Making payments - Italian public authorities next to last in Europe - need to protect creditors

Subject: Making payments - Italian public authorities next to last in Europe - need to protect creditors

According to the Bank of Italy’s 2016 annual report, Italian public authorities owe their suppliers EUR 64 billion. The ‘European Payment Report 2017’, an Intrum Justitia study quoted by the Bank of Italy, states that in 2016 Italian public authorities paid their debts within, on average, 95 days, putting them second from bottom among Member States; the European average is 36 days. Italy’s slowness is manifestly at odds with the European directive on late payment in commercial transactions (Directive 2011/7/EU), in force in Italy since 1 January 2013, which requires public authorities to pay their debts within 30 to 60 days. Late payment by public authorities is having a considerable impact on the Italian economy, posing as does it an obstacle to investment and growth where suppliers are concerned, and SMEs in particular are already having to contend with the difficulties caused by the high tax burden, the credit crunch, and the economic crisis. On 7 December 2017 the Commission brought an action against Italy before the Court of Justice for infringement of the above directive.

– Do creditors enjoy any form of EU protection enabling them to recover debts owed by Italian public authorities?

– Will the Commission provide specific forms of support for Italian companies with claims on public authorities?

Answer given by Ms Bieńkowska on behalf of the Commission

(12 April 2018)

The Commission pursues a coherent enforcement policy of the Late Payment Directive (1) in all Member States in order to safeguard in particular small and medium-sized enterprises (SMEs) from the harmful effects of delayed payment and to ensure the proper functioning of the internal market. If a breach of EC law is brought to the Commission’s attention, i.e. by means of a formal complaint, the Commission is initiating infringement proceedings, as necessary (2).

According to the report (3) on the implementation of the directive adopted in October 2016, average payment delays have been steadily decreasing since 2013, both in contracts with public authorities and between businesses. The report recognises that there is still work to be done in the Member States to further reduce payment delays in all sectors. For this reason, it recommends closer monitoring of payment delays and exchange of best practices, with the support of the Commission.

In addition to the above actions, through other policy and legislative initiatives, such as these set out Single Market Strategy (4) or through the Start-up initiative (5), the Commission aims at creating a favourable environment for companies to start their activities and grow in the EU.

⋅1∙ http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2011:048:0001:0010:en:PDF

⋅2∙ http://europa.eu/rapid/press-release_IP-17-4770_en.htm

⋅3∙ COM(2016) 0534.

⋅4∙ http://ec.europa.eu/growth/single-market/strategy_en

⋅5∙ https://ec.europa.eu/digital-single-market/en/news/new-initiative-startups-start-and-scale-europe