EU Commission Presses Member States on Transposition of Key Directives

The European Commission has issued formal notifications to several EU Member States for failing to fully transpose five crucial directives related to justice, financial stability, energy, and the environment. The lack of national adoption of these directives undermines the harmonized implementation of EU law across the bloc, prompting the Commission to take action.

Among the key areas of concern is the incomplete adoption of the Corporate Sustainability Reporting Directive (CSRD), which imposes stricter sustainability disclosure requirements for large companies. Seventeen Member States, including Belgium, Germany, and Spain, have yet to meet the transposition deadline of July 6, 2024, putting them at risk of non-compliance. The Commission emphasized that harmonized sustainability reporting is vital for transparency and investor confidence, and further delays could lead to penalties.

In the realm of justice and financial stability, both Ireland and Austria were flagged for failing to fully transpose the Directive on Restructuring and Insolvency. This directive mandates the use of electronic communication tools in insolvency procedures to streamline processes and ensure legal certainty. The Commission warned that if these countries do not respond within two months, they could face further action, including a reasoned opinion.

Similarly, Spain received a formal notice for its incomplete transposition of the Work-Life Balance Directive. The Commission noted that Spain has not met the requirement to provide parental leave allowances for the final two weeks, urging the country to update its legislation in line with the directive.

A major area of concern is the Revised Renewable Energy Directive, with 26 Member States yet to fully transpose its provisions aimed at simplifying and accelerating the permitting process for renewable energy projects. Only Denmark has complied with the directive’s requirements. The Commission stressed that timely implementation is crucial for meeting the EU’s renewable energy targets and ensuring the feasibility of ongoing and future projects.

Additionally, Portugal and Slovakia have been cited for failing to transpose amendments to the Restriction of Hazardous Substances (RoHS) Directive, which allows the use of cadmium and lead in certain recycled polyvinyl chloride (PVC) products. These exemptions are crucial for supporting the EU’s circular economy goals by facilitating the recycling of older PVC materials.

All notified countries have been given two months to address their transposition gaps. Failure to do so may result in the issuance of reasoned opinions and the potential referral of cases to the Court of Justice of the European Union.