The European Commission has referred Spain and Malta to the Court of Justice of the European Union for failing to transpose Delegated Directive (EU) 2023/2775, which adjusts the size criteria for micro, small, medium-sized and large undertakings or groups under the Accounting Directive. The Delegated Directive updates the size thresholds to reflect inflation since 2013, aiming to prevent micro, small and medium-sized enterprises from being subject to EU financial and sustainability reporting requirements intended for larger companies and to reduce administrative burden. Transposition was due by 24 December 2024, but Spain and Malta have not notified national implementing measures, following earlier letters of formal notice on 31 January 2025 and reasoned opinions on 17 July 2025; the Commission also highlighted the importance of consistent size categories across the EU to support comparability of obligations and a level playing field in the single market.
European Commission 2026-01-30
European Commission refers Spain and Malta to EU Court over non-transposition of updated company size thresholds
The European Commission has referred Spain and Malta to the Court of Justice of the European Union for not transposing Delegated Directive (EU) 2023/2775, which updates size criteria for enterprises under the Accounting Directive, by the 24 December 2024 deadline. This directive adjusts thresholds for inflation since 2013 to prevent smaller enterprises from facing reporting requirements meant for larger companies and to ensure consistent size categories across the EU.