Vienna [Austria], February 14: The European Commission has filed a complaint against Austria and six other EU Member States with the European Court of Justice (ECJ) for failing to transposing the EU Non-Performing Loans (NPL) Directive into national law on time.
The EU directive should have been transposed into national law by the end of 2023. It aims to create a functioning secondary market for non-performing loans. This is to be achieved through clear rules for the authorization and supervision of loan buyers and service providers. In addition, uniform criteria are to facilitate the cross-border marketing of such loans. These measures are part of a broader EU action plan to reduce non-performing loans, which is intended to ensure greater stability in the financial sector.
By referring the cases to the ECJ, the EU Commission is asking the judges to impose financial sanctions on the defaulting member states. The amount of the penalties is to be based on the severity and duration of the infringement as well as the financial capacity of the countries concerned. Experts assume that the penalties could be considerable, as the delays hinder the desired harmonization of the financial markets within the EU.
In a separate infringement procedure, the EU Commission called on Austria and four other EU states to fully implement the amendments to the Bank Recovery and Resolution Directive. A letter of formal notice with detailed reasons was sent to the countries concerned. This directive aims to enable banks to be restructured more efficiently in crises to minimize the risk for taxpayers.
Should the ECJ follow the Commission's demands, the countries affected must not only expect financial sanctions but also growing pressure from Brussels to implement the necessary adjustments as quickly as possible. This could have a considerable impact on national legislative processes and lead to an accelerated implementation of the directives.
Austria and the other affected states are now under pressure to correct their omissions quickly to avert possible financial penalties and comply with European requirements. For Austria, this lawsuit is not the only ongoing case against Vienna. The EU Commission has already initiated several infringement proceedings against the country, including for delays in the implementation of environmental, financial, and digitalization directives. Brussels has repeatedly criticized Austria's slowness in adapting its laws to EU requirements, which is increasingly bringing the country into conflict with the EU, according to Vienna International News.
Source: Emirates News Agency
