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The European Commission has initiated legal proceedings against several EU member states, including Cyprus, for failing to comply with a range of obligations under European Union law, spanning environmental regulations, critical infrastructure protection, customs systems, VAT rates, and digital information networks.
In its latest infringement package, the Commission announced a series of reasoned opinions and formal notices directed at multiple countries, giving them two months to act or risk referral to the Court of Justice of the European Union.
Cyprus is under scrutiny on several fronts. The Commission issued a reasoned opinion over the country’s failure to transpose an updated EU directive on air pollutant emissions reporting. The directive, aligned with international standards under the UNECE, mandates that member states report projected emissions for key pollutants such as sulfur dioxide and fine particulate matter.
In another action, the Commission sent reasoned opinions to 13 member states, including Cyprus, for not implementing the Critical Entities Resilience Directive, which strengthens protections for essential infrastructure in sectors like energy, health, and banking.
Cyprus also received formal notices for falling short on key customs IT systems, including a temporary storage air transport system and a national import system, both required under the Union Customs Code. These systems are critical for monitoring goods, collecting revenues, and enforcing trade rules.
Further, the Commission initiated proceedings against Cyprus for not fully transposing the 2022 directive on VAT rates, which allows for reduced or zero rates on essential items like food and medicines.
Finally, Cyprus, alongside Greece and Portugal, was called out for failing to connect to ProDriveNet, an EU-wide digital network that verifies the professional credentials of freight and passenger vehicle drivers. The system, operational since 2021, is considered key to road transport safety and efficiency.
If Cyprus and other member states fail to address these issues within two months, the Commission may escalate the cases to the EU’s highest court and pursue financial penalties.
