The European Commission has welcomed steps taken here to reform litigation costs to improve access to justice.
In its annual report on law developments across the EU, it notes moves to reform the Defamation Act to improve the professional environment for journalists.
This year's Rule of Law Report is the first to be published under the Commissioner for Democracy, Justice, the Rule of Law, and Consumer Protection, Michael McGrath.
It says there has been progress in providing appropriate funding for public service media, supporting its remit while safeguarding its independence.
The Commission also encourages Ireland to complete ongoing reforms, including efforts to address legal obstacles to funding for civil society organisations, as part of the reform of the Electoral Act.
Commissioner McGrath said: "We cannot ignore that in some member states, serious concerns remain.
"These are addressed through the recommendations in this year’s report. The recommendations form the basis for constructive dialogue.
"In our union, dialogue always comes first – but it must lead to results. That is why we pair dialogue with decisive action. Where necessary, I am ready to use all available tools, including infringement proceedings, to ensure the rule of law is upheld."
