Review of the EU legislation for 20/11/2024

Here’s a concise review of the key legal acts:

CLP Regulation Amendment

Modernizes chemical hazard communication by introducing digital labeling options, setting requirements for online sales, and establishing refill station regulations. Includes new font size and formatting rules for labels, mandatory online hazard information display, and updated classification requirements for various substances. Implementation begins July 2026.

Cyber Resilience Act

Sets mandatory cybersecurity requirements for digital products, including 5-year security update support, incident reporting, and vulnerability handling. Establishes product classification system and penalties up to €15 million for non-compliance. Takes effect December 2027.

Air Quality Directive

Introduces stricter air quality standards aligned with WHO guidelines, to be achieved by 2030. Establishes comprehensive monitoring networks, requires detailed air quality management plans, and includes provisions for public compensation in case of health damage from air quality violations.

Solvency II Technical Information

Provides specific calculation parameters for insurance companies’ technical provisions and basic own funds for Q4 2024, including risk-free interest rates, fundamental spreads, and volatility adjustments for different currencies and markets.

Baltic Sea Fishing Opportunities

Sets catch limits and quotas for various fish species in the Baltic Sea for 2025, including specific measures for herring, cod, plaice, salmon, and sprat. Includes fishing closures for spawning protection and restrictions on recreational fishing.

CJEU Judgments on Political Party Membership

Two related judgments against Poland and Czech Republic ruled that preventing EU citizens from joining political parties in their country of residence violates Article 22 TFEU by creating unequal conditions for political participation.

EU-Norway VAT Agreement

Updates administrative cooperation framework for VAT, introducing joint administrative enquiries, enhanced data protection provisions, and stronger mechanisms for combating cross-border VAT fraud through the Eurofisc network.

Review of each of legal acts published today:

Regulation (EU) 2024/2865 of the European Parliament and of the Council of 23 October 2024 amending Regulation (EC) No 1272/2008 on classification, labelling and packaging of substances and mixtures (Text with EEA relevance)

This Regulation amends Regulation (EC) No 1272/2008 on classification, labelling and packaging (CLP) of substances and mixtures to modernize and improve chemical hazard communication in the EU.The act introduces major changes in three key areas:

• Digital labeling – Allows for certain label elements to be provided digitally while maintaining core safety information on physical labels
• Online sales – Requires that hazard information be clearly displayed for distance sales and that there must be an EU-based supplier responsible for compliance
• Refill stations – Establishes conditions for safely supplying hazardous substances via refill stations to reduce packaging waste

Key provisions include:

• New requirements for minimum font sizes, spacing and formatting of physical labels to ensure readability
• Rules for fold-out labels and digital labeling through data carriers (e.g. QR codes)
• Mandatory display of hazard information for online sales
• Safety requirements for refill stations including staff training and risk mitigation
• Updated rules for classification of multi-constituent substances
• New deadlines for updating labels after classification changes
• Expanded harmonized classification requirements for endocrine disruptors and other hazard classes
• Requirements to justify classification divergences in the C&L Inventory

The regulation aims to improve hazard communication while adapting to new sales channels and technologies. Most provisions will apply from July 2026, with some taking effect from January 2027.

Regulation (EU) 2024/2847 of the European Parliament and of the Council of 23 October 2024 on horizontal cybersecurity requirements for products with digital elements and amending Regulations (EU) No 168/2013 and (EU) No 2019/1020 and Directive (EU) 2020/1828 (Cyber Resilience Act) (Text with EEA relevance)

The Cyber Resilience Act (CRA) is a comprehensive EU regulation establishing cybersecurity requirements for products with digital elements (hardware and software) to ensure their security throughout the lifecycle and protect consumers from cyber risks.The regulation introduces mandatory essential cybersecurity requirements for manufacturers, including vulnerability handling, security updates, and incident reporting. It establishes conformity assessment procedures and market surveillance mechanisms to verify compliance.Key provisions include:

• Essential cybersecurity requirements for products’ properties (secure by default, protection from unauthorized access, data protection) and vulnerability handling processes
• Obligations for manufacturers to assess cybersecurity risks, provide security updates during a support period of at least 5 years, and report incidents
• Classification of products into important (Class I and II) and critical categories with different conformity assessment procedures
• Market surveillance framework with authorities designated by Member States to monitor compliance and enforce requirements
• Penalties for non-compliance up to €15 million or 2.5% of global turnover

The regulation aims to improve the cybersecurity of connected products in the EU market by setting horizontal requirements applicable across sectors. It introduces new obligations for economic operators while considering the specific needs of SMEs and open-source software. The requirements will apply from December 2027, with certain provisions taking effect earlier.

