28 Amendments of Maria GRAPINI related to 2018/2056(INI)
Amendment 6 #
Motion for a resolution
Recital C
Recital C
C. whereas large businesses have more resources at their disposal than SMEs to protect themselves against late payments, e.g. via pre-payment, credit checks, debt collection, bank guarantees or credit insurance, and are also better placed to take advantage of the global low interest rate environment to increase their investments and negotiating leverage;
Amendment 10 #
Motion for a resolution
Recital E
Recital E
E. whereas the Late Payment Directive provides inter alia for payment periods for business-to-business (B2B) and public authority-to-business (PA2B) transactions, automatic entitlement to interest for late payment, a minimum of EUR 40 in compensation for recovery costs, and statutory interest of at least 8 % above the European Central Bank’s reference rate; whereas EUR 40 is not sufficient and should be increased;
Amendment 11 #
Motion for a resolution
Recital E a (new)
Recital E a (new)
Ea. whereas the 2011 Late Payment Directive does not require a creditor to charge interest for late payment; whereas many enterprises have indicated that the interest collection option is frequently discarded for the sake of maintaining business relations with the debtor;
Amendment 12 #
Motion for a resolution
Recital F a (new)
Recital F a (new)
Fa. whereas the term 'grossly unfair' is vague and subject to interpretation by the courts when ruling on commercial disputes;
Amendment 14 #
Motion for a resolution
Recital G
Recital G
G. whereas across company sizes, SMEs are the most likely to accept unfair payment terms or have them imposed on them by larger companies, owing to an imbalance of negotiating power and the fear of damaging business relations and losing a future contract;
Amendment 15 #
Motion for a resolution
Recital G a (new)
Recital G a (new)
Ga. whereas automatic interest rate computation is a way of sparing micro- enterprises and small and medium-sized enterprises the need to calculate the expediency of seeking interest on late payment from a contractor in a stronger market position;
Amendment 20 #
Motion for a resolution
Recital J a (new)
Recital J a (new)
Ja. whereas suppliers to the public sector are generally not paid on time; whereas governments and local authorities should set the example when it comes to timely payment;
Amendment 24 #
Motion for a resolution
Recital O a (new)
Recital O a (new)
Oa. whereas the time and money absorbed by legal proceedings, coupled with the 'fear factor', deter companies, especially SMEs, from initiating late payment proceedings, especially where small amounts are involved and they risk spending more than they could actually recover;
Amendment 25 #
Motion for a resolution
Recital O b (new)
Recital O b (new)
Ob. whereas the Directive on unfair commercial practices in the food supply chain includes provisions regarding late payment for perishable goods and the designation by Member States of an enforcement authority to monitor compliance with the rules;
Amendment 31 #
Motion for a resolution
Paragraph 1
Paragraph 1
1. Believes that both the Late Payment Directive and national legislation on late payment should be better enforced through measures aimed at improving rules on payment terms and deadlines and discouraging unfair practices; notes that these measures can be categorised according to their nature (legal or voluntary), scope (horizontal or sector- specific) and objective (preventive, remedial or change in business culture);
Amendment 34 #
Motion for a resolution
Paragraph 2
Paragraph 2
2. Maintains that there is no one-size- fits-all approach to tackling the issue of late payments, as in some sectors longer payment deadlines, beyond 30 or 60 days, are in line with the needs of businesses and an accepted practice, taking into account the specificities of each sector; considers that it is also important to respect the freedom of contract between undertakingsstresses, however, that efforts should be made to move towards 30-day payment deadlines; considers that freedom of contract in business relations continues to be affected by large companies that take advantage of their stronger negotiating position on the market;
Amendment 40 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. Believes that in sectors particularly vulnerable to long payment terms, Member States cshould consider establishing stricter payment terms; notes that some Member States have limited the standard payment term to 30 days (instead of the 60 days set out in the Late Payment Directive), while only a few Member States have introduced maximum payment terms (from which the parties cannot derogate); notes furthermore that at sector level the introduction of maximum payment terms is more common; considers that legislation setting out stricter payment terms would be effective in reducing payment terms to some extent and, provided that it is enforced, would create a level playing field between large and small companies; believes that legislation defining payment terms differentiated by category of products or services is relevant in promoting fair practices and addressing sectoral specificities;
