Subject: Compliance with the Late Payment Directive in Spain during the COVID-19 crisis
The Spanish Government approved Royal Decree Law 8/2020 on urgent measures worth EUR 117 billion.
However, among the measures set out, there is no explicit mention of debt payments for providers that supply goods and services to public authorities. According to the Platform against Late Payments (Plataforma contra la Morosidad), these late payments could amount to EUR 14 billion, which would constitute a potential infringement of Directive 2011/7/EU.
These funds would result in a major liquidity injection for many small and medium-sized enterprises, which would help them to survive and would limit consequent job losses.
1. Will the Commission call for Spain’s compliance with Directive 2011/7/EU on combating late payment in commercial transactions, as a way to minimise the socioeconomic costs related to COVID-19?
2. Does it believe that economic stimulus plans should include the urgent payment of debt to suppliers?
Answer given by Mr Breton on behalf of the European Commission
(10 July 2020)
The Commission is fully aware that, under the current crisis, payment delays in commercial transactions are exacerbating the liquidity constraints of businesses, and especially of small and medium-sized enterprises (SMEs).
Therefore, the Commission is prioritizing the implementation of the relevant actions of the recently adopted SME Strategy (1) to improve the enforcement of the Late payment Directive in order to support SMEs during the COVID-19 crisis. In addition, the Commission is identifying actions that could be put in place in the short, medium and long term to ensure injection of liquidity for SMEs.
In the case of Spain, the Commission has opened an infringement procedure for alleged violation of the Late Payment Directiv e (2) by the public authorities and is closely monitoring the situation with the cooperation of the Spanish authorities. While some good progress has been achieved, the payment performance in some Spanish regions remains critical.
Furthermore, payment delays jeopardise the survival of individual businesses as well as entire supply chains, both in Spain and across the EU. It is therefore necessary to let them operate in conditions that are as close as possible to normal economic conditions, particularly in view of the economic recovery after the crisis.
⋅1∙ COM(2020)103 https://ec.europa.eu/knowledge4policy/publication/communication-com2020103-sme-strategy-sustainable-
digital-europe_en
⋅2∙ Infringement reference 2015/2049 https://ec.europa.eu/atwork/applying-eu-law/infringements-
proceedings/infringement_decisions/index.cfm?
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