REPORT FROM THE COMMISSION Monitoring the application of European Union law 2023 Annual Report
Date: 2024-07-25
Institutions: European Commission, Secretariat-General
Subjects: EU Member State, EU control, activity report, area of freedom, security and justice, fundamental rights, infringement procedure (EU), national implementing measure

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 25.7.2024  COM(2024) 358 final  REPORT FROM THE COMMISSION Monitoring the application of European Union law             2023 Annual Report  
 
 
Monitoring the application of European Union law  

2023 annual report 

EN 

  EN 

 
 
 
 
 
 
 
 
 
Monitoring the application of European Union law – 2023 annual report 

Foreword ...................................................................................................................................... 4 

Enforcing EU law effectively ................................................................................................ 5 

Supporting Member States to deliver from the outset ............................................................ 5 
Early dialogue with Member States for quicker solutions ...................................................... 6 
Infringement procedures where other measures are insufficient ...................................... 7 
Referral to the Court of Justice as a measure of last resort ................................................ 8 
Enforcing EU law in times of crises .................................................................................................... 8 
Future-proof enforcement of EU law ................................................................................................ 9 

Strengthening the economy and EU competitiveness ............................................... 10 

Preventing barriers in the single market to increase growth ............................................. 10 
Removing barriers for service providers in the single market ........................................... 11 
Better information and assistance for people and businesses ......................................... 12 
Financial services ...................................................................................................................................... 12 
Efficient retail payments ....................................................................................................................... 12 
Sustainable finance ................................................................................................................................. 13 
A functioning transport sector............................................................................................................ 13 
Enforcing competition rules ................................................................................................................. 14 
Indirect taxation for a fair business environment ................................................................... 14 
Direct taxation promoting the single market ............................................................................. 16 
Secure and simple customs ................................................................................................................. 17 

Creating a green, sustainable and prosperous Europe ............................................. 18 

Climate action ............................................................................................................................................. 18 
Clean transport ........................................................................................................................................... 19 
Clean air and water .................................................................................................................................. 19 
Protecting biodiversity ............................................................................................................................ 20 
Promoting a circular economy ........................................................................................................... 20 
A sustainable agriculture that ensures security of food supply ....................................... 20 
Sustainable fisheries and maritime spatial planning ............................................................. 21 
Environmental governance .................................................................................................................. 21 
Clean and affordable energy .............................................................................................................. 22 
Keeping nuclear power safe ................................................................................................................ 22 

A Europe fit for the digital age ......................................................................................... 23 

Technology that works for people .................................................................................................... 23 
A fair and competitive digital economy ........................................................................................ 23 
An open, democratic and sustainable digital society ............................................................. 24 
Promoting the data economy ............................................................................................................. 24 
Facilitating cross-border operations by companies ................................................................ 24 
Digital transport systems ..................................................................................................................... 25 

 
 
 
 
 
 
 
Monitoring the application of European Union law – 2023 annual report 

Building a fair and social Europe ...................................................................................... 26 

Labour law .................................................................................................................................................... 26 
Health and safety at work .................................................................................................................... 27 
Labour mobility .......................................................................................................................................... 27 
Social security coordination ................................................................................................................. 28 
Gender equality .......................................................................................................................................... 28 
Non-discrimination in employment and inclusion .................................................................... 28 

Protecting people and our freedoms ............................................................................... 30 

Upholding the rule of law ..................................................................................................................... 30 
Combating racism, xenophobia and discrimination ................................................................ 31 
Protecting people who report breaches of EU law .................................................................. 31 
Protecting children .................................................................................................................................... 32 
Justice cooperation and individual guarantees in criminal law ........................................ 32 
Protecting consumers ............................................................................................................................. 33 
Protecting personal data ....................................................................................................................... 33 
Safer transport ........................................................................................................................................... 34 
Promoting health and food safety ................................................................................................... 35 
Better regulation of professions and free movement of professionals ....................... 36 
Protecting posted drivers ...................................................................................................................... 36 
Strengthening the European Security Union ............................................................................... 36 
Managing external borders .................................................................................................................. 37 
A united EU response to migration and asylum........................................................................ 37 
Implementing sanctions against Russia ........................................................................................ 38 

Disclaimer: This report sets out the Commission’s actions to monitor and enforce the application of 
EU law during 2023. The state of play of infringement cases mentioned may have changed since then. 

 
 
 
 
 
 
 
 
 
 
 
 
Monitoring the application of European Union law – 2023 annual report 

Foreword 

At the start of this Commission’s mandate, we promised to 
build a stronger, greener, and healthier Europe for the next 
generation,  with  an  economy  that  works  for  all  people, 
young and old. Five years later, and notwithstanding multiple 
crises,  the  EU  has  demonstrated  its  commitment  to 
addressing challenges head-on, guided by our shared values 
and principles.  

With  a  large  number  of  new  legislation  proposed  by  the 
Commission and adopted by the European Parliament and 
the Council during this mandate, we have worked tirelessly 
together  to  ensure  a  more  united,  prosperous,  and 
sustainable  Europe.  Yet  our  work  is  not  done  with  the 
adoption of legislation – we must make sure that the rules agreed between the co-legislators, work 
on the ground in Member States and bring the necessary benefits to citizens and businesses all 
across Europe.  

The report that you are about to read gives some key examples of the work done in 2023 to ensure 
the correct application of EU law across different sectors in all the Member States. The actions 
taken show that, where the need arose, the Commission acted decisively – to protect people’s rights 
and  freedoms  and  to  ensure  that  the  EU  remains  a  bastion  of  democracy,  rule  of  law  and 
fundamental rights. The Commission remains firm in safeguarding the proper functioning of the 
single market, the foundation for our economic growth and competitiveness, while also protecting 
the interests of workers and consumers. 

The  Member  States  are  the  Commission’s  best  allies  in  making  sure  that  EU  law  is  correctly 
implemented  and  applied  from  the  start.  This  is  why  the  Commission’s  early  and  continuous 
implementation support to Member States is vital, and a close cooperation with Member States 
based on mutual trust is the shortest path to achieving this common goal. This preventive strategy 
fosters a culture of compliance from the outset, is cost efficient and benefits everyone.  

However, robust enforcement mechanisms remain a crucial backstop. And as this report shows, 
the Commission does not hesitate to make use of these mechanisms wherever necessary, to make 
sure that the rules agreed translate into practical reality that improves the lives of European citizens 
and businesses. 

Dr Ursula von der Leyen 

President of the European Commission 

4 

 
 
 
 
 
Monitoring the application of European Union law – 2023 annual report 

Enforcing EU law effectively 

Together, we have shown that when Europe is bold, it gets things done. And our work is far 
from over – so let's stand together. Let's deliver today and prepare for tomorrow. 

President von der Leyen, in her 2023 State of the Union address 

The  EU  is  a  community  of  law.  Compliance  with  EU  law  is  the  foundation  of  the  EU’s 
effectiveness for the benefit of people and businesses. Enforcing EU law is therefore crucial for 
maintaining a level playing field among Member States, ensuring that no country gains an unfair 
advantage  and that the single  market functions smoothly. This is a  sign  of our commitment to 
being competitive and protecting people’s rights and the EU’s fundamental values, including the 
rule of law. 

Ensuring the proper application and enforcement of EU law is one of the Commission’s core tasks 
as  ‘guardian  of  the  Treaties’.  The  Commission’s  enforcement  measures  are  guided  by  one 
overarching objective: to ensure that people and businesses enjoy the benefits of our commonly 
agreed rules, wherever they live in the EU. To achieve this goal, the Commission uses a variety of 
tools:  early  implementation  guidance  and  financial  support,  public  reporting,  solution-oriented 
dialogues with Member States and, if necessary, infringement procedures. 

Supporting Member States to deliver from the outset 

Smart enforcement means ensuring compliance with EU law from the outset, preventing breaches 
from  happening  in  the  first  place.  This  is  why  the  Commission  is  continuously  stepping  up  its 
action to support Member States in implementing EU law. The support measures are diverse and 
it is often their combined use that makes a difference. 

For  instance,  during  the  process  of  implementing  specific  EU  law,  the  Commission  provides 
practical guidance to Member States, businesses, stakeholders, and the public on how to understand 
and apply specific aspects of the legal text. This guidance can take the form of written guidelines 
or  online  FAQs,  or  it  can  be  provided  at  dedicated  meetings,  for  example  at  transposition 
workshops. Expert groups are also used to promote the correct implementation of EU law. 

5 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Monitoring the application of European Union law – 2023 annual report 

But support to Member States goes beyond guidance on the implementation of specific EU laws. 
Financial support from EU funds has also proven to be an effective tool to help and stimulate 
Member States to carry out reforms and, where appropriate, to accelerate the implementation of 
EU priorities. Another example of support to Member States in the form of technical expertise is 
the  Technical  Support  Instrument.  By  promoting  administrative  capacity  building  in  Member 
States, it helps ensure correct implementation of EU laws and policies. 

Early dialogue with Member States for quicker solutions 

Where the Commission, despite its action to support Member States and to promote compliance, 
identifies a possible breach of EU law, it may decide to initiate a pre-infringement dialogue, under 
the well-established process known as EU Pilot. This dialogue is used when it offers added value, 
for example where it is likely to lead to swifter compliance than a formal infringement procedure.  

During  the  COVID-19  pandemic,  airlines  failed  to  reimburse  passengers  in  time  for  cancelled 
flights and national authorities did not enforce EU rules effectively. The Commission used EU Pilot 
dialogues  with  all  Member  States  to  ensure  that  airlines  respect  EU  passenger  rights.  As  a 
consequence,  airlines  cleared  the  bulk  of  their  reimbursement  backlogs  and  improved  their 
communication with passengers when a flight is cancelled. The Commission was able to close 
these EU Pilot dialogues in 2023. 

Over  time,  the  EU  Pilot  dialogue  has  proven  its  value.  In  2023,  the  Commission  handled 
259 EU Pilot dialogues, with over 80% resolved satisfactorily. Only 11% of EU Pilot dialogues had 
to be followed up by an infringement procedure. EU Pilot proves successful across many policy 
areas, and in particular in the areas of energy (40 successful closures), taxation and customs (37), 
mobility and transport (36), and financial services (25). 

