Clear payment targets, fewer exceptions and higher default interests are what companies working for contracting authorities can count on if a new European law is passed.

Interview: Default of payment is no peccadillo - MEP Weiler

https://api.multimedia.europarl.europa.eu/documents/20125/15070884/N003-0080-EN.srt

You are the EP's rapporteur  on a new directive

One week ago an agreement was  reached between the Council and the EP.

We realised that the former directive  of 2000 didn't really work

The Commission  thus made a new proposal

with more concrete goals,  30 days, less special treatments,

and with a higher interest rate  on delayed payments.

The idea came from the small  and medium sized businesses,

because they suffer the most  from late payments.

That's correct.  It was an idea of the SMEs

who wanted a tightening of the existing  directive which didn't work for them.

Did the Member States  modify it too much?

No, but the old directive  didn't fix a default interest,

it didn't fix a payment period,  now we have 30 days.

Now, the mechanisms are clear and rigid,  and they didn't exist before.

The old directive's only advantage is  that there were a few national directives.

And in this case  it won't be a full harmonisation,

it will be a minimum harmonisation,  so Member States can alter it,

But there are exceptions to the 30 days  period, it's not the maximum period.

Generally, the payment term  should be 30 days for everyone.

However, with complex projects  this can be difficult,

so we intend to have exceptions  for public contracts.

60 days is the maximum?  - That's the cap.

Private businesses may exceed  these 60 days with justified exceptions.

It has to be clear that the creditor  won't be disadvantaged.

regarding the exceptions  which might be included in the contract

They argued  that it could lead to big businesses

forcing small ones  to accept adhesion contracts.

So they could just annul it.  Will this still be possible?

No, it won't be possible,  because we tightened one paragraph.

It's about grossly unfair  competitive and economic conditions.

This paragraph will be another instrument

SMEs can use as an argument  to make it clear to their debtors

that it's not so easy anymore  to exceed the payment term.

they are the drivers of economy,  they are so important,

we have to do more for them  and to reduce bureaucracy.

What's the SME's response, now that this  agreement has been reached?

But we assured them that this directive  is also aimed at reducing bureaucracy.

Member States can tighten it even  further, as you said before.

Great Britain, for example,  plans to shorten the 30 days to 10 days.

But you have to have concrete  instruments or else it won't work.

In addition, delayed payments  must no longer be a mere peccadillo.

Everyone should realise  that the liquidity problems of SMEs

need to be solved.  We need to help them make investments.

But this is only possible  if they have a stable income.

The agreement has been reached  but when will it become law?

In October it will be adopted  in plenary here in Strasbourg.

The Member States  have two years time to implement it.

I'll recommend  to immediately present a new law

which already contains  all the improvements for the SMEs.

So it can come into effect  in January or April.

Barbara Weiler, thank you very much.  - Thank you.