Directive (EU) 2024/2881 of the European Parliament and of the Council of 23 October 2024 on ambient air quality and cleaner air for Europe (recast)

This Directive establishes new EU-wide air quality standards and monitoring requirements aimed at reducing air pollution to levels no longer harmful to human health and the environment by 2050. It merges and updates previous air quality directives while introducing stricter limits for key pollutants.The Directive’s structure includes:

• Setting of limit values, target values and monitoring requirements for various air pollutants including particulate matter, nitrogen dioxide, sulfur dioxide, ozone and others
• Requirements for air quality assessment through monitoring networks, sampling points and measurement methods
• Provisions for air quality management including development of air quality plans and short-term action plans when limits are exceeded
• Requirements for public information and reporting to the European Commission

Key provisions include:

• New stricter air quality standards to be achieved by 2030, aligned more closely with WHO guidelines
• Enhanced monitoring requirements including new ‘supersites’ for comprehensive air quality measurement
• Stronger requirements for air quality plans when standards are exceeded
• Improved public access to air quality information and justice
• New provisions for compensation when health damage occurs due to air quality violations

Commission Implementing Regulation (EU) 2024/2883 of 18 November 2024 laying down technical information for the calculation of technical provisions and basic own funds for reporting with reference dates from 30 September 2024 until 30 December 2024 in accordance with Directive 2009/138/EC of the European Parliament and of the Council on the taking-up and pursuit of the business of Insurance and Reinsurance

This regulation establishes technical information for calculating technical provisions and basic own funds for insurance and reinsurance companies in accordance with Solvency II Directive for the period from September 30, 2024 to December 30, 2024.The regulation consists of two main articles and three annexes that provide detailed technical information:

• Annex I contains risk-free interest rate term structures for different currencies
• Annex II provides fundamental spreads for calculating the matching adjustment
• Annex III specifies volatility adjustments for different national insurance markets

The key provisions include:

• Insurance and reinsurance companies must use this technical information when calculating their technical provisions and basic own funds
• The information is based on market data from the end of September 2024
• The regulation applies uniformly across all EU member states to ensure consistent calculation methods
• The technical information includes risk-free interest rates, fundamental spreads, and volatility adjustments for different currencies and national markets

The regulation provides detailed tables with numerical values for different durations, credit quality steps, and currencies that companies must use in their calculations. The values are specified with high precision to ensure accurate and standardized calculations across the insurance sector.

Commission Implementing Regulation (EU) 2024/2892 of 12 November 2024 laying down rules for the application of Regulation (EU) 2024/1143 of the European Parliament and of the Council as regards the entering of a geographical indication in the Union register of geographical indications (Torrezno de Soria (PGI))

This Commission Implementing Regulation establishes the registration of ‘Torrezno de Soria’ as a Protected Geographical Indication (PGI) in the European Union register of geographical indications. The regulation implements the new framework for geographical indications established by Regulation (EU) 2024/1143.The regulation consists of two main articles: Article 1 formally enters ‘Torrezno de Soria’ into the Union register of geographical indications as a PGI, while Article 2 sets the standard entry into force provision (twentieth day following publication).The regulation follows a straightforward application process where Spain submitted the request for registration before the entry into force of Regulation (EU) 2024/1143. The application was published in the Official Journal, and no opposition was received during the designated period, leading to the approval of the registration.Key aspects of the regulation include:

• The transition from the previous legal framework (Regulation 1151/2012) to the new system under Regulation 2024/1143
• The successful completion of the opposition period without any challenges to the registration
• The formal recognition of ‘Torrezno de Soria’ as a protected geographical indication at the EU level

Council Regulation (EU) 2024/2903 of 18 November 2024 fixing the fishing opportunities for certain fish stocks and groups of fish stocks applicable in the Baltic Sea for 2025 and amending Regulation (EU) 2024/257 as regards certain fishing opportunities in other waters

This regulation establishes fishing opportunities (total allowable catches – TACs and quotas) for certain fish stocks in the Baltic Sea for 2025 and amends certain fishing opportunities in other waters. The key aspects include:The regulation sets specific catch limits and quotas for different fish species in various subdivisions of the Baltic Sea, including:

• Herring in different Baltic Sea subdivisions
• Cod in subdivisions 22-32
• Plaice in Union waters
• Atlantic salmon in different areas
• Sprat in Union waters

The regulation includes important measures such as:

• Fishing closures in certain areas to protect cod and sprat spawning
• Restrictions on recreational fishing of cod and salmon
• Special conservation measures for sea trout and salmon stocks
• Specific conditions for landing catches and by-catches

The regulation contains detailed technical provisions regarding:

• Allocation of fishing opportunities between Member States
• Data transmission requirements
• Special conditions and derogations for certain types of fishing vessels and activities
• Specific quotas and restrictions for different fishing zones

Judgment of the Court (Grand Chamber) of 19 November 2024.European Commission v Republic of Poland.Failure of a Member State to fulfil obligations – Article 20 TFEU – Citizenship of the Union – Article 21 TFEU – Right to move and reside freely within the territory of the Member States – Article 22 TFEU – Right to vote and to stand as a candidate in municipal and European Parliament elections in the Member State of residence under the same conditions as nationals of that State – Citizens of the Union residing in a Member State of which they are not nationals – No right to be a member of a political party – Articles 2 and 10 TEU – Democratic principle – Article 4(2) TEU – Respect for the national identity of the Member States – Article 12 of the Charter of Fundamental Rights of the European Union – Role of political parties in expressing the will of citizens of the Union.Case C-814/21.

