The regulation on late payments must be adapted to the needs of micro-enterprises and impose firm rules on transparency and compliance with deadlines, said the European Parliament’s rapporteur for the text, Róża Thun Und Hohenstein (Renew Europe, Polish).
She presented the first version of her draft report to her colleagues on the Committee on Internal Market (IMCO) on Monday 4 December. She recommends three key points to make the regulation more effective, without adversely affecting the competitiveness of European companies.
“I firmly believe that it is necessary to establish a culture of payment on time within our companies, as this would benefit the entire European economy”, insisted the MEP. In particular, she highlighted the paradox that European SMEs are the most likely to be adversely affected by late payment, even though they contribute most to the competitiveness and development of the European Union’s Single Market.
Róża Thun Und Hohenstein suggests retaining in her report the 30-day payment period proposed by the European Commission (see EUROPE 13248/21). “Some companies have told me, when I was writing this report, that they cannot function properly without a shorter payment period”, she said. She added that: “Others tell me that they are not in a position to pay within such short timescales. But no one has proposed an alternative solution, so we will continue to study the situation in the various sectors”.
Secondly, but by no means least, Róża Thun Und Hohenstein said that it was absolutely essential to be able to ensure that companies paid on time. With this in mind, her report proposes the introduction of an “annual report” requirement for “large companies” on their payment habits, which would be analysed by an independent national authority, under the supervision of the Commission.
Finally, the rapporteur proposes adapting the regulation for micro-enterprises, which she describes as the “weakest players” in the market, to give them an extended margin of 12 months to comply with the new payment deadlines.
“I hope for constructive work, which will allow us to see the whole picture and not just some of the details”, said Róża Thun Und Hohenstein. “Our companies must be competitive on our market, but the market itself must be able to compete on a global scale”, she stressed at the end of the IMCO committee meeting.
To see the first version of the report: https://aeur.eu/f/9xm (Original version in French by Isalia Stieffatre)