Greece targeted by European Commission for late payments to businesses

The European Commission on Wednesday announced that it was taking “further steps” against Greece and another three EU member-states for failure to implement the Late Payments Directive.

In Greece’s case, the Commission has sent a complementary letter of formal notice over new legislation removing creditors’ rights to interest and compensation.

Other countries found not to be in compliance were Italy, over late payments, Slovakia for excessively delayed payments in the public health sector and Spain for legislation systematically extending the statutory payment term by 30 days.

These 4 Member States now have two months to notify the Commission of measures taken to remedy the situation.

The directive, designed to protect businesses and particularly small and medium-sized enterprises, requires EU member-states to pay for goods and services rendered within 30 days, or 60 days in exceptional circumstances. When payment is not given within that time, creditors are automatically entitled to interest and a minimum of 40 euros compensation per unpaid invoice, as well as sundry related expenses.