Internal Market Infringement Proceedings Launched Against EU Member States

by Ulrika Lomas, for LawAndTax-News.com, Brussels

21 April 2006

The European Commission announced on Wednesday that it has decided to pursue infringement proceedings against several Member States to ensure that they implement Internal Market laws correctly.

In the area of insurance, the Commission revealed that it has decided to send Italy a supplementary formal request to modify its legislation requiring all insurers that are licensed to provide third party motor liability insurance in Italy to offer insurance for all categories of insured in all regions of Italy.

The Commission has also sent Finland a formal request to modify its rules relating to transfer stickers and transfer insurance.

These requests take the form of “reasoned opinions”, the second stage of the infringement procedure laid down in Article 226 of the EC Treaty. If there is no satisfactory reply within two months, the Commission may refer the matter to the European Court of Justice.

In the area of public procurement, the Commission has decided to send a letter of formal notice asking France for full information on its execution of a European Court judgement concerning French law on consulting services related to major construction projects.

Additionally, in the area of company law, the Commission has asked Cyprus and the Czech Republic to submit their observations on their implementation of certain EU Directives.

These requests take the form of letters of formal notice, the first stage of infringement procedures under Article 226 of the EC Treaty. In the absence of a satisfactory reply within two months, the Commission may decide to issue a formal request to amend the legislation, in the form of a reasoned opinion.

Finally, the Commission has closed a case against Greece concerning Greek rules imposing a mandatory membership in the Greek National Association of Insurers for all undertakings providing motor insurance services in Greece.

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