  and  the  coordination  of  social  security  schemes.  Austria  subsequently  took  steps  to 
implement the judgment. The Commission also opened a similar infringement procedure against 
Germany.  

Better information and assistance for citizens and businesses 

In  2022,  in  the  light  of  the  consequences  of  the  Russian  invasion  of  Ukraine,  it  was  more 
important than ever that individuals and businesses could continue to rely on the opportunities 
offered  by  the  single  market.  Cooperation  between  the  Commission  and  Member  States  is  the 
fastest  way  to  address  barriers  to  free  movement. The  single  market  governance  tools,  such  as 
Your  Europe,  Your  Europe  Advice  and  SOLVIT,  offer  clear  information,  assistance  and 
problem-solving for citizens and businesses.  

They empower both individuals and businesses to make full use of their EU rights in the single 
market.  In  addition,  evidence  from  these  tools  helps  to  identify  and  correct  any  existing 
problems. In 2022, SOLVIT helped more than 2 400 citizens and businesses by addressing their 
problems. Your Europe Advice was consulted almost 28 000 times by citizens and businesses on 
their single market rights.  

Better regulation of professions and recognition of qualifications 

The Proportionality Test Directive obliges Member States to make sure that any requirements for 
professions  they  introduce  or  amend  are  necessary  and  balanced.  Burdensome  national  rules 
make  it  harder  for  qualified  candidates  to  access  or  exercise  a  wide  range  of  professions.  The 
Commission took infringement decisions in relation to five Member States to ensure a full and 
correct transposition of the rules. 

it 

easier 

guaranteeing 

The  Directive  on  recognising  professional 
qualifications  makes 
for 
professionals  to  provide  services  around 
Europe,  while 
improved 
protection  for  consumers  and  citizens.  The 
Commission  acted  firmly  against  Member 
States  where  a  breach  of  the  Directive 
persisted, including by referring them to the 
Court  of  Justice,  where  necessary.  It  could 
close cases against Italy, Austria and Sweden, 
where  professionals  now  fully  benefit  from 
these advantages. 

20 

 
 
 
 
Monitoring the Application of European Union Law - 2022 Annual Report 

The  Commission  decided  to  refer  Belgium  to  the  Court  of  Justice  for  failing  to  transpose  the 
Proportionality Test Directive, while it closed procedures against Cyprus and Latvia. However, the 
Commission decided to open procedures against Cyprus, Spain and Latvia for having incorrectly 
transposed these rules.  
As regards the recognition of professional qualifications, the  Commission referred Portugal and 
Slovakia  to  the  Court  of  Justice.  The  first  of  these  two  cases  addresses  issues  raised  by  a 
complaint. The Commission also opened cases against Belgium, Greece and Malta for incorrectly 
transposing these rules. 

Preventing bankruptcy of viable companies 

The  Directive  on  restructuring  and  insolvency 
aims to prevent early bankruptcy and establish a 
healthy environment for insolvent businesses to 
get back on their feet. It provides the conditions 
for  viable  companies  in  financial  difficulty  to 
restructure early. The new rules also increase the 
efficiency  of 
and 
insolvency  procedures 
the  use  of  electronic  means  of 
promote 
communication.  The  Commission 
launched 
infringement  procedures  against  10  Member 
States for failing to transpose the Directive. 

Financial services 

Financial  services  are  at  the  core  of  the  single  market.  EU  rules  ensure  that  financial 
intermediaries  and  financial  markets  are  properly  regulated  and  supervised,  for  stability, 
competitiveness and transparency. They cover the main actors on the financial markets, such as 
banks, insurers, investment firms, asset managers and other financial intermediaries.  

Recently  updated  EU  rules  seek  to  ensure  that  these  financial  intermediaries  are  even  more 
resilient  and  better  supervised,  to  increase  their  capacity  to  tackle  the  effects  of  crises  like  the 
pandemic or the war in Ukraine. The rules also aim to support economic growth while reducing 
pressures  on  the  environment  and  taking  account  of  the  social  dimension.  The  Commission 
closed 26 infringement procedures after Member States fully transposed various directives in the 
field. 

