Commission refers Greece to EU Court over hospitals’ delayed payments to suppliers
The European Commission decided on Wednesday to refer Greece to the EU’s Court of Justice for not applying correctly the rules under the Late Payment Directive.
The Late Payment Directive obliges public authorities to pay their invoices within 30 days (or 60 days for public health authorities).
The EU found that the payment practices by Greek public hospitals towards their suppliers are in breach of the directive by not providing immediate payment of their debts when suppliers agree to waive their rights to interest, which is contrary to established case-law.
The Commission had already referred Greece to the Court of Justice in November 2023 in another late payment case, targeting the excessive payment delays by public hospitals in Greece.
“Late payments by public hospitals hamper the competitiveness and resilience of businesses working in the health sector, especially SMEs. During the Covid-19 pandemic, these businesses played a crucial role in quickly supplying hospitals, helping them remain operational,” the Commission said in its explanatory press release.
Directive 2011/7/EU put in place strict measures which, when properly implemented by EU countries, contribute significantly to employment, growth and an improvement in the liquidity of businesses. Member states have a special responsibility in ensuring that public authorities pay on time the goods and services that they procure.