Development of  EU Pilot files handled    
and resolution rate 

244

77%

2019

171

63%

2020

223

215

259

81%

2021

74%

2022

81%

2023

Average resolution rate

EU Pilot files handled

6 

 
 
 
 
 
 
 
 
 
 
Monitoring the application of European Union law – 2023 annual report 

Infringement procedures where other measures are insufficient 

The Commission’s use of infringement procedures has developed over the years, to drive broader, 
more  impactful  improvements.  The  strategic  approach  to  enforcing  EU  law  gives  priority  to 
breaches with the most significant impact on the interests of people and businesses. 

In 2023, the Commission opened 529 infringement procedures, across all main policy areas. Every 
Member  State  was  concerned,  with  an  average  of  20  new  cases  per  Member  State.  The 
Commission’s enforcement actions safeguarded the integrity of the single market and strengthened 
the EU’s economy. They promoted clean air, water and transport, and a circular economy. The 
Commission upheld the EU’s common values, people’s fundamental rights and the rule of law. 

There are many factors that have an impact on the number of new infringement procedures. A 
decreasing number of new directives to be transposed (from 67 in 2014 to 34 in 2023) means that 
there are fewer infringement procedures for transposing directives late or incorrectly. Indeed, 2023 
saw the lowest number of new infringement cases for incomplete transposition of directives (284) 
in over 20 years. The Commission’s strengthened support to Member States to transpose and apply 
Directives correctly has also helped to prevent breaches. 

In  2023,  infringement  procedures  once  again  proved  their  effectiveness:  the  Commission 
successfully  closed  over  1 000  infringement  procedures,  as  Member  States  had  achieved 
compliance with EU law. This number also reflects the Commission’s efforts to progress on older, 
long-standing cases, many of which the Commission was able to close in 2023.  

Of all closed cases, 95% were resolved before having to be referred to the Court of Justice of the 
European  Union  (‘The  Court  of  Justice’).  Avoiding  lengthy  litigation  means  that  citizens  and 
businesses can enjoy the benefits of EU law sooner.  

Development of  infringement cases over 10 years

1347

1368

891

857

746

728

1657

986

699

1559

1571

1564

717

801

645

634

798

804

1786

904

681

1930

1991

847

704

551

489

1482

1037

529

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Open cases

Closed cases

New cases

7 

 
 
 
 
 
 
Monitoring the application of European Union law – 2023 annual report 

Referral to the Court of Justice as a measure of last resort 

If  the  early  stages  of  the  infringement  procedure  do  not  resolve  the  breach  of  EU  law,  the 
Commission  may  eventually  refer  the  case  to  the  Court  of  Justice.  In  specific  instances,  the 
Commission may request financial penalties to be imposed on the Member State concerned.  

In 2023, the Commission decided to refer a total of 82 cases to the Court of Justice. In 45 cases, it 
asked the Court to impose financial penalties against the Member State in question. Of these cases, 
40 concerned non-communication of transposition measures, and five were second referrals to the 
Court for failure to implement an earlier judgment. This represents a significant increase compared 
to previous years, illustrating the Commission’s resolve to enforce EU law. 

Development of  referrals to the Court                                        

and requests for financial penalties

69

17

58

10

64

35

42

11

47

15

51

7

33

9

33

4

35

17

82

45

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Referrals to Court

With request for financial penalties

Enforcing EU law in times of crises 

Crises or emergency situations, such as the Russian war of aggression against Ukraine, can create 
challenges to Member States’ full compliance with the EU’s four fundamental freedoms and the 
functioning of the single market. Under difficult circumstances, there may be a temptation to put 
domestic  considerations  before  the  proper  application  of  EU  law.  However,  the  effective 
enforcement of EU law remains key to ensuring that people and businesses can continue to enjoy 
the protection and legal certainty offered by 
EU law, and that essential goods and services 
are delivered where they are needed. 

The invasion of Ukraine by Russia  affected 
the  security  of  EU  gas  supply,  making  it 
particularly  urgent 
to  have  solid  risk-
preparedness plans in place for all  Member 
States.  The  Commission  opened  EU  Pilot 
investigations against 26 Member States for 
failure to notify to the Commission the national risk assessments, preventive action and emergency 
plans required by the Regulation on security of gas supply. Of these investigations, 16 could be 
closed after the Member States had submitted the required information, thus confirming that most 
Member States had put these measures in place. 

8 

 
 
 
 
Monitoring the application of European Union law – 2023 annual report 

The functioning of the EU’s gas storage market and non-discriminatory rules for access conditions 
to natural gas transmission systems are key to ensuring security of supply and to stabilising energy 
prices. The Commission decided to refer Poland to the Court of Justice for measures imposing 
additional  costs  on  companies  complying  with  a  mandatory  gas  storage  requirement  by  using 
storage in another Member State. These measures hamper cross-border gas trade. 

The Commission also acted to protect the single market in order to ensure the availability of safe, 
affordable and high-quality food in all Member States. Following the Commission’s enforcement 
action, Hungary repealed its prior notification scheme for cereal exports. Operators in Hungary 
can  again  export  cereals  to  other  Member  States  without  any  barriers  to  trade.  However,  the 
Commission opened an infringement procedure on a prior notification scheme for certain grains 
and seeds against Slovakia in October 2023.  

Future-proof enforcement of EU law 

In  July  2023,  the  Commission  concluded  a  stocktaking  in  the 
Commission and with Member States to ensure that the way it 
enforces  EU  law  works  in  practice  and  is  future-proof.  The 
stocktaking  was  organised  around  six  areas:  delivering  the 
Commission’s strategic approach to enforcing EU law; handling 
infringements efficiently; facilitating the treatment of complaints; 
making  the  monitoring  of  the  application  of  regulations  more 
systematic; increasing support to Member States; and increasing 
transparency.  

Targeted improvements have been identified in all these areas, 
and the Commission has been working on implementing these, 
together  with  Member  States.  They  will  lead  to  increased 
transparency, better information  for prospective complainants, 
more  efficient  tools  to  cooperate  with  Member  States  on  the 
transposition of directives, etc. 

The  stocktaking  has  shown  the  Commission’s  capacity  to  assess  its  enforcement  tools  and 
procedures in a transparent and frank manner, and to adapt to changing  circumstances. It also 
proved that the Commission and Member States can work together to identify and put into practice 
improvements to their cooperation in a legally and politically complicated field like the enforcement 
of EU law.  

9 

 
 
 
Monitoring the application of European Union law – 2023 annual report 

Strengthening the economy and EU competitiveness 

These three challenges – labour, inflation and business environment – come at a time when 
we are also asking industry to lead on the clean transition. So we need to look further 
ahead and set out how we remain competitive as we do that. […] Because Europe will do 
‘whatever it takes’ to keep its competitive edge. 

President von der Leyen, in her 2023 State of the Union address 

The  2023  Communication  ‘The  Single  Market  at  30’  showed  how  incomplete  or  incorrect 
application of EU rules continues to create barriers within the single market. This comes at a cost 
for businesses and consumers. Diverging national rules that introduce restrictions without a sound 
justification create complexity and distort competition. When a pattern emerges of several breaches 
by a single Member State, this constitutes a major challenge to one of the pillars of the EU. The 
Commission  enforced  EU  rules  to  ensure  a  level  playing  field  for  businesses  and  worked  to 
empower people to fully exploit their rights and benefits in the single market. 

Preventing barriers in the single market to increase growth 

The Single Market Transparency Directive and its Technical Regulations Information System aim 
to prevent new barriers in the single market through transparency, dialogue and better regulation. 
A notification procedure under the Directive allows the Commission and other Member States to 
examine any technical regulations a Member State plans to introduce for products and information 
society services.  

10 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Monitoring the application of European Union law – 2023 annual report 

The Court of Justice recalled the importance of the Directive and the possibility for people and 
businesses to actively oppose national rules adopted in breach of it. The Commission promoted 
the Directive’s full application in many exchanges with Member States. 

To ensure the continued functioning of the single market, the Commission took further steps in 
several cases, including by referring Hungary to the Court of Justice when it restricted the free 
movement  of  goods  (e.g.  building  materials)  by  imposing  restrictions  (fixed  price  level,  prior 
notification of exports, etc.).  

Removing barriers for service providers in the single market  

Services are crucial to the EU economy. They account for around 70% of the EU’s GDP and an 
equal share of its employment. The sector plays a crucial role in the EU’s economic recovery and 
resilience.  

barriers 

unjustified 

The  Services  Directive  is  essential  to 
prevent 
for 
businesses wanting to set up a branch 
in another Member State or to provide 
their  services  across  borders.  The 
against 
Commission  acted 
Member  States 
the 
Directive. 

firmly 
in  breach  of 

The Commission opened infringement cases against Malta, Poland (case closed later in 2023) and 
Slovenia for having in place a total prohibition on the advertising of lawyers’ activities. It launched 
and pursued a case against Slovenia for failing to address issues regarding prices fixed by law for 
real estate agencies, and against Cyprus for restrictions determining who can own shares in real 
estate  intermediation  companies.  The  Commission  also  tackled  restrictions  of  the  cross-border 
provision of services, as well as financial guarantee requirements, by opening and taking further 
steps in a case against Belgium.  

As regards Member States’ compliance with the EU Treaty provisions related to the freedom of 
establishment and to the free movement of services, the Commission decided to refer Poland to 
the Court of Justice for prohibiting advertising by pharmacies. 

Late  payments  have  negative  effects  on  businesses  as  they  reduce  liquidity,  prevent  growth, 
hamper resilience and potentially hinder work to become greener and more digital.  

EU  rules  oblige  public  authorities  to  pay  their  invoices  within  30  days.  The  Commission’s 
enforcement measures seek to achieve that public authorities pay suppliers of procured goods 
and services on time. The Commission referred Belgium, Greece, Italy, Portugal and Slovakia to 
the Court of Justice for paying their suppliers late, and pursued additional infringement cases 
against Greece and Italy.  

EU public procurement rules ensure transparency and market access opportunities for businesses 
and  the  equal  treatment  of  economic  operators  interested  in  participating  in  procurement 
procedures. They also support the sound management of public funds. To enforce these rules, the 
Commission launched infringement procedures against Hungary, Portugal, Romania and Slovenia, 
and took further steps in a case against Bulgaria. It was able to close procedures against Czechia, 

11 

 
 
 
 
Monitoring the application of European Union law – 2023 annual report 

Estonia, Greece, Latvia, Lithuania, Portugal and Sweden as they had achieved compliance with the 
EU rules.  

