Policing of EU Market Rules Drops Under von der Leyen’s Commission

According to a recent report by the European Court of Auditors, the policing of EU market rules has dropped under the leadership of Ursula von der Leyen’s commission. The report states that there has been a significant decrease in the number of infringement proceedings initiated by the European Commission against member states for failing to comply with EU market rules.

The report shows that in 2020, the European Commission opened only 288 infringement proceedings related to the internal market, compared to 404 proceedings in 2015. This represents a drop of over 28%. The report also highlights that the number of infringement proceedings related to financial services has decreased by 68% since 2016.

The European Court of Auditors suggests that the decline in enforcement actions could be due to the commission’s focus on other policy areas, such as climate change and digitalisation, and the effects of the COVID-19 pandemic on the EU’s resources and priorities. The report also notes that the commission has shifted its focus towards more dialogue and cooperation with member states to resolve market rule breaches, rather than initiating legal proceedings.

However, critics argue that this shift in approach undermines the EU’s ability to effectively enforce market rules and ensure a level playing field for businesses. The lack of enforcement could create a competitive disadvantage for companies that comply with EU rules, as well as harm consumers by allowing the sale of products that do not meet EU safety and environmental standards.

In response to the report, a spokesperson for the European Commission stated that the commission remains committed to enforcing EU market rules and that the decline in enforcement actions is not a sign of reduced attention to the issue.

As the EU faces a growing number of challenges related to the internal market, including issues such as unfair competition, the digital economy, and the impact of COVID-19, it remains to be seen how the commission will balance its enforcement responsibilities with its other priorities.