Threat of fines brings governments into line

Date: 22/05/1997

By Rory Watson

THE prospect of being singled out for an embarrassing fine is starting to convince EU governments that they can no longer ignore Union legislation and remain unpunished.

After being warned earlier this year that they faced hefty financial penalties for breaking EU environmental rules dating as far back as 1990, Germany and Italy have begun to put their houses in order.

The European Commission had brought five test cases against the two Union founder members, using - for the first time - its powers to recommend fines against states which fail to respect European Court of Justice judgements.

The Commission is now satisfied that the rules are being complied with in three of the five cases and will formally close them next month.

“This just shows what can be achieved when member states are faced with the very real prospect of fines. As far as the Commission is concerned, it is not enough for a government to say it will soon implement a Court judgement. It must already have done so or it risks being fined. We have an effective tool, we must use it,” said one senior official.

The Commission is now examining up to a dozen more cases which may be ripe for fines. The initiative is part of its wider strategy to ensure that Union rules - particularly those establishing the single market or setting environmental standards - are fully implemented in all 15 member states.

The final candidates for a second round of fines will only be decided next month. But the list is understood to include Belgium for failing to apply correctly EU legislation on pension and social security rights and France, which has been criticised for not respecting Union rules on the protection of wild birds and conservation of fish stocks.

Supporters of the power to fine believe the example of Germany and Italy confirms it has a considerable deterrent effect.

In January, the Commission announced it would ask the ECJ to impose a daily 264,000-ecu fine on Germany for not implementing 1991 legislation on the quality of groundwater and a further penalty of 26,400 ecu a day for its failure to apply EU standards on the protection of wild birds. Since then, Bonn has agreed to implement the rules.

But Germany still faces a 158,400 ecu-a-day fine for not fully respecting Union regulations on surface water.

Meanwhile, Italy will see the threat of a 123,900-ecu fine lifted next month after confirmation that the region of Campania has implemented its waste management plan in line with EU standards.

But Rome has not managed to satisfy the Commission that it has put into place Union norms to protect patients from the possible dangers of ionising radiation and still faces a fine of 159,300 ecu per day for that offence.

Under a detailed formula agreed by the Commission at the start of the year, the scale of

the daily fines varies from 792,200 to 1,200 ecu depending on the gravity and duration of the offence.