The Commission decides to refer GREECE to the Court of Justice of the European Union for failing to correctly transpose EU rules on proportionality of professional regulations

This article is brought to you in association with the European Commission.

Today, the European Commission decided to refer Greece to the Court of Justice of the European Union for its failure to ensure the correct transposition of the Proportionality Test Directive (Directive (EU) 2018/958) into national legislation.

This Directive governs the proportionality assessment of new or amended rules restricting access to, or pursuit of, regulated professions. Member States are required to ensure that any national regulation of professions pursues legitimate public interest objectives and is necessary and balanced. Having a clear and common framework in place to systematically assess the regulation of professions before adopting or amending legislation is crucial to prevent unjustified barriers in the single market. It also facilitates access to regulated professions, in line with the objectives outlined in the Commission’s Communication on “The Single Market at 30”.

According to the Commission, Greece failed toensure that all measures covered by the Directive, in particular those being initiated by professional bodies, parliamentary initiatives, and parliamentary amendments, undergo a prior proportionality assessment. In addition, Greece does not ensure continuous monitoring of adopted rules, as the Greek authorities have not transposed with sufficient clarity the criterion of systematic or regular proportionality review over time.

The Commission opened this infringement procedure as a part of a broader enforcement action against Member States that failed to properly transpose the Proportionality Test Directive. In December 2021, the Commission sent a letter of formal notice to Greece, followed by an additional letter of formal notice in February 2023 and a reasoned opinion in October 2023. Despite the ongoing dialogue with the Greek authorities, the issues have still not been fully addressed, leading the Commission to decide to refer Greece to the Court of Justice of the European Union.

Background

The Proportionality Test Directive (Directive (EU) 2018/958) is one of the four initiatives that were proposed as part of the 2017 Services Package. It was adopted in June 2018 and should have been implemented by Member States by 30 July 2020. The Proportionality Test Directive aims to contribute to better prior assessments of restrictive regulations of professions, in line with the prevention pillar of the Enforcement Action Plan.

According to the Proportionality Test Directive, Member States must conduct a proportionality assessment before adopting new regulation of professions. The Directive provides a list of criteria that Member States are obliged to consider for this assessment. In addition, the Directive contributes to the transparency of the rule-making process by requiring these assessments to be made publicly available and by obliging Member States to appropriately inform and involve all relevant parties. In addition, Member States must continue monitoring the proportionality of these new or amended provisions after their adoption and consider any relevant developments such as technological innovation.

Directive (EU) 2018/958 applies to all legislative, regulatory, or administrative provisions restricting access to a regulated profession or its pursuit, or one of its modes of pursuit.