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[:uk]Review of the EU legislation for 18/10/2024[:][:uk]Overview of Recent Commission Regulations and EEA Joint Committee Decisions Commission Regulation (EU) […]

[:uk]Judgment of the Court (Third Chamber) of 17 October 2024.QI v Santander Bank Polska S.A.Reference for a preliminary ruling – Consumer protection – Directive 2014/17/EU – Credit agreements for consumers relating to residential immovable property – Article 25(1) – Early repayment – Consumer’s right to a reduction in the total cost of the credit – Article 4(13) – Concept of ‘total cost of the credit to the consumer’ – Costs that are dependent of the duration of the contract – Commission for granting the credit payable when concluding the contract – Methodology for calculating the reduction.Case C-76/22.[:][:uk] Analysis of Directive 2014/17/EU Provisions Directive 2014/17/EU on Credit Agreements for Consumers Relating to Residential Immovable Property Article 1: Subject Matter This Directive establishes a common framework for laws, regulations, and administrative provisions of Member States concerning credit agreements for consumers secured by a mortgage or related to residential immovable property. It includes obligations for creditworthiness assessments before granting credit, aims to develop effective underwriting standards, and sets prudential and supervisory requirements for credit intermediaries, appointed representatives, and non-credit institutions. Article 3: Definitions Definition (g) – Total Cost of the Credit to the Consumer: This encompasses all costs the consumer is required to pay in connection with the credit agreement, known to the creditor. It includes interest, commissions, taxes, and other fees, excluding notarial costs. Additionally, it covers costs related to ancillary services, such as insurance premiums, if obtaining a service contract is mandatory to secure the credit or to receive it under advertised terms and conditions. Article 4: Definitions Definition (13) – Total Cost of the Credit to the Consumer: Mirroring Article 3(g) of Directive 2008/48/EC, it includes all costs associated with the credit agreement known to the creditor, such as valuation costs necessary to obtain the credit. It excludes registration fees for transferring ownership of the immovable property and charges for non-compliance with the credit agreement commitments. Article 14: Pre-contractual Information Paragraph 1: Member States must ensure that creditors and, where applicable, credit intermediaries or appointed representatives provide consumers with personalized information necessary to compare available credits, assess implications, and make informed decisions. This information should be provided without undue delay after the consumer discloses their needs, financial situation, and preferences, and sufficiently in advance of the consumer being bound by any credit agreement or offer. Paragraph 2: The personalized information must be delivered on paper or another durable medium using the European Standardised Information Sheet (ESIS) as outlined in Annex II. Article 25: Early Repayment Paragraph 1: Consumers have the right to fully or partially discharge their obligations under a credit agreement before its expiration. In such cases, consumers are entitled to a reduction in the total cost of the credit, which includes the interest and costs for the remaining duration of the contract. Paragraph 2: Member States may impose conditions on exercising the early repayment right. These conditions can include time limitations, different treatments based on the type of borrowing rate or the timing of exercising the right, and restrictions related to the circumstances under which the right can be exercised. Paragraph 3: Member States may allow creditors to claim fair and objectively justified compensation for costs directly linked to early repayment, provided it does not exceed the creditor’s financial loss. Additionally, Member States can set limits on the compensation amount or the period during which it is allowed. Paragraph 4: Upon a consumer’s request to prepay, creditors must promptly provide necessary information to consider this option. This information should quantify the implications of discharging obligations early and clearly outline any assumptions used, ensuring they are reasonable and justifiable. Paragraph 5: If early repayment occurs during a fixed borrowing rate period, Member States may require the presence of a legitimate interest on the consumer’s part to exercise the early repayment right. Additional Provisions Recital 15: Emphasizes the Directive’s goal to ensure consumers entering credit agreements related to immovable property receive high-level protection. Recital 50: Details what constitutes the total cost of credit, reiterating the inclusion of known costs like interest and commissions while excluding notarial fees and registration costs related to property purchase. Recital 66: Highlights the importance of allowing consumers the flexibility to repay credit early, promoting competition and financial stability. It permits Member States to define the conditions under which early repayment can occur, including time limitations and differing treatments based on borrowing rates or specific cir […]

[:uk]Judgment of the Court (Fourth Chamber) of 17 October 2024.Riverty GmbH, successeur légal de Arvato Finance BV v MI.Reference for a preliminary ruling – Consumer protection – Directive 2008/48/EC – Scope – Credit agreements for consumers – Exceptions – Article 2(2)(f) – Interest-free credit agreements without other charges or providing for negligible charges – Deferred payment service ‘Buy now, pay later’ – Late payment – Default interest and out-of-court collection costs.Case C-409/23.[:][:uk] Analysis of Directive 2008/48/EC Provisions Directive 2008/48/EC on Credit Agreements for Consumers Article 2 – Scope 1. This Directive applies to credit agreements. 