Better information and assistance for people and businesses 

the 

In  recent  years,  a  set  of  the  single  market 
governance  tools  have  been  developed  (the 
Single  Market  Enforcement  Taskforce 
(SMET),  SOLVIT, 
Internal  Market 
Information  System,  Your  Europe  and  Your 
Europe  Advice)  to  empower  people  and 
businesses to fully use their rights in the single 
market.  They  offer 
information, 
assistance  and  problem-solving.  For  instance, 
in  2023,  SOLVIT  centres  assisted  over  2 200 
people  and  businesses  with  their  problems.  More  than  88%  of  these  cases  were  solved.  The 
Commission  published  the  SMET  report  for  2022-2023  setting  out  the  SMET’s  work  and 
achievements. The Commission and the Member States work together in the SMET to analyse and 
remove  remaining  barriers  in  the  single  market.  This  can  have  a  key  impact  through  reducing 
barriers: for example, the SMET worked on eliminating 90 specific process-related barriers holding 
up the development of renewable energy projects. 

clear 

In addition, evidence from these tools helps to identify and correct problems with the application 
of single market rules. SOLVIT in particular can bring to light structural issues that are repeatedly 
faced  by  people  and  businesses.  In  2023,  the  first  implementation  report  on  the  single  digital 
gateway  was  published  –  the  single  digital  gateway,  a  website  that  facilitates  online  access  to 
information,  procedures,  and  assistance  services  that  Europeans  and  businesses  may  need  in 
another EU  country,  passed  the 400  million visitors mark. Your Europe was the most popular 
Commission website, with 32 million visitors in 1 year. Your Europe Advice, which informs people 
and businesses of their single market rights, was consulted over 26 000 times.  

Financial services 

Financial stability, protection of consumers and a sound business environment are the basis for a 
proper  functioning  of  the  financial  markets.  Reporting  by  multinational  companies  on  the 
corporate tax they pay in each Member State is central to transparency. Rules amending the Markets 
in Financial Instruments Directive II set out a pilot regime for market infrastructures based on 
blockchain technology. They also changed the definition of ‘financial instrument’, to clarify that 
such  instruments  can  be  issued  using  crypto-currencies.  Finally,  EU  rules  on  motor  insurance 
strengthened the protection of victims of traffic accidents across the EU. 

The Commission’s enforcement actions helped to ensure the operations of financial services in a 
wide  variety  of  field.  The  Commission  launched  39  infringement  procedures  against  Member 
States for failing to fully transpose the Directive on disclosure of income tax information, the Motor 
Insurance Directive and the Regulation amending the Markets in Financial Instruments Directive II. 

Efficient retail payments 

Efficient retail payments are the backbone of the EU’s economy, facilitating seamless transactions 
across sectors and ensuring smooth economic activity. They play a vital role in driving economic 

12 

 
 
 
Monitoring the application of European Union law – 2023 annual report 

growth  and  fostering  financial  stability.  For  example,  the  SEPA  Regulation  allows  people  and 
businesses to make all cross-border cashless euro payments as easily as domestic payments. 

The  Commission  initiated  EU  Pilot  dialogues  with  two  Member  States  on  the  correct 
implementation of the Regulation. The Single Market Enforcement Task Force (SMET) also asked 
Member States to identify and address shortcomings leading to IBAN discrimination (which means 
that accounts in other EU Member States cannot be used to set up direct debits or to transfer funds 
for domestic payments).  

Sustainable finance 

Sustainable  finance  is  an  important  part  of 
supporting the European Green Deal. The EU’s 
rules  include  the  Taxonomy  Regulation,  the 
Sustainable  Finance  Disclosure  Regulation,  the 
EU  Climate  Benchmark  Regulation, 
the 
European  Green  Bond  Regulation  and  the 
Corporate Sustainability Reporting Directive.  

the 

facilitate 

To 
interpretation  and 
legal 
implementation of these rules, the Commission 
published  several  batches  of  FAQs.  The 
Commission also adopted a Recommendation on transition finance with guidance for markets on 
the use of the sustainable finance framework. 

Money laundering  

To combat the scourge of organised crime, it is vital that the EU anti-money laundering rules are 
applied effectively by all economic operators in all Member States. Achieving better compliance is 
an enforcement priority for the Commission, to protect people and to ensure a level playing field 
for financial businesses.  

The Commission assessed if Member States transposed the Fifth Anti-Money Laundering Directive 
correctly. The Commission opened infringement procedures  against Cyprus, Hungary, Romania, 
Italy, Latvia, Portugal and Bulgaria for incorrectly transposing these rules, and against Spain and 
Italy for incorrectly applying them. The Commission was able to close infringement cases against 
Czechia,  Italy  and  Portugal  as  they  had  achieved  compliance  with  EU  law.  In  addition,  the 
Commission successfully concluded EU Pilot dialogues with 10 Member States.  

A functioning transport sector 

The single European railway area is an EU-wide system of rail networks that aims to enable the 
expansion of the rail sector based on competition, technical harmonisation and joint development 
of cross-border connections. The Commission decided to refer Greece and Spain to the Court of 
Justice for failing to fulfil their obligations under the Single European Railway Area Directive. The 
Commission  launched  infringement  procedures  against  Hungary  and  Austria  for  incorrect 
transposition of EU rules on the opening of the market for domestic passenger transport services 
by  rail  and  the  governance  of  the  railway  infrastructure.  It  continued  infringement  procedures 
against Germany and Bulgaria for incorrectly transposing certain provisions of the same Directive.  

13 

 
 
 
Monitoring the application of European Union law – 2023 annual report 

Updated EU rules on the maximum weight and 
dimensions  of  certain  road  vehicles  play  an 
important  role  in  the  functioning  of  the  single 
market and the free movement of goods in the 
EU.  The  Commission 
an 
infringement procedure against Lithuania for its 
failure to fully implement these updated rules. 

continued 

the  area  of  maritime 

In 
the 
Commission opened an infringement procedure 
against  the  Netherlands  for  failing  to  comply 
with EU rules on marine equipment contained 
in the Marine Equipment Directive. This Directive aims to improve safety at sea, prevent marine 
pollution, and ensure the free movement of marine equipment in the EU by applying international 
standards  to  EU  ships.  The  Commission  also  took  a  further  step  in  a  similar  infringement 
procedure against Bulgaria. 

transport, 

In the rail transport sector, the Commission opened an infringement case against the Netherlands 
for wrongly applying EU rules on competitive award of rail public transport contracts. 

In the road transport sector, the Commission decided to refer Denmark to the Court of Justice for 
failure to comply with  EU rules on coach and bus services. These rules provide a definition of 
cabotage according to which EU carriers are free to provide occasional road passenger transport 
services on a temporary basis in Member States other than the one of establishment. The sole 
requirement is that they hold an EU-wide licence. The Danish interpretation of these rules unduly 
limits such cabotage operations seven consecutive days per month). 

Enforcing competition rules 

EU  competition  policy  aims  to  ensure  a 
competitive, level playing field. It is enforced by 
national competition authorities, together with 
the  Commission.  The  ECN+  Directive 
increases  the  powers  and  effectiveness  of 
national competition authorities, strengthening 
the  implementation  of  the  EU’s  competition 
rules.  To 
the 
Commission  referred  Estonia  to  the  Court  of 
Justice and took the next step in the procedure 
against Romania. 

the  Directive, 

enforce 

Indirect taxation  for a fair business environment 

EU rules on value added tax (VAT) and excise duties ensure that businesses can compete on a level 
playing field across the single market, and that taxes are paid where they are due. In areas without 
common  rules,  such  as  vehicle  taxation,  the  Commission  monitors  that  Member  States  do  not 
create discriminatory obstacles for people and cars when moving in the EU.  

14 

 
 
 
 
Monitoring the application of European Union law – 2023 annual report 

The  revised  common  framework  for  excise  products  simplifies  the  rules  for  the  movement  of 
alcohol,  tobacco  and  energy  products.  The  revised  rules  for  excise  duties  on  alcohol  set  up  a 
common certification system for small producers.  

The  Commission  pursued  infringement  proceedings  against  Spain  for  failing  to  transpose  the 
revised common framework for excise products and the revised rules for excise duties on alcohol. 
Overall, the Commission’s enforcement action achieved results: 21 infringement procedures were 
able to be closed as nine Member States had completed the transposition of both sets of rules. 
Regarding the transposition of the rules on the VAT and excise duty treatment of defence efforts 
undertaken in the EU, the Commission also closed the infringement proceedings against Belgium, 
Greece, Spain, Austria and Portugal. 

Further to a complaint, the Commission opened an infringement procedure against Portugal for 
its non-compliance with the EU definition of wine for excise duty purposes, which impacts the tax 
treatment of certain alcoholic beverages. Under EU law, products with a strength of between 15% 
and 18% alcohol by volume can only be included in the category of wine if no enrichment takes 
place  for  their  production.  However,  Portugal  treats  enriched  products  as wine  and  incorrectly 
applies a zero rate.  

In  2023,  the  Commission’s  enforcement  measures  in  EU  tax  law  brought  tangible  benefits  to 
people and businesses. For example, Romania refunded people the registration taxes that had been 
incorrectly  levied  on  used  cars  acquired  from  other  Member  States.  Greece  removed  the  VAT 
exemption  on  commercial  postal  services  supplied  by  the  national  universal  service  provider. 
Businesses can now compete fairly with each other and offer a wider choice of commercial postal 
services to consumers, at competitive prices. Moreover, following successful EU Pilot dialogues, 
Denmark, Estonia, Ireland, Greece, Croatia, Italy, Lithuania, Slovenia and Finland now facilitate 
the recovery of tax claims by replying promptly and accurately to requests for information from 
other Member States. 

In cases of non-payment of the initial price of goods and services (for example when a company 
is in an insolvency procedure), the VAT Directive requires Member States to reduce the amount on 
which  VAT  is  applied  based  on  national  conditions.  The  Commission  entered  into  an  EU  Pilot 
dialogue with Spain on the implementation of these rules, to ensure that VAT is collected on the 
correct amount without imposing disproportionate conditions on businesses. The EU Pilot process 
was closed successfully after Spain took measures to align its legislation to EU rules. 