Amendment 43 #
Motion for a resolution
Paragraph 4
Paragraph 4
4. Points out that the introduction of the mandatory publication of information in specific databases and public registries concerning payment behaviour can discourage late payment and help businesses choose reliable commercial partners; believes that large companies should be obliged to publish this information on payment practices and include it in their annual reports; considers that the ‘name and shame’ factor and public access to information can be an incentive for companies to improve their payment practices and uphold their monetary obligations; calls on the Member States to provide free and accessible online portals where large companies are required to publish the information;
Amendment 48 #
Motion for a resolution
Paragraph 5
Paragraph 5
5. Encourages the Member States to reward good payment behaviour (‘name and fame’) and foster a culture of prompt payment in business relations, for example, prompt payment codes for larger businesses, since it has been demonstrated that paying on time is a smart business strategy as responsible payers can negotiate better deals and rely on trustworthy suppliers;
Amendment 50 #
Motion for a resolution
Paragraph 5 a (new)
Paragraph 5 a (new)
5a. Urges the Member State authorities to set a good example and to meet the 30-day payment deadline in transactions with private companies;
Amendment 52 #
Motion for a resolution
Paragraph 6
Paragraph 6
6. Stresses the importance of providing entrepreneurs, in particular SMEs, with more information and education on credit and invoice management; recalls that effective credit management shortens the average collection period and maintains an optimal cash flow, thus reducing the risk of default and increasing the potential for growth; believes that training and support may also make SMEs more likely to take advantage of Late Payment Directive remedies; notes that SMEs unfortunately often lack the capacity to invest in training and that there are currently no programmes at EU or national level focusing on enhancing businesses’ knowledge of credit and invoice management; believes that more EU funds should possibly be directed towards the financial education of SMEs; considers that training and support should also include guidelines for overdue payment recovery in cross-border and other transactions; therefore calls on the Commission to provide SMEs with specific tools, advice and training in relations management, negotiation, contracting and billing, as well as updating and redesigning the Your Europe Information Portal containing information on the Late Payment Directive;
Amendment 65 #
Motion for a resolution
Paragraph 8 a (new)
Paragraph 8 a (new)
8a. Notes that a number of Member States have provided public but independent funding for ombudsmen responsible for investigating disputes and recommending solutions; takes the view that such stalwart public institutions should be tasked with assisting small businesses in resolving late payment or non-payment disputes and empowered to advise on action in the event of payment arrears, for example, and to investigate potential breaches of statutory late payment provisions and to impose penalties for non-compliance; calls on the Member States to give due consideration to such initiatives;
Amendment 67 #
Motion for a resolution
Paragraph 9
Paragraph 9
9. Points out that, despite the fact that the Late Payment Directive was adopted in February 2011, thousands of SMEs and start-ups across Europe go bankrupt every year while waiting for their invoices to be paid, including by national public authorities; calls on the Commission and the Member States to consider mandatory forms of adequate compensation or offsetting for companies owed money by a public authority, including the automatic payment of statutory interest for late payment so that they are not forced to go bankrupt because of it;
Amendment 73 #
Motion for a resolution
Paragraph 10
Paragraph 10
10. Notes with great concern the situation in some Member States, where public authorities have greatly delayed payments for goods and/or services supplied to them by undertakings, leading those businesses into extreme financial difficulties or even bankruptcy; believes that in order to support businesses whose financial management is complicated by delayed payments from public authorities, the Member States should put in place faster and more efficient VAT refund procedures, especially for SMEs and, in case of justified delays, make own- initiative penalty payments corresponding to average bank interest rates;
Amendment 76 #
Motion for a resolution
Paragraph 11
Paragraph 11
