EU payment observatory : annual report 2024

Late payments are a significant hurdle for the competitiveness of EU companies. Delayed payments affect firms' liquidity, thereby hampering their ability to properly operate and to invest in growth. They also make it difficult for companies to pursue the digital and sustainable transition that is essential for their long-term viability. SMEs, the weakest link in most business relations, are particularly affected, frequently suffering from late payments despite they themselves being good payers. They are also especially vulnerable to cash flow disruptions, which can lead to serious consequences such as layoffs and even bankruptcies. To address this pressing issue, the European Payment Observatory of Commercial Transactions (EU Payment Observatory) was established in 2023 by the European Commission. Its mission is to monitor trends and developments related to late payments within the EU, and complements broader efforts to mitigate this problem, including a proposal for regulation introduced in September 2023. The EU Payment Observatory has continued its work in 2024, collecting data on payment transactions across the EU and measures, documents and any other relevant initiatives put in place to combat delayed payments.