The  Commission  launched  37  infringement  procedures  against  Member  States  who  failed  to 
fully transpose the various directives on financial intermediaries, namely on: 

capital market recovery 

– 
–  sustainability considerations for financial instruments and investment funds 
–  key information documents for collective investment firms. 

The Commission pursued a further nine infringement proceedings concerning EU rules on cross-
border distribution of funds, crowdfunding platforms and audits. 

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Monitoring the Application of European Union Law - 2022 Annual Report 

Retail payments 

Retail  payments  are  essential  for  the  European 
economy.  Efficient  retail  payment  systems  are 
essential  for  the  smooth  running  of  multiple 
sectors,  including  retail  sales,  business-to-business 
payments,  payment  for  utilities  and  rent,  etc.  The 
revised Payment Services Directive (PSD2) and the 
SEPA  Regulation  are  two  of  the  EU  laws  that 
shape the rules for retail payment systems.  

The  Commission  engaged  in  a  pre-infringement 
process (EU Pilot) with 20  Member States on  the 
way they had transposed PSD2. It also continued its enforcement efforts with Member States to 
tackle IBAN discrimination: such discrimination happens when accounts in other Member States 
cannot  be  used  to  set  up  direct  debits  or  to  transfer  funds  for  domestic  payments  services,  in 
breach of the SEPA Regulation. 

Overseeing the application of EU financial services rules by national 
authorities  

EU  law  empowers  the  European  Supervisory  Authorities  (‘ESAs’)  to  investigate  potential 
breaches or non-application of EU law by the national authorities working under their oversight. 
Where  investigations  reveal  that  a  national  authority  has  failed  to  properly  carry  out  its 
supervisory role, the relevant ESA can issue recommendations to address the shortcomings that 
it  has  identified.  The  action  that  the  national  supervisory  authority  then  takes  to  address  these 
shortcomings 
the 
recommendations  of  the  ESA  are  not  followed.  In  2022,  the  Commission  adopted  a  formal 
opinion requiring the Slovak insurance supervisory authority to fully comply with its obligations 
under the EU  prudential regime  for insurance and reinsurance  companies in the EU  (Solvency 
II).  This  opinion  follows  the  recommendation  issued  by  the  European  Insurance  and 
Occupational Pensions Authority in the same year. 

the  Commission,  which  may 

is  monitored  by 

issue  opinions 

if 

Money laundering and terrorist financing 

Fighting  money  laundering  and  the  financing  of  terrorism  contributes  to  security,  as  well  as 
protecting the integrity of the international financial system. An effective implementation of the 
EU’s  anti-money  laundering  rules  therefore  remains  front  and  centre  of  the  Commission’s 

enforcement policy. 

is 

fundamental 

transparency 

to 
Enhanced 
combatting  the  misuse  of  companies  as  fronts 
for  laundering.  Member  States  must  therefore 
ensure that information about the real owners of 
these  companies,  the 
is 
stored in a central register. An accurate disclosure 
regime 
transparent  about  beneficial 
ownership  and  control  structures  of  businesses 
increases  the  confidence  of  investors  and  the 
general public in financial markets.  

‘beneficial  owners’, 

that 

is 

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Monitoring the Application of European Union Law - 2022 Annual Report 

To enforce EU rules on the registration of beneficial ownership, the Commission launched a pre-
infringement process (EU Pilot) with all Member States. It also opened infringement procedures 
against Spain, Italy, and Latvia for non-transposition, non-conformity and bad application of the 
rules  on  beneficial  ownership  registers.  At  the  same  time,  the  Commission  was  able  to  close 
11 infringement procedures, as the Member States involved had completed the transposition of 
the 5th anti-money laundering Directive, including rules on beneficial ownership registers.  