EU rules mandate that VAT is not paid on goods exported outside the EU. Non-EU operators 
exporting  from  Bulgaria  could  not  present  the  customs  document  requested  by  the  national 
administration  and  consequently  had  to  pay  VAT.  Following  a  successful  EU  Pilot  dialogue, 
Bulgaria took steps to ensure correct application of these rules.  

In September 2023, following enforcement action by the Commission, the Court of Justice ruled 
that  the  United  Kingdom  had  not  taken  steps  to  comply  with  its  earlier  judgment  concerning 
incorrect marking of fuel. The Court obliged the United Kingdom to pay a financial penalty.  

15 

 
 
 
 
 
 
 
 
 
Monitoring the application of European Union law – 2023 annual report 

Direct taxation promoting the single market 

The single market guarantees that people and businesses have the freedom to move, operate and 
invest across national  borders. However, national direct taxation rules are not fully harmonised 
across the EU. Differences between national tax systems give rise to obstacles in the single market 
and avenues for aggressive tax planning and tax avoidance. 

The  Directive  on  rules  against  tax 
avoidance  practices  aims  to  create  a 
minimum  level  of  protection  against 
corporate tax avoidance throughout the 
EU,  while  ensuring  a  fairer  and  more 
stable  environment  for  businesses.  In 
2023,  the  Commission  decided  to  refer 
Belgium  and  Luxembourg  to  the  Court 
of 
incorrectly 
for  having 
transposed the Directive. The Commission successfully closed an infringement case against Spain 
as it had completed the transposition of the rules on exit tax.  

Justice 

The  Directive  on  administrative  cooperation  in  the  field  of  taxation  introduced  new  tax 
transparency  rules  for  transactions  on  digital  platforms.  They  will  help  Member  States  identify 
situations  where  tax  should  be  paid,  preventing  tax  evasion  or  misreporting.  To  further  the 
transposition  of  these  rules,  the  Commission  launched  infringement  proceedings  against  14 
Member States and took further steps in cases against Belgium, Greece, Spain, Cyprus, Poland and 
Portugal. The enforcement measures were successful, as by the end of 2023, the Commission could 
close most of these infringement procedures.  

In 2023, the Commission took further enforcement action after the Court of Justice  had found 
that Belgium infringed EU law by refusing non-resident taxpayers who earn less than 75% of their 
worldwide  income  in  Belgium  the  right  to  deduct  their  alimony  payments  from  their  taxable 
income.  Belgium  failed  to  bring  its  legislation  in  line  with  the  Court’s  first  judgment,  so  in 
November 2023, the Commission decided to refer Belgium to the Court for the second time. 

As a result of the Commission’s enforcement action and removing an obstacle to the freedom to 
provide services in the EU, Spain abolished the obligation for non-resident taxpayers from the EU 
to appoint a tax representative. This obligation imposed additional costs on non-resident taxpayers, 
discouraging them from taking up activities or investing in Spain.  

Following informal exchanges with the Commission, several Member States aligned their national 
legislation with EU direct taxation rules. Lithuania remedied its incorrect transposition of the anti-
avoidance rules on hybrid mismatches. Romania corrected its improper transposition of the rules 
on  mandatory  automatic  exchange  of  information  in  the  field  of  taxation,  and  remedied  the 
situation of the hospitality sector, which could not benefit from the exemption from withholding 
taxes on payments between associated companies under the Parent-Subsidiary Directive. 

Following a complaint, the Commission decided to open infringement proceedings against Sweden 
on  preliminary  income  taxation.  Sweden  unjustifiably  restricts  the  freedom  to  provide  services 
(Article 56 of the Treaty on the Functioning of the EU and Article 36 of the EEA Agreement). 

16 

 
 
 
 
Monitoring the application of European Union law – 2023 annual report 

Secure and simple customs 

for 

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

customs 

rules 

examining 

The Commission’s enforcement strategy in 
the area of customs focused on the correct 
and uniform application of the Code. It did 
so  by 
the  problem  of 
undervaluation  of  goods,  assessing  IT 
systems  in  the  customs  area  in  Member 
States,  detecting  charges  with  equivalent 
effect to customs duties in the EU, and finding irregularities in the application of the Cash Controls 
Regulation.  

In 2023, in the area of postal fees for customs representation, the Commission focused a cross-
cutting enquiry covering all Member States on the application of provisions on low-value postal 
consignments. 

17 

 
 
 
 
Monitoring the application of European Union law – 2023 annual report 

Creating a green, sustainable and prosperous Europe 

This is the strength of Europe's response to climate change. The European Green Deal 
provides the necessary frame, incentives, and investment – but it is the people, the 
inventors, the engineers who develop the solutions. 

President von der Leyen, in her 2023 State of the Union address 

The European Green Deal is the EU’s roadmap for tackling the threefold threat of the climate, 
environmental and biodiversity crises. The EU aims to provide clean, affordable and secure energy, 
to  achieve  its  climate  goals  and  boost  economic  development.  In  2023,  the  Commission’s 
enforcement  measures  promoted  clean  air,  water  and  transport,  and  a  circular  economy.  The 
Commission helped Member States and farmers under the common agricultural policy. It achieved 
progress on the EU’s energy union and continued work to keep nuclear energy safe. 

Climate action  

The Governance Regulation sets out common rules for planning, reporting and monitoring to help 
the EU reach its 2030 climate and energy targets. It also ensures appropriate, timely and coherent 
reporting by the EU under the United Nations Framework Convention on Climate Change and 
the Paris Agreement.  

The Regulation requires Member States to submit long-term strategies with a perspective of at least 
30 years, to support implementation of the EU climate targets. In 2023, the Commission took the 
next step in the infringement proceedings against Poland and Romania for failing to notify such 
strategies to the Commission. 

Member States also have to prepare and update 10-year national energy and climate plans, outlining 
their  roadmap  to  achieve  the  objectives  of  the  energy  union,  including  decarbonisation.  The 
Commission initiated pre-infringement dialogues with 11 Member States who did not submit the 

18 

 
 
 
 
 
 
 
Monitoring the application of European Union law – 2023 annual report 

updated draft plans for 2021-2030 in time. Overall, the dialogues were successful and the majority 
of the Member States concerned submitted their updated plans. Three of the dialogues resulted in 
infringement proceedings, namely against Bulgaria, Austria and Poland.  

Clean transport 

Sustainable urban transport and clean and energy-efficient vehicles improve people’s quality of life 
and strengthen the EU’s economy. The objective is to improve transport while at the same time 
reducing congestion, accidents and pollution in European cities. 

2023, 

Commission 
the 
In 
referred Bulgaria to  the  Court  of  Justice 
for  failing  to  transpose  EU  rules  setting 
minimum  national  targets  for  the  public 
procurement  of  clean  vehicles.  These 
targets  are  particularly  relevant  to  urban 
buses,  where 
procurement 
represents around 70% of the market. The 
Commission  closed  infringement  cases 
against  Czechia,  Estonia,  Hungary, 

public 

Slovenia, Finland and Sweden, which had completed the transposition of these rules. 

Clean air and water 

EU clean air policy aims to improve air quality and tackle air pollution, to protect the environment 
and human health. Air pollution is the number one environmental health problem in the EU. It 
causes serious illnesses such as asthma, cardiovascular problems and lung cancer, and vulnerable 
groups are affected the most.  

EU water policy protects water resources, fresh and salt water ecosystems, and ensures our drinking 
and bathing water are clean. The Water Framework Directive provides the main framework and 
the objectives for water policy in the EU. 

The Commission called on 12 Member States to ensure correct implementation of their reduction 
commitments  for  several  atmospheric  pollutants  in  line  with  EU  rules.  The  Commission  also 
enforced EU legislation on the monitoring of air pollution.  

To  protect  people  from  environmental  noise,  the  Commission  called  on  France  and  Greece  to 
adopt noise action plans and/or maps. It took the next step in the procedures against Latvia and 
Austria for failing to fully transpose EU rules in this area. 

Under EU water policy, the Commission decided to refer Belgium to the Court of Justice over its 
failure to take sufficient action on nitrate pollution in Wallonia. The Commission was able to close 
the  case  before  the  end  of  2023  as  Belgium  had  achieved  compliance  with  EU  rules.  The 
Commission also decided to refer Greece to the Court for its failure to provide updated flood risk 
and flood hazard maps. The Commission took further steps against eight Member States that had 
not completed the review of their water management plans and/or flood risk management plans. 
Finally, the Commission referred Spain to the Court over shortcomings in the treatment of waste 
water. 

19 

 
 
 
Monitoring the application of European Union law – 2023 annual report 

Protecting biodiversity  

As  part  of  the  European  Green  Deal,  the 
biodiversity strategy for 2030 is the EU’s plan to 
put biodiversity on the path to recovery by 2030. 
It contains specific commitments and measures to 
protect  nature  and  reverse  the  degradation  of 
ecosystems, building on existing nature laws.  

The Commission decided to refer Bulgaria, Ireland, Greece, Italy, Latvia and Portugal to the Court 
of Justice for failing to prevent invasive alien species  from damaging European nature. It also 
referred Ireland to the Court for failing to adopt and notify penalties required under EU rules on 
invasive alien species. Cases against Ireland, Greece, Italy, Latvia and Portugal  were closed in 
2023 as these countries had achieved compliance with EU law. The Commission took the next 
step  in  a  procedure  against  Estonia  for  failure  to  correctly  apply  the  Habitats  Directive,  in 
particular regarding logging activities in Natura 2000 sites.  

The Commission decided to refer Portugal to the Court for its failure to correctly transpose the 
Environmental Impact Assessment Directive. The case was closed later in 2023 as Portugal had 
made the necessary legal changes.  

Promoting a circular economy 

The EU aims to transition to a circular economy to become cleaner and more competitive. The 
transition to a circular economy will reduce pressure on natural resources and create sustainable 
growth  and  jobs.  It  is  necessary  to  achieve  the  EU’s  2050  climate  neutrality  target  and  to  halt 
biodiversity  loss.  The  Circular  Economy  Action  Plan  is a  core  building  block  of  the  European 
Green Deal. 

