The signatories of the letter call for the withdrawal of the 2023 proposed regulation. They emphasize their support for the ambitious objectives announced by the Commission to simplify existing regulations and enhance the competitiveness of the EU internal market. However, the plans to combat late payments "introduce additional bureaucratic hurdles without benefits for the functioning of the internal market" and are detrimental to the recent goals of reducing bureaucracy, they criticize.

Not only is the proposal unsuitable for creating a culture of timely payments, but it also undermines the Commission's efforts to ensure level playing fields in the internal market compared to non-EU businesses.

Harm to Contractual Freedom and Liquidity

The business community foresees "far-reaching negative effects" from the implementation of the regulation: A uniform fixed payment deadline for all industries disproportionately interferes with contractual freedom. At the same time, the associations refer to a study by the credit insurer Allianz Trade, which states that rigid payment deadlines would even exacerbate financing gaps and cause additional interest burdens. Small and medium-sized businesses, in particular, which the EU Commission aims to strengthen with its proposal, would be especially affected.

Last but not least, the newly introduced enforcement authorities envisioned by the regulation are unnecessary and would only create significant administrative burdens. "In light of the political promises made by the Commission to reduce bureaucracy, the establishment of such structures would be counterproductive," the associations criticize.

Withdrawal Would Be Crucial and Timely

They fear that the planned legislation would cause "unjustifiable harm" as well as "further negative impacts on the global competitiveness of the EU internal market" and point out that a majority in the Council also sees significant problems and consistently rejects the plans.

Withdrawing the proposal within the framework of the Commission's ongoing actions regarding reduction of bureaucracy and competitiveness would therefore be "an important and timely step to strengthen the internal market and move closer to achieving these significant goals of the European Commission."