MEPs welcomed European Commission’s recent launch of infringement proceedings against 17 member states, but they say more action is needed to create positive environment for change.
Infringement action by the European Commission against member states failing to implement EU rules designed to encourage gender balance on corporate boards has been welcomed by MEPs from the Parliament’s women’s rights committee, but more action is needed, key lawmakers have told Euronews.
An EU directive stipulating gender balance on the corporate boards for listed companies is delayed or has only been partially implemented in more than half of the EU’s member states.
The European Commission recently launched infringement procedures against 17 member states for failing to fully transpose the directive or some of its measures—a move welcomed by MEPs from the women’s rights parliamentary committee (FEMM).
“The EU must re-evaluate its existing policies and introduce progressive measures, such as discouraging involuntary part-time work, which disproportionately affects young women,” MEP Carolina Morace, from Italy’s The Left group, told Euronews.
“Additionally, enhancing parenting support services, like day nurseries, and considering the allocation of these costs within member states’ budgetary constraints could foster a more balanced and equitable environment,” she added.
Since last August, Spain has had a parity law aimed at achieving gender balance in leadership bodies. For MEP Lina Gálvez (Spain/S&D), chair of the committee on Women’s Rights and Gender Equality (FEMM), it should serve as “a model for a more equal Europe” beyond corporate boards.
“Otherwise, we risk repeating what happened with the Commission’s formation this summer or seeing the European Parliament end up with more men than in the previous term,” Gálvez told Euronews.
The directive on gender balance on company boards sets targets for EU large-listed companies: 40% of non-executive directors and 33% of all directors must be from the under-represented gender.
The legislation took effect in December 2022. Member states had two years to incorporate its provisions into national law, and companies must meet the targets by June 2026.
However, Bulgaria, Denmark, Ireland, France, Poland, and Portugal have only partially transposed the directive, while another 11 countries—including Belgium, Luxembourg, Hungary, the Netherlands, and Austria—have yet to notify the relevant measures.
“It’s no coincidence there are delays or partial transpositions of the directive, given that it was blocked in the Council for 10 years before its approval,” Gálvez argued.
Last year, women accounted for 39.6% of board members in countries with binding gender quotas, compared to 33.8% in countries with soft measures and just 17% in countries that took no action.
The directive includes measures such as the introduction of effective, proportionate, and dissuasive penalties for non-compliant companies and a requirement to prioritize equally qualified candidates of the underrepresented sex.
The 17 notified member states have until early April to respond to the Commission’s request for information. If the EU executive finds a member state in breach of its obligations, it can issue a formal request for compliance, typically within two months.
As a last resort, the Commission can refer the case to the European Court of Justice, but in 90% of cases, countries comply before reaching this stage.
Marta Iraola contributed to this story.
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