Dividend Directive and honorary judges: the EU criticises Italia for failing to implement the legislation

There are four legal actions against Italia decided by the European Commission as part of the package of infringement decisions published on 8 July 2026.

The first reasoned opinion concerns the failure to transpose into national law EU Directive 2024/2839 on the reduction of reporting obligations for Member States and economic operators in various fields. The Directive, in fact, simplifies reporting in four sectors: environmental noise emissions, food, patients’ rights and radio equipment.

The case cited in the package published on the Commission’s website concerns noise emissions from equipment intended for outdoor use, in respect of which the Directive specifies precisely which reporting obligations no longer apply. The countries which, like Italia, have not notified any measures and have first received a letter of formal notice and now a reasoned opinion are Croatia, Austria, Portugal and Romania. If, within two months, these Member States have not addressed the issues raised by the Commission, they may be referred to the Court of Justice and face financial penalties.

The second reasoned opinion concerns the conditions of honorary judges already in service as at 15 August 2017, who, in order to obtain a permanent contract, must waive the rights accrued during their previous honorary service. The Court of Justice has ruled that this principle breaches EU law, and the Commission has identified discriminatory treatment compared with the rights afforded to part-time or fixed-term workers. In this case too, Italia has two months to respond and rectify the situation. If this does not happen, the Commission may decide to refer the case to the Court of Justice of the European Union.

The first letter of formal notice, on the other hand, concerns the failure to comply with EU Directive 2011/96, known as ‘Parent-Subsidiary Directive’, which eliminates double taxation of dividends within groups operating in several countries. According to the Commission, Italian legislation, like that of Germany and France, taxes these dividends more times than permitted by the Directive. This national tax legislation creates fragmentation in taxation and undermines the competitiveness and investment of medium-sized and large companies operating in the single market. Italia, France and Germany will have two months to rectify the shortcomings, but if the responses are not satisfactory, the Commission may issue a reasoned opinion.