The European Commission has decided this Wednesday to initiate infringement proceedings against Spain for not having completed the transposition of the second payment services directive. The non-compliance refers, in particular, to the rules applicable when a payment institution requests to operate as a payment service in a host Member State other than the one in which it is authorized to carry out its activity.
As Brussels details in a statement, the competent authority of the Member State of origin must notify its final decision to the authority of the host country and to the payment institution within a maximum period of three months from the receipt of the request. This requirement aims to ensure the proper functioning of the passport regime, "a key pillar of the EU's single market for payment services".
In the Spanish case, the Commission considers that national legislation does not adequately incorporate the obligation of the competent authority (Bank of Spain) to communicate its final decisions (both favorable and unfavorable) on passport applications to the authorities of the host Member State and to the affected payment institution, but only negative resolutions.
"This risk undermines the right of establishment and the free provision of services within the EU," warns the Community Executive, which has sent a letter of formal notice to the Spanish authorities to notify the non-compliance and initiate the corresponding sanctioning procedure.
If Spain does not offer a satisfactory response, the Commission could decide to issue a reasoned opinion, the second stage of the infringement procedure. This phase opens a new period of dialogue before Brussels decides whether to finally refer the matter to the Court of Justice of the EU to request the imposition of an economic sanction on the Member State that has not complied.