Brussels, 19/05/2000 (Agence Europe) - The European directive on late payments in commercial transactions is this time almost certainly adopted. After over two years of discussions and a conciliation procedure with the European Parliament, the Industry Council approved it on Thursday. Parliament will put the finishing touches to the adoption procedure at its June plenary session, in Strasbourg.
The European Commission welcomed this outcome and stressed the importance of the new provisions. "This directive will in an effective way limit the damage caused by late payments, especially to small and medium-sized enterprises (…) this is very positive, as the effects will be shorter payment periods, improved cash-flows especially for medium-sized enterprises across Europe and in the long run, more stable jobs in Europe". The European Commissioner for Industry, Mr. Liikanen commented. The Commission estimates that one case of bankruptcy in four, in Europe, is linked to late payments, which are said to cause the loss of 450,00 jobs". "The Directive should have an immediate impact on the way in which contracts are negotiated and agreed between contracting parties, as for the first time a common basis has been established for the European Union and the EEA members (Norway, Iceland and Liechtenstein)", Mr. Liikanen's spokesperson explained (for the directive's contents, see EUROPE of 26 April, p.10).