The Commission referred Greece, Croatia, Slovakia and Slovenia to the Court of Justice for failing 
to rehabilitate and close landfills. It also called on Slovakia to comply with the Waste Framework 
Directive  as  regards  67  abandoned  waste  sites.  The  Commission  launched  infringement 
procedures against six Member States for incorrectly transposing these rules into national law. 

The Commission closed a case against Slovenia concerning 20 illegal landfills as they had been 
gradually closed and rehabilitated. The Commission also adopted a reasoned opinion under Article 
259 TFEU following a complaint brought by Poland against Germany concerning illegal shipments 
of waste from Germany to Poland.  

A sustainable agriculture that ensures security of food supply 

The EU’s common agricultural policy aims to ensure food supply in the EU, stabilise agricultural 
markets and guarantee a fair income for farmers. It also helps address climate change and loss of 
biodiversity.  

20 

 
 
 
 
 
Monitoring the application of European Union law – 2023 annual report 

Since  2023,  all  Member  States  have  in  place 
national  strategic  plans  on  how  to  use  EU 
financial support to achieve the objectives of the 
common  agricultural  policy.  The  Commission 
supports  Member  States  in  correctly  applying 
their plans. Other areas of close cooperation to 
implement  EU  rules  are  organic  farming  and 
protecting geographical indications.  

The  Commission’s  enforcement  measures 
meant  that  all  Member  States  transposed  the 
Directive on unfair trading practices in business-
to-business relationships in the agricultural and food supply chain. The Commission held dialogues 
with 22 Member States to ensure that transposition is not only complete, but also correct. 

Sustainable fisheries and maritime spatial planning 

The  EU’s  common  fisheries  policy  aims  to  ensure  long-term  sustainability  for  fisheries  and 
aquaculture, contributing to the availability of food supplies. It also has the objective of maintaining 
a fair standard of living for those who depend on fishing. The policy focuses on maintaining fish 
stocks through measures like restricting fleet capacity and setting catch limits. Member States must 
set up control and enforcement systems to ensure these measures are fully implemented. 

The  Commission  took  the  next  step  in  a 
procedure  against  Croatia  over  shortcomings 
in the national control system for bluefin tuna 
farms. It closed a case against Denmark, which 
had  achieved  compliance  with  EU  weighing 
and catch reporting obligations. 

Maritime  spatial  plans  promote  sustainable 
growth of maritime economies and a healthy 
use  of  marine  resources.  The  Commission 
called  on  Greece,  Croatia,  Italy,  Cyprus, 
Portugal  and  Romania  to  draw  up  and  send 
their plans to the Commission. The Commission was able to close procedures against Bulgaria and 
Spain as they had complied with this obligation. 

Environmental governance 

Engaging  people  in  environmental  issues  is  key  to  improving  environmental  compliance  and 
achieving a healthier environment. The Commission called on Austria to improve its legislation on 
public participation in decision-making and access to justice in environmental matters, in line with 
the Aarhus Convention. It was able to close a case against France as it had achieved compliance 
with EU rules, improving people’s access to environmental information. The Commission took 
the next step in a procedure against Bulgaria for failing to remove barriers to access to justice in 
relation to air quality plans.  

21 

 
 
 
 
 
Monitoring the application of European Union law – 2023 annual report 

Clean and affordable energy  

The integrated EU energy market is the most cost-effective tool to ensure a secure and affordable 
energy supply 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 helps improve sustainability. 

The Commission launched infringement procedures against Croatia for restricting the export of 
gas, and against Romania for restricting the export of electricity. 

The Commission monitored the implementation of the Clean Energy for All Europeans package. 
Implementing the package’s legislation is a stepping stone to applying the ‘Fit for 55’ package and 
the REPowerEU plan.  

To achieve complete transposition of EU rules into national laws, the Commission took the next 
step in its infringement proceedings against: 

−  France,  Malta,  the  Netherlands,  Poland  and  Portugal  on  the  amending  Energy 

Performance of Buildings Directive; 

−  Hungary on the amending Energy Efficiency Directive; 
−  against 10 Member States on the Renewable Energy Directive (REDII); and 
−  against 13 Member States on the Electricity Directive. 

At the same time, the Commission was able to close 23 infringement cases as Member States 
had completed the transposition of these Directives. 

Keeping nuclear power safe  

Nuclear  energy  can  play  a  positive  role  in  meeting 
climate  targets  and  ensuring  energy  security,  but  the 
highest levels of nuclear safety and radiation protection 
must be met. The Commission continued to support the 
effective 
legal 
framework  on  nuclear  safety,  protecting  workers, 
patients  and  the  public  from  ionising  radiation  and 
making sure that radioactive waste is handled safely.  

implementation  of 

the  Euratom 

The  Commission  launched  infringement  procedures  against  eight  Member  States  for  failing  to 
correctly  transpose  radiation  protection  legislation.  Cases  against  Bulgaria,  Ireland,  France, 
Lithuania and Luxembourg could be closed in 2023, as these countries had adjusted national rules 
and provided additional clarifications. 

The Commission also closed cases against Denmark, Croatia, the Netherlands and Poland on the 
transposition of the Radioactive Waste Directive after they had improved national legislation. The 
Directive’s correct transposition helps ensure the safe and responsible management of spent fuel 
and  radioactive  waste,  protecting  people  and  the  environment  against  the  risks  of  nuclear 
contamination. 

22 

 
 
 
 
 
 
 
 
Monitoring the application of European Union law – 2023 annual report 

A Europe fit for the digital age 

When it comes to making business and life easier, we have seen how important digital 
technology is. It is telling that we have far overshot the 20% investment target in digital 
projects of NextGenerationEU. Member States have used that investment to digitise their 
healthcare, justice system or transport network. 

President von der Leyen, in her 2023 State of the Union address 

The EU supports a human-centric, sustainable vision for the digital society that empowers people 
and businesses. Digital society and digital technologies bring with them new freedoms and rights, 
along with new opportunities to learn, entertain and work. In 2023, the Commission enforced EU 
rules to promote technology while ensuring an open, fair and sustainable digital environment. 

Technology that works for people  

The European Electronic Communications Code modernises EU telecoms rules to the benefit of 
both consumers and industry. In 2023, the Commission was able to close cases against Estonia, 
Spain, France, Croatia, Luxembourg, Austria, Romania and Slovakia. The Code is fully transposed 
into national law in 24 Member States. Clearer consumer contracts, better quality of services and 
strong competitive dynamics in the markets will boost investments in connectivity while protecting 
European users.  

A fair and competitive digital economy 

The Platform to Business Regulation is the first-ever set of rules for creating a fair, transparent and 
predictable  business  environment  for  smaller  businesses  and  traders  on  online  platforms.  The 
Commission opened infringement proceedings against eight Member States for failing to fulfil their 
obligations under this Regulation. Out of these eight cases, the Commission  successfully closed 
cases against Czechia and Portugal, and took the next step in the procedures against Hungary and 
Lithuania.  

The Directive on copyright in the digital single market and the Directive on online television and 
radio programmes modernise EU copyright rules and enable consumers and creators to make the 
most of the digital world. The Commission referred Bulgaria, Denmark, Finland, Latvia, Poland 
and Portugal to the Court of Justice, as they were still lagging behind in transposing at least one of 

23 

 
 
 
 
 
Monitoring the application of European Union law – 2023 annual report 

the two Directives. This enforcement action meant that by the end of 2023, only Poland was yet 
to complete the transposition of both Directives.  

An open, democratic and sustainable digital society 

The revised Audiovisual Media Services Directive promotes fair conditions for all players in the 
audiovisual  sector.  This  includes  traditional  television  broadcasters  and  on-demand  service 
providers. Some rules also extend to video-sharing platforms. The Directive aims to achieve a safer, 
fairer and more diverse audiovisual landscape.  

The  Commission  was  able  to  close 
infringement  procedures  against 
Czechia,  Estonia,  France,  Croatia, 
these 
Slovenia  and  Slovakia  as 
countries  had 
the 
completed 
transposition of the Directive.  

including 

The  Digital  Services Act lays  down 
common rules that apply across the 
single  market, 
due 
diligence  obligations  on  illegal  and 
and 
harmful 
disinformation.  It  sets  an  unprecedented  standard  for  the  accountability  of  major  online 
intermediaries,  including  online  platforms.  The  Commission  supported  Member  States  in 
preparing for the application of the new law. It also adopted a list of 17 very large online platforms 
and two very large search engines. These providers had to comply with the Digital Services Act 
earlier than others, already in August 2023, for the benefit of all users in the EU.  

activities 

online 

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  transport  apps,  which  often  use  dynamic  data.  It  increases 
transparency by opening access to publicly funded research data, and supports new technologies, 
including artificial intelligence.  

The  Commission  took  the  next  step  in  the  infringement  procedures  against  four  Member 
States (Belgium, Bulgaria, Latvia and the Netherlands) and referred them to the Court of Justice 
for failing to transpose the Directive into national law. At the same time, the Commission was able 
to  close  infringement  proceedings  against  other  Member  States  as  they  had  notified  complete 
transposition to the Commission.  

Facilitating cross-border operations by companies 

EU company law provides a predictable legal framework to help EU companies operate across 
borders and face new challenges in an increasingly digital world. The adoption of the Digitalisation 
Directive  was  an  important  step  towards  digitalising  company  law.  It  also  reduces  costs  for 
companies by enabling entrepreneurs to set up new businesses and to update their information in 
business registers fully online. The Cross-Border Mobility Directive sets out clear procedures for 
merging, dividing or moving across borders to support companies when they expand or restructure 
in the single market.  

24 

 
 
 
Monitoring the application of European Union law – 2023 annual report 

Overall, 23 Member States had transposed the Digitalisation Directive by the end of 2023. The 
Commission  took  the  next  steps  in  the  procedures  against  Bulgaria  and  Cyprus  for  failing  to 
transpose the Directive. The Commission also opened infringement procedures against 11 Member 
States for not having transposed some of the Directive’s rules, which had a longer implementation 
deadline. As 20 Member States did not transpose the Cross-Border Mobility Directive in time, the 
Commission opened infringement procedures. By the end of 2023, a total of 19 Member States 
had transposed these rules.  

