The European Commission decided to file lawsuits against Portugal in the Court of Justice of the European Union (CJEU) for non-compliance with the terms of payment to companies for the delivery of goods and services.
“Following extensive follow-up procedures carried out in 2022, the Commission has now decided to bring proceedings against Portugal and Slovakia in the CJEU, given the ongoing non-compliance,” the European Commission said in a statement this Wednesday.
The Commission argued that in the case of Portugal, the suit was brought “because of the rules on late payments that cover different levels of government”.
Since launching the procedure in 2017, Brussels “has been following the situation closely, but believes that not enough improvement has been recorded, in particular in the two autonomous regions of the Azores and Madeira”.
Under the rules of the Late Payments Directive, public authorities in 27 Member States must pay bills within 30 days (60 days for public hospitals).
The commission added that in the current environment – recovering from losses caused by the pandemic, inflation and the aftermath of the Russian Federation’s invasion of Ukraine – “companies, especially small and medium-sized ones, are even more dependent on regular payments that must be able to operate” and provide work.
“Payment delays are hurting companies as they hinder growth, undermine resilience, and can block efforts to become greener and more digital,” the European institution warned.