The interpretation of article 260 TFEU (ex 228 EC)

This article examines the 12 decisions of the European Court of Justice under art.228(2) EC (now 260 TFEU) and the actions and guidance of the European Commission concerning financial penalties. Three particular areas are discussed: the use made of each of the two types of financial penalty, how penalties are calculated and who decides when an infringement has ceased. The article discusses the problems raised by the existing methodology, in particular regarding the lack of transparency and predictability, as well as the lack of effectiveness which may still follow the imposition of a penalty. Finally, it assesses the changes introduced by the Treaty of Lisbon.