Costs: German economic system in opposition to a set fee interval of 30 days | EUROtoday

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The German economic system is resisting the plan EU Commissionto set a fee interval of 30 days for all business transactions. “The financing costs are at risk of rising significantly, especially for small and medium-sized retailers,” mentioned the deputy managing director of the German Chamber of Commerce and Industry (DIHK), Achim Dercks, to the Funke media group (Thursday). Companies would then typically should briefly finance the acquisition of products by brief fee phrases. “The resulting liquidity gaps often have to be covered by loans,” he defined.

Under present coverage, the usual business grace interval is 60 days. In common, fee deadlines could be agreed in a approach that most closely fits all contractual companions.

EU needs to fight late funds with new regulation

The EU Commission takes a special perspective. With its new regulation, it needs to fight late funds and thus be sure that small and medium-sized corporations don’t get into monetary difficulties. In occasions of disaster and turbulence, fee delays enhance and pose a threat for a lot of corporations.

The Commission had its plans, which additionally lowered paperwork and simplified taxation deliberate, introduced in mid-September. The proposals are nonetheless being negotiated with the EU states and the EU Parliament. Federal Justice Minister Marco Buschmann (FDP) advised the Funke media group that he was “very critical” of the modifications deliberate by the fee. “Rigid deadlines do not do justice to the different circumstances and leave the economy too little room for freedom of contract,” he defined.

German commerce affiliation warns

The German Trade Association (HDE) warned that the brand new necessities shouldn’t be determined on this approach. “Setting the payment deadlines rigidly at 30 days does not prevent unpunctual payments and therefore does not help anyone,” mentioned HDE Managing Director Stefan Genth to the German Press Agency. It is commonplace for laundry machines to be on the cabinets in retail shops for longer than 30 days. “That’s why agreeing on a longer payment period is essential for the retailer if goods remain in the store or in the warehouse for a longer period of time, because in this way he saves high financing costs.” No new regulation is required.

© dpa-infocom, dpa:231228-99-425054/2