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FACTBOX-EU launches legal actions against member states
28 Feb 2008 16:54:58 GMT
 Source: Reuters
Feb 28 (Reuters) - The European Commission started or stepped up an array of legal actions against European Union countries on Thursday which include breaking EU rules on gambling, snowboard instructors and handling human blood.

The Commission wants to make the bloc's economy more efficient and the measures were mostly aimed at knocking down barriers to competition.

Below are some of the steps taken and an explanation of the process:

WHAT IS THE PROCEDURE?

The Commission starts an infringement procedure by sending a "letter of formal notice" to an EU state, requesting information on a disputed issue.

If the Commission is not satisfied with the response, it can send a "reasoned opinion", or a final warning, setting out why it thinks there has been a breach of EU law.

Unless the member state complies with the reasoned opinion by a deadline, typically two months, the Commission may bring the case before the European Court of Justice (ECJ), the top court in the EU. It can take two years to bring a case.

WHO FACES LEGAL ACTION?

INTERNAL MARKET The Commission gave the Netherlands and Greece a final warning over barring foreign competitors on gaming markets.

It is taking France to court over its public procurement code and its refusal to allow snowboard instructors from other states, particularly Germany, to teach in France.

The Commission is taking Italy to court over restrictions on the setting up of service stations, making it difficult for new competitors from other EU states.

TAX

Portugal is being taken to the top court for failing to comply with EU rules on the movement and holding of goods subject to excise duties.

It has been handed a final warning to stop taxing income from investments held abroad more heavily than those in Portugal.

Greece has been given a final warning over its treatment of requests for the refund of unduly paid taxes.

The Commission has given Poland, the Netherlands, Portugal, France, Italy, Finland, Greece and the Czech Republic a final warning to change their rules regarding the application of the special value added tax margin scheme for travel agents.

Spain has been given a final warning to stop taxing foreign investment income more heavily than income from domestic investments.

The Commission sent a final warning to Lithuania and a first warning to Latvia for taxing foreign dividends more heavily than domestic dividends.

Belgium was given final warnings to end discrimination against foreign nurseries, artists and sportsmen through its tax system.

ENVIRONMENT

The Commission gave a final warning to the Czech Republic, Finland, Greece, Portugal and Luxembourg for not fully introducing EU rules aimed at lowering the environmental impact of energy-using products.

HEALTH

Greece is being taken to court for not introducing EU measures which set bloc-wide quality and safety standards for the collection, testing, processing, storage and distribution of human blood and blood components.


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