Brussels, 08/10/2010 (Agence Europe) - Earlier this week, the European Parliament's internal market committee endorsed an agreement in principle on changes to the late payments directive for companies and local authorities (see EUROPE 10214). The European Parliament will vote on the draft directive in the October plenary, paving the way for a first reading of the revised Directive 2000/35/EC. For business to business payments, the agreement sets a 30 day payment deadline. “It is possible to go up to 60 days. The payment period may be extended beyond 60 days only if 'expressly agreed' by the creditor and the debtor in the contract and provided that it this not 'grossly unfair to the creditor'” For public contracts, the deadline is also 30 days with 60 days being possible if both sides agree and if the nature of the contract objectively justifies such a move. Member states will have the option of deciding that payments made by healthcare establishments like hospitals will have a 60-day deadline. Companies suffering from late payments will be entitled to charge compensation of the basic rate of interest plus 8% and €40 can be charged in compensation for the costs of recovering the late payments. (M.B./transl.fl)