2. The Directive does not apply to the following: (c) Credit agreements involving a total amount of credit less than EUR 200 or more than EUR 75,000. (f) Credit agreements where the credit is granted free of interest and without any other charges, and credit agreements under the terms where the credit must be repaid within three months with only insignificant charges payable. Article 3 – Definitions (c) Credit Agreement: An agreement where a creditor grants or promises to grant to a consumer credit in the form of deferred payment, loan, or other similar financial accommodation. (g) Total Cost of the Credit to the Consumer: All costs, including interest, commissions, taxes, and any other fees that the consumer must pay in connection with the credit agreement and that are known to the creditor, except for notarial costs. This includes ancillary service costs, such as insurance premiums, if a service contract is mandatory to obtain the credit or its marketed terms. (i) Annual Percentage Rate of Charge (APR): The total cost of the credit to the consumer, expressed as an annual percentage of the total amount of credit, including costs referred to in Article 19(2) if applicable. Article 5 – Pre-contractual Information 1. Before the consumer is bound by any credit agreement or offer, the creditor and, where applicable, the credit intermediary must provide the consumer with necessary information to compare different offers and make an informed decision. This information must be provided in writing or another durable medium using the Standard European Consumer Credit Information form in Annex II. The information must specify: (g) The annual percentage rate of charge and the total amount payable by the consumer. (l) The interest rate applicable in case of late payments, arrangements for its adjustment, and any charges payable for default. Article 10 – Information to be Included in Credit Agreements Paragraph 2 specifies that the credit agreement must clearly and concisely state: (g) The annual percentage rate of charge and the total amount payable by the consumer. (l) The interest rate applicable in case of late payments at the time of concluding the credit agreement, arrangements for its adjustment, and any charges payable for default. Article 19 – Calculation of the Annual Percentage Rate of Charge 1. The APR, equating to the present value of all commitments (drawdowns, repayments, charges) on an annual basis, must be calculated following the mathematical formula in Part I of Annex I. 2. The total cost of credit excludes charges for non-compliance with commitments and charges other than the purchase price for goods or services, payable whether the transaction is in cash or credit. Costs related to account maintenance and payment transactions are included unless the account opening is optional with clearly separated costs. 3. The APR calculation assumes the credit agreement remains valid for the agreed period and that both creditor and consumer fulfill their obligations as specified. Article 22 – Harmonisation and Imperative Nature of the Directive 3. Member States must ensure that the provisions adopted to implement this Directive cannot be circumvented by the formulation of agreements. Specifically, credit agreements covered by this Directive must not be integrated into agreements with different character or purpose to avoid the Directive’s application. Annex II – Standard European Consumer Credit Information Annex II outlines the information to be provided to consumers, including: Identity and contact details of the creditor or credit intermediary. Main characteristics of the credit product. Cost of the credit and related costs, including charges for late payments. Interpretative Clarifications from Court Judgment Based on the Court’s interpretation: Default interest and out-of-court collection costs do not fall within the definitions of ‘interest’ and ‘other charges’ in Article 2(2)(f) unless the creditor anticipates non-performance at the time of concluding the credit agreement to seek financial advantage. These charges are not considered in determining whether a credit agreement is ‘free of interest and without any other charges’ or has ‘only insignificant charges’ unless they are part of the creditor’s business model from the outset. The statutory or contractual nature and the amount of these charges do not inherently include them within the scope […]

[:uk]Judgment of the Court (Seventh Chamber) of 17 October 2024.ED v Ministero dell’Istruzione e del Merito and Istituto nazionale della previdenza sociale (INPS).Reference for a preliminary ruling – Social policy – Directive 1999/70/EC – Framework agreement on fixed-term work concluded by ETUC, UNICE and CEEP – Clause 4 – Public sector – Teachers – Employment of fixed-term workers as career civil servants through recruitment based on qualifications – Determination of the period of service deemed accrued – Account taken only in part of periods of service completed under fixed-term contracts – Subsequent reinstatement of the period of service not taken into account – No effect on the assessment of the existence of discrimination.Case C-322/23.[:][:uk] Judgment Analysis: Case C‑322/23 [Lufoni] Judgment Analysis: Case C‑322/23 [Lufoni] Case Reference Case Number: C‑322/23 [Lufoni] Court: Court of Justice of the European Union, Seventh Chamber Date: 17 October 2024 Language of the Case: Italian Subject Matter Social policy Directive 1999/70/EC on fixed-term work Employment conditions for fixed-term workers in the public sector, specifically teachers Framework Agreement Provisions Clause 3 Defines key terms: Fixed-term worker: A worker with a contract whose end is determined by objective conditions such as a specific date, task completion, or event occurrence. Comparable permanent worker: A worker with an indefinite contract performing the same or similar work, considering qualifications and skills. If no such worker exists in the establishment, comparisons are made based on applicable collective agreements or national law. Clause 4 Addresses treatment and qualifications related to fixed-term workers: Clause 4(1): Fixed-term workers should not be treated less favorably than comparable permanent workers solely because of their fixed-term contracts, unless justified by objective grounds. Clause 4(4): Period-of-service qualifications for specific employment conditions must be equivalent for fixed-term and permanent workers, except where justified by objective grounds. This ensures that differences in service recognition are not discriminatory. Italian National Legislation Analyzed The judgment examines several Italian laws in relation to the framework agreement: Legislative Decree No 297/1994: Article 485(1): Recognizes fixed-term teaching service as permanent