The Court of Justice of the European Union’s recent case law on late payments in commercial transactions

This newsletter addresses the latest case law from the Court of Justice of the European Union (“CJEU”) concerning late payments in commercial transactions and its implications for Belgium. The ongoing revision of Directive 2011/7 on combating late payment in commercial transactions (“Late Payment Directive” or “Directive”) alongside the CJEU’s decisions against Portugal (C-487/23) and Spain (C-585/20), underscore the pressing need for stricter enforcement by Member States. 

Given the European Commission’s recent infringement proceedings against Belgium, the potential ramifications for Belgian law and practice are becoming increasingly significant.  

We can indeed infer from these two cases that: 

• Belgium might be held liable for not efficiently implementing the Late Payment Directive because (some of) its public authorities are systematically paying their debtors outside the payment terms provided for by the Late Payment Directive; and
• Articles 95, 120, 127, 156 and 160 of the Royal Decree of 14 January 2013 laying down the general rules relating to the performance of public procurement, which establish payment terms for public procurements, might contravene the Late Payment Directive, necessitating legislative amendments.