Directive 2011/7/EU on late payments in commercial transactions (Late Payment Directive, (LPD)) strengthened European regulations first introduced in 2000 in favour of creditors. In addition to statutory interest, the application of which is still not automatic, maximum periods were established for payments in business-to-business transactions and those with public authorities, limiting contractual freedom, which is often abused by stronger companies. Following the largely correct transposition into national law, the situation continues to vary between Member States with regard to average payment periods (especially from public authorities), and the level of implementation of additional voluntary measures (such as prompt payment codes). In the absence of harmonised measurement methods, business surveys and consultations indicate improving practices, but the attribution of this development to the LPD cannot be separated from broader economic contexts and cultural aspects easily. Further exchange of best practices and better monitoring of their effectiveness might facilitate future developments in the area of late payments, including legislative action.
Source : © European Union, 2018 - EP