{"id":34426,"date":"2020-01-31T03:00:37","date_gmt":"2020-01-31T02:00:37","guid":{"rendered":"https:\/\/www.cde.ual.es\/?p=34426"},"modified":"2020-01-31T08:01:08","modified_gmt":"2020-01-31T07:01:08","slug":"italy-should-have-ensured-that-its-public-authorities-complied-in-their-commercial-transactions-with-private-undertakings-with-periods-for-payment-not-exceeding-30-or-60-days","status":"publish","type":"post","link":"https:\/\/www.cde.ual.es\/en\/italy-should-have-ensured-that-its-public-authorities-complied-in-their-commercial-transactions-with-private-undertakings-with-periods-for-payment-not-exceeding-30-or-60-days\/","title":{"rendered":"Italy should have ensured that its public authorities complied, in their commercial transactions with private undertakings, with periods for payment not exceeding 30 or 60 days"},"content":{"rendered":"<p><a href=\"https:\/\/www.cde.ual.es\/wp-content\/uploads\/2019\/01\/derecho-foto-e1548403353898.png\"><img decoding=\"async\" class=\"aligncenter size-medium wp-image-12060\" src=\"https:\/\/www.cde.ual.es\/wp-content\/uploads\/2019\/01\/derecho-foto-300x201.png\" alt=\"\" width=\"300\" height=\"201\" \/><\/a><\/p>\n<p>In the judgment in Commission v Italy (Directive combating late payment) (C-122\/18), delivered on\u00a028 January 2020, the Grand Chamber of the Court held that Italy had infringed Directive 2011\/7 on combating late payment in commercial transactions, in that that Member State had not\u00a0ensured that its public authorities, when they were debtors in such transactions, effectively<br \/>\ncomplied with periods for payment not exceeding 30 or 60 calendar days, as laid down in Article 4 and of that directive.<\/p>\n<p>The Commission, having received a series of complaints from Italian economic operators and\u00a0associations of economic operators which denounced the excessively long periods in which Italian\u00a0public authorities systematically pay their invoices pertaining to commercial transactions with\u00a0private operators, brought an action against Italy before the Court for failure to fulfil its obligations.<\/p>\n<h3>Italy argued in defence<\/h3>\n<p>Italy argued, in defence, that Directive 2011\/7 requires Member States only to guarantee, in their\u00a0legislation transposing that directive and in contracts governing commercial transactions in which the debtor is one of their public authorities, maximum periods for payment in conformity with Article\u00a04 and of that directive and to provide for the right of creditors, in the event of non-compliance\u00a0with those periods, to late payment interest and compensation for recovery costs. According to that\u00a0Member State, those provisions do not, however, require Member States to guarantee effective\u00a0compliance with those periods by their public authorities in all circumstances.<\/p>\n<h3>The Court rejected that argument<\/h3>\n<p>The Court, first of all, rejected that argument, taking the view that Article 4 and of Directive\u00a02011\/7 also requires Member States to ensure effective compliance, by their public authorities,\u00a0with the periods for payment it prescribes. It Inter alia noted that, in the light of the large number of\u00a0commercial transactions in which public authorities are the debtors of undertakings and the\u00a0costs and difficulties created for undertakings by those authorities\u2019 late payments, the EU\u00a0legislature intended to impose increased obligations on Member States as regards transactions\u00a0between undertakings and public authorities.<\/p>\n<p>Next, the Court rejected the argument of Italy according to which public authorities cannot engage\u00a0the liability of the Member State to which they belong when acting in a commercial transaction (jure\u00a0privatorum) outside their public powers. Such an interpretation would render ineffective Directive\u00a02011\/7, in particular Article 4(3) and (4) thereof, which specifically places Member States under\u00a0the obligation to ensure effective compliance with the periods for payment prescribed\u00a0therein in commercial transactions where the debtor is a public authority.<\/p>\n<p>Last, the Court emphasised that the fact \u2013 assuming it were established \u2013 that the situation\u00a0involving the public authorities\u2019 late payments in commercial transactions covered by Directive\u00a02011\/7 was improving could not prevent the Court from holding that the Italian Republic had failed\u00a0to fulfil its obligations under EU law. In accordance with settled case-law, the question whether a\u00a0Member State has failed to fulfil its obligations must be determined by reference to the situation\u00a0prevailing in the Member State at the end of the period laid down in the reasoned opinion,\u00a0namely, in the case at hand, on 16 April 2017.<\/p>\n<h3>More Information<\/h3>\n<p><a href=\"https:\/\/curia.europa.eu\/jcms\/upload\/docs\/application\/pdf\/2020-01\/cp200007en.pdf\">Press Release<\/a><\/p>\n<p><a href=\"https:\/\/www.cde.ual.es\/ficha\/asunto-c-122-18-comision-italia-directive-lutte-contre-le-retard-de-paiement-sentencia-del-tribunal-de-justicia-gran-sala-de-28-de-enero-de-2020\/\">Judgment in Case (C-122\/18)<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the judgment in Commission v Italy (Directive combating late payment) (C-122\/18), delivered on\u00a028 January 2020, the Grand Chamber of the Court held that Italy had infringed Directive 2011\/7 on combating late payment in commercial transactions, in that that Member State had not\u00a0ensured that its public authorities, when they were debtors in such transactions, effectively [&hellip;]<\/p>\n","protected":false},"author":101011,"featured_media":14151,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[346],"tags":[1125,1102,412],"class_list":{"0":"post-34426","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-eu-news","8":"tag-case-c-122-18","9":"tag-italy","10":"tag-law","11":"entry"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - 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