INTERNAL MARKET SCOREBOARD - September 2020 - EEA EFTA STATES - EFTA ...

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INTERNAL MARKET SCOREBOARD - September 2020 - EEA EFTA STATES - EFTA ...
I
   NTERNALMARKET
       SCOREBOARD
                Sept
                   ember2020

No.46

EEAEFTASTATES
46th Internal Market Scoreboard of the EFTA States
The Internal Market aims at guaranteeing the free movement of goods, capital, services, and people
across the EEA. A functioning internal market stimulates competition and trade for businesses,
improves efficiency, raises quality and helps cut prices for consumers. It also improves living and
working conditions for all citizens and strengthens environmental standards. The purpose of
monitoring the Member States’ timely compliance with EEA law is to ensure the full benefits of the
EEA agreement for all stakeholders.

  The coronavirus pandemic presents extraordinary economic and social challenges
  for EEA businesses and consumers. ESA is fully aware of the seriousness of the
  situation and understands that in these times , due to the coronavirus global crisis,
  many countries have prioritised putting in place restrictive measures in order to
  confine the pandemia and contain the number of casualties. The 46th Internal
  Market Scoreboard of the EFTA States therefore exceptionally provides basic
  figures only on the status of non-transposition.

  The next Internal Market Scoreboard will be prepared in December 2020 taking
  stock of the situation as at the end of November. A second ve rsion of the
  December Scoreboard to include figures for the EU Member States as at the end
  of December, as a comparison, will also be published in parallel with the
  publication of the EU’s Scoreboard.

The transposition deficit indicates how many directives and regulations the EEA States have failed to
communicate as transposed on time. From 2009, the Authority used the interim target of 1% set by the
European Council in 2007 as a benchmark. Now, we are looking towards a benchmark of 0.5%, in line with
the European Commission’s Single Market Act proposed in April 2011.

  Main Findings (situation as at 31 May 2020)

  On 31 May 2020, 806 directives and 3300 regulations incorporated into the EEA
  Agreement were in force.

  o The average transposition deficit for directives for the EFTA States increased from
    0.7% to 0.9% since the December 2019 Scoreboard.
  o The EEA EFTA incompleteness rate relating to directives increased from 1% to 3%
    since the December 2019 Scoreboard (21 directives)
  o The average transposition deficit for regulations for the EFTA States increased
    from 0.9% to 2.2% since the December 2019 Scoreboard.
  o The EFTA incompleteness rate relating to regulations increased from 2% to 6%
    since the December 2019 Scoreboard (213 regulations)
  o The total number of infringement proceedings decreased from 121 to 109 since the
    December 2019 Scoreboard.

                                              Page 1
The European Commission has taken the decision to publish only one annual Internal Market Scoreboard, taking stock
of the situation as at the end of November each year. The EFTA Surveillance Authority will continue to publish two
Internal Market Scoreboards per year. One will look at the situation in the EFTA Member States as at the end of
November each year (“December Scoreboard”) and the other will look at the situation as at the end of May of each year
(“June Scoreboard”). A second version of the December Scoreboard to include figures for the EU Member States as at
the end of December, as a comparison, will also be published in parallel with the publication of the EU’s Scoreboard.
This Internal Market Scoreboard (No 46), reports on the status of the EFTA Member States only as at 31 May 2020.

         Iceland
         Transposition deficit directives: 1.2% (last report: 0.6%)
         Transposition deficit regulations: 6.4% (last report: 1.5%)
         Total infringement cases: 67 (last report: 71)

         Directives
             •   Overdue directives: 10 (last report: 5) including 9 directives in the financial
                 services sector and 1 directive overdue for 2 years or more.
             •   Directives outstanding from previous period: 2
             •   Average delay: 9.7 months (last report: 16.8 months)

         Regulations
             •   Overdue regulations: 211 (last report: 47) including 206 regulations in the
                 financial services sector.

