Position paper on the draft regulation on late payments

In order to enforce payment discipline, especially for the benefit of medium-sized companies, the European Commission has published a draft regulation on late payments. In it, it stipulates a mandatory payment period of a maximum of 30 days. We are opposed to this, as longer payment periods are common practice. For example, payment terms of up to 160 days are common in the agricultural sector to give farmers the option of not having to pay for inputs until after the harvest. In other industries, too, longer payment terms serve a financing function in supply chains. We therefore advocate that contractual partners should continue to have more flexibility when agreeing payment terms.