 EU  rules  criminalise  money  laundering  when  committed  intentionally  and  with  the  knowledge 
that  the  assets  in  question  came  from  criminal  activity.  They  facilitate  police  and  judicial 
cooperation between EU countries and prevent criminals taking advantage of more lenient legal 
systems. The Commission enforced these rules by pursuing a case against Belgium, and launching 
cases against Lithuania, Latvia, Malta and Portugal for not turning them into national legislation. 

Mobility and transport 

New  rules  for  the  EU  road  transport  sector  ensure  a  balance  between  social  protection  for 
drivers  and  freedom  for  operators  to  provide  cross-border  transport  services.  EU  law  on  the 
posting  of  drivers  regulates  situations  where  drivers  are  sent  by  their  employer  to  carry  out  a 
service  in  another  Member  State  on  a  temporary  basis.  These  rules  ensure  that  posted  drivers 
receive  remuneration  of  the  host  Member  State  for  the  period  during  which  they  are  posted. 
They also align inspection measures across the EU.  

As  some  Member  States  had  still  not  transposed  these  rules,  the  Commission  continued 
infringement  cases  against  eight  Member  States  so  that  posted  drivers  can  benefit  from  their 
advantages as soon as possible. The Commission also continued infringement procedures against 
Greece for failing to comply with EU rules on roadside checks, and against Denmark for failing 
to comply with cabotage rules for bus and coach passenger transport.  

On maritime  transport,  the  Commission continued an infringement procedure against  Portugal 
for incorrect application of EU safety and environmental rules on marine equipment. In addition, 
following  a  complaint  that  related  to  the  free  movement  of  workers  and  freedom  to  provide 
services  in  the  maritime  sector,  the  Commission  called  on  Malta  to  correctly  apply  EU  law  as 
regards its port workers regime. 

Inland  waterway  transport  is  a  competitive 
alternative  to  road  and  rail  transport.  It  also 
helps  reduce  traffic  on  overloaded  road 
networks  in  densely  populated  regions.  The 
Commission enforced EU rules in this area by 
infringement  procedures  against 
pursuing 
Czechia, 
Poland, 
Spain,  Luxembourg, 
Portugal and Slovenia for failure to transpose 
into national law EU rules on the recognition 
of  professional  qualifications 
inland 
navigation.  These  rules  set  up  a  standardised 
system  for  certifying  and  recognising  people 
operating craft on inland waterways, allowing certificate-holders to operate throughout the EU. 

in 

The Commission also opened infringement procedures against  Germany, Croatia, Hungary and 
Austria for failing to act on the basis of an EU  position within the Danube  Commission. This 

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Monitoring the Application of European Union Law - 2022 Annual Report 

international  organisation  deals  with  the  navigation  regime  of  the  Danube  river.  The  four 
Member States voted on matters on which the EU has exclusive external competence without a 
pre-established EU position, which is contrary to the principle of sincere cooperation enshrined 
in the EU Treaties. 

Direct taxation 

The single market guarantees that citizens and businesses have the freedom to move, operate and 
invest  across  national  borders.  However,  as  national  direct  taxation  rules  are  not  aligned  and 
there  are  differences  in  the  tax  systems  of  Member  States,  avenues  for  aggressive  tax  planning 
and tax avoidance remain. To prevent occurrences of inadvertent non-taxation as a result of such 
practices,  Member  States  cooperate  closely  and 
approximate  national  rules  by  means  of  EU 
directives. 

One  of  the  key  directives  in  this  field  directly 
affecting  the  functioning  of  the  single  market  is 
the  Directive  on  rules  against  tax  avoidance 
practices.  The  Commission  enforced  these  rules 
successfully 
in  2022:  first,  by  securing  their 
complete  transposition  into  Bulgarian,  Czech, 
German,  Irish and  Spanish  national law. And the 
Commission ensured that the rules are correctly transposed by Bulgaria and Cyprus, who aligned 
their national laws as a result of infringement procedures. 

