Failure to comply with Directive 2011/7/EU (Late Payment Directive) and its impact on SMEs and the self-employed

Subject: Failure to comply with Directive 2011/7/EU (Late Payment Directive) and its impact on SMEs and the self-employed

In June 2018, a study by the Commission1 identified Spain as the country with the longest payment times between businesses in the euro area. This has worsened with the health and economic crisis caused by the pandemic, mainly to the detriment of SMEs and the self-employed.

In addition, the Multisectoral Platform against Late Payment has warned that around half a million companies in Spain are at risk of bankruptcy mainly due to late payments. Directive 2011/7/EU (Late Payment Directive) sets maximum payment periods of 30 days for public administrations and 60 days for the private sector. In 2020, the average payment period in Spain in both the public and private sectors was 77 days.

The Commission has already launched infringement proceedings against three Member States to ensure the correct implementation of Directive 2011/7/EU.

1. Does the Commission plan to revise the Late Payment Directive to ensure that SMEs and the self-employed are paid on time?

2. Given its repeated failure to comply with this Directive, is the Commission considering launching infringement proceedings against Spain?

1 Business-to-business transactions: a comparative analysis of legal measures vs soft law instruments for

improving payment behaviour.

Answer given by Mr Breton on behalf of the European Commission

(26 July 2021)

As mentioned in its reply to Written Question E-2084/2021, the Commission has indicated relevant actions in the ‘SME (2) Strategy’ (3) and ‘Updated Industrial Strategy’ (4) as well as the work programme 2021 of the Fit For Future Platform (5). The results of these streams of work will support the Commission in taking the most appropriate and relevant measures to strengthen the fight against late payments.

The Commission opened an infringement procedure in 2015 against Spain for alleged violation of Directive 2011/7/EU (6). The Commission monitored closely the efforts made by Spain in the past 6 years to improve the payment performance of its public sector and central authorities have made very good progress. However, the Commission is concerned about the persistent delays of the regional and local authorities, since their payment performance is still not in conformity with the directive's obligations. Therefore, in June 2021, the Commission notified a reasoned opinion to Spain in the framework of this procedure (7).

⋅1∙ Business-to-business transactions: a comparative analysis of legal measures vs soft law instruments for improving payment behaviour.

⋅2∙ Small and medium-sized enterprise.

⋅3∙ COM (2020) 103.

⋅4∙ COM (2021) 350.

⋅5∙ https://ec.europa.eu/info/sites/default/files/2021_annual_work_programme_fit_for_future_platform_en.pdf

⋅6∙ Directive 2011/7/EU of the European Parliament and of the Council of 16 February 2011 on combating late payment in commercial transactions https://eur-

lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32011L0007 ⋅7∙ https://ec.europa.eu/commission/presscorner/detail/en/inf_21_2743