employment for legal and salary purposes: fully for the first four years, two-thirds thereafter for legal and salary purposes, and one-third solely for salary purposes. Article 489(1): Defines a full academic year of service based on duration criteria set by the educational system. Law No 124/1999: Article 11(14): Specifies conditions under which fixed-term teaching service is considered a full academic year. Presidential Decree No 399/1988: Article 4(3): Details the reinstatement of service periods for salary purposes upon reaching certain years of service. Key Findings of the Judgment Interpretation of Clause 4 The Court interpreted Clause 4 of the framework agreement to prohibit national legislation that imposes more restrictive conditions on the recognition of fixed-term service periods compared to permanent service. Specifically: National laws limiting the recognition of service beyond two-thirds after four years are precluded. The reinstatement mechanism under Article 4(3) of Presidential Decree No 399/1988, which restores only one-third of the service period for salary purposes after a prolonged period, does not justify the initial limitation imposed. Preclusion of National Legislation The Court ruled that: Clause 4 precludes national legislation that restricts the recognition of fixed-term service periods in permanent employment to two-thirds beyond four years. The subsequent reinstatement of the remaining one-third solely for salary purposes does not satisfy the prohibition against less favorable treatment. Discrimination Assessment The difference in treatment between fixed-term and permanent workers must be assessed based on comparable situations and cannot be justified by general national norms. Objective grounds must be specific and verifiable at the time of assessment. Conclusion of the Judgment The Court concluded that: Clause 4 of the framework agreement on fixed-term work prevents Italian national legislation from limiting the recognition of fixed-term teaching service to two-thirds for service periods beyond four years. The reinstatement provision in Article 4(3) does not provide sufficient objective justification to override the framework agreement’s protections against discriminatory treatment. Implications This judgment reinforces the EU framework agreement’s stance against less favorable treatment of fixed-term workers in the public sector, ensuring greater parity with permanent workers i […]

[:uk]Judgment of the Court (Fifth Chamber) of 17 October 2024.Skatteverket v Digital Charging Solutions GmbH.Reference for a preliminary ruling – Taxation – Common system of value added tax (VAT) – Directive 2006/112/EC – Articles 14 and 15 – Electric vehicle charging – Charging using devices provided by a company and allowing access to a network of charging points operated by different operators – Classification of the transaction for VAT purposes – ‘Supply of goods’ – Transfer made under commission contracts.Case C-60/23.[:][:uk] EU Court Judgment on VAT Classification for Electric Vehicle Charging EU Court Judgment on VAT Classification for Electric Vehicle Charging Background The Court of Justice of the European Union (CJEU) addressed a preliminary ruling request concerning the interpretation of Articles 14 and 15 of Council Directive 2006/112/EC on the common system of value added tax (VAT). The case involved Digital Charging Solutions GmbH and the Swedish Tax Agency (Skatteverket), focusing on the VAT classification of electric vehicle (EV) charging services. Key Legal Provisions Article 14 of Directive 2006/112/EC Defines “supply of goods” as the transfer of the right to dispose of tangible property as owner. It includes provisions for transactions made under commission contracts, where commission is payable on purchase or sale. Article 15(1) of Directive 2006/112/EC Specifies that electricity, gas, heat, cooling energy, and similar commodities shall be treated as tangible property. Judgment Findings 1. Supply of Electricity as Supply of Goods The Court interpreted Article 14(1) in conjunction with Article 15(1), determining that the supply of electricity for charging an electric vehicle at a public charging point constitutes a “supply of goods.” This classification is based on the definition that transferring electricity empowers the user to dispose of it as if they were the owner, aligning with the treatment of electricity as tangible property. 2. Classification of Transactions Involving Intermediaries The Court examined whether transactions involving an intermediary company, such as Digital Charging Solutions, should be treated as a single supply or multiple supplies for VAT purposes. The key considerations included: Commission Contracts: Digital Charging Solutions acts as a commission agent, facilitating access to the charging network while not independently purchasing electricity. Economic Reality: Users pay a fixed fee for network access and services irrespective of electricity usage, indicating that the services are distinct from the supply of electricity. Conclusively, the Court ruled that such transactions involve two separate supplies: The operator of the charging network supplies electricity to the intermediary company. The intermediary company supplies electricity to the end-user. This dual supply structure aligns with Article 14(2)(c) of the Directive, which pertains to supply of goods under commission contracts, ensuring both stages of supply are recognized for VAT purposes. Final Rulings Article 14(1) and Article 15(1) Interpretation: The supply of electricity for charging an electric vehicle at a public charging point is classified as a “supply of goods.” Article 14 Interpretation with Intermediaries: Charging an electric vehicle through a network accessed via a subscription with an intermediary company constitutes two separate supplies: From the charging network operator to the intermediary company. From the intermediary company to the end-user. This holds even if the end-user determines the quantity, timing, and location of the electricity usage. Implications This judgment clarifies the VAT treatment of electric vehicle charging services, particularly in scenarios involving intermediary companies. It ensures that both the supply from the network operator to the intermediary and from the intermediary to the user are subject to VAT, maintaining consistency […]