The  Commission  took  further  steps  against  Greece  and  Spain  for  failing  to  transpose  the 
Directive’s  provision  on  reverse  hybrid  mismatches.  These  rules  prevent  taxpayers  from 
exploiting  the  differences  between  tax  systems  to  pay  less  or  no  tax,  and  so  prevent  tax  base 
erosion. 

Several other Member States aligned their national legislation with EU direct taxation rules as a 
result of the Commission’s enforcement work: Belgium removed a discriminatory calculation of 
income  resulting  from  property  situated  abroad;  Spain  ended  discriminatory  taxation  of  non-
resident  non-profit  organisations  and  their  contributors  and  donors;  and  Greece  resolved  the 
difference  in  tax  treatment  based  on  the  criterion  of  place  (state)  where  the  inherited  assets  or 
investments are held. 

Following  several  complaints  received  from  citizens,  the  Commission  took  enforcement  action 
against Germany to bring its rules on calculating allowances for cross-border workers into line 
with EU law, to avoid discrimination. The rules disadvantaged workers employed in Germany and 
resident in a neighbouring country regarding work and sickness allowances and unemployment 
benefits, thereby breaching EU rules on free movement for workers. 

The  Commission  resolved  a  case  against  Spain  for  imposing  disproportionate  penalties  on 
Spanish taxpayers for a failure to submit their declaration on assets held abroad by way of an 
online form (‘Modelo 720’). After the Court of Justice confirmed the Commission’s position, Spain 
amended its national legislation, in line with the principle of free movement of capital. The case 
was also subject to a petition to the European Parliament. 

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Indirect taxation 

EU rules on VAT and excise duties aim to prevent businesses in one EU country from having an 
unfair tax advantage over businesses in other EU countries. They therefore help avoid distortions 
of competition in the single market. To protect the free movement of goods, EU law ensures that 
car-related taxes do not discriminate against cars brought from another EU country. 

The Commission referred Malta to the Court of Justice for charging a higher annual tax on the 
registration of used cars brought to Malta after 1 January 2009 from other EU countries than 
the tax paid on similar cars already registered in Malta before that date. 

In 2022, the Commission placed particular importance on monitoring Member States’ efforts to 
implement  the  revised  common  framework  for  excise  products,  such  as  alcohol,  tobacco  and 
energy. These rules improve the freedom of movement for excise products in the single market 
by  simplifying  the export  and  import  of  excise  products  and  interaction  between  traders.  They 
also ensure that the correct tax is collected.  

The  Commission  also  monitored  the  implementation  of  the  revised  rules  for  excise  duties  on 
alcohol, applicable  since  1  January  2022.  These  rules  set  up  a  common  certification  system  for 
small producers, to facilitate their access to low-excise duty rates across the EU.  

The Commission opened infringement procedures against 16 Member States and took the next 
step in its proceedings against Belgium, Greece, Latvia, Luxembourg and Portugal for failing to 
communicate  national  measures  to  fully  transpose  the  revised  common  framework  for  excise 
products.  The  Commission  launched  infringement  procedures  against  11  Member  States  and 
pursued further the case against  Portugal for not ensuring the full transposition of the revised 
rules for excise duties on alcohol. 

The Commission also monitored the implementation by Member States of the  temporary VAT 
exemptions in response to the COVID-19 pandemic. At the height of the pandemic, these rules 
allowed  the  Commission  and  EU  agencies  to  import  and  buy  goods  and  services  VAT-free  to 
distribute  them  free  of  charge  to  Member  States.  The  Commission  opened  infringement 
procedures against eight Member States and it pursued further the procedure against Cyprus for 
failing to fully transpose these rules. 

The Commission’s enforcement activities continued to target national fiscal measures that distort 
competition  in  the  single  market.  The  Commission  pursued  further  a  procedure  against  the 
incorrect application by Greece of the VAT exemption  on commercial postal services supplied 
by the Greek universal service provider. It was 
able to close infringement proceedings against 
Germany as German legislation now correctly 
applies the flat-rate VAT scheme for farmers, 
removing distortions of competition.  

