## Facts

- A Community directive required Member States to adopt measures harmonizing the presentation and content of certain companies’ annual accounts by July 31, 1980.
- Italy did not adopt the necessary legislative or administrative implementing measures by the deadline.
- In October 1982, the Commission sought information from Italy about implementation.
- After continued non-implementation, the Commission issued a reasoned opinion in June 1984, giving Italy two months to comply.
- Italy still had not implemented the directive by the end of that period; the Commission brought infringement proceedings in January 1985.
- Italy did not dispute non-implementation, but argued that the subject was technically complex and that draft legislation was in progress.

## Issues

1. Whether Italy failed to fulfill its Treaty obligations by not adopting, within the directive’s prescribed time limit, the measures necessary to implement the directive on annual accounts.
2. Whether internal legislative difficulties, technical complexity, or pending draft legislation can justify failure to implement a directive after the deadline.

## Decision

- The Court declared that Italy failed to fulfill its obligations by not adopting the required measures within the prescribed period.
- Italy’s reliance on legislative complexity and ongoing national legislative work did not preclude a finding of infringement.
- Italy was ordered to pay the costs.

## Legal Principles

- A directive is binding on each addressed Member State as to the result to be achieved; the Member State retains choice of form and methods but must meet the required result within the time limit.
- Failure to adopt implementing measures by the implementation deadline constitutes a breach, regardless of subsequent steps taken after the deadline.
- A Member State may not invoke provisions, practices, or circumstances of its internal legal order to justify non-compliance with obligations and time limits set by a directive.
- In infringement proceedings, compliance is assessed by reference to the position at the end of the period set in the reasoned opinion; draft measures or later enactments are irrelevant to liability.

## Conclusion

The Court held Italy in breach for failing to implement the annual-accounts directive on time, reaffirming that implementation deadlines are enforceable and that internal legislative delays or complexity do not excuse non-compliance in infringement proceedings.


Commission of the European Communities v. Italian Republic, Case 50/84, [1986] E.C.R. 1199 (Ct. J. Mar. 26, 1986)