Brussels, 24/01/2011 (Agence Europe) - On Monday 24 January, the Council formally adopted a draft directive adjusting EU late payment rules (see EUROPE 10240). The new directive introduces for the very first time penalties against local authorities that pay their bills late (beyond 30 days of the date of invoice), with a few exemptions for health care. Bills may be paid later than the 30 days' payment deadline if there is express agreement to this effect between debtor and creditor, and if more time is justified by the nature of the contract. Upon insistence from the EP, the longer time period for paying a bill may not exceed 60 days.
Creditors can charge late-payment interest and/or charges but this must be proportionate to the amount owed. A statutory interest rate will apply of the national interest rate plus 8% and late-paying creditors can be charged €40 recovery costs. (M.B./transl.fl)