The Commission decides to refer Spain and Malta to the Court of Justice of the European Union for failing to transpose the Delegated Directive as regards the adjustments of the size criteria for micro, small, medium-sized and large undertakings or groups

Calle Gran Vía, Madrid, Spain (Florian Wehde, Unsplash)This article is brought to you in association with the European Commission. Today, the European Commission decided to refer Spain and Malta to the Court of Justice of the European Union for failing to transpose the Delegated Directive as regards the adjustments of the size criteria for micro, small, medium-sized and large undertakings or groups (Delegated Directive (EU) 2023/2775). This Directive aims to update and adapt the criteria to determine the company’s size in the Accounting Directive to the impact of inflation since 2013. Member States were required to transpose this Directive in full by 24 December 2024.To date, most EU Member States have declared complete transposition of the Directive. BackgroundDelegated Directive (EU) 2023/2775 places significant importance on undertakings and groups to ensure they are subject to regulatory obligations proportionate to their actual size.