Late Payment (Directive)
The EU wishes to combat late payment by businesses and public authorities. Therefore, it has submitted a Directive Proposal amending and complementing the existing Directive in essential parts. Particularly the enforcement of recovery costs is to be facilitated. In addition, special rules for public authorities are to be introduced for public authorities in delay.
The idea to improve payment behaviour in the EU is to be generally welcomed. However, where mandatory provisions are introduced the Directive is questionable from an ordoliberal viewpoint. The proposed flat rate compensation for late payment by public authorities is contradictory to the principle of compensation.