         Infringements
             •   Pending cases (COM, CON, INC): 17 (last report: 16)
             •   Incorrect transposition/application: 17 = 25% of all open infringement cases
             •   Late transposition (directives): 4 = 6% of all open infringement cases
             •   Late implementation (regulations): 46 = 69% of all open infringement cases
             •   Problematic sectors (COM, CON, INC): Food and feed safety, animal health
                 and welfare (4)
             •   Average case duration: 34.7 months (last report: 34.9 months)
             •   Compliance with court rulings: 18.7 months (last report: 18.7 months)

                                                        Page 2
Norway
Transposition deficit directives: 0.6% (last report: 0.3%)
Transposition deficit regulations: 0.2% (last report: 0.5%)
Total infringement cases: 31 (last report: 39)

Directives
   •   Overdue directives: 5 (last report: 2) of which 1 directive has been overdue for
       2 years or more.
   •   Directives outstanding from previous period: 1
   •   Average delay: 7.8 months (last report: 14.7 months)

Regulations
   •   Overdue regulations: 8 (last report: 15) including 5 regulations in the financial
       services sector.

Infringements
   •   Pending cases (COM, CON, INC): 23 (last report: 25)
   •   Incorrect transposition/application: 23 = 74% of all open infringement cases
   •   Late transposition (directives): 2 = 6.5% of all open infringement cases
   •   Late implementation (regulations): 6 = 19.5% of all open infringement cases
   •   Problematic sectors (COM, CON, INC): Social security (6), Transport (5)
   •   Average case duration: 44 months (last report: 44.7 months)
   •   Compliance with court rulings: 34.5 months (last report: 38.3 months)

                                        Page 3
Liechtenstein

Transposition deficit Directives: 0.9% (last report: 0.9%)
Total infringement cases: 11 (last report: 11)

Directives
   •   Overdue directives: 7 (last report: 7) including 5 directives overdue for 2 years
       or more in the transport sector.
   •   Directives outstanding from previous period: 7
   •   Average delay: 58.5 months (last report: 52.5 months)

Infringements
   •   Pending cases (COM, CON, INC): 7 (last report: 7)
   •   Incorrect transposition/application: 7 = 63.5% of all open infringement cases
   •   Late transposition (directives): 4 = 36.5% of all open infringement cases
   •   Problematic sectors (COM, CON, INC): Services – other (2)
   •   Average case duration: 40.9 months (last report: 35 months)
   •   Compliance with court rulings: 0 months (last report: 0 months)

                                        Page 4
Infringement Proceedings1

The Authority opens infringement proceedings when it is of the view that an EFTA
State has failed to fulfil its obligations under the EEA Agreement. When interpreting
the statistics on infringement procedures below it should be noted that only the EFTA
Court can declare that a breach of EEA law has occurred.

Infringement cases can be divided into two categories. The first category relates to cases
concerning lack of conformity with, or incorrect application of, EEA provisions, opened
either on the basis of complaints or on the Authority’s own initiative. These cases concern,
for example, situations in which the Authority, after having acknowledged transposition of a
directive by an EFTA State, concludes at a later stage that the national legislation is not in
full conformity with the requirements of the relevant directive or that the EFTA State is not
complying with the Internal Market rules, i.e. the free movement principles, in some other
way. When EEA rules are not correctly implemented or applied in practice, citizens and
businesses can be deprived of their rights.

The second category of cases relates to late transposition, in other words directives and
regulations only partially transposed or not transposed at all into the national legislation of
the EFTA States within the time limits. Infringement cases in this category (non-transposition
cases) are generally clear-cut and, therefore, seldom the subject of legally complicated
disputes between the Authority and the EFTA State concerned.

Total number of infringement proceedings

As at 1 June 2020, the Authority was pursuing a total of 109 infringement cases against
the EFTA States in the internal market field.
Of the 109 pending infringement cases, 47 concerned the incorrect implementation or
application of Internal Market rules, whereas 10 cases concerned the late transposition
of directives and the remaining 52 cases concerned the late transposition of
regulations.