To fight tax fraud, administrative cooperation 
rules  oblige  Member  States,  since  1  January 
2020, to give access to information on vehicle 
registrations  to  other  Member  States,  via  the 
European  Car 
and  Driving  Licence 
Information  System  (EUCARIS).  Following 

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successful EU Pilot dialogues, the Commission ensured that Cyprus, Denmark, Ireland, France, 
Malta  and  Slovenia  took  action  to  properly  develop  the  IT  platform,  allowing  authorities  to 
exchange information on vehicles. For one Member State, the EU Pilot process is still ongoing. 

Customs 

The EU Customs Code defines the legal framework for customs rules and procedures in the EU 
customs territory, adapted to modern trade models and communication tools. 

To enforce the Code, the Commission investigated 
undervaluation  of  goods,  customs  IT  systems  in 
and  national  charges  with 
Member  States 
equivalent  effect 
to  customs  duties  between 
Member States. The Commission also continued its 
investigation  across  all  Member  States,  on  their 
implementation of the  Import One-Stop Shop, an 
electronic portal that businesses use to comply with 
their VAT ecommerce obligations on distance sales 
of imported goods. 

As  regards  penalties  under  the  Code,  the  Commission  finalised  a  report  assessing  customs 
infringements and penalties in Member States.  The report will be followed up in the upcoming 
reform of the EU Customs Union.  

Competition 

EU competition policy aims to ensure a competitive level playing field in which companies are 
encouraged to innovate and offer quality goods and services on the most favourable terms. This 
policy is enforced by national competition authorities, together with the Commission.  

The implementation of the ECN+ Directive plays an important role in this process as it increases 
the powers and effectiveness of national competition authorities. The Commission continued to 
infringement  proceedings  against  Estonia, 
enforce 
Luxembourg, Poland and Slovenia for failing to fully implement these rules. 

the  Directive  by  pursuing  further 

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Monitoring the Application of European Union Law - 2022 Annual Report 

Promoting the European way of life and democracy 

‘Today we all see that we must fight for our democracies. Every single day. We must protect 
them both from the external threats they face, and from the vices that corrode them from 
within. It is my Commission's duty and most noble role to protect the rule of law.’ 

President von der Leyen, in her 2022 State of the Union Address 

Building a stronger, greener and healthier Europe for the next generation requires a Europe that 
stands  up  for  its  values  and  safeguards  its  democracies.  The  law  is  the  EU’s  best  asset  in 
delivering the benefits of the EU  for people,  businesses and our environment.  This is why  the 
Commission, in 2022, proved once more its determination to protect the rule of law, our values 
and fundamental rights across the EU. 

Rule of law  

The Commission makes use of all the tools at its disposal to protect and promote the rule of law 
in the EU. One powerful component is the annual rule of law report cycle.  

This annual report addresses all Member States and aims to promote the rule of law, preventing 
problems from emerging or deepening. In 2022, the Commission for the first time put forward 
country-specific recommendations on the rule of law to Member States. The Commission tackled 
serious rule of law issues with infringement procedures, notably related to judicial independence 
or fundamental tenets of EU law.  

Another part of the EU rule of law toolbox is the Conditionality Regulation, which protects the 
EU  budget  from  being  affected  by  breaches  of  the  rule  of  law  in  the  Member  States.  The 
Commission  made  full  use  of  the  Regulation  in  2022.  On  15  December  2022,  based  on  a 
proposal  from  the  Commission  under  the  Conditionality  Regulation,  the  Council  adopted 
measures to protect the EU budget from breaches of the principles of the rule of law in Hungary. 

