Letters of formal notice
Internal Market: Commission calls on BULGARIA to make its fuel compensation scheme compliant with the rules on free movement and the non-discrimination principle
Today, the Commission decided to open an infringement procedure against Bulgaria (INFR(2022)4109) for having introduced measures going against internal market provisions. Bulgaria introduced a compensation scheme for fuel that results in a lower price of fuel only for owners of vehicles registered in Bulgaria. The scheme provides that the users of vehicles, motorbikes and motor-pedal bikes registered in Bulgaria are entitled to lower official fuel prices. The compensation leads to reducing the fuel price for the individual, as owed to the final distributor, by BGN 0.25 (EUR 0.13) per litre/kilogram of fuel. In contrast, the reduction does not apply to vehicles not registered in Bulgaria. This measure is therefore severely discriminatory and disproportionate. Thus, the Commission requests the Bulgarian authorities to comply with the principles of free movement of goods, free movement of citizens and workers, non-discrimination for EU citizens as well as with notifications rules under the Single Market Transparency Directive. Ensuring the proper functioning of the single market is of particular importance in the present geopolitical situation as it represents the main instrument to overcome the current economic disruptive effects resulting from the Russian invasion of Ukraine. Acting unilaterally at national level and introducing discriminatory treatments cannot constitute a solution. Bulgaria now has two months to address the concerns raised by the Commission. Otherwise, the Commission may decide to send a reasoned opinion to Bulgaria.
Public procurement: Commission calls on GREECE to respect EU rules in the utilities sector
Today, the Commission decided to open an infringement procedure against Greece (INFR(2022)4111) with regard to the non-conformity of its national legislation with the EU rules on public procurement in the utility sector (Directive 2014/25/EU). Greek law foresees that contracting entities apply within a specific tender procedure, the so-called ‘summary’ tender procedure, for the award of all procurement contracts for the temporary installation and operation of desalination plants of certain capacity on islands in Greece, regardless of the value of the contracts. However, a ‘summary’ tender procedure for the award of procurement contracts whose value is equal to or above the EU thresholds does not comply with the transparency requirements of the Directive. Therefore, the Commission considers that the Greek legal provision authorising the use of this procedure for those contracts is in clear breach of EU law. Greece has now two months to address the concerns raised by the Commission. Otherwise, the Commission may decide to issue a reasoned opinion.
Energy products: Commission asks HUNGARY to remove export restrictions related to energy products
Today, the Commission has decided to open an infringement procedure against Hungary (INFR(2022)4108), requesting the Member State to comply with EU law when it comes to national rules affecting the energy sector. The Hungarian measures introduce prior notification schemes, which allow blocking the export of wood-based and coal-based energy carriers. The Commission considers the measures to have an equivalent effect to quantitative restrictions on exports within the internal market, in violation of Article 35 of the Treaty on the Functioning of the European Union (TFEU). It appears that Hungary has further breached the standstill period under the Single Market Transparency Directive, by adopting those measures during this period of time. In addition, the restriction, which also applies to exports from Hungary to third countries, affects trade with third countries. Hungary now has two months to reply to the arguments put forward by the Commission. Otherwise, the Commission may decide to send a reasoned opinion to Hungary.
Reasoned opinions
Construction products: Commission asks HUNGARY to comply with EU rules on freedom of establishment
The Commission has decided today to send a reasoned opinion to Hungary (INFR(2022)4009) requesting the Hungarian authorities to bring in compliance with EU law national rules affecting the construction sector. According to the Commission, the Hungarian measures fixing prices for specific raw materials for the construction industry, which impose a 90% penalty on the difference between fixed prices and sale prices, do not comply with the freedom of establishment (Article 49 TFEU). The Hungarian rules also require economic operators to maintain certain output levels, even if economically not sustainable. The Commission considers that the penalty as well as the combined impact of both measures adversely impact economic operators in accessing and exercising activities in this sector. In addition, Hungary has failed to notify the measures in violation of the Single Market Transparency Directive. Hungary now has two months to take the necessary measures to comply with the reasoned opinion. Otherwise, the Commission may decide to refer Hungary to the Court of Justice of the European Union.
Services: Commission asks PORTUGAL to ensure equal treatment regarding beach concessions
Today, the Commission has decided to send a reasoned opinion to Portugal (INFR(2022)2020) for not having correctly implemented rules regarding tendering procedures for the award of beach concessions. The Commission is requesting Portugal to comply with the provisions of the Services Directive (Directive (2006/123/EC) Directive 2006/123/EC) and the freedom of establishment (Article 49 TFEU). The Commission considers that the Portuguese legislation giving holders of existing ‘beach concessions’ a right of preference in tender procedures for the renewal of these concessions does not appear compatible with the Services Directive and with the freedom of establishment. According to the Commission, a preferential right in favour of incumbents would penalise and discourage undertakings located in other Member States from providing beach services in Portugal. Portugal has now two months to reply to the arguments put forward by the Commission. Otherwise, the Commission may decide to refer the case to the Court of Justice of the European Union.
Referrals to the Court of Justice
Free movement of goods: Commission decides to refer HUNGARY to the Court regarding export restrictions in the construction sector
Today, the Commission has decided to refer Hungary (INFR(2021)2158) to the Court of Justice of the European Union regarding a prior notification scheme introduced by the Hungarian authorities which allows them to block the export of building materials. Under the Hungarian law, construction materials intended for exports have to undergo a prior notification procedure. Exports may be blocked if the Hungarian authorities consider that these exports would “significantly impede or render impossible the construction, operation, maintenance and development of critical infrastructures, thereby jeopardising public supply or pose a risk to the security of supply in the construction industry”. The Commission considers that these measures are in breach of Article 35 TFEU and Article 36 TFEU, as they restrict the free movement of goods and are not justified. In particular, Hungary does not demonstrate in a satisfactory manner that the objective of the measure corresponds to a legitimate objective. In addition, there seems to be no actual risk to the security of supply of the products concerned in Hungary. Furthermore, the Hungarian measures do not provide objective and predefined criteria for the decision of whether exports could be blocked. Therefore, the Hungarian authorities can freely determine when there is a risk to the security of supply in the construction industry, making the decision potentially arbitrary. The measures therefore cannot be considered as justified to attain the intended public interest. A press release is available here.