INTERNAL MARKET SCOREBOARD - September 2020 - EEA EFTA STATES - EFTA ...
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46th Internal Market Scoreboard of the EFTA States The Internal Market aims at guaranteeing the free movement of goods, capital, services, and people across the EEA. A functioning internal market stimulates competition and trade for businesses, improves efficiency, raises quality and helps cut prices for consumers. It also improves living and working conditions for all citizens and strengthens environmental standards. The purpose of monitoring the Member States’ timely compliance with EEA law is to ensure the full benefits of the EEA agreement for all stakeholders. The coronavirus pandemic presents extraordinary economic and social challenges for EEA businesses and consumers. ESA is fully aware of the seriousness of the situation and understands that in these times , due to the coronavirus global crisis, many countries have prioritised putting in place restrictive measures in order to confine the pandemia and contain the number of casualties. The 46th Internal Market Scoreboard of the EFTA States therefore exceptionally provides basic figures only on the status of non-transposition. The next Internal Market Scoreboard will be prepared in December 2020 taking stock of the situation as at the end of November. A second ve rsion of the December Scoreboard to include figures for the EU Member States as at the end of December, as a comparison, will also be published in parallel with the publication of the EU’s Scoreboard. The transposition deficit indicates how many directives and regulations the EEA States have failed to communicate as transposed on time. From 2009, the Authority used the interim target of 1% set by the European Council in 2007 as a benchmark. Now, we are looking towards a benchmark of 0.5%, in line with the European Commission’s Single Market Act proposed in April 2011. Main Findings (situation as at 31 May 2020) On 31 May 2020, 806 directives and 3300 regulations incorporated into the EEA Agreement were in force. o The average transposition deficit for directives for the EFTA States increased from 0.7% to 0.9% since the December 2019 Scoreboard. o The EEA EFTA incompleteness rate relating to directives increased from 1% to 3% since the December 2019 Scoreboard (21 directives) o The average transposition deficit for regulations for the EFTA States increased from 0.9% to 2.2% since the December 2019 Scoreboard. o The EFTA incompleteness rate relating to regulations increased from 2% to 6% since the December 2019 Scoreboard (213 regulations) o The total number of infringement proceedings decreased from 121 to 109 since the December 2019 Scoreboard. Page 1
The European Commission has taken the decision to publish only one annual Internal Market Scoreboard, taking stock of the situation as at the end of November each year. The EFTA Surveillance Authority will continue to publish two Internal Market Scoreboards per year. One will look at the situation in the EFTA Member States as at the end of November each year (“December Scoreboard”) and the other will look at the situation as at the end of May of each year (“June Scoreboard”). A second version of the December Scoreboard to include figures for the EU Member States as at the end of December, as a comparison, will also be published in parallel with the publication of the EU’s Scoreboard. This Internal Market Scoreboard (No 46), reports on the status of the EFTA Member States only as at 31 May 2020. Iceland Transposition deficit directives: 1.2% (last report: 0.6%) Transposition deficit regulations: 6.4% (last report: 1.5%) Total infringement cases: 67 (last report: 71) Directives • Overdue directives: 10 (last report: 5) including 9 directives in the financial services sector and 1 directive overdue for 2 years or more. • Directives outstanding from previous period: 2 • Average delay: 9.7 months (last report: 16.8 months) Regulations • Overdue regulations: 211 (last report: 47) including 206 regulations in the financial services sector. Infringements • Pending cases (COM, CON, INC): 17 (last report: 16) • Incorrect transposition/application: 17 = 25% of all open infringement cases • Late transposition (directives): 4 = 6% of all open infringement cases • Late implementation (regulations): 46 = 69% of all open infringement cases • Problematic sectors (COM, CON, INC): Food and feed safety, animal health and welfare (4) • Average case duration: 34.7 months (last report: 34.9 months) • Compliance with court rulings: 18.7 months (last report: 18.7 months) Page 2
Norway Transposition deficit directives: 0.6% (last report: 0.3%) Transposition deficit regulations: 0.2% (last report: 0.5%) Total infringement cases: 31 (last report: 39) Directives • Overdue directives: 5 (last report: 2) of which 1 directive has been overdue for 2 years or more. • Directives outstanding from previous period: 1 • Average delay: 7.8 months (last report: 14.7 months) Regulations • Overdue regulations: 8 (last report: 15) including 5 regulations in the financial services sector. Infringements • Pending cases (COM, CON, INC): 23 (last report: 25) • Incorrect transposition/application: 23 = 74% of all open infringement cases • Late transposition (directives): 2 = 6.5% of all open infringement cases • Late implementation (regulations): 6 = 19.5% of all open infringement cases • Problematic sectors (COM, CON, INC): Social security (6), Transport (5) • Average case duration: 44 months (last report: 44.7 months) • Compliance with court rulings: 34.5 months (last report: 38.3 months) Page 3
Liechtenstein Transposition deficit Directives: 0.9% (last report: 0.9%) Total infringement cases: 11 (last report: 11) Directives • Overdue directives: 7 (last report: 7) including 5 directives overdue for 2 years or more in the transport sector. • Directives outstanding from previous period: 7 • Average delay: 58.5 months (last report: 52.5 months) Infringements • Pending cases (COM, CON, INC): 7 (last report: 7) • Incorrect transposition/application: 7 = 63.5% of all open infringement cases • Late transposition (directives): 4 = 36.5% of all open infringement cases • Problematic sectors (COM, CON, INC): Services – other (2) • Average case duration: 40.9 months (last report: 35 months) • Compliance with court rulings: 0 months (last report: 0 months) Page 4
