• 26 EU Member States are yet to transpose five directives on justice, financial stability, energy, and environment.
• 17 Member States have not fully adopted the new Corporate Sustainability Reporting Directive.
• Ireland, Austria, Spain, Portugal, and Slovakia risk further action for incomplete transpositions of key directives.

The European Commission is addressing gaps in the transposition of several EU directives across Member States. The lack of national measures hampers harmonized implementation and compliance with EU law. Here’s a breakdown of the Commission’s latest infringement actions:

Justice and Financial Stability

The Commission has notified Ireland and Austria to fully transpose the Directive on Restructuring and Insolvency (Directive 2019/1023). This Directive mandates electronic communication for insolvency proceedings. Both countries have yet to communicate their compliance measures, risking further action.

“The Directive ensures that electronic tools streamline insolvency procedures, which is crucial for legal certainty,” states the Commission. Ireland and Austria now have two months to respond or face the issuance of a reasoned opinion.

Work-Life Balance Directive

Spain received a formal notice for failing to fully transpose the Work-Life Balance Directive (Directive 2019/1158). This Directive sets minimum standards for parental leave allowances. Spain has not met the requirement to pay an allowance for the final two weeks of leave, falling short of the directive’s provisions.

“Achieving equality in the workplace starts with supporting parents. We urge Spain to align national legislation with the Directive,” the Commission highlighted. Spain has two months to rectify this shortcoming.

Corporate Sustainability Reporting

17 Member States, including Belgium, Germany, and Spain, have not fully adopted the Corporate Sustainability Reporting Directive (CSRD) (Directive 2022/2464). This directive imposes new sustainability disclosure rules for large companies, which are critical for investor transparency and decision-making.

The deadline for transposition expired on July 6, 2024, leaving these countries at risk of non-compliance. “Harmonized sustainability reporting is key to promoting transparency and trust among stakeholders,” the Commission reiterated.

Renewable Energy Projects

26 Member States have also been called out for failing to transpose provisions of the Revised Renewable Energy Directive (Directive 2023/2413). The Directive aims to simplify and accelerate permitting procedures for renewable energy projects.

“Timely transposition is crucial for achieving our renewable energy targets and ensuring project feasibility,” stated the Commission. The only Member State that has fully complied is Denmark.

Restriction of Hazardous Substances

Portugal and Slovakia were targeted for not transposing amendments to the Directive on the Restriction of Hazardous Substances (RoHS Directive). The amendments allow the use of cadmium and lead in specific recovered polyvinyl chloride (PVC) products.

These exemptions enable the recycling of old PVC, supporting the EU’s circular economy goals. Without the transposition, related products cannot be legally placed on the market. The Commission urged both countries to act within two months.

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Next Steps

All concerned Member States have been given a two-month deadline to respond and complete their transpositions. Failure to do so may result in the Commission issuing reasoned opinions and potentially referring the cases to the Court of Justice of the European Union.

“Compliance with EU law is non-negotiable. The Commission remains committed to enforcing these directives to ensure legal clarity and uniform application across the Union,” concluded the Commission.