The Court of Justice of the European Union (CJEU) has established that the European Union does not have the competence to intervene directly in the setting of wages in member states, thus rejecting demands to impose mandatory criteria for the minimum wage. The decision came in the context of a challenge from Denmark, which argued that the directive on adequate minimum wages in the EU violates the principle of separation of competences.
The CJEU confirmed the validity of the majority of the directive but annulled two articles that imposed criteria for setting and updating the minimum wage, considering that they represent an impermissible interference in national competences. The Court emphasized that, although the EU can support the actions of member states in the field of working conditions, it cannot impose specific rules regarding wages. This decision reaffirms the autonomy of member states in establishing internal wage policy.