Hungary penalised for failing to transpose EU whistleblower directive

Background

The European Court of Justice (ECJ) recently handed down a significant judgment in the case of European Commission v Hungary, concerning Hungary's failure to transpose Directive (EU) 2019/1937 on the protection of persons who report breaches of Union law, commonly known as the Whistleblower Directive. The directive, which aims to enhance the enforcement of Union law by providing robust protection for whistleblowers, was due to be transposed by Member States by 17 December 2021.

The Court's Findings

The ECJ found that Hungary had not adopted the necessary laws, regulations, and administrative provisions to comply with the directive by the deadline, nor had it communicated any such measures to the European Commission. This failure constituted a breach of Hungary's obligations under Article 26(1) and (3) of the directive.

Arguments and Defence

Hungary argued that it had partially transposed the directive through existing national legislation and had notified the Commission of its efforts to draft new laws for full transposition. However, the ECJ determined that the measures notified did not meet the directive's requirements, as they lacked specific references to the directive and did not provide the necessary clarity and precision.

Financial Penalties

In light of Hungary's non-compliance, the European Commission sought the imposition of financial penalties. The ECJ agreed, ordering Hungary to pay a lump sum of EUR 1,750,000. The Court emphasised that such penalties are necessary to deter future non-compliance and ensure the uniform application of EU law.

Implications for EU Law

This case underscores the importance of timely and complete transposition of EU directives by Member States. The ECJ's decision highlights the potential consequences of non-compliance, including substantial financial penalties and the potential for further legal action.

Hungary's Response

Following the judgment, Hungary has indicated its intention to expedite the transposition process and ensure compliance with the directive. The Hungarian government has acknowledged the importance of the directive in protecting whistleblowers and has committed to implementing the necessary legal frameworks.

Conclusion

The ECJ's ruling serves as a reminder of the critical role that EU directives play in harmonising laws across Member States and protecting the rights of individuals. It also reinforces the European Commission's commitment to enforcing compliance and upholding the rule of law within the Union.

Learn More

For more information on data protection and whistleblower laws, see BeCivil's guide to English Data Protection Law.