New initiative to enforce ECJ rulings

Date: 06/06/1996

By Rory Watson

THE European Commission is planning to impose hefty fines on member states who ignore European Court of Justice rulings in a new clamp-down on EU lawbreakers.

The Maastricht Treaty first introduced the possibility of fining recalcitrant governments, but the Commission has shied away from using the new powers over the past two years because of legal and political uncertainties about their effectiveness.

Now, in a bid to buttress the Court's authority, the Commission yesterday (5 June) agreed on the criteria it would apply when demanding that financial penalties be imposed on countries which failed to implement judgements from the Union's highest legal authority.

It confirmed that the sanction would only be applied for serious violations and would take account of the damage done both in general terms and to specific groups and individuals. Infringements of the principle of non- discrimination and the free movement of people, goods, services and capital clearly fall into this category.

The fines would also be applied against governments whose behaviour resulted in a loss of income for the EU budget, caused particularly damaging pollution or affected the overall running of the Union.

At the end of last year, the Commission had identified 78 cases where it believed there were strong grounds for initiating the procedure for imposing fines under Article 171 of the Maastricht Treaty.

With the exception of the three new member states, Portugal and Denmark, every EU country featured on the Commission's blacklist. Headed by Belgium (18) and Italy (15), the list also included Germany (six), Spain (nine), France (ten), Ireland (three), Luxembourg (six), Greece (four), the Netherlands (one) and the UK (six).

Under the procedure agreed at Maastricht, the Commission must justify in detail to the European Court of Justice its reasons for calling for financial penalties to be applied. Faced with a choice between imposing a lump sum or a series of penalty payments, the Commission confirmed yesterday it would opt for the latter as being the most effective means of persuading member states to comply as quickly as possible.

Despite the recent clarifications, doubts remain about the effectiveness of the policy.

The Commission has still not clarified the scale of the fines which will be applied.

Nor has it indicated how penalties agreed by the European Court of Justice will be enforced, if EU governments refuse to pay them.