Infringement Procedures, the Bill Amounts to One Billion Euros

Ensuring Compliance with European Union Law: A Costly Lesson for Italy

Correct and timely application of European Union law is crucial.
Delaying or applying it incorrectly can result in serious consequences, even from a budget perspective.
Italy is among the member states most frequently subject to infringement procedures.
From 2012 to the period 2002-2023, Italy has incurred fines totaling 998 million euros.

This nearly billion euros could have been kept in the State’s coffers if Italy had shown more responsiveness in applying EU law, as highlighted in the latest Annual Report on financial relations between Italy and the European Union, elaborated by the Court of Auditors.
This is a hefty bill that is not yet settled, as Italy still faces 66 pending infringement procedures, 49 for violating EU law and 17 for not transposing directives.
However, not every procedure necessarily leads to fines (so far, Italy has been fined in only six cases).

The Enforcement Process: From Warning to Sanctions

Every “game” has its rules, and in this case, the European Commission oversees the correct application of EU law.
The infringement procedure is the tool through which the executive body based in Brussels can call Member States to order if they fail to align their domestic legislation with EU law.
The goal is to ensure the correct enforcement of EU law, even if it means threatening and imposing heavy sanctions.

The path to a sanction is long and intricate.
It starts with a pre-litigation phase, as per Article 258 of the Treaty on the Functioning of the European Union, which includes sending a letter of formal notice to the non-compliant Member State, followed by a reasoned opinion and a potential referral by the Commission to the Court of Justice of the EU.

If, following the first Court judgment, the Commission believes the State has not complied, the procedure under Article 260 of the TFEU is activated.
In case of conviction and non-compliance, the Commission can once again refer the case to the Court.
If a second conviction follows, pecuniary sanctions can be imposed, including a lump sum and a daily penalty, calculated based on the severity and duration of the infringement.

Italy’s Infractions and Hefty Fines

Italy’s infringement procedures have mainly targeted areas such as the environment (19 in 2024), transportation (7), and economic and financial affairs (6).
However, there are also cases related to justice (4), health (2), and public procurement (1).
The most significant sanction imposed on Italy stems from a 2015 judgment for failing to align the waste collection and management system in Campania with EU standards, costing over 311 million euros over eight years.

In 2014, another substantial bill was due to environmental issues, regarding illegal landfills, resulting in a payment of 261.8 million euros between 2015 and 2022.
In 2023, the Italian Parliament enacted the “Save-Infringements Decree” to facilitate the closure of ongoing infringement procedures and pre-infringement cases.
The decree aimed to address the high number of infringement procedures initiated by the European Commission against Italy, well above the European average.

Recent recommendations from the Commission included the initiation of infringement procedures against Italy and six other countries, including France and Belgium, due to excessive deficits.
Compliance with EU law is not merely a legal obligation but a financial imperative that Italy continues to grapple with.