Edition 1446
21 October 2017
Edition: 1446

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Portugal in trouble with the EU

in News · 12-10-2017 14:52:00 · 0 Comments

The European Commission has decided to take a second step in its infringement procedure against Portugal on its compliance with the Late Payment Directive by sending a reasoned opinion.

Portugal in trouble with the EU

The Directive establishes that public authorities have to pay for the goods and services that they procure within 30 days or, in very exceptional circumstances, within 60 days.
According to the Commission’s information, Portuguese public authorities pay, on average, within 90-100 days.
The situation is critical in the health sector, with average payment periods reaching over 300 days.
In April 2017, the Commission sent a letter of formal notice to Portugal for bad application of Directive 2011/7/EU.
Portuguese authorities replied in June 2017.
Public administrations are expected to play a particularly important role in discouraging a culture of late payments by setting an example in promptly and transparently paying their suppliers.
Late payments have a negative impact on businesses, particularly SMEs, by affecting their liquidity and cash flow, complicating their financial management and thereby inhibiting growth.
The Late Payment Directive gives creditors strengthened rights by putting in place time limits for payments by businesses and public authorities for goods or services and when these payment deadlines are not met, it entitles businesses to fair compensation. Portugal has two months to reply to the concerns raised by the Commission.
Without a satisfactory response, the Commission may decide to refer Portugal to the Court of Justice of the EU.
In related news, the Commission is sending a letter of formal notice to Portugal over lack of action in preventing, deterring and eliminating illegal, unreported and unregulated fishing by some of its vessels in the waters under the responsibility of the Northwest Atlantic Fisheries Commission (NAFO).
The Commission considers that Portugal does not meet its obligations in enforcing EU rules: on conservation and enforcement measures under the Northwest Atlantic Fisheries Commission.
The Regulation establishing a Community system to prevent, deter and eliminate illegal, unreported and unregulated fishing).
The Commission is of the view that Portugal also breaches the rules of the Control Regulation aiming to ensure compliance with the Common Fisheries Policy. If Portugal does not act within the next two months, the Commission may send to the Portuguese authorities a reasoned opinion on this matter.

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Edition 1446
21 October 2017
Edition: 1446

Read this week's issue online exactly as it appears in print.

Twitter