Southern European companies are the worst payers. - In a collateral effect of the crisis, Southern European companies pay their suppliers later than any other companies in Europe, according to a study carried out by the credit insurance company Euler Hermes. In Italy, Spain and Portugal, companies settled their invoices over a period varying between 80 and 100 days in 2010. By comparison, German businesses, the top payers in Europe, pay their dues within an average of 24 days. This tendency was described as worrying by Euler Hermes, “as payment times are symptomatic of the health of the private sector”. In other words, the later a company pays, the worse its financial health; the longer payment times stretch out, the greater the risks of default. According to the credit insurance provider's forecasts, the gaps will increase still further this year, with payment times expected to decrease in Germany and Poland, which are showing the most favourable growth prospects, and to increase even further in Italy, Spain and Portugal, where the crisis still has a stranglehold. Company insolvencies are exploding in southern Europe: this year, Italy will see a 24% increase of companies in difficulty. Spain and Portugal will also be affected, with predictions of increases in defaults of 20% and 29% respectively. (IL/transl.fl)