The European Commission is moving to the second stage of infringement procedures against Cyprus and eight other member states due to delays in implementing European rules regarding gender balance on company boards.

The Commission addressed reasoned opinions to Belgium, Bulgaria, Czechia, Cyprus, Latvia, Hungary, Austria, Poland, and Portugal, as they have yet to fully communicate national measures for transposing Directive (EU) 2022/2381.

The Directive sets a clear objective for large listed companies: 40% of non-executive director positions, or 33% of all director positions, should be occupied by the underrepresented sex. Although the deadline for member states to integrate these rules into national law expired on December 28, 2024, several countries remain in arrears.

While infringement proceedings began as early as January 2025 with formal notice letters, these nine states—including Cyprus—have still not completed the necessary legal steps.

As a result, the EU’s executive arm has issued these reasoned opinions, providing a final two-month grace period for compliance. Failure to act within this timeframe may result in the Commission referring the cases to the Court of Justice of the European Union, where they could face heavy financial sanctions.

Source: Brief