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The  Commission  pursued  further  an  infringement  procedure  against  Poland  concerning  the 
Polish Constitutional Tribunal  and its case law. The Commission considered that rulings by the 
Tribunal  breached  EU  Treaty  provisions  and  were  incompatible  with  the  general  principles  of 
autonomy,  primacy,  effectiveness,  uniform  application  of  EU  law  and  the  binding  effect  of 
rulings of the Court of Justice of the European Union. 

In  another  case  against  Poland,  during  2022  the  Commission  continued  issuing  its  calls  for 
payment  of  daily  penalties,  which  had  been  ordered  by  the  Vice-President  of  the  Court  of 
Justice.  In  this  infringement  procedure,  the  Commission  had  requested  interim  measures  to 
protect the independence of Polish judges as a matter of urgency. 

Protecting people who report breaches of EU law 

Whistleblowers  help  to  prevent  damage 
and  detect  threats  or  harm  to  the  public 
interest.  They  promote  the  fundamental 
values of the rule of law and democracy as 
well as the right to freedom of expression. 
EU rules protect them from retaliation for 
reporting  on  breaches  of  EU  law.  They 
also require  Member States to provide  for 
effective channels to report such breaches 
confidentially.  

In 2022, the Commission opened infringement proceedings against 26 Member States, as they 
did not transpose  the rules in time or delayed their entry into force. The Commission took the 
next step in the procedure against 19 Member States where the infringement persisted. 

Combating discrimination, racism and xenophobia 

EU rules provide that acts of racism and xenophobia are punishable by effective, proportionate 
and  dissuasive  criminal  penalties.  In  2022,  the  Commission  continued  its  efforts  in  enforcing 
these rules. For example, Lithuania revised its criminal code, thereby resolving shortcomings in 
the criminalisation of hate speech and hate crimes. The Commission also took action to protect 
LGBTIQ people from discrimination. 

The Commission referred Hungary to the Court of Justice over national rules that discriminate 
against  people  based  on  their  sexual  orientation  and  gender  identity.  The  Hungarian  law 
prohibits or limits access to content that ‘promotes or portrays' what it refers to as ‘divergence 
from  self-identity  corresponding  to  sex  at  birth,  sex change  or  homosexuality'  for  minors.  The 
Commission considered that the law violates several EU rules, both single market rules and the 
fundamental rights of individuals, in particular of LGBTIQ people, as well as the common values 
at the core of the EU. 

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Monitoring the Application of European Union Law - 2022 Annual Report 

Promoting work-life balance  

The Commission launched infringement proceedings against 19 
Member  States  for  failing  to  fully  transpose  the  Work-Life 
Balance  Directive.  The  Directive  aims  to  ensure  equality  in 
labour  market  participation  by  facilitating  the  reconciliation  of 
work and family life  for workers with care responsibilities and 
encouraging  equal  sharing  of  care  responsibilities  between 
parents. 

Protecting personal data 

The  protection  of  personal  data  is  a  fundamental  right  of  EU 
citizens,  enshrined  in  the  EU  Charter  of  Fundamental  Rights.  As  a  matter  of  priority,  the 
Commission  assessed  whether  national  legislation  complies  with  the  relevant  EU  laws,  namely 
the  General  Data  Protection  Regulation  (GDPR)  and  the  Data  Protection  Law  Enforcement 
Directive, pursuing infringement procedures where necessary. The Commission published its first 
report on the application and functioning of the Data Protection Law Enforcement Directive. 

As national data protection authorities have a crucial role in enforcing data protection rules in the 
Member  States,  the  Commission  stood  up  for  their  independence  and  to  ensure  they  are 
equipped  with  corrective  powers.  The  Commission  also  reported  on  the  application  of  data 
protection rules by the EU institutions and agencies.  

The Commission opened infringement proceedings against Slovenia for failing to update its data 
protection framework and granting insufficient corrective powers to its data protection authority. 
It opened infringement cases against Finland and Sweden for a lack of effective judicial remedy 
against inaction by their data protection authorities. The Commission also opened infringement 
cases  against  Germany  for  failing  to  fully  transpose  the  Law  Enforcement  Directive  and  for 
incorrectly transposing rules on the corrective powers of data protection authorities. It opened a 
case against Greece for incorrectly transposing the scope and lawfulness of processing personal 
data under the Law Enforcement Directive. 

