EU Advocate General delivers opinion: EU Directive on Adequate Minimum Wages should be annulled
The EU Directive on Adequate Minimum Wages was adopted on 4 October 2022. The directive raised significant concerns in Denmark, as it was seen as potentially setting a precedent for EU involvement in areas reserved for Member States, specifically wage-setting, a cornerstone of Denmark’s labour market model.
Even though the directive itself did not mandate immediate changes to Danish law, Denmark proceeded to issue a claim against the European Parliament and the Council. Denmark argued that the directive intrudes upon EU Member States' sovereignty over pay — a matter, which is explicitly excluded from EU legislative competence under Article 153(5) of the Treaty on the Functioning of the European Union (TFEU). Sweden supported Denmark, sharing similar concerns about preserving their own labour market model.
In his opinion of 14 January 2025, the Advocate General concluded that the directive indeed infringes on the Member States' exclusive competence in setting the level of pay. According to Advocate General Emiliou, the Court should therefore rule that the EU Directive on Adequate Minimum Wages must be annulled in its entirety.
It is important to note that the Advocate General's opinion is not final. The ultimate decision lies with the European Court of Justice, which is not bound by the Advocate General's recommendation.
Plesner will keep you updated on the matter. The European Court of Justice is expected to deliver its judgment in 2025.