Infringement Proceedings1 The Authority opens infringement proceedings when it is of the view that an EFTA State has failed to fulfil its obligations under the EEA Agreement. When interpreting the statistics on infringement procedures below it should be noted that only the EFTA Court can declare that a breach of EEA law has occurred. Infringement cases can be divided into two categories. The first category relates to cases concerning lack of conformity with, or incorrect application of, EEA provisions, opened either on the basis of complaints or on the Authority’s own initiative. These cases concern, for example, situations in which the Authority, after having acknowledged transposition of a directive by an EFTA State, concludes at a later stage that the national legislation is not in full conformity with the requirements of the relevant directive or that the EFTA State is not complying with the Internal Market rules, i.e. the free movement principles, in some other way. When EEA rules are not correctly implemented or applied in practice, citizens and businesses can be deprived of their rights. The second category of cases relates to late transposition, in other words directives and regulations only partially transposed or not transposed at all into the national legislation of the EFTA States within the time limits. Infringement cases in this category (non-transposition cases) are generally clear-cut and, therefore, seldom the subject of legally complicated disputes between the Authority and the EFTA State concerned. Total number of infringement proceedings As at 1 June 2020, the Authority was pursuing a total of 109 infringement cases against the EFTA States in the internal market field. Of the 109 pending infringement cases, 47 concerned the incorrect implementation or application of Internal Market rules, whereas 10 cases concerned the late transposition of directives and the remaining 52 cases concerned the late transposition of regulations. 1 If the Authority considers that an EFTA State has failed to correctly implement and apply legislation under the EEA Agreement, it may initiate formal infringement proceedings pursuant to Article 31 of the Agreement on the Establishment of a Surveillance Authority and a Court of Justice. Such infringement proceedings correspond to those initiated by the European Commission under Article 258 of the Treaty on the Functioning of the EU (TFEU). Page 5
Pending infringement proceedings due to lack of conformity with or incorrect application of Internal Market rules on 1 June 2020 divided by sector Figure 1: Pending infringement proceedings as at 1 June 2020 Page 6
Breakdown per sector The fields of food and feed, animal health and welfare, establishment and social security accounted for the highest number of infringement proceedings concerning the lack of conformity with or incorrect application of Internal Market rules. Together these sectors accounted for 38.4% of the infringement proceedings (Figure 1). Compliance with Court judgments Court rulings establishing a breach of EEA law require that the State concerned takes immediate action to ensure compliance as soon as possible. Internal circumstances or practical difficulties cannot justify non-compliance with obligations and time-limits arising from EEA law. Looking back over the cases that have been closed in the last five years (Figure 2), the average time taken by the EFTA States to comply with an EFTA Court ruling in cases concerning lack of conformity with or incorrect application of Internal Market rules was 17.7 months. EFTA State Case Duration in months Norway Complaint against Norway concerning the temporary import 61 of foreign-registered rental cars Norway Conformity assessment of national measures implementing 55 Directive 2005/60/EC (Third Anti-Money Laundering Directive) in Norway Norway Incorrect Implementation of Directive on ambient air quality & 54 Complaint regarding ambient air quality Iceland Conformity assessment of national measures implementing 50 Directive 2002/92/EC (insurance mediation) Norway Ownership restrictions in Financial Services Infrastructure 35 Institutions Iceland CoA Directive 2000/30/EC on the technical roadside 3 inspection of the roadworthiness of commercial vehicles circulating in the Community Iceland Checks on transport of dangerous goods by road under 3 Directive 95/50/EC Norway Complaint concerning licensing under the Building and 2 Planning Act - provision of services and recognition of qualifications Norway Right to parental leave 0 Figure 2: Cases concerning lack of conformity with or incorrect application of Internal Market rules referred to the EFTA Court and subsequently closed in the last five years Duration in months between the judgment of the EFTA Court and the resolution of the case Page 7
For those cases where the EFTA States still have to comply with an EFTA Court judgment at the cut-off date of the Scoreboard of 31 May 2020, the average time that had lapsed since the court judgment was 40 months (see Figure 3 for details of these cases). EFTA State Case Duration in months Liechtenstein Establishment of an Austrian trained 'Dentist' 61 Liechtenstein Liechtenstein Trade Act and the Services Directive 48 Norway Incorrect implementation of Directive 2000/59 on port 45 reception facilities Iceland Complaint against Iceland concerning imports of raw meat & 30 Own initiative case concerning requirements imposed by Iceland on imports of egg and dairy products Norway Complaint against Norway concerning the construction of an 26 underground parking and the award of a concession for its operation Figure 3: Ongoing cases concerning lack of conformity with or incorrect application of Internal Market rules referred to the EFTA Court which on 1 June 2020 remained unresolved Duration in months since the judgment of the EFTA Court Page 8
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