Late Payment in Commercial Transactions
Germany is backing social insurance In the Council.
UM – 03/2024
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.