Commission launches infringement procedures against Malta over directive delays

The European Commission has opened infringement procedures against Malta and other member states over the transposition of two directives about information exchange and company size criteria.

In a press release on Friday, the commission said it sent a letter of formal notice to Malta for failing to notify transposition of an amendment to the Accounting Directive that adjusts micro, small, medium-sized and large undertakings or group size criteria for inflation.

Member states had to notify the commission by Christmas Eve in 2024. The commission sent the same letter to Cyprus, Czechia, Spain and Portugal. The member states now have two months to submit their observations.

It also sent a letter to Malta and 17 other member states for failing to fully transpose the directive on information exchange between law enforcement authorities in different countries. Member states had to transpose the directive into national law by 12 December 2024.

The other affected countries are Belgium, Bulgaria, Czechia, Denmark, Germany, Estonia, Greece, Spain, France, Croatia, Cyprus, Luxembourg, Netherlands, Poland, Portugal, Romania, and Slovenia.

The directives

The Accounting Directive concerns the annual and consolidated financial statements, and related reports, of certain types of undertakings.

However, it is being amended to increase the monetary-size criteria in the original directive to adjust for inflation since 2013.

This amendment aims to ensure that micro, small and medium-sized enterprises are not being made subject to undue financial and sustainability reporting provisions applicable to larger companies.

Meanwhile, the directive on information exchange aims to ensure that police officers in one member state have equal access to the information available to officers in other member states.

The directive establishes a single point of contact acting as a “one-stop shop” for information exchange with other member states.