The European Commission declared that Member States fail to fully apply Directive 2004/38/EC on the right of EU citizens to move and reside freely within the territory of the bloc, and thus greatly impair citizens' rights.

Expressing disappointment, the EC adopted a report of the application of the Directive, outlining the steps the Commission will take to ensure that Member States improve their laws.

"Free movement of persons constitutes one of the fundamental freedoms of the internal market, to the benefit of EU citizens, of the Member States and of the competitiveness of European economy. Flaws in the implementation of EU law in this field might result in a breach of the principles laying at the very core basis of the European construction," Vice-president Jacques Barrot, Commissioner in charge for Justice, Freedom and Security, stated.

"The Commission will use fully its powers under the Treaty to achieve this result, launching infringement proceedings when necessary, providing guidance to the Member States and ensuring that EU citizens are informed of their rights," the commissioner added.

Directive 2004/38 provides a single legal instrument on free movement of EU citizens and their family members. The Directive gives to EU citizens and their families a right of permanent residence after five years of residence in the host Member State and extends family reunification rights to registered partners.

All Member States have adopted national laws to protect the right of EU citizens and their families to move and reside freely within the EU, the EC said, but added that although national laws in some areas treat EU citizens and their families better than EU law requires, not one single Member State has transposed the Directive effectively and correctly in its entirety.

Only Cyprus, Greece, Finland, Portugal, Malta, Luxembourg and Spain have correctly adopted more than 85% of provisions of the Directive, the Commission reported.

Austria, Denmark, Estonia, Slovenia and Slovakia, on the other hand, have correctly adopted less than 60% of provisions of the Directive.

The problems revealing persistent violation of the core rights of EU citizens exercising their right to free movement within the EU are mostly related to the right of entry and residence of third country family members, as well as the requirement for EU citizens to submit with the applications for residence additional documents not foreseen in the Directive.

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