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Portugal has been ordered to pay a €10 million fine by the Court of Justice of the European Union (CJEU) for failing to meet its legal obligations under EU environmental law. The ruling also imposes a daily penalty of €41,250 until the country fully complies with a prior 2019 judgment related to biodiversity conservation and habitat protection.Maximum penalty to enforce compliance
The EU’s top court confirmed that the maximum financial sanction was applied to compel Portugal to end its ongoing breach of the EU Habitats Directive. According to the ruling, 55 protected sites remain non-compliant, despite a court order issued seven years ago. The daily fine breaks down to €750 per unprotected site. For each site brought into full compliance, the penalty will decrease by €750 per day, creating a direct financial incentive for immediate corrective action. In its official statement, the court emphasized the severity of the infringement: “These are particularly serious violations of EU environmental legislation, in which Portugal has persisted.” The court highlighted that Portugal is home to exceptional ecological diversity, including 99 habitat types and 335 species safeguarded under the Habitats Directive. Judges stressed that the protection of these ecosystems is vital to the European Union’s shared natural heritage. Given the prolonged duration of non-compliance and Portugal’s financial capacity, the court determined that a €10 million lump sum was justified.Ongoing dispute over EU habitats directive compliance
The European Commission has spent years pressing Portugal to designate and properly protect areas identified as Sites of Community Importance (SCI). These sites were required to be classified as Special Areas of Conservation (SAC) under EU law. Under the Habitats Directive, EU member states must formally designate SACs within six years of identifying them and implement conservation measures to safeguard rare ecosystems and vulnerable species. In 2019, the court ruled that Portugal had failed to designate 61 protected areas across the Atlantic and Mediterranean biogeographical regions.
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