Watchdog approves payout rules

Date: 01/03/01

By John Shelley

THE EU citizens' watchdog has approved European Commission plans to reduce the time it takes it to pay its invoices, saying the measures should mean a brighter future for businesses that carry out work for the institution.

Previously Ombudsman Jacob Söderman had complained that the Union executive's slowness in making payments was crippling companies that depend on the institution paying its bills for their cash flow.

But now he says measures introduced by Budget Commissioner Michaele Schreyer should be enough to tackle the problem.

The EU was left open to charges of hypocrisy after passing a law last year introducing tough penalties for firms that failed to pay their bills on time.

To counter the problem Schreyer outlined a range of measures last year. Söderman has now approved them and agreed to close his investigation without further action.

"If however it should prove in the future, that notwithstanding these measures, late payment by the Commission continues to pose serious problems, the Ombudsman would consider re-opening his inquiry," said a spokesman for the watchdog.

Schreyer's proposals commit the executive to increasing the number of invoices paid within 60 days from the current 60% to 95% by 2002, and that, in principle, no payment shall take longer than 90 days.

The EU citizen's watchdog has approved European Commission plans to reduce the time its takes it to pay its invoices, saying the measures should mean a brighter future for businesses that carry out work for the institution.