Protecting EU citizenship 

EU citizenship and the rights it confers lie at the heart 
of the EU. Every person that holds the nationality of 
an  EU  Member  State  is  at  the  same  time  an  EU 
citizen.  It  automatically  gives  the  right  to  free 
movement, access to the  single market, and the right 
to  vote  and  to  be  elected  in  European  and  local 
elections.  For  these  reasons,  the  conditions  for 
obtaining  and  losing  nationality,  regulated  by  the 
national  law  of  each  Member  State,  are  subject  to 
compliance with EU law. 

The  Commission  decided  to  refer  Malta  to  the  Court  of  Justice  over  its  investor  citizenship 
scheme. This scheme, also known as ‘golden passport’ scheme, results in the systematic award 
of  Maltese  citizenship  –  and  by  extension  EU  citizenship  –  in  exchange  for  pre-determined 
payments and investments, without a genuine link to Malta. 

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Judicial cooperation and individual rights in criminal matters  

The  European  Arrest  Warrant  is  the  EU’s  most  important  judicial  cooperation  instrument.  It 
aims  to  ensure  that  open  borders  and  free  movement  in  the  EU  are  not  exploited  by  those 
seeking  to  evade  justice.  The  Commission  therefore 
took  crucial  steps  in  2022  to  enforce  its  rules,  by 
against  Bulgaria, 
opening 
Luxembourg,  Romania  and  Slovenia  for  having 
transposed the Framework Decision on the European 
Arrest Warrant incorrectly. 

infringement 

cases 

The  basis  for  judicial  cooperation  between  Member 
States  in  criminal  matters  is  the  principle  of  mutual 
recognition of judgments and judicial decisions. In two 
judgments,  the  Court  of  Justice  of  the  European 
Union  confirmed  that  Ireland  had  failed  to  transpose 
EU rules in the areas of custodial sentences, deprivation of liberty and supervision measures as an 
alternative to provisional detention. 

As  regards  rights  for  suspects  and  accused  persons  in  criminal  proceedings,  the  Commission 
continued to enforce the EU Procedural Rights Directives: it proceeded with the second step in 
the  procedure  against  Ireland  and  Portugal  for  incorrectly  transposing  rules  on  the  right  to 
information,  as  well  as  against  Estonia,  Poland  and  Finland  for  an  incomplete  transposition  of 
rules on the presumption of innocence.  

The Commission’s monitoring of the implementation of the Directive on the fight against fraud 
to  the  EU’s  financial  interests  continued.  It  adopted  its  second  implementation  report  and 
opened infringement proceedings against nine Member States as their national legislation was not 
in line with that Directive.  

Security 

In 2022, the Commission continued to deliver on the EU Security Union Strategy, with the aim 
of providing safety, prosperity and well-being to everyone in the EU. Security is also at the core 
of the basic principles of our societies, economies and democracies. 

The  EU’s  firearms  legislation  establishes  common  minimum  standards  for  the  acquisition, 
possession and commercial exchange of civilian firearms, to enable their cross-border movement. 
This helps to tackle the threat of firearms falling into the hands of terrorists.  

The  Commission  pursued  further  infringement  procedures  against  Bulgaria,  Greece,  Ireland, 
Luxembourg  and  Sweden  for  failing  to  fully  transpose  different  EU  rules  on  the  marking  of 
firearms or on technical specifications for alarm and signal weapons. The Commission referred 
Sweden  to  the  Court  of  Justice  for  failing  to  transpose  EU  rules  on  the  acquisition  and 
possession of firearms. 