11. Points out that prompt payment codes and charters and corporate social responsibility (CSR) measures contribute to creating a responsible payment culture and ensuring fair relationships and trust among businesses; considers that prompt payment codes should include provision for a supervisory body, a scale of penalties and the possible exclusion of companies that fail to comply with the payment terms of the code;
Amendment 78 #
Motion for a resolution
Paragraph 11 a (new)
Paragraph 11 a (new)
11a. Notes that a change in corporate culture at board level is necessary to engender a responsible payment climate; calls on the Member States and the Commission to encourage this development through the introduction of supervisory and reporting procedures at board level;
Amendment 79 #
Motion for a resolution
Paragraph 12
Paragraph 12
12. Maintains that certain concepts of the Directive, such as ‘grossly unfair’, and when contractual payment terms begin and end cshould be clarified, either in the Directive or through guidance issued by the Commission and calls on the Commission to define the term 'grossly unfair'; notes also the emerging case law of the Court of Justice on the interpretation of certain concepts of the Directive (i.e. ‘undertaking’, ‘commercial transaction’ and ‘grossly unfair’ in Cases C-256/15 and C-555/14);
Amendment 83 #
Motion for a resolution
Paragraph 13
Paragraph 13
13. Calls on the Member States and the Commission, in the light of the recent case law of the Court of Justice (Case C- 555/14), to take the necessary steps to ensure that public authorities pay their suppliers on time and that creditors receive automatic interest and compensation when payments are late without the need for overdue payment proceedings and calls on the Commission to propose automatic interest computation;
Amendment 86 #
Motion for a resolution
Paragraph 15
Paragraph 15
15. Stresses that making payments quickly is absolutely essential for the survival and growth of businesses, especially SMEs; notes that fintech and digital technologies are revolutionising the means and speed of payments; expects, therefore, a sharp increase in electronic invoicing and the gradual replacement of traditional types of payment with innovative types (e.g. supply chain financing, factoring, etc.), so that the creditor can be paid in real time as soon as the invoice is issued;
Amendment 89 #
Motion for a resolution
Paragraph 16
Paragraph 16
16. Notes with great interest the procedures put in place in certain Member States in the case of late payment by public authorities, whereby the central government may issue a warning to a local authority if the latter has not paid its suppliers on time and, should late payment persist, may pay the suppliers directly for the goods or services provided, suspending payment allocations to the non-compliant local authority’s budget; considers that such a system, combining reliable monitoring of the public bodies’ payment performances with an effective escalation plan, widely communicated when activated, seems to have produced results which deserve further analysis and should be imparted to Member States as an example of good practice;
Amendment 91 #
Motion for a resolution
Paragraph 18
Paragraph 18
18. Applauds certain industry-level initiatives in some Member States under which participating corporations have drawn up a pledge detailing the concrete steps they will take to ensure their smaller suppliers are paid more quickly for the products or services they supply; notes that positive naming and shaming (‘name and fame’) could produce the intended results via self-regulation at industry level and provide substantial support for SMEs;
Amendment 94 #
Motion for a resolution
Paragraph 19
Paragraph 19
19. Calls for consideration of enhanced synergies between the Late Payment Directive and public procurement rules, in particular the possibility for contracting authorities to exclude non-performing contractors from future procurements if subcontractors are not paid in time (Public Procurement Directive)11, more widespread use of the option laid down in Article 71(3) of the Public Procurement Directive of enabling direct payment to subcontractors under certain conditions, and making payment behaviour towards subcontractors one of the criteria on which to evaluate the financial capability of potential contractors in public tenders; calls on the Member States, for public procurement purposes, to assess the track record of large contractors unable to provide evidence of fair and efficient payment practices in dealings with their subcontractors; _________________ 11 Article 57(4)(g) of Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC.
Amendment 111 #
Motion for a resolution
Paragraph 23
Paragraph 23
23. Calls on the Member States, where appropriate, and the Commission to use professional publications, promotion campaigns and any other functional meaninstruments to increase awareness of the remedies against late payment among undertakings;