Róża THUN UND HOHENSTEIN (Renew, PL), rapporteur, holds a press conference on Late Payments on Fostering a new payment culture. This transcription is a result of an automatic process. Please check against delivery.

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THUN UND HOHENSTEIN, Róża (Renew, PL)

payment services (T)

economic and monetary union package (T)

Press conference by Róża THUN UND HOHENSTEIN (Renew, PL), rapporteur, on Late Payments on Fostering a new payment culture

SOUNDBITE (English), R&oacute;ża THUN UND HOHENSTEIN (Renew, PL), Rapporteur, Thank you very much. I would like to present to you very briefly the situation and then my main three points of what I propose in this regulation. As you know, it was proposed now as a regulation by the European Commission.

SOUNDBITE (English), Róża THUN UND HOHENSTEIN (Renew, PL), Rapporteur, The situation is such. Half of the invoices in the European Union are paid late. And this proposal we have waited for a long time for it. We asked the European Commission already in the end of last term, 2019 to propose a solution, because especially small and medium companies desperately have been waitng for years for it.

SOUNDBITE (English), Róża THUN UND HOHENSTEIN (Renew, PL), Rapporteur, The situation is such that it's usually most of big companies who either impose late payment terms or even pay late, also including those late payment terms, the payment comes late. So after our demand, our request to the European Commission to propose a solution, we received the draft legislation and our committee, IMCO Committee, Internal Market and Consumer Protection received it and I was nominated rapporteur.

SOUNDBITE (English), Róża THUN UND HOHENSTEIN (Renew, PL), Rapporteur, And I propose mainly three points. First, after analysing carefully the proposal of the commission, I decided to support its proposal of a 30 day period. And this because I strongly believe that we absolutely need to instil the culture of prompt payments in order to unleash the potential of the European economy. This is also the line of my political group, Renew Europe.

SOUNDBITE (English), Róża THUN UND HOHENSTEIN (Renew, PL), Rapporteur, We need to create a situation where small companies, thanks to the timely cash flows, can prosper, increase employment, innovate and be much more competitive on the market. In the past two weeks, several weeks already, I met numerous stakeholders from various sectors and of various sizes small, medium, large. I discussed with members of European Parliament, of European Commission, with companies, and with associations of companies.

SOUNDBITE (English), Róża THUN UND HOHENSTEIN (Renew, PL), Rapporteur, I participated in the annual Small and Medium Enterprises Assembly in Bilbao and there I went in order to listen to expectations and to listen to concerns of companies, which came from very different parts from all, I would say, from all parts of Europe. And as I talked to many people, all the interlocutors I talked to either loved this proposal or they hated it. Either they were enthusiastic or they were terrified. Nothing in between.

SOUNDBITE (English), Róża THUN UND HOHENSTEIN (Renew, PL), Rapporteur, This regulation and also my report awakes huge interest and huge emotions. Some say that without this shorter deadline for payment, they will not be able to function on the market. And others say that with this shorter time term of period of payment, they will not be able to function with their existing business model. They will not be able to pay so fast. But nobody offers a better solution.

SOUNDBITE (English), Róża THUN UND HOHENSTEIN (Renew, PL), Rapporteur, I didn't hear from anybody a solution that would please all. So during the next weeks and during the next months, we will continue assessing the situation in different sectors. We will continue analysing carefully the implications of this 30 day payment period. I will lead this process in IMCO committee and I am sure that we will find the best way for our European economy and for all the companies that function on our market.

SOUNDBITE (English), Róża THUN UND HOHENSTEIN (Renew, PL), Rapporteur, My second point is the proposal of new provisions improving the enforcement of those new rules and transparency. Enforcement is a crucial point in all of this. The proposal I received from the Commission is already a good step forward in a good direction, but we must do more. Public institutions are unfortunately one of the worst payers on our market, and this is terrifying. We need to change it, and public sector should lead by example. This is not the case now.

SOUNDBITE (English), Róża THUN UND HOHENSTEIN (Renew, PL), Rapporteur, For this reason, Member States' enforcement authorities need to be independent, and they must operate under the control of the European Commission. In some Member States, such independent authorities exist already, but some Member States will have to establish it. What is important is that the enforcement of these rules is not toothless. It needs to have teeth. It is especially essential when it comes to payment practices of large companies. We need more transparency. We need stronger enforcement measures.

SOUNDBITE (English), Róża THUN UND HOHENSTEIN (Renew, PL), Rapporteur, And therefore, I propose yearly reporting by the large companies to those independent enforcement authorities on the payment practices of those large companies. That will give us transparency, and it will work easier for those who independent enforcement authorities.

SOUNDBITE (English), Róża THUN UND HOHENSTEIN (Renew, PL), Rapporteur, At the very last, last but not least, third point, are the weakest players on the market. We need to protect them. And I am talking here about micro companies. We need to make sure that they are not obliged to pay in shorter deadlines until we cure the situation on the market. The liquidity needs to move first from large companies to medium companies and then from medium companies to the small companies. It will take a certain time.

SOUNDBITE (English), Róża THUN UND HOHENSTEIN (Renew, PL), Rapporteur, And for exactly this reason, I propose that micro companies, and they are adaptors, that micro companies adopt to the 30 day payment period 12 months later than all the other companies on the market. This we do for the the good situation of the weakest player on the market, namely the micro companies. Maybe I'll stop here. If you're interested in the procedure, we will discuss it, as was said, right after this meeting. I go to the IMCO committee and I will present my draft, and we will continue discussing with them. And I am sure that we will deliver a good solution for the whole of our single market.

Q&A, Questions about the enforcement of the old directive and rapporteur's discussions with the other members of Renew group.

SOUNDBITE (English), Róża THUN UND HOHENSTEIN (Renew, PL), Rapporteur, -

Q&A, Questions about the impact on those selling slow-moving or seasonal goods and the means to support them.

SOUNDBITE (English), Róża THUN UND HOHENSTEIN (Renew, PL), Rapporteur, I would only say that, you know, now at 15:30, I will have a consideration of this draft report with my colleagues in the committee, in the IMCO committee. But you are very much invited to follow either online or be present in the committee, everybody can come. And I really hope that this work will be constructive, that we will all try to see the entity and not only my small business and and my business model, but there is a lot that we can all gain if we are not afraid of changes, of changes to the better.

SOUNDBITE (English), Róża THUN UND HOHENSTEIN (Renew, PL), Rapporteur, Not only the companies must be competitive on our market, but our market must be competitive globally. And that's why we must really take care of innovation, employment, investment and cash flow. Thank you very much.