Cyprus is one step before being led to the Court of Justice of the EU (CoJ) by the European Commission for not having transposed EU rules on cross border conversions, mergers and divisions of companies, as well as for not complying with EU law on air pollution, along with a number of other countries, according to the Commission’s November package of infringement decisions.

The package also includes the opening of three new infringement procedures against Cyprus and other countries, regarding waste management, aviation safety and working conditions.

Company law

The European Commission decided to send a reasoned opinion to Cyprus (INFR(2023)0051), Bulgaria, Luxembourg and Portugal for failing to transpose the EU rules laid down by Directive (EU) 2019/2121 as regards cross-border conversions, mergers and divisions.

The Directive lays down harmonised procedures for companies to merge, divide or move within the Single Market, while providing safeguards against abuse and ensuring that employees' rights are well protected. All Member States had to transpose the Directive into their national legislation and inform the Commission thereof by 31 January 2023.

In March 2023, the Commission sent letters of formal notice to Bulgaria, Cyprus, Luxembourg, and Portugal for not having notified the national measures transposing the Directive. Following their replies, the Commission concluded that the four countries have continued to fail to notify national measures that ensure the transposition of the Directive.

These 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.

Air pollution

The Commission also decided to send a reasoned opinion to Cyprus (INFR(2022)2069), Bulgaria, Ireland, Latvia, Lithuania, Hungary, Austria, Portugal, and Sweden for failure to ensure correct implementation of their reduction commitments for several air pollutants as required by Directive 2016/2284 on the reduction of national emissions of certain atmospheric pollutants (‘NEC Directive'). The Commission also sent an additional letter of formal notice to Luxembourg, Poland and Romania.

The NEC Directive sets national emission reduction commitments for five important air pollutants: nitrogen oxides (NOx), non-methane volatile organic compounds (NMVOCs), sulphur dioxide (SO2), ammonia (NH3) and fine particulate matter (PM2.5). These pollutants contribute to poor air quality, leading to significant negative impacts on human health and the environment.

The reduction commitments are to be attained by each Member State each year between 2020 and 2029, and more ambitious reductions from 2030 onwards. Member States are also required to establish national air pollution control programmes (NAPCPs) to show how these reduction commitments will be met.

In January 2023, the Commission sent a letter of formal notice to 14 Member States that did not meet their reduction commitments for the year 2020, for one or several pollutants targeted by the NEC Directive.

After analysing their responses, the Commission concluded that Bulgaria, Ireland, Cyprus, Latvia, Lithuania, Hungary, Austria, Portugal and Sweden, continued failing to meet their reduction commitments.

The Commission decided to issue a reasoned opinion to these countries, which have now two months to respond and take the necessary measures.

Waste management

Also, the European Commission decided to open an infringement procedure by sending a letter of formal notice to Cyprus (INFR(2023)2144), Bulgaria, Czechia, Estonia, Romania and Austria to address shortcomings in their transposition of Directive 2008/98/EC on waste (Waste Framework Directive) as amended by Directive (EU) 2018/851/EU.

The amended directive establishes legally binding targets for recycling and preparing for reuse of municipal waste. It also requires Member States to improve their waste management systems and the efficiency of resource use. The deadline for Member States to transpose Directive (EU) 2018/851 into their national legislation expired on 5 July 2020.

According to the European Commission, Cypriot legislation has shortcomings related to documentary evidence that the waste management operations have been carried out.

The affected member states 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.

Aviation safety

Furthermore, the Commission decided to open an infringement procedure by sending letters of formal notice Cyprus (INFR(2023)2151) and  Denmark for failing to correctly implement parts of the EU aviation safety legislation.

In the case of Cyprus, shortcomings concern various issues related to airport oversight, set out in Regulations (EU) No 139/2014 and (EU) 923/2012, such as verification of the implementation of airport-related obligations and the adequacy of Cyprus' safety management system.

The two countries now have two months to reply to the arguments raised by the Commission and put in place the necessary measures.

Working conditions

The European Commission decided to open three infringement procedures by sending letters of formal notice to Cyprus (INFR(2023)2139), Greece and Malta for their failure to incorporate the Directive on working time in inland waterways transport (Directive 2014/112/EU) into national law.

Whether or not a Member State has inland waterways on its territory, the Commission considers that a uniform transposition of the directive by all Member States is necessary to guarantee that the individual employment contracts of mobile workers working on board vessels operated within the Union territory are in full conformity with the provisions of the Directive.

These rules implement a social partners agreement that regulates certain aspects of working time for workers employed onboard of vessels in the inland waterway transport sector. In particular, the social partners agreement regulates the duration of daily and weekly working time, rest periods, breaks, maximum working time during night-time, and annual leave.

The three countries now have two months to notify the Commission of their national measures.