by KG/EUROPA In its monthly package of infringement decisions, the European Commission is pursuing legal action against Member States for failing to comply properly with their obligations under EU law. These decisions covering many sectors aim to ensure proper application of EU law for the benefit of citizens and businesses. The Commission has today taken 205 decisions, including 32 reasoned opinions and 6 referrals to the European Union's Court of Justice: 1. Referrals to the Court of Justice Rail transport: Commission takes AUSTRIA to Court for not ensuring financial transparency The European Commission has decided to take Austria to the Court of Justice for failing to comply with EU rules on financial transparency in the rail sector. Austria does not ensure that public funds paid as public service obligations dedicated to passenger transport services are correctly shown in relevant accounts. For this reason, it cannot be excluded that public funds are used to cross subsidise other transport services. This could distort competition, potentially giving an unfair competitive advantage to those receiving the public subsidies. Such a situation would be contrary to existing EU rules, which aim at establishing an efficient, non-distorted and competitive EU internal market for rail. Taxation: Commission refers GREECE to the Court of Justice of the European Union on vehicle registration tax for leased or rented cars The European Commission has decided to refer Greece to the Court of Justice of the European Union for its failure to amend registration tax rules for vehicles leased or rented to Greek residents by non-Greek lessors. Under Greek law, if a customer resident in Greece leases or rents a vehicle from a lessor established in another Member State, registration tax needs to be paid in Greece in full. Greece has failed to address the issue of cross-border leasing or renting of cars in its legislation, thereby disregarding European Court of Justice case-law on this matter that requires Member States, in the case of cross-border leasing or rent, to levy a tax proportionate to the duration of the use of the vehicle. This may act as a deterrent to cross-border activity, going against the principles of free movement of services set down in the Treaties. Taxation: Commission refers SPAIN to the Court of Justice of the European Union for discriminatory tax treatment applied to investments in certain foreign bonds The European Commission has decided to refer Spain to the Court of Justice of the European Union to ensure that the Spanish legislation, the Inheritance and Gift Tax legislation of the Territorio Histórico de Bizkaia, complies with EU law. Under the provisions of the Inheritance and Gift Tax legislation of the Territorios Históricos de Alava y Bizkaia, public debt issued by the local administrations (la Comunidad Autónoma del País Vasco, the Diputaciones Forales or the Entidades Locales Territoriales de los tres Territorios Históricos) benefits from a preferential inheritance tax treatment compared to that applied to other similar titles issued in other EU/EEA States. This difference in tax treatment discriminates against investments in public debt issued by other EU Member States or EEA States. Taxation: Commission decided to refer SPAIN to the Court of Justice of the European Union for discriminatory tax treatment applied to investments in non-resident companies The European Commission has decided to refer Spain to the Court of Justice of the European Union to ensure that the Spanish legislation on taxation of investments in non-resident companies complies with EU law. Under the Spanish provisions, the tax treatment for foreign-sourced dividends (i.e. dividends distributed by a non-resident company to a Spanish company) is more burdensome than the one applied to domestic-sourced dividends (i.e. dividends distributed by companies resident in Spain). As a result, a Spanish company which invests in a non-resident company must fulfil more conditions (e.g. volume of income, level of shareholder participation) than for a domestic investment if it wants to benefit from the tax advantage. In other cases, the tax advantage foreseen for domestic-sourced dividends is not available for foreign-sourced dividends. Environment: Commission takes SPAIN to Court over waste water treatment presenting a risk to public health The European Commission is taking Spain to Court over a failure to ensure that waste water is properly treated. In the EU, Member States need adequate collection and treatment systems for urban waste water, as untreated water poses risks to human health, inland waters and the marine environment. Spain was first warned in 2003 about this particular case, which concerns areas with apopulation equivalent of more than 10 000. Although some problems have since been solved, the slow rate of progress has now led the Commission, on the recommendation of Environment, Maritime Affairs and Fisheries Commissioner Karmenu Vella, to refer the case to the Court of Justice of the European Union. Taxation: Commission refers IRELAND to the Court of Justice of the European Union for incorrect application of the rules on marked fuel The European Commission has decided to refer Ireland to the Court of Justice of the European Union for not properly applying the rules on fiscal marking on fuel. Under EU rules on fiscal marking for fuels, fuel that can benefit from a reduced tax rate has to be marked by coloured dye. Fishing vessels for example are allowed to benefit from fuel subject to a lower tax rate but private boats must use fuel subject to a standard rate. Currently, Ireland breaches EU law by allowing the use of marked fuel for the purposes of private pleasure craft. As a consequence, private leisure boats cannot only use fuel intended for fishing vessels but also risk heavy penalties if they travel to another Member State and the boat is inspected by the local authorities. 