This is a judgment of the Court of Justice of the European Union (CJEU) concerning Poland’s law that prohibits non-Polish EU citizens residing in Poland from becoming members of political parties.The Court found that Poland violated Article 22 of the Treaty on the Functioning of the European Union (TFEU) by denying EU citizens who are not Polish nationals but reside in Poland the right to be members of political parties. The Court determined that this restriction undermines their ability to effectively exercise their right to vote and stand as candidates in municipal and European Parliament elections under the same conditions as Polish nationals.The main provisions of the judgment include:

• Article 22 TFEU requires Member States to ensure EU citizens residing in their territory have equal access to means available to nationals for effectively exercising voting rights
• Political party membership significantly contributes to effective exercise of the right to stand for election
• Poland’s restriction creates unequal conditions between Polish nationals and other EU citizens regarding participation in elections
• The argument that this restriction protects Poland’s national identity was rejected, as allowing EU citizens to be party members for local/EU elections does not undermine national sovereignty

The Court ordered Poland to change its legislation to allow non-Polish EU citizens residing in Poland to become members of political parties. This judgment establishes an important precedent regarding political rights of EU citizens residing in other Member States.

Judgment of the Court (Grand Chamber) of 19 November 2024.European Commission v Czech Republic.Failure of a Member State to fulfil obligations – Article 20 TFEU – Citizenship of the Union – Article 21 TFEU – Right to move and reside freely within the territory of the Member States – Article 22 TFEU – Right to vote and to stand as a candidate in municipal and European Parliament elections in the Member State of residence under the same conditions as nationals of that State – Citizens of the Union residing in a Member State of which they are not nationals – No right to become a member of a political party – Articles 2 and 10 TEU – Democratic principle – Article 4(2) TEU – Respect for the national identity of the Member States – Article 12 of the Charter of Fundamental Rights of the European Union – Role of political parties in expressing the will of citizens of the Union.Case C-808/21.

This judgment concerns a case where the European Commission sued the Czech Republic for denying EU citizens who are not Czech nationals but reside in the Czech Republic the right to become members of political parties or political movements. The Court’s key findings were:

• Article 22 TFEU requires that EU citizens residing in a Member State of which they are not nationals must have equal access to the means available to nationals for effectively exercising their right to vote and stand as candidates in municipal and European Parliament elections
• The Czech law prohibiting non-Czech EU citizens from joining political parties puts them at a disadvantage compared to Czech nationals regarding their ability to effectively participate in elections, since political party membership provides important advantages for candidates
• While Member States can regulate political parties as part of their national identity under Article 4(2) TEU, this cannot justify discriminating against EU citizens in ways that undermine their electoral rights under Article 22 TFEU

The Court ruled that by denying EU citizens who are not Czech nationals but reside in the Czech Republic the right to become members of political parties, the Czech Republic failed to fulfill its obligations under Article 22 TFEU. This judgment has important implications for ensuring equal political participation rights of EU citizens residing in other Member States.

Agreement between the European Union and the Kingdom of Norway amending the Agreement between the European Union and the Kingdom of Norway on administrative cooperation, combating fraud and recovery of claims in the field of value added tax

This Agreement amends the existing cooperation framework between the EU and Norway in the field of value added tax (VAT) administration. It strengthens administrative cooperation tools and updates data protection provisions to align with current EU regulations. The Agreement introduces new mechanisms for joint administrative enquiries and enhances Eurofisc network collaboration.The Agreement’s structure consists of three main articles with multiple amendments to the original agreement. The first article contains five major modifications covering confidentiality rules, data protection requirements, administrative cooperation procedures, and dispute settlement mechanisms. Articles 2 and 3 deal with entry into force and authentic text provisions respectively.Key provisions include:

• Enhanced framework for joint administrative enquiries allowing officials from different states to form single teams
• Updated data protection provisions aligned with GDPR (Regulation 2016/679)
• Strengthened Eurofisc cooperation mechanisms for combating cross-border VAT fraud
• New rules for information sharing between states and with third countries
• Specific requirements for personal data processing and confidentiality
• Clear procedures for coordinating administrative enquiries related to VAT fraud