Digital transport systems 

In the road transport sector, the European Electronic Tolling System Directive ensures that 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.  The  Commission  decided  to  refer  Bulgaria  and  Poland  to  the  Court  of 
Justice for failing to fully transpose the Directive into their national law. It continued infringement 
procedures against Denmark, Greece, Finland and Sweden for the same matter.  

In the aviation sector, the Commission 
opened  an 
infringement  procedure 
against  Slovakia  for  failing  to  comply 
with  EU  rules  on  the  operation  of 
unmanned  aircrafts.  It  also  opened 
infringement  procedures  against  17 
Member  States  for  failing  to  ensure 
compliance  with  the  Common  Project 
One  Regulation.  This  Regulation 
ensures a synchronised implementation of procedures and technical solutions essential for good 
air traffic management performance across the entire Single European Sky network. 

25 

 
 
 
Monitoring the application of European Union law – 2023 annual report 

Building a fair and social Europe 

The future of our continent depends on the choices we make today. On the steps 
we take to complete our Union. The people of Europe want a Union that stands 
up for them in a time of great power competition. But also one that protects and 
stands close to them, as a partner and ally in their daily battles. 

President von der Leyen, in her 2023 State of the Union address 

The EU strives for an economic recovery and green and digital transitions that are socially just and 
fair. EU rules aim to ensure that everyone has equal chances in life and can benefit from the same 
social rights. This is why the Commission, in 2023, took enforcement measures to protect workers’ 
rights and to promote fair working conditions. It tackled discrimination that undermines the free 
movement  of  workers  and  achieved  wider  implementation  of  EU  rules  to  reconcile  work  and 
family life. 

Labour law 

EU labour law protects employees in their relationship with their employers. These rules ensure 
sustainable  working  time  and  rest  periods,  equitable  treatment  of  precarious  workers,  and 
appropriate consideration for employees in an event of insolvency. 

The  Commission  published  a  report  on  Member  States’  implementation  of  the  Working  Time 
Directive.  The  findings  show  a  generally  positive  picture  of  national  implementation.  The 
Commission’s Interpretative Communication summarises the case law of the Court of Justice on 
the Directive, to bring legal clarity and certainty to stakeholders.  

To enforce the EU’s rules on fixed-term work, the Commission took further action against Italy, 
including on the working conditions of honorary magistrates. The aim was to prevent abusive use 
of fixed-term contracts and avoid discriminatory employment conditions in the public sector. The 
Commission also addressed  potential  discrimination of fixed-term workers  in  Poland  in an EU 
Pilot  dialogue.  Poland  subsequently  amended  its  rules  on  the  termination  of  employment 
relationships to ensure that fixed-term workers are not discriminated against. 

The new Minimum Wage Directive sets a common framework for appropriate minimum wages in 
the  EU.  To  promote  its  correct  transposition  from  the  outset,  well  ahead  of  the  transposition 
deadline of 15 November 2024, the Commission supported Member States by providing guidance 
in the report issued by the specialist expert group. 

Enforcing  rules  on  fair  working  conditions  and  equitable  employment  is  central  to  improving 
people’s welfare and to the functioning of the single market. A key principle is ensuring a level 
playing field between Member States’ labour markets.  

26 

 
 
 
 
 
 
Monitoring the application of European Union law – 2023 annual report 

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  lead  to  a  healthy  and 
productive workforce, which also feeds into the sustainable growth of the EU economy. 

line  with 

The  Commission  continued  its  EU  Pilot  dialogue 
with five Member States to bring national measures 
in 
the  Fourth  List  of  Indicative 
Occupational  Exposure  Limit  Values  under  the 
Chemical  Agents  Directive.  As  a  result,  Hungary 
and the Netherlands achieved compliance with the 
Directive, while Czechia and Poland committed to 
shortly bringing their national laws in line with EU 
rules.  However, 
the  Commission  opened  an 
infringement procedure against Germany. 

The Commission also continued its EU Pilot dialogue with 13 Member States on the transposition 
of the first amendment updating the Carcinogens, Mutagens or Reprotoxic Substances Directive. 
Following  this  dialogue,  six  Member  States  achieved  compliance  with  the  Directive  and  three 
committed themselves to bringing their national laws in line with EU rules. The dialogue with the 
remaining four Member States continues. The Commission also initiated an EU Pilot dialogue with 
14 Member States to ensure conformity with the updated Biological Agents Directive.  

The  Commission  closed  three  infringement  procedures  as  Germany,  Cyprus  and  Austria  had 
transposed EU rules into national law. The acts concerned were respectively the Construction Sites 
Directive,  the  Medical  Treatment  on  Board  Vessels  Directive  and  the  Personal  Protective 
Equipment Directive. In consequence, workers enjoy safer working conditions. 

Labour mobility 

Free movement of workers is one of the EU’s fundamental freedoms. It includes the right to work 
and reside for this purpose in another Member State, to look for a job in another Member State, 
and to stay there even after the employment has finished. EU workers enjoy equal treatment with 
nationals in access to employment, working conditions and all other social and tax advantages.  

The Commission referred Italy to the Court of Justice over its refusal to end the discrimination of 
foreign language lecturers at public universities, in proceedings based on a petition to the European 
Parliament. 

The  Posting  of  Workers  Directives  regulate  the  situation  where  an  employee  is  sent  by  their 
employer to carry out a service in another EU Member State on a temporary basis. This can happen 
under a contract of services or as part of an intra-group posting or a hiring-out through a temporary 
agency. 

In 2023, the Commission took the next step in infringement procedures against 17 Member States 
for failure to bring their national provisions in line with EU rules on the posting of workers. As a 
result,  nine  Member  States  indicated  their  readiness  to  address  the  grievances  raised  by  the 
Commission. 

27 

 
 
 
 
 
Monitoring the application of European Union law – 2023 annual report 

Social security coordination 

EU law coordinates the social security systems of Member States. It protects the social security 
rights  of  people  who  move  within  the  EU.  It  constitutes  therefore  an  important  element  to 
guarantee that the free movement of people is exercised effectively. 

Following complaints from EU citizens, the Commission opened infringement procedures against 
Greece and Italy over limitations of access of EU workers to the allowances for dependent children. 
Access to it is conditional upon a 2-year (Italy) or 5-year (Greece) period of residence. Moreover, 
in Italy, the child must be living with the beneficiary. These conditions violate EU rules on free 
movement of workers and social security coordination.  

The Commission took the next step in the procedure 
against  Germany  (Bavaria)  for  making  indexation  of 
family benefits dependent on the country of residence 
of the beneficiary’s child. This action aims to protect 
the free movement of workers and address unjustified 
indirect  discrimination  based  on  the  nationality  of 
migrant workers. 

Thanks to these enforcement measures in the field of 
labour  mobility  and  social  security  coordination, 
workers  across  the  EU  have  access  to  27  labour 
markets and benefit from the same social security as other taxpayers in their host Member State.  

Gender equality 

The  Work-Life  Balance Directive aims to  ensure 
equality in labour market participation. It facilitates 
the  reconciliation  of  work  and  family  life  for 
workers with care responsibilities and encourages 
equal  sharing  of  care  responsibilities  between 
parents.  

In April 2023, the Commission took further steps 
in infringement cases against 11 Member States for 
failing  to  fully  transpose  the  Directive.  Most  of 
these  Member  States  adopted  the  necessary 
legislation later in 2023. Furthermore, the Commission decided to refer Belgium, Ireland and Spain 
to the Court of Justice for continuing to fail to fully transpose the Directive.  

Non-discrimination in employment and inclusion 

Embracing equality as a foundational principle of the EU, 
the  Commission  champions  non-discrimination 
in 
employment and beyond.  

The  European  Accessibility  Act  sets  requirements  to 
ensure  the  accessibility  of  products  and  services  for 
persons with disabilities and older people. An environment 
where products and services are more accessible allows for 

28 

 
 
 
Monitoring the application of European Union law – 2023 annual report 

a more inclusive society and facilitates independent living for persons with disabilities.  

To ensure a complete transposition of the European Accessibility Act, the Commission launched 
infringement  procedures  against  Denmark,  Estonia  and  Italy,  and  took  the  next  step  in  the 
procedures against Bulgaria, Cyprus, Ireland, the Netherlands and Poland. The Commission also 
launched  AccessibleEU,  a  support  centre  to  help  Member  States  in  the  implementation  of  EU 
accessibility legislation. 

29 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Monitoring the application of European Union law – 2023 annual report 

Protecting people and our freedoms 

Democracy is about our individual right to be heard. But democracy is also our collective 
responsibility. Every new generation is responsible to keep our democracy healthy. To make 
it more representative and inclusive. To protect it from internal and external threats. And to 
guarantee checks and balances on power.  

President von der Leyen, at the high-level event on elections on 23 October 2023 

Protecting  and  promoting  the  EU’s  values  is  a  top  priority  of  the  European  Commission. 
Enforcing EU law is instrumental to guarantee people’s rights, helping to ensure that fundamental 
rights  and  freedoms  are  uniformly  respected  across  Member  States.  In  2023,  the  Commission 
continued its actions to defend and uphold the rule of law as well as the protection of fundamental 
rights, also taking specific action in areas such as compliance with the  EU’s non-discrimination 
legislation  and  enforcing  EU  rules  to  combat  child  sexual  abuse  and  protect  children  from 
abduction.  It  safeguarded  the  rights  of  consumers  and  of  cross-border  patients,  ensured  safer 
transport, and strengthened the European Security Union. 

Upholding the rule of law 

The Commission uses several tools to protect and promote the rule of law in the EU. Member 
States generally ensure high rule of law standards. However, there are also important challenges in 
some Member States, which the Commission addresses by drawing on a varied rule of law toolbox.  

The annual Rule of Law Report presents both positive and negative developments across Member 
States  in  areas  that  are  key  to  upholding  the  rule  of  law,  and  makes  country-specific 
recommendations. 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 worsening.  

The  Conditionality  Regulation  protects  the  EU  budget  from  being  affected  by  breaches  of 
law.  The  Commission  applies  this  Regulation  strictly:  on 
principles  of  the  rule  of 
13 December 2023, one year after the Council adopted measures to protect the EU budget from 
breaches of the principles of the rule of law in Hungary, the Commission re-evaluated Hungary’s 
situation. It concluded that Hungary had not addressed the issues that led to the adoption of the 
measures to protect the EU budget, and that therefore those could not be lifted. 

