The European Parliament appears to be leaning towards a harmonisation of the conditions applicable to the public and private sectors in terms of payment deadlines. This trend emerged from a debate on 7 April by the Internal Market and Consumer Protection Committee (IMCO) on recasting the directive on late payment in commercial transactions.

Rapporteur Barbara Weiler (S&D, Germany) proposed equal treatment for private firms and public powers as far as penalties for late payment are concerned, marking a difference with the position of the European Commission and Council. The latter two institutions wish to establish stricter conditions for the public sector compared with those for private firms.

IDENTICAL CONDITIONS

Some European parliamentarians recommend even more extensive harmonisation. The Conservatives, Liberals, Communists and Greens called for identical conditions, namely maximum payment deadlines of 30 to 50 days, whereas Weiler suggested public/private harmonisation only for penalties. These MEPs also wish to abolish the compensation (due for late payment, along with interest) of 5% calculated on the amount due and to redefine late payment interest. Weiler proposed a progressive system of compensation ranging from 2% to 5% (depending on how late the payment is), with a general ceiling of €50,000.

The rapporteur told Europolitics that she was open to a «compromise position». An informal, non-public meeting is set for 21 April. The report will be put to the vote in plenary on 28 April.