EBC participated in the latest Stakeholder Forum meeting of the EU Payment Observatory held online on 12 May. The meeting gathered representatives from Member States, sectoral stakeholders, and technical partners to discuss recent developments impacting payment behaviour and transparency in commercial transactions.
During the session, a member of Prime Minister Bart de Wever’s cabinet presented Belgium’s new legislation on public procurement, aimed at improving payment practices and contract fairness in public works. It introduces stricter payment deadlines and enforcement mechanisms to ensure faster payments to contractors and subcontractors.
According to a landmark ruling of the Court of Justice of the EU from 2022, (Judgment of 20 October 2022, Case C-585/20, BFF Finance Iberia), national laws cannot generally allow a maximum 60-day payment period for transactions between economic operators and contracting authorities, even if composed of a 30-day verification period followed by a 30-day payment period. This is in implementation of the EU Late Payment Directive, currently in force.
Reflecting this, Belgium has been the first EU country to adapt its legislation to the EU court decision. Belgian law now establishes a single “processing period” combining verification and payment operations. For public contracts above €30,000, this period is generally set at 30 days since August 2024. Targeted nuances and exceptions apply, such as in the healthcare sector.
Following this, the EU Payment Observatory team, represented by the think tank CEPS and the consultancy Ernst & Young, provided updates on current activities, including the development of a new indicators mapper that will visually track payment performance across Member States and sectors. Interestingly, the indicators mapper, integrated in the updated website of the EU Payment Observatory, is now more user-friendly with a new structure, includes the latest data available, and has enabled the possibility of data comparison allowing users to select multiple countries.
EBC reiterates the importance such date collection tools, that enhance transparency of payment behaviours and allow indicators to reflect the on-the-ground realities of SMEs in construction. As part of its ongoing commitment, EBC continues to call for. EBC will continue contributing to the Observatory’s work, as well as calling for a strengthened legal framework with better enforcement tools to promote a culture of prompt payment.
To read the ruling (Case C-585/20) by Court of Justice of the European Union, click here
To read EBC’s latest article on the EU Payment Observatory Annual Report 2024, click here
To consult the EBC position paper on the Revision of the Late Payment Directive, click here