30 

 
 
 
 
 
 
Monitoring the application of European Union law – 2023 annual report 

Rule of law considerations are also integrated into the work of the Recovery and Resilience Facility, 
where Member States implement relevant reforms under their Recovery and Resilience Plans. 

Finally,  rule  of  law  concerns  can  be  reflected  specifically  in  breaches  of  EU  law,  which  the 
Commission has addressed through infringement procedures. 

In February 2023, the Commission decided to refer Poland to the Court of Justice for violations of 
EU law by the Polish Constitutional Tribunal. The Commission had concluded that rulings of the 
Tribunal adversely affect fundamental principles of the EU legal order, including the primacy of 
EU law. In another infringement case against Poland, the Court of Justice in its ruling confirmed 
the Commission’s position on national legislation undermining the independence of Polish judges. 
Poland has announced its intention to take the steps required to comply with the judgment. 
In June 2023, the Commission launched an infringement procedure against Poland concerning a 
law setting up a special committee  to investigate  Russian influence  on the internal  security of 
Poland between 2007 and 2022. The Commission considered that the law violated a number of 
EU  Treaty  provisions  and  principles,  and  rights  under  the  EU  Charter  of  Fundamental  Rights. 
Following the Commission’s enforcement action, the special committee did not start working and 
following 2023 Polish general elections, its members were dismissed by the Sejm (though the law 
establishing the committee is yet to be repealed). 

Combating racism, xenophobia and discrimination 

Hate  speech  and  hate  crimes  pose  a  serious 
threat  not  only  to  direct victims,  but also  to 
society  as  a  whole.  They  undermine  social 
cohesion  by 
fear,  dividing 
spreading 
communities,  and  fostering  an  atmosphere 
conducive to discrimination and violence.  

on 

The  Commission  continued  to  fight  these 
crimes  by  enforcing  the  EU  Framework 
Decision 
and 
combating 
xenophobia  by  means  of  criminal  law.  This 
law  requires  the  criminalisation  of  public 
incitement to violence or hatred based on race, colour, religion, descent, national or ethnic origin. 
Following the Commission’s enforcement action, Belgium, Germany, Greece, Luxembourg and 
Romania rectified their legislation.  

racism 

The  Equality  Directives  prohibit  discrimination  based  on  sex,  racial  or  ethnic  origin,  religion  or 
belief, disability, age or sexual orientation in various fields.  

The Commission referred Slovakia to the Court of Justice for failing to effectively tackle the issue 
of segregation of Roma pupils in education. Discrimination on grounds of ethnic origin in education 
is a serious issue with lifelong consequences and is prohibited under the Racial Equality Directive.  

Protecting people who report breaches of EU law 

The  protection  of  whistleblowers  promotes  the  fundamental  values  of  the  rule  of  law  and 
democracy as well as the right to freedom of expression. This is because whistleblowers expose 

31 

 
 
 
 
Monitoring the application of European Union law – 2023 annual report 

wrongdoing,  preventing  harm  to  the  public  interest,  and  promoting  transparency  and 
accountability. The Whistleblower Protection Directive protects whistleblowers from retaliation 
for reporting breaches of EU law. It requires Member States to establish effective channels for 
reporting such breaches confidentially.  

The Commission referred Czechia, Germany, Estonia, Luxembourg, Hungary and Poland to the 
Court of Justice as they had not transposed these rules into national law. Infringement procedures 
at the pre-litigation stage were also ongoing against six other Member States at the end of 2023. At 
the same time, the Commission closed cases against nine Member States as they had fully turned 
the Directive into national law.  

Protecting children 

To continue protecting minors, the Commission 
followed up on infringement procedures against 
16 Member States for incorrect transposition of 
the Directive combating child sexual abuse. The 
Commission was able to close the cases against 
Germany and Sweden. 

Children  must  also  be  protected  from  parental 
child  abduction  and  returned  to  their  place  of 
habitual  residence  as  soon  as  possible.  The 
Brussels IIa  Regulation  protects  children  in 
cross-border  disputes 
to  parental 
responsibility and child abduction.  

relating 

The Commission opened infringement proceedings against Poland for failure to fulfil obligations 
under  the  Brussels  IIa  Regulation.  The  Commission  considers  that  Polish  authorities  fail  to 
recognise and speedily and effectively enforce judgments ordering the return of abducted children 
to other Member States.  

Justice cooperation and individual guarantees in criminal law  

The European arrest warrant is the cornerstone of Member States’ cooperation in criminal justice. 
To enforce it, the Commission took steps in infringement procedures against 10 Member States. 
As Italy, Cyprus, Malta and Romania had amended their legislation, procedures against them were 
able to be closed. Another infringement case, against Ireland, was brought to an end as the country 
had  completed  the  transposition  of  EU  rules  on  mutual  recognition  of  judgments  in  criminal 
matters.  

The  Commission also progressed  in monitoring the transposition of the  EU  Procedural Rights 
Directives.  It  launched  infringement  proceedings  against  13  Member  States  for  incomplete 
transposition of the Directive on procedural safeguards for children. It pursued infringement cases 
against 14 Member States for partial or incorrect transposition of the Directive on the right to have 
a lawyer. Next steps were also taken against Bulgaria and Latvia for incorrect transposition of the 
right to information in criminal proceedings.  

32 

 
 
 
 
 
 
Monitoring the application of European Union law – 2023 annual report 

the 

enforced 

The  Commission 
correct 
transposition of the  right to interpretation and 
translation for suspects and accused persons. It 
launched 
infringement  procedures  against 
Bulgaria and took further steps in existing cases 
against  Belgium,  Portugal,  Sweden  and  Latvia. 
The  Commission  also  opened  cases  against 
Belgium, Bulgaria, Croatia, Latvia and Hungary 
for  incorrect  transposition  of  the  EU  rules  on 
strengthening the presumption of innocence.  

The  Commission  closed  a  total  of  13  cases  as 
Member  States  had  achieved  compliance  with  procedural  safeguards  for  suspects  and  accused 
persons under the above Directives. 

Protecting consumers 

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

The  Better  Enforcement  and  Modernisation  Directive  strengthened  the  existing  consumer 
protection rules. Increased transparency in price reduction announcements, stronger penalties and 
remedies  for  victims  of  unfair  commercial  practices  are  some  of  the  Directive’s  achievements. 
Thanks to the Commission’s enforcement action, all Member States have completed the process 
of turning these rules into national law. This is also the case of the Digital Content Directive and 
the Sale of Goods Directive. The Commission also closed all remaining infringement procedures 
for incomplete transposition of the  Digital Content Directive and the Sale of Goods Directive, 
with the exception of one Member State. 

The Representative Action Directive creates a new framework for protecting consumers in mass 
harm situations. Qualified entities, such as consumer organisations or public bodies, can initiate 
legal action to stop infringements and seek appropriate remedies for consumers. The Commission 
launched infringement procedures against 24 Member States for not transposing the Directive on 
time and has already taken a next step in eight of these cases.  

The Court of Justice in a ruling confirmed Slovakia’s failure to comply with the Package Travel 
Directive at the time of the COVID-19 pandemic. The ruling confirmed that suspending the right 
of travellers to a refund within 14 days following the cancellation of a package holiday due to 
COVID-19 was in breach of the Directive. 

Protecting personal data 

Data protection is an essential safeguard enshrined in the EU Charter of Fundamental Rights. In 
2023, the Commission continued monitoring the implementation of EU data protection rules in 
Member States. It assessed the compliance of national legislation with the General Data Protection 
Regulation and the Data Protection Law Enforcement Directive, pursuing infringement procedures 
where necessary.  

33 

 
 
 
 
 
Monitoring the application of European Union law – 2023 annual report 

The  Commission  opened  infringement  proceedings  against  Belgium  for  lack  of  judicial  remedy 
against a parliamentary  decision to dismiss members of  the Belgian data protection authority. 
This decision constituted a violation of the General Data Protection Regulation and the right to an 
effective remedy and to a fair trial enshrined in the EU Charter of Fundamental Rights. In another 
case, the Commission closed the infringement procedure after Belgium had addressed the lack of 
independence of members of its data protection authority. 

Safer transport 

infringement 

the  Commission 

Road transport is the most widely used 
means of travel. To limit  risks of road 
accidents, 
has 
promoted  and  enforced  EU  rules  and 
technical  standards  to  decrease  the 
number  of  fatalities  caused  by  such 
accidents.  In  2023,  the  Commission 
procedures 
opened 
against  Czechia  and  Austria  for  failing 
to fully transpose the revised EU rules 
safety 
on 
launched 
management. 
infringement  procedures  against  Denmark,  Greece,  Lithuania  and  Austria  and  continued 
infringement procedures against Bulgaria and Finland for incorrect transposition of the EU rules 
on periodic roadworthiness tests. The Commission took the next step in an infringement procedure 
against Czechia for incorrectly transposing EU rules on minimum standards of fitness for driving 
in relation to cardiovascular conditions. 

infrastructure 

road 

also 

It 

In  the  rail  sector,  the  Commission  opened  an  infringement  procedure  against  Hungary  and 
continued infringement cases against Poland and Portugal for failing to correctly implement certain 
rail safety rules. The Commission also continued infringement procedures against Germany and 
Poland for incorrectly implementing certain rail interoperability rules. These are part of the Fourth 
Railway Package, seeking to complete the single market for rail services, revitalise the rail sector 
and make it more competitive with other modes of transport.  

In the maritime sector, the Commission launched an infringement procedure against Sweden for 
failing to fulfil its obligations under EU maritime security legislation. These rules set out security 
requirements for ships and ports and provide for maritime security inspections. These measures 
make an important contribution to port security, both to combat crime and to help resilience of 
the EU’s critical infrastructure. 

In the field of aviation safety, the Commission opened an infringement procedure against Estonia 
for  failing  to  comply  with  EU  rules  on  aviation  safety  management.  It  also  launched  an 
infringement case against Greece for failing to comply with EU rules on verifying the conformity 
of  air  transport  operators  and  carrying  out  oversight  activities  in  civil  aviation  safety.  The 
Commission also opened infringement procedures against Denmark and Cyprus for implementing 
EU aviation safety rules incorrectly.  