2. Reasoned opinions Environment: Commission asks BELGIUM, SPAIN, HUNGARY and CYPRUS to enact EU rules on sulphur emissions from ships The European Commission is urging Belgium, Spain, Hungary and Cyprus to send details about how EU legislation on the sulphur content of marine fuels is being enacted in their domestic law, an obligation due to be fulfilled by 18 June 2014. Sulphur dioxide is one of the main factors behind the problem of acidification and can have adverse implications for human health. The revised legislationon the sulphur content of liquid fuels aims to reduce the emissions of this air pollutant by setting maximum sulphur content levels for heavy fuel oil and gas oil. It also incorporates new standards set by the International Maritime Organisation into EU law to ensure their proper and harmonised enforcement by all EU Member States. After missing the original deadline, Belgium, Spain, Hungary and Cyprus were sent letters of formal notice on 22 July 2014. The Commission is now sending reasoned opinions, and if the Member States in question fail to act within two months, the cases may be referred to the EU Court of Justice. Road safety: Commission asks BULGARIA, CYPRUS, LUXEMBOURG and SLOVENIA to apply EU rules on exchange of information on traffic offences The European Commission has today requested that Bulgaria, Cyprus, Luxembourg and Slovenia fully implement the Directive on the cross-border exchange of information on road safety related traffic offences. Directive 2011/82/EU, which covers offences such as speeding and drink driving, allows EU drivers to be identified and thus prosecuted for offences committed in a Member State other than the one where their vehicle is registered. It is for the Member State where the offence was committed to decide on the follow-up. The deadline for transposing the Directive into national law was 7 November 2013. Failure to do so will lead to inconsistent application of the legislation across the EU, with consequent detrimental effects on road safety. Environment: Commission asks AUSTRIA, GERMANY and SLOVAKIA to act on air pollution Austria, Germany and Slovakia are failing to protect citizens from fine dust (PM10) pollution. These tiny particles can cause asthma, cardiovascular problems, lung cancer and premature death. They originate in emissions from industry, traffic and domestic heating. EU law requires the Member States to limit citizens' exposure to these particles by defining specific limit values to be observed in each air quality zone. The latest Member State reports demonstrate that some zones in these countries continue to be in exeedance of a daily limit value for PM10. Regulatory standards for alternative investment fund managers: Commission urges LATVIA, POLAND and SPAIN to provide notice of full compliance with rules Today, the European Commission sent formal requests to Latvia, Poland and Spain to provide notification of the measures taken to fully comply with the Alternative Investment Fund Managers Directive. The harmonised European standards for alternative investment fund managers aim to enhance the transparency of the activities of AIFM and the funds they manage towards investors and public authorities. Energy Efficiency: BULGARIA and HUNGARY are requested to fully transpose the EU legislation on energy efficiency The Commission has today formally requested Bulgaria and Hungary to ensure the full transposition of the Energy Efficiency Directive. Under this Directive Member States must achieve certain energy savings over the period from 1 January 2014 till 31 December 2020. They have to do this by using energy efficiency obligations schemes or other targeted policy measures to drive energy efficiency improvements in households, industry and transport sectors. Other requirements include energy audits for big companies every four years, increased rights for consumers regarding metering and billing of their energy consumption, renovation of at least 3% of central government buildings annually and energy efficient public purchasing. Patients' rights in cross-border healthcare: Commission urges THE NETHERLANDS and PORTUGAL to notify full transposition of cross-border healthcare rules Today, the European Commission sent a formal request to The Netherlands and Portugal to notify full transposition of the cross-border healthcare Directive. This Directive lays down patients’ rights to choose to receive healthcare in another Member State, and claim reimbursement for it at home. It also requires health systems and healthcare providers to ensure patients are given the information they need to make an informed choice about their treatment. The Directive has been partially transposed by The Netherlands and Portugal. Environment: Commission asks BULGARIA to limit citizens' exposure to sulphur dioxide The European Commission is urging Bulgaria to reduce ambient levels of sulphur dioxide (SO2), an air pollutant from industrial installations that can cause respiratory problems and aggravate cardiovascular disease. Single European Sky: Commission requests BULGARIA to set up penalties against airlines breaching EU traffic management rules The European Commission has officially requested Bulgaria to adopt the necessary rules to set up penalties in case of violation of Regulation (EU) No 255/2010. The Regulation establishes common rules for the management of air traffic flows in the EU. Environment: Commission asks CYPRUS to enact EU rules on waste electrical and electronic equipment The European Commission is urging Cyprus to send details about how EU legislation on waste electrical and electronic equipment (WEEE) is being enacted in their domestic law, an obligation due to be fulfilled by 14 February 2014. Road Transport: Commission asks CYPRUS to connect its national register of road transport companies with the other EU countries The Commission is urging the Republic of Cyprus to interconnect its national register of road transport companies with the registers of other Member States via the electronic European Register of Road Transport Undertakings (ERRU). Aviation: Commission asks GERMANY to ensure adequate oversight of security controls at airports The European Commission has formally requested Germany to ensure the regular monitoring of all aviation security measures at German airports. Regulation (EU) No 300/2008 establishes the minimum frequency and the scope of controls by the national authorities. This oversight is needed to allow for a swift detection and correction of potential failures in the application of security measures, and to make sure that airports, airlines and other entities are in line with common EU standards. Environment: Commission asks GREECE to report on nature conservation measures The European Commission is asking Greece to prepare the report