1
   If the Authority considers that an EFTA State has failed to correctly implement and apply legislation under the EEA Agreement,
it may initiate formal infringement proceedings pursuant to Article 31 of the Agreement on the Establishment of a Surveillance
Authority and a Court of Justice. Such infringement proceedings correspond to those initiated by the European Commission under
Article 258 of the Treaty on the Functioning of the EU (TFEU).

                                                           Page 5
Pending infringement proceedings due to lack of conformity with or
incorrect application of Internal Market rules on 1 June 2020 divided by
sector

        Figure 1: Pending infringement proceedings as at 1 June 2020

                                   Page 6
Breakdown per sector

The fields of food and feed, animal health and welfare, establishment and social
security accounted for the highest number of infringement proceedings concerning the
lack of conformity with or incorrect application of Internal Market rules. Together these
sectors accounted for 38.4% of the infringement proceedings (Figure 1).

Compliance with Court judgments

Court rulings establishing a breach of EEA law require that the State concerned takes
immediate action to ensure compliance as soon as possible. Internal circumstances
or practical difficulties cannot justify non-compliance with obligations and time-limits
arising from EEA law.

Looking back over the cases that have been closed in the last five years (Figure 2),
the average time taken by the EFTA States to comply with an EFTA Court ruling in
cases concerning lack of conformity with or incorrect application of Internal Market
rules was 17.7 months.

 EFTA State       Case                                                             Duration in
                                                                                    months
 Norway           Complaint against Norway concerning the temporary import             61
                  of foreign-registered rental cars
 Norway           Conformity assessment of national measures implementing               55
                  Directive 2005/60/EC (Third Anti-Money Laundering
                  Directive) in Norway
 Norway           Incorrect Implementation of Directive on ambient air quality &        54
                  Complaint regarding ambient air quality
 Iceland          Conformity assessment of national measures implementing               50
                  Directive 2002/92/EC (insurance mediation)
 Norway           Ownership restrictions in Financial Services Infrastructure           35
                  Institutions
 Iceland          CoA Directive 2000/30/EC on the technical roadside                    3
                  inspection of the roadworthiness of commercial vehicles
                  circulating in the Community
 Iceland          Checks on transport of dangerous goods by road under                  3
                  Directive 95/50/EC
 Norway           Complaint concerning licensing under the Building and                 2
                  Planning Act - provision of services and recognition of
                  qualifications
 Norway           Right to parental leave                                               0

Figure 2: Cases concerning lack of conformity with or incorrect application of Internal Market
       rules referred to the EFTA Court and subsequently closed in the last five years
 Duration in months between the judgment of the EFTA Court and the resolution of the case

                                            Page 7
For those cases where the EFTA States still have to comply with an EFTA Court
    judgment at the cut-off date of the Scoreboard of 31 May 2020, the average time that
    had lapsed since the court judgment was 40 months (see Figure 3 for details of these
    cases).

      EFTA State       Case                                                              Duration
                                                                                            in
                                                                                         months
      Liechtenstein    Establishment of an Austrian trained 'Dentist'                      61
      Liechtenstein    Liechtenstein Trade Act and the Services Directive                    48
      Norway           Incorrect implementation of Directive 2000/59 on port                 45
                       reception facilities
      Iceland          Complaint against Iceland concerning imports of raw meat &            30
                       Own initiative case concerning requirements imposed by
                       Iceland on imports of egg and dairy products
      Norway           Complaint against Norway concerning the construction of an            26
                       underground parking and the award of a concession for its
                       operation

Figure 3: Ongoing cases concerning lack of conformity with or incorrect application of Internal Market
            rules referred to the EFTA Court which on 1 June 2020 remained unresolved
                       Duration in months since the judgment of the EFTA Court

                                                 Page 8
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