European Commission initiates infringement proceedings against Cyprus

The European Commission has initiated multiple infringement proceedings against Cyprus regarding its failure to comply with various EU directives. Key issues include deficiencies in anti-money laundering regulations, delayed exchange of tax information, and the withholding of banking transaction data from the EU anti-fraud office, OLAF. Cyprus also faces warnings regarding the implementation of minimum wage laws, protection of workers from asbestos, and barriers to renewable energy installation. Furthermore, the Commission has issued a reasoned opinion to Cyprus and 11 other member states for failing to meet the mandatory 50% municipal waste recycling target for 2020. Conversely, the Cyprus Parliament unanimously approved a law on Thursday to align domestic legislation with EU directives on tax information exchange and global corporate minimum tax (Pillar 2). The government is required to respond to all pending infringement notices and take corrective legislative actions within a two-month period to avoid potential referral to the European Court of Justice.