Glossary

Key EU regulation terms explained simply.

Regulation Status

Draft

A regulation is in draft stage when it has been proposed by the European Commission but has not yet been adopted by the European Parliament and the Council of the EU. The content may still change significantly during this phase. Companies should monitor the proposal but are not yet required to comply.

Adopted

A regulation is adopted when it has been formally approved by the European Parliament and the Council of the EU. For EU directives, the transposition period begins, during which member states must transpose the directive into national law. For EU regulations, the regulation enters into force after a transition period. Companies should begin preparing for compliance.

In Force

A regulation is in force when it is legally binding and enforceable. EU regulations (e.g. GDPR, DORA) apply directly in all member states. EU directives (e.g. NIS2, CSDDD) require national transposition to have been completed. Companies must comply with the requirements and may face sanctions for non-compliance.

Types of EU Legislation

EU Regulation

An EU regulation is a legislative act that applies directly and immediately in all EU member states without the need for national transposition. Examples: GDPR, DORA, AI Act.

EU Directive

An EU directive sets out objectives that member states must achieve through national legislation. The specific implementation may vary between countries. Examples: NIS2, CSDDD, Whistleblower Directive.

Other Terms

National Transposition

The process by which an EU member state incorporates an EU directive into national law. The transposition deadline is set in the directive. In Germany this is done through federal legislation, in Austria through federal laws or amendments to existing laws.

Transposition Deadline

The period within which EU member states must transpose a directive into national law. After the deadline expires, infringement proceedings may be initiated.

Sanctions & Fines

The penalties for non-compliance with EU regulations. These may include financial penalties (often expressed as a percentage of annual turnover), administrative measures, or criminal consequences. The severity varies depending on the regulation and the nature of the infringement.