34 

 
 
 
 
 
 
 
Monitoring the application of European Union law – 2023 annual report 

Promoting 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  the  interests  of  consumers.  The  Commission  takes  a  ‘One  Health’ 
approach to preparedness and prevention, covering human, animal and environmental health, as 
well as food and feed safety. The Commission  helps Member States to implement and enforce 
these EU rules and carries out checks, including audits, to verify compliance. 

In 2023, the Commission acted in several areas to 
ensure  Member  State  compliance  with  EU  law. 
On access to healthcare in other Member States, 
Finland  amended  its  legislation  to  ensure  an 
appropriate level of reimbursement of patients, in 
line with the Cross-border Healthcare Directive. 
In  the  field  of  human  tissues  and  cells,  the 
Commission 
about 
shortcomings in Greece in the implementation of 
EU rules, in particular with regard to the licensing 
of eye tissue banks. Following a dialogue with the 
Commission,  Greece  addressed  the  issue  and 
applications for the recognition of eye tissue banks can now be effectively handled. 

a  complaint 

received 

In the area of plant health, the Commission closed a case against Italy on the implementation of 
measures against the plant pest Xylella fastidiosa. A Commission audit confirmed that Italy had 
resolved  implementation  issues  on  the  ground, 
following a judgment of the Court of Justice.  

Animal health and welfare is receiving increasing 
public attention in the EU. To enforce EU rules 
in  this  field,  the  Commission  and  the  Member 
States  carried  out  a  joint  enforcement  action  to 
combat  the  illegal  trade  in  cats  and  dogs.  The 
identify  recurring  trends  and 
action  helped 
operators  involved  in  fraudulent  and  deceptive 
practices. It resulted in 47 judicial proceedings in 
the EU. 

EU food information rules protect consumers from being misled and ensure fair trading. In one 
case  on  the  marketing  of  natural  mineral  waters,  the  Commission  took  the  decision  to  refer 
Bulgaria  to  the  Court  of  Justice.  One  important  issue  was  that  Bulgarian  legislation  allows  to 
market natural mineral water and spring water from one and the same spring under more than 
one trade description. It also does not require the name of the spring to be indicated on the labels 
of mineral and spring waters.  

35 

 
 
 
 
 
Monitoring the application of European Union law – 2023 annual report 

Better regulation of professions and free movement of professionals  

The Proportionality Test Directive obliges Member States to make sure that any new requirements 
for professions are necessary. Burdensome national rules make it harder for qualified candidates to 
access or  practise a wide range  of professions  across the  EU, hampering efforts to  address  the 
shortages of skilled labour across the EU.  

The Commission launched an infringement case against Belgium and Estonia and took the next 
step in the procedures against 16 Member States for having incorrectly transposed these rules. At 
the  same  time,  it  closed  procedures  against  12  Member  States.  In  these  Member  States,  the 
Proportionality Test Directive can achieve its full potential, facilitating access to, and practice of, 
regulated professions. 

To enforce rules on the recognition of professional qualifications, the Commission pursued cases 
against Belgium, Cyprus and Romania and two cases against Greece. The enforcement action in 
Greece,  for  instance,  aims  to  ensure  that  professionals  qualified  as  career  counsellors,  school 
directors and other education managers in other Member States can practise their professions in 
Greece. The Commission opened cases against Germany, Ireland and Spain for failing to ensure 
recognition of professional qualifications from across the EU, while it closed procedures against 
13 Member States. The case against Ireland was based on a petition to the European Parliament.  

Protecting posted drivers 

In the road transport sector, EU rules ensure social protection for drivers employed in one Member 
State who are sent to work temporarily in another Member State. The rules ensure that these posted 
drivers receive the remuneration of the host Member State for the period during which they are 
posted.  The  rules  also  provide  an  exhaustive  list  of  administrative  requirements  for  companies 
posting drivers to another Member State and harmonise inspection measures across the EU.  

In 2023, the Commission decided to refer the Netherlands and Portugal to the Court of Justice for 
failing to transpose these rules into their national law. The Commission opened an infringement 
procedure  against  Denmark  and  France  and  took  further  steps  in  the  procedures  against  eight 
Member States for the same reason. 

Strengthening the European Security Union 

The European Security Union aims to ensure that EU security policy adapts to changing threats 
and builds long-term and sustainable resilience. The Commission kept up its work to enforce the 
Directive on combating terrorism, which criminalises conduct such as training and travelling for 
the purpose  of terrorism, as well as terrorist financing. It took the next step in the procedures 
against 10 Member States to ensure that the Directive is correctly transposed. At the same time, 
the Commission closed cases against 11 Member States once they achieved correct transposition 
of these rules. 

The Regulation on online terrorist content tackles the threat of terrorist content on the web and 
the misuse of the internet for terrorist purposes. The Commission acted to safeguard the correct 
implementation of the Regulation, launching infringement procedures against 22 Member States. 
The enforcement action proved effective, with 10 Member States already complying with  their 
obligations to ensure removal of online terrorist content. The corresponding infringement cases 
could be closed. 

36 

 
 
 
 
Monitoring the application of European Union law – 2023 annual report 

EU  rules  on  firearms  set  minimum  standards  for  the  acquisition,  possession  and  exchange  of 
civilian firearms and protect against criminal acts and illicit trafficking. The Commission decided 
to  refer  Luxembourg  and  Sweden  to  the  Court  of  Justice  for  failing  to  implement  this  key 
legislation. The case against Sweden could later be closed, as well as other cases against the latter, 
Bulgaria, Ireland, Greece and Luxembourg. This means more security for everybody in the EU as 
these Member States now properly apply the rules to avoid illicit arms trafficking. 

The Commission is committed to combating the risks inherent to the digital transformation and 
the  threat  to  prosperity  and  security  posed  by  organised  crime.  It  launched  infringement  cases 
against  Czechia,  Hungary,  Poland,  Slovenia  and  Finland  to  enforce  the  transposition  of  the 
Directive on combating money laundering by criminal law. At the same time, progress meant that 
it was able to close cases against 13 other Member States.  

To  enforce  the  Directive  on  the  fight  against  fraud  affecting  the  EU’s  financial  interests,  the 
Commission opened infringement proceedings against Bulgaria and Poland and took the next step 
in the procedure against Finland for incorrectly transposing the Directive.  

The  Commission  took  further  decisions  to  enforce  the  common  rules  on  drugs.  It  referred 
Hungary to the Court of Justice for its failure to respect the agreed EU position on the international 
scheduling of cannabis and related substances in the UN Commission on Narcotic Drugs. 

Managing external borders 

The  Schengen  area  is  one  of  the  EU’s  greatest  achievements,  allowing  EU  citizens,  non-EU 
residents and visitors to freely and safely travel across the EU. The Commission is committed to 
ensuring compliance with the uniform format for visas and residence permits, aiming to keep travel 
and residency in the EU secure, legally consistent, and in line with the principles of free movement 
and international cooperation. 

for 

and 

Lithuania 

The  Commission  launched  infringement 
procedures  against  Bulgaria,  Greece, 
Cyprus 
not 
implementing  a  2D  barcode  required  as 
part  of  the  uniform  format  for  visas. 
Following  a  complaint,  the  Commission 
opened  an 
infringement  case  against 
Portugal  for  incorrect  implementation  of 
the uniform format for residence permits 
for non-EU nationals. It also took the next 
step  in  a  procedure  against  Bulgaria  for 
failing  to  implement  this  new  format  for 
residence permits for non-EU nationals. 

A united EU response to migration and asylum 

The Commission continued to work on rules ensuring fast and fair asylum and return procedures, 
providing legal pathways to the EU, preventing irregular migration, and preserving the integrity of 
EU external borders, in full conformity with European values and fundamental rights. These are 
the aims of the Pact on Migration and Asylum agreed by the European Parliament and the Council. 
The Commission will help to ensure full implementation, so that rules are applied from the outset. 

37 

 
 
 
Monitoring the application of European Union law – 2023 annual report 

The  Commission  opened  infringement  cases  against  Belgium,  Greece,  Spain  and  Portugal  for 
incorrect  transposition  of  the  Reception  Conditions  Directive.  It  also  enforced  the  Qualification 
Directive  by  tackling  its  incomplete  (Czechia)  or  incorrect  (Greece,  Portugal  and  Finland) 
transposition. These rules aim to ensure that asylum seekers are treated equally in an open and 
fair system. Reception conditions should ensure a dignified standard of living, common grounds 
for  granting  international  protection,  and  access  to  rights  and  integration  measures  for 
beneficiaries of international protection. 

On  EU  migration  legislation,  the  Commission  launched  an  infringement  procedure  against 
Hungary  for  breaching  the  Facilitators  Package  combatting  migrant  smuggling.  To  promote 
compliance  with  legal  migration  rules,  the  Commission  opened  infringement  cases  against  18 
Member States for incorrect transposition or implementation of the Seasonal Workers Directive. 
The  Commission  also  continued  to  enforce  the  correct  implementation  of  the  Long-Term 
Residents Directive,  following up on a case against  Malta that is based  on two  petitions to the 
European Parliament. It satisfactorily closed a case against Lithuania on the same rules. 

Implementing sanctions against Russia 

To strike against Russia’s ability to finance its war of aggression against Ukraine, the EU adopted 
three additional packages of sanctions in 2023, bringing the total to 12. They cover a wide range of 
sectors, such as finance, energy, media, transport and trade. 

also 

followed 

The Commission monitored and promoted 
the  sanctions’  implementation  by  Member 
States.  It  requested 
information  from 
Member  States  and  conducted  bilateral 
visits to national sanctions authorities. The 
up  on 
Commission 
information  received  through  the  EU 
sanctions  whistleblower  tool,  a  secure 
online platform that enables whistleblowers 
to  report  violations  anonymously.  The 
Freeze and Seize Task Force convened by 
the  Commission  stepped  up  enforcement 
of sanctions against Russian and Belarusian 
individuals and entities, combating sanctions violations. This work has coordinated the freezing of 
more than EUR 27 billion of private assets and the immobilisation of more than EUR 200 billion 
of Russian sovereign assets. 

38