Combating late payment
Presented as part of the 'SME relief package', the initiative aims to tighten the EU's late payment framework and improve its enforcement. It proposes, among other things, to convert the current Late Payment Directive into a regulation, a move that several national parliaments contested. National parliaments also raised subsidiarity and proportionality concerns on several provisions. The impact assessment (IA) adequately justifies the need to revise the late payment framework, and substantiates the envisaged change of legal instrument. Overall, it presents a clear intervention logic. It puts forward three well-developed policy options (each with sub-options). Because of the initiative's high relevance for SMEs, a comprehensive SME test was carried out, in addition to a competitiveness check. The focus of the impact analysis lies clearly on economic impacts. The IA draws on a wide range of evidence (including relevant studies, surveys and market analyses) and broad stakeholder input (including from SMEs). It builds on qualitative and quantitative data and is transparent about data limitations. The wide evidence base somewhat compensates for the fact that the Commission's 2015 evaluation is rather dated. That fact that no separate evaluation was carried out prior to the revision is not fully in line with the 'evaluate first' principle. Of note, the Commission's open public consultation, which ran in parallel with the feedback to the inception IA, lasted merely 9 weeks (instead of the mandatory 12 weeks), without the IA disclosing the reasons for the shortened period. The IA provides a vast amount of background information and additional explanations in annexes (26 in total) and appears broadly coherent with the legislative proposal.
Briefing