Cyprus has received five reasoned opinions which are included in the European Commission's July package of infringement decisions. These include infringements on the recognition of professional qualifications, restrictions to construction and real estate services, consumer protection, accessibility of products and services for persons with disabilities and tax transparency rules.

Reasoned opinions are the last step before the Commission could decide to refer a member state to the Court of Justice of the EU over an infringement of EU law or over the incomplete transposition of EU law. Today's infringement package also includes the referral of Cyprus to the Court of Justice regarding the recognition of professional qualifications for engineers and architects, which has been covered by the Cyprus News Agency in a separate news item.

The package also includes two letters of formal notice to Cyprus, which constitute the first stage of an infringement procedure. These procedures focus on issues of anti-money laundering legislation and air traffic management.

The ongoing and continuing procedures regarding Cyprus which are included in the July package are as follows:

- Recognition of professional qualifications

The European Commission decided to open an infringement procedure by sending a letter of formal notice to Germany and sent a reasoned opinion to Cyprus (INFR(2018)2165), as well as Belgium and Romania for incorrect transposition of the Professional Qualifications Directive 2005/36/EC.

Concerning Cyprus, the infringement case addresses the obligation of residence in Cyprus for lawyers who wish to provide their services there, even though residence requirements are prohibited under EU rules.

Belgium, Germany, Cyprus and Romania now have two months to respond to the arguments raised by the Commission. Otherwise, the Commission may send a reasoned opinion to Germany or refer Belgium, Cyprus and Romania to the Court of Justice of the European Union.

- Restrictions to construction and real estate services

The European Commission decided to open an infringement procedure by sending a letter of formal notice to Spain for failing to respect EU rules on services and professional qualifications as regards the construction sector.

The Commission also decided to send a reasoned opinion to Cyprus (INFR(2022)2170) for incorrect transposition of the Services Directive due to restrictions defining who can own shares in real estate intermediation companies. Finally, the Commission decided to send a reasoned opinion to Slovenia for failing to address issues regarding tariffs fixed by law for real estate agencies, also in breach of the Services Directive and of Treaty rules.

Cyprus, Spain, and Slovenia now have two months to respond to the arguments raised by the Commission, otherwise the Commission may decide to send a reasoned opinion to Spain or refer Cyprus and Slovenia to the Court of Justice of the European Union.

- Consumer protection

The Commission also decided to send a reasoned opinion to Cyprus (INFR(2023)0005), Estonia, Ireland, Latvia, Luxembourg and Poland for failing to transpose the EU rules laid down by the Representative Actions Directive (Directive (EU) 2020/1828).

The Directive requires Member States to allow designated consumer organisations and public bodies bring legal actions against traders' illegal practices on behalf of consumers. Consumers that have been harmed by an illegal commercial practice may seek redress such as compensation, replacement or repair.

In January 2023, the Commission sent letters of formal notice to 24 Member States for failing to notify national measures fully transposing the Directive by the deadline of 25 December 2022. After exchanges with these Member States and careful analysis of their responses, the Commission has concluded that Estonia, Ireland, Cyprus, Latvia, Luxembourg and Poland have not provided satisfactory information on the measures transposing the Directive.

These six Member States now have two months to address the shortcomings identified by the Commission. In the absence of a satisfactory response, the Commission may decide to refer them to the Court of Justice of the European Union.

- Accessibility of products and services for persons with disabilities

Furthermore, Cyprus received a reasoned opinion (INFR(2022)0291) along with Bulgaria, Ireland, the Netherlands and Poland for failing to transpose the EU rules on the accessibility of products and services for persons with disabilities (Directive (EU) 2019/882) into their national law.

The European Accessibility Act requires key products and services such as phones, computers, e-books, banking services and electronic communications to be accessible for persons with disabilities.

Businesses and services must ensure that they comply with a set of common EU accessibility requirements by 2025.

In July 2022, the Commission had sent letters of formal notice to 24 Member States and in April 2023 to another three Member States for failing to communicate measures fully transposing the Directive.

Today, the Commission has decided to send reasoned opinions to Bulgaria, Ireland, Cyprus, the Netherlands and Poland for failing to notify their transposition measures. These five Member States have now two months to respond and take the necessary measures. Otherwise, the Commission may decide to refer them to the Court of Justice of the European Union.

- Tax transparency rules

The Commission also decided to send a reasoned opinion to Cyprus (INFR(2023)0006), Belgium, Greece, Spain, Poland and Portugal for failure to communicate the national measures implementing Council Directive (EU) 2021/514 of 22 March 2021 (DAC7) amending Directive 2011/16/EU on administrative cooperation in the field of taxation.

Under DAC7, digital platforms such as websites and mobile apps, which allow taxpayers to sell goods, offer online and offline personal services, or rent out immovable property or means of transport, have to report those taxpayers and their economic activities. This information will help tax authorities prevent tax evasion or misreporting by using digital platforms.

The deadline for the communication of the national transposing measures was 31 December 2022. Belgium, Greece, Spain, Cyprus, Poland and Portugal have two months to reply and take the necessary measures. In the absence of a full communication of all national implementing measures, the Commission may decide to refer the case to the Court of Justice of the European Union.

- Anti-Money Laundering

The European Commission decided to open a new infringement procedure by sending a letter of formal notice to Cyprus INFR(2023)2063) on the grounds of its incorrect transposition of the 5th Anti-Money Laundering Directive (5thAML) Directive (EU) 2018/843.

Cyprus had notified a complete transposition of the Directive but the Commission has identified several instances of incorrect transposition, mainly related to the functioning of the national beneficial ownership register (the register that indicates who actually owns what).

For instance, Cyprus suspended the application of sanctions in case incorrect information is included, has not communicated any enforcement measures that guarantee the completeness of the register and has not set up yet a beneficial ownership register on companies.

Anti-money laundering rules are instrumental in the fight against money laundering and terrorism financing. Legislative gaps occurring in one Member State have an impact on the EU as a whole. In addition, as regards sanctions imposed by the EU following Russia's invasion of Ukraine it is imperative that the beneficial owners of sanctioned firms are identified. It is of outmost importance, that EU rules are implemented and supervised efficiently in order to combat crime, protect our financial system and ensure EU sanctions enforcement.

Without a satisfactory response from Cyprus within two months, the Commission may decide to send a reasoned opinion.

- Air transport

Finally, the European Commission decided to open an infringement procedure by sending letters of formal notice to Cyprus (INFR(2023)2046) as well as Czechia, Denmark, Germany, Estonia, Ireland, Greece, Croatia, Italy, Lithuania, Hungary, the Netherlands, Portugal, Slovenia, Slovakia, Finland, and Sweden, for failing to ensure that their operational stakeholders comply with certain requirements within Commission Implementing Regulation (EU) 2021/116 on the establishment of the 'Common Project One' supporting the implementation of the European Air Traffic Management Master Plan.

The project ensures a synchronised implementation of different procedures and technical solutions, which is essential for good air traffic management performance across the entire Single European Sky network.

Some stakeholders in these Member States have not yet implemented some of these procedures, for which the implementation date was 31 December 2022. Consequently, the Commission considers that the Member States in question have failed to ensure that their operational stakeholders comply with the requirements of the Common Project One Regulation.

The Commission is therefore sending a letter of formal notice to the Member States concerned, 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: Cyprus News Agency