The European Commission has a regulation ready, which it will propose to the European Parliament, which will prevail over the laws of each country. <\/p>\n\n\n\n
SMEs in the EU experience delays of up to 81 days in collections, which causes financial suffocation, in many cases irreparable. This is what the official figures say. In Greece as well as in many other countries this number is much higher. The recession has created a lack of liquidity and is tying the hands of companies in an endless commercial vicious circle.<\/p>\n\n\n\n
“The delay alarm keeps ringing” as ABC notes: Payment delays continue to be one of the serious problems faced by SMEs and the self-employed, an obstacle that can seriously jeopardize their economy and viability.<\/p>\n\n\n\n
The New Regulation<\/strong><\/p>\n\n\n\n The European Commission has taken action on the matter and has prepared a regulation that will replace the European Directive on late payments to submit it, as planned, to the European Parliament for approval.<\/p>\n\n\n\n Once approved, the rule will override each country’s laws and take effect immediately, according to plans next spring.<\/p>\n\n\n\n Thierry Breton, European Commissioner for Internal Trade, is expected to present a regulation that would oblige companies to pay their invoices within a maximum period of 30 days.<\/p>\n\n\n\n The rule would also end agreements between companies to pay over a longer period of time than the law requires.<\/p>\n\n\n\n An obligation that is not fulfilled in practice.<\/p>\n\n\n\n From 2021, the SME employers’ association has intensified its dialogue with Brussels to find a solution to payment delays. This body also worked with the Internal Market commissioner, led by Commissioner Breton, to tackle the changes to the 2011 European directive.<\/p>\n\n\n\n Efforts are being made to speed up the processing of the new European Union standard, as well as to set a maximum payment deadline by companies and public administrations, which keep the payment deadline at 30 days which, on the other hand, they never meet.<\/p>\n\n\n\n However, it is important for employers to specify issues such as how to account for late payment and the start date in order to standardize the criteria and provide greater certainty.<\/p>\n\n\n\n The companies are calling for an immediate and absolute resolution of late payment by Public Administrations and not just a reduction, as today the public sector has resources and is the source in many cases of unwanted payment delays to small businesses.<\/p>\n\n\n\n The sanctions<\/strong><\/p>\n\n\n\n Regarding penalties for companies that are late, the Spanish Association of Small and Medium Enterprises, for example, stressed to the ABC that their approval must take into account a context of reduced business activity and loss of liquidity.<\/p>\n\n\n\n \u201cCrime is a complex problem that needs an integrated framework to reduce it. With this objective, it is important to choose measures favorable to the competitiveness and growth of businesses. The profitability difficulties of companies in today’s context affect their viability and growth, so promoting regularity and access to finance will lead to a reduction in arrears,” the business organization explains.<\/p>\n\n\n\n The generalization of e-invoicing can be a good means of controlling payment delays, but it does not meet the digital limitations of companies and takes more time to implement.<\/p>\n","protected":false},"excerpt":{"rendered":" The European Commission has a regulation ready, which it will propose to the European Parliament, which will prevail over the laws of each country….<\/p>\n","protected":false},"author":1,"featured_media":14148,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[818,390],"tags":[25,4705,4704,4703],"class_list":["post-15447","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-europe","category-politics","tag-eu","tag-invoices","tag-regulations","tag-smes"],"_links":{"self":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts\/15447","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15447"}],"version-history":[{"count":1,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts\/15447\/revisions"}],"predecessor-version":[{"id":15448,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts\/15447\/revisions\/15448"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/media\/14148"}],"wp:attachment":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15447"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15447"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15447"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}