Germany is backing social insurance In the Council.

Good news from Germany. On 7 March, the Federal Government backed social insurance system in the Competitiveness Council (COMPET). In an exchange involving the progress of negotiations on the dossier about late payment in commercial transactions, State Secretary Sven Giegold emphasised that the needed rigid requirements must not be inappropriate as this would lead to clashes in various sectors. It must also be ensured that social insurance system has adequate time to check its payments.

Priority for freedom of contract

The Federal Government has taken up DSV's appeal to focus on the special situation of social insurance institutions. Accident, health and pension insurance providers have concluded a large number of contracts with the representatives from their service providers, who do not always conform with a rigid payment deadline of 30 days, as envisaged by the European Commission. Especially if the invoice or the service provided involved raises questions. In the current form of the Late Payment Directive, an exemption in the healthcare sector has provided the necessary leeway for appropriate contractual solutions.

No interest penalty for statutory audits

A special situation exists in health insurance, where the invoices from dentists, doctors, hospitals and pharmacies are checked and - if necessary - corrected after payment, which can sometimes take a long time. Here, the health insurance company fulfils the audit tasks under the German Social Insurance Code. They must not be sanctioned. This message has reached the Council.

Exceptions required for the healthcare sector

The meeting on 7 March was not a pleasant one for Thierry Breton, Commissioner for Internal Market. The vast majority of member states are in favour of more contractual freedom and are highly sceptical about the need for regulation. Especially as a directive could easily be transposed into national civil law. There is also widespread resistance to establishing new bureaucracy, which in case of doubt would clash with the jurisdiction of the courts. Last but not least: In addition to Germany, other countries such as Italy, Malta and Slovenia have also called for exemptions for the healthcare sector. It will be interesting to see what happens in the European Parliament, where the controversy surrounding the European Commission’s proposal has also caused rifts - even within political groups in some cases. Due to the great need for clarification, the report by Róża Thun and Hohenstein (Renew, PL) is not expected until 21 March. 

Finalisation remains uncertain

The deliberations in Parliament and the Council suggest that the European Commission's draft will undergo massive changes. It is highly uncertain whether a regulation will be passed in the end or if an agreement will be reached at all.