SMEunited Criticizes EU Over Withdrawal of Late Payment Regulation
What happened
Davide Galli, President of SMEunited, criticized the European Commission for withdrawing a proposal intended to combat late payments. Galli stated that the withdrawal undermines commitments to SMEs, which rely on fair payment terms to invest and hire. He also compared the EU's approach to payment laws with those in the United Kingdom.
From eubusiness.com
Why it matters
The Payment Observatory's 2026 report preliminary findings show that late payments impact firms' investment, recruitment, and day-to-day operations. In 2025, 52% of companies reported payment issues, and 71% of surveyed companies believe a 30-day payment cap would be fair.
Advocacy groups are urging the European Parliament and Commission to prioritize SME issues, pushing for rapid advancement of Omnibus proposals and executive responsibility.
From eubusiness.com
Who's involved
- GalliPresident of SMEunited and Senior Vice President of Supply Chain at Ontario
- SMEunitedUmbrella group for associations of SMEs based in Brussels, Belgium
- European CommissionExecutive branch of the European Union, whose proposal was withdrawn
- European ParliamentParliament of the European Union, which is a co-legislator
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- OntarioSpeculative
Ontario might face increased costs or reduced revenue if late payments continue to impact SME supply chains.