The Commission took further measures to ensure the proper enforcement of rules on  drugs: it 
launched infringement cases against Belgium, Bulgaria, Ireland, Cyprus, Poland and Romania for 
failing  to  transpose  certain  definitions  of  ‘drugs’,  in  particular  on  the  inclusion  of  certain  new 
psychoactive substances. And it took the next step in the case against Ireland. In all these cases, 
the breaches were subsequently remedied by the Member States concerned. 

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Monitoring the Application of European Union Law - 2022 Annual Report 

The  Commission  also  enforced  EU  rules  on  certain  serious  criminal  offences  and  financial 
investigations.  It  continued  procedures  against  Croatia,  Ireland  and  Finland  for  failing  to 
transpose  rules  that  facilitate  the  use  of  financial  and  other  information  for  the  prevention, 
detection, investigation or prosecution of certain criminal offences.  

The  Commission  continued  to  promote  security  in  the  digital  age.  For  this  purpose,  the 
Commission  pursued  further  infringement  procedures  against  Belgium,  Bulgaria,  Czechia, 
Greece,  Spain  and  Luxembourg  as  they  had  not  turned  the  Directive  on  combating  fraud  and 
counterfeiting of non-cash means of payments into national legislation.  

Fighting child sexual abuse is a priority for the Commission. To tackle it, the Commission opened 
infringement  procedures  against  Ireland,  Spain,  Italy  and  Portugal  regarding  the  Directive  on 
combating sexual abuse and sexual exploitation of children and child pornography. In particular, 
these Member States had incorrectly transposed certain provisions of the Directive regarding the 
definition of certain offences, prevention and assistance to victims 

Migration and Asylum 

The Commission designed a new pact on migration and asylum to ensure a fairer, efficient and 
more  sustainable  migration  and  asylum  process  in  the  EU,  and  which  is  now  subject  to 
discussions  with  the  co-legislators.  Overall,  the  EU’s 
migration  policy  covers  border  management,  visa 
policy, irregular migration, asylum and legal migration. 
Consistent 
fully 
respecting individuals’ fundamental rights is key to the 
success of this policy.  

implementation 

effective 

and 

continued  monitoring 

The  Commission 
the 
application of current legislation and took formal steps 
against  Belgium,  Germany,  Greece  and  Spain  for  the 
incorrect implementation of the Return Directive, and 
incorrect 
Italy 
against 
the 
on 
implementation 

the 
the  Regulation 

and  Malta 

for 

of 

establishment of a European travel document for return. 

Enforcement  work  continued  to  ensure  that  non-EU  nationals  legally  residing  in  the  EU  can 
enjoy their rights under the legal migration Directives. For example, the Commission closed an 
infringement procedure against Italy regarding the Single Permit Directive after Italy changed its 
national legislation. Non-EU nationals working and legally residing in Italy can now benefit from 
equal treatment with Italian nationals regarding  areas including working conditions, freedom of 
association,  education,  social  security  and  tax 
benefits. 

Implementing sanctions against 
Russia  

The EU has over 40 different sanction regimes in 
place,  adopted  under  its  Common  Foreign  and 
Security  Policy  (CFSP).  These  include  sanctions 
in response to Russia’s military aggression against 
the  EU  adopted  nine 
Ukraine.  In  2022, 

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unprecedented  packages  of  sanctions,  which  cover  a  range  of  sectors,  such  as  finance,  energy, 
media, transport and trade, to cripple Russia’s ability to finance the war. 

The Commission promoted the uniform implementation of these sanctions and monitored their 
enforcement.  To  gain  knowledge  of  potential  breaches,  the  Commission  launched  the  EU 
sanctions  whistleblower  tool,  a  secure  online  platform  that  enables  whistleblowers  to 
anonymously report violations.  

It  received  over  400  relevant  reports  up  to  the  end  of  2022.  It  also  sent  questionnaires  to 
Member States to collect feedback on implementation issues. And it organised expert groups to 
coordinate Member States’ implementation actions and share best practice. Finally, it published 
around 550 Q&As on a dedicated website to help stakeholders implement them. 

32