on the implementation of the measures taken to maintain or restore natural habitats and wild species under the Habitats Directive. The EU law required Member States to submit their respective reports by June 2013, enabling the Commission to have a complete picture of the situation across the whole EU before writing its own report. As Greece is the only Member State which has not prepared and communicated the report, a letter of formal notice was sent on 31 March 2014. According to Greece's reply, the report has still not been drafted, so the Commission is now sending a reasoned opinion. If Greece fails to act within two months, the case may be referred to the EU Court of Justice. Energy Efficiency in Buildings: GREECE is requested to comply with its obligations under the EU legislation on energy efficiency in buildings The Commission has today formally requested Greece to take action to fully comply with its obligations under the Energy Performance of Buildings Directive (Directive 2010/31/EU). Under this Directive Member States must define the minimum energy performance requirement for buildings and building elements, calculate the cost-optimal level how to get there and notify this information to the Commission. This is a crucial aspect of the Directive as it sets the minimum energy performance requirements that new and renovated buildings must meet. Commission urges FINLAND to provide effective judicial remedy against a visa refusal/annulment/revocation. The Commission sent today a formal request urging Finland to take the necessary actions to ensure that appeals against a decision to refuse, annul or revoke a visa include access to a judicial body. National law in Finland only provides for the possibility for an appeal before non-judicial administrative authorities. The Commission considers however, that third-country nationals derive from the Visa Code the right to a non-arbitrary treatment of their visa application, and that this right is to be protected by a judicial appeal procedure. That is why the Commission decided today to address a 'reasoned opinion' to Finland. The Finnish authorities now have two months to take the necessary measures to comply with the Commission's request. If they fail to do so, the Commission may decide to refer the matter to the European Court of Justice. Commission asks FRANCE to end discrimination in respect of income derived from gainful activity The European Commission has officially asked France to amend the rules that it applies to non-wage/-salary income derived from gainful activity. In France, the taxable amount of such income (which comes under a category that includes industrial and commercial profit, non-commercial profit and agricultural profit) is increased by 25%, except where the income is of French origin and the taxpayer enlists the services of an Approved Management Centre [Centre de Gestion Agréé (CGA)] or certified auditor [expert-comptable conventionné] established in France. Where the income originates in another EU Member State or a State that is party to the EEA Agreement, the increase is always applicable. Environment: Commission asks ITALY to stop authorizing trapping of birds with nets for their use as live decoys The European Commission is urging Italy to put an end to using non-selective methods for large-scale capturing of wild birds, such as the nets banned by the Birds Directive. In some Italian regions, the capture of some bird species (Columba palumbus, Turdus pilaris, Turdus philomelos, Turdus iliacus, Turdus merula, Vanellus vanellus, Alauda arvensis), through the use of nets for their use as live decoys, has been authorized and carried out for many years. In February 2014, the Commission sent a letter of formal notice to Italy, urging it to stop this banned method for capturing birds and concluding that the conditions for derogations are not satisfied. Ports: Commission asks LITHUANIA to ensure EU rules on freedom of establishment are applied to port land lease contracts The European Commission has officially requested Lithuania to make sure port land lease contracts comply with the EU rules on freedom of establishment. EU rules foresee the obligation to organise open, transparent and non-discriminatory procedures for the assignment of the contracts. However, current Lithuanian legislation foresees an exception to this rule when the land occupant (lessee) has acquired buildings or structures on the land. Lithuania is requested to dismiss such exception. Impeding an open attribution procedure prevents interested undertakings other than the current occupant of the land from establishing in Lithuanian ports. Passenger rights: Commission requests PORTUGAL to fully enforce the rules for passengers travelling by train The European Commission has requested Portugal to adopt the necessary measures for the correct application of the rail passengers' rights and obligations Regulation (Regulation (EU) N° 1371/2007). Portugal has not yet set up an adequate penalty system to ensure that the Regulation is fully respected. Taxation: Commission asks ROMANIA to stop the discriminatory tax treatment of non- resident individuals receiving income from Romania The Commission has requested Romania to amend its rules on the taxation of income from independent activities of non-resident individuals. The European Commission considers that they constitute a restriction to the freedom to provide services and to the free movement of capital in the Internal Market. Currently, resident individuals deriving comparable income can deduct the business expenses connected to that income. This results in taxing only the net income. However, individuals established in another EU/EEA State and without a permanent establishment in Romania cannot benefit from such a deduction, and are taxed on the gross income obtained from Romania. Security of gas supply: ROMANIA is asked to comply with EU rules The Commission has formally requested Romania to ensure full compliance with EU rules on security of gas supply. The EU Security of Gas Supply Regulation (EU) No 994/2010 aims to ensure that Member States are well prepared to deal with possible supply disruptions. To this end, Member States have to enable bi-directional gas flow across borders and prepare emergency and preventive action plans in advance. The European Commission sent today a reasoned opinion to Romania.