Activites

• 1996/07/22 Final act published in Official Journal
• 1996/07/04 Debate in Parliament
  • Debate in Parliament
  • T4-0388/1996 summary

    Parliament adopted the report by Mr Lyndon HARRISON (PSE, RU) on the Commission recommendation on payment periods in commercial transactions. While the report supports the objectives of transparency and simplification set out in the Commission recommendation with a view to solving the problem of payment delays, it expresses doubt about the appropriateness of a non-binding EU instrument to ensure reasonable payment periods, and to foster competition and confidence in the market. It therefore proposes: - that the Commission consider converting its recommendation into a proposal for a Council Directive, - statutory recognition of an automatic right of creditors to interest for late payment which would be appropriate as a penalty and as a deterrent; - statutory compensation for costs incurred in connection with the recovery of debts; - a minimum of harmonization of legal provisions relating to simple and effective extrajudicial procedures for recovery of payments due and of related costs; - provision for appropriate credit information and concrete measures for training SMEs in credit management; - deferment of paying VAT until invoices are settled; - provision for licensing of debt collectors who should fulfil certain requirements (financial guarantees, probity, financial solvency, etc.). Finally, the EP considered it imperative that public authorities and public-law enterprises change their business practices in the field of payment and set a new standard in public procurement contracts. �

• 1996/05/07 Vote in committee, 1st reading/single reading
  • A4-0161/1996
• 1995/06/16 Committee referral announced in Parliament, 1st reading/single reading
• 1995/05/19 Non-legislative basic document published
  • N4-0198/1995 summary

    OBJECTIVES: - to combat late payments in commercial transactions by making provision for a sufficiently dissuasive legal framework for bad payers, thereby ensuring contractual payment deadlines are adhered to; - to ensure that reasonable payment periods are adhered to in transactions where contractual relations between the partners are one-sided (especially in public procurement). CONTENT: the proposal for a Council recommendation sets out the principles and methods for improving payment periods by calling on the Member States to take suitable measures in keeping with their own legal framework. In particular, the Member States are called on to take measures to: - strengthen transparency in contractual relations, improve company training and information and mitigate the fiscal repercussions of late payments (e.g. clear indication, for each contract, of the period applicable and of the date on which payment is due; indication of discounts and reductions; indication of the period of time for the consignee to notify objections to the quality or quantity received; advice and legal assistance in drawing up contracts; development of treasury management tools; recourse to factoring; possibility for SMEs to defer payment of VAT until payment has been collected and to file VAT returns at longer intervals); - guarantee adequate compensation in the event of late payment (grant creditors the right to charge arrears interest; set a sufficiently dissuasive rate of arrears interest, to be applied in the absence of a specific clause in the contract); - guarantee suitable, fast, cheap recourse procedures (extrajudicial procedures for resolving litigation; simplified procedures for litigation involving limited sums; fast recovery procedures); - abolish difficulties specific to cross-border trade (information and training for companies on managing cross-border payment periods); - improve payments under public procurement contracts (adhere to a period of 60 days without challenging shorter periods in force; measures to increase the awareness of the authorities concerned; precise administrative procedures; regular controls on payment periods; payment of sub-contractors).�

Documents

• Non-legislative basic document published: N4-0198/1995
• Committee report tabled for plenary, single reading: A4-0161/1996
• Debate in Parliament: Debate in Parliament
• Decision by Parliament, 1st reading/single reading: T4-0388/1996

History

(these mark the time of scraping, not the official date of the change)