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The European Commission on Friday stepped up pressure on Cyprus and a group of EU member states, launching a series of infringement procedures over delays in implementing key legislation spanning financial transparency, banking regulation and criminal justice cooperation.
In three separate actions announced within hours of each other, the Commission sent formal letters of notice to more than 20 countries, including Cyprus, warning that failure to transpose the directives into national law could lead to further legal steps if compliance is not achieved within two months.
The first case concerns the rollout of the European Single Access Point (ESAP), a major initiative designed to centralise corporate and financial information across the EU into a single digital platform. Cyprus is among 19 member states accused of not fully implementing the directive underpinning the system.
The platform is intended to make company data more accessible and comparable for investors, supporting cross-border investment and strengthening the EU’s capital markets. While the changes do not introduce new reporting obligations, they require companies and authorities to submit existing information in a standardised digital format, a shift that has proven technically demanding for many countries.
For Cyprus, whose economy relies heavily on financial services and international investment, timely implementation is seen as particularly important for maintaining credibility and competitiveness.
In a separate procedure, the Commission warned Cyprus and 21 other member states over delays in adopting the Sixth Capital Requirements Directive (CRD6), a cornerstone of the EU’s updated banking framework. The directive aims to further harmonise supervision across the bloc, including tighter rules for non-EU banks operating within the single market and enhanced powers for regulators.
It also introduces stronger oversight of governance in financial institutions and incorporates environmental, social and governance (ESG) risks into supervisory practices, reflecting the EU’s push towards sustainable finance.
The deadline for transposing the banking rules expired in January, but most member states have yet to complete the process. The Commission said timely implementation is essential to safeguard financial stability and maintain market confidence.
A third warning issued on Friday relates to the EU’s e-Evidence Directive, which seeks to streamline access to electronic data for criminal investigations across borders. Cyprus is again among 22 countries that have not fully transposed the directive, despite a February deadline.
The legislation establishes a framework allowing law enforcement authorities to request electronic evidence, such as emails or user data, directly from service providers operating in the EU, even if those companies are headquartered outside the bloc. It also requires firms to designate legal representatives within the EU to handle such requests.
Brussels argues that the rules are critical for improving cross-border cooperation in tackling crime, particularly as digital evidence becomes increasingly central to investigations.
While the three cases cover distinct policy areas, they underline a concern in Brussels over delays in implementing agreed EU legislation. In each instance, member states have been given two months to respond. Failure to do so could see the Commission escalate proceedings by issuing reasoned opinions — the next step in the infringement process that can ultimately lead to referral to the EU’s top court.
