Commission refers Finland to EU Court of Justice for failing to transpose NPL Directive

On 20 March, Finland received notice that the European Commission has referred Finland to the Court of Justice of the European Union. The Commission’s application concerns the delay in transposing Directive (EU) 2021/2167 on credit servicers and credit purchasers, which aims to address the issue of non-performing loans (the ‘NPL Directive’).

In its application, the Commission points out that the Member States were required to adopt the necessary provisions to transpose the Directive into their national law and to notify the Commission of these provisions by 29 December 2023. Finland has neglected to fulfil this obligation by failing to notify the Commission of the measures taken to implement the Directive.

The Commission calls on the Court to declare that Finland has breached its obligations under the NPL Directive and to require Finland to pay a penalty to the Commission, the amount of which shall depend on the duration of the infringement. For Finland, the minimum amount of the penalty has been set at EUR 1,237,000. If the infringement continues after a judgment is rendered in the case, Finland should be ordered to pay a daily penalty until the situation is rectified. 

Prior to the referral, the Commission sent a letter of formal notice to Finland on 24 January 2024 and a reasoned opinion on 25 July 2024. 

The Government submitted a proposal on the implementation of the Directive on 19 December 2024, and it is currently being considered by Parliament.

Finland must submit its response to the Court of Justice by 30 May 2025.

Inquiries: Henriikka Leppo, Director of Unit, [email protected], tel. +358 295 161 083, Prime Minister’s Office/Unit for EU Litigation