FINANCIAL SANCTIONS AGAINST MEMBER STATES FOR INFRINGEMENT OF EU LAW
The founding treaties set out two procedures where the Court of Justice may impose financial sanctions on EU Member States which fail to comply with their obligations under EU law. The first procedure is laid down in Article 260(2) TFEU, concerning cases when a Member State has failed to comply with an earlier judgment of the Court. The second option is a new legal solution introduced by the Lisbon Treaty in Article 260(3), under which the Court may impose sanctions on a Member State that has failed to notify the Commission about the national measures for transposing a directive adopted under a legislative procedure. If the Court finds that the Commission’s allegations are true, it may impose penalty payment or a lump sum. Pursuant to Article 260(2), the Court is free to determine the sanction amounts, whereas the penalty payment or lump sum imposed pursuant to Article 260(3) must not exceed the amount specified by the Commission.
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