EC takes action against Cyprus and other member states in infringements package

The European Commission decided to take action against Member States, among them Cyprus, that fail to comply with their obligations under EU law.

These decisions cover various EU policy areas, including the methodology for reporting projected emissions, the identification and designation of European critical infrastructures, deploying the system for Temporary Storage for air transport and the National Import System and VAT rates.

A press release said the European Commission decided to send a reasoned opinion to Cyprus (INFR(2025)0021) for failing to transpose Commission Delegated Directive (EU) 2024/299 amending Directive (EU) 2016/2284 on the methodology for the reporting of projected emissions of certain atmospheric pollutants. Directive (EU) 2016/2284 establishes emission reduction commitments for the Member States for five key air pollutants, i.e. sulphur dioxide (SO2), nitrogen oxides (NOx), non-methane volatile organic compounds (NMVOC), ammonia (NH3) and fine particulate matter (PM2,5), and requires their reporting to the Commission. The amendment aims to align the reporting of emission projections with international requirements under the United Nations Economic Commission for Europe (UNECE) Convention on Long-Range Transboundary Air Pollution.

The Commission sent a letter of formal notice to Cyprus on 30 January 2025. Cyprus acknowledged the breach and replied that it was addressing it, however to date the directive has still not been transposed. Therefore, the Commission has decided to issue a reasoned opinion to Cyprus, which now has two months to respond and take the necessary measures. Otherwise, the Commission may decide to refer the case to the Court of Justice of the European Union.

Moreover, the European Commission decided to send reasoned opinions to Bulgaria (INFR(2024)0258), Germany (INFR(2024)0264), Greece (INFR(2024)0269), Spain (INFR(2024)0271), France (INFR(2024)0275), Cyprus (INFR(2024)0260),  Luxembourg (INFR(2024)0283), Malta (INFR(2024)0287), the Netherlands (INFR(2024)0289), Austria (INFR(2024)0255), Poland (INFR(2024)0291), Finland (INFR(2024)0273) and Sweden (INFR(2024)0297), for failing to notify national measures transposing the Directive on the resilience of critical entities (Directive (EU) 2022/2557, CER Directive). Member States had to transpose the CER Directive by 17 October 2024.

It says that the Directive replaces and strengthens the rules of the Council Directive (2008/114/EC) on the identification and designation of European critical infrastructures and the assessment of the need to improve their protection. The Directive seeks to ensure the provision of vital services for EU society and economy in key sectors such as energy, transport, health, water, banking and digital infrastructure, by strengthening the resilience of critical entities that provide these vital services against a range of threats, including natural hazards, terrorist attacks, insider threats, and sabotage.

The swift transposition of the Directive is essential to reach this important common objective. Therefore, the Commission has decided to send reasoned opinions to Bulgaria,  Germany, Greece, Spain, France, Cyprus, Luxembourg, Malta, the Netherlands, Austria, Poland, Finland, and Sweden, which now have two months to respond and take the necessary measures. Otherwise, the Commission may decide to refer the cases to the Court of Justice of the European Union with a request to impose financial sanctions.

The European Commission also decided to open infringement procedures by sending letters of formal notice to France (INFR(2025)2060) and Cyprus (INFR(2025)2061) for failing to meet their obligations to deploy the system for Temporary Storage for air transport and the National Import System and - in addition, in the case of France - for falling to deploy the Automated Export System. Member States were meant to build and make these systems operational, including by ensuring full migration of the relevant economic operators' systems, by 31 December 2023 according to the Union Customs Code (UCC) (Regulation No. (EU) 952/2013) and the UCC Work Programme (Commission Implementing Decision (EU) 2023/2879).

The electronic system for temporary storage allows the relevant declarations to be lodged electronically and is one of the crucial steps to ensure the supervision of goods entering the EU. Once these declarations are launched electronically, the National Import System ensures that relevant measures of both a fiscal and non-fiscal nature are applied to goods imported into the EU. By providing interconnections with various other national applications, the National Import System plays a central role in ensuring, among others, the effective collection of revenues and the protection of the EU's financial interests, as well as the enforcement of EU level and national prohibitions/restrictions in connection with the import of goods.

The Automated Export System aims at automation of the completion of the export procedures (including re-export) and exit formalities covering common, national and external domains. The Commission is therefore sending a letter of formal notice to France and Cyprus, which now have two months to respond and address the shortcomings raised by the Commission. In the absence of a satisfactory response, the Commission may decide to issue a reasoned opinion.

The European Commission decided to open an infringement procedure by sending a letter of formal notice to Cyprus (INFR(2025)2094) for failing to communicate the full transposition of the Directive on rates of VAT (Directive 2022/542). Member States had to transpose this Directive into national law by 31 December 2024. The Directive on rates of VAT allows for a wider use by Member States of reduced rates, including the use of zero rates for essential products such as food, pharmaceuticals and products intended for medical use. The Commission is therefore sending a letter of formal notice to Cyprus, which now has two months to respond and address the shortcomings raised by the Commission. In the absence of a satisfactory response, the Commission may decide to issue a reasoned opinion.

The European Commission decided to open an infringement procedure by sending a letter of formal notice to Greece (INFR (2024)2030), Cyprus (INFR(2025)2096) and Portugal (INFR(2024)2032) for failing to connect to the enforcement network ProDriveNet as required by Directive (EU) 2022/2561. The ProDriveNet network facilitates the electronic exchange of information between Member States regarding certificates of professional competence for goods and passenger vehicle drivers. Member States' authorities can verify whether such certificates have been issued, if they are still valid or if they have been withdrawn.

The network's effective operation is contingent upon the participation of all Member States. However, despite having been established in 2021, three Member States have not yet connected to the network, thereby compromising its intended functionality. The Commission is therefore sending a letter of formal notice to Greece, Cyprus and Portugal, which now have two months to respond and address the shortcomings raised by the Commission. In the absence of a satisfactory response, the Commission may decide to issue a reasoned opinion.

(Source: CNA)