HOTREC position on the EU Late Payment Regulation

HOTREC, representing European hospitality businesses, responds to the European Commission’s proposed Regulation on combating late payments in commercial transactions. The regulation introduces:

• A binding 30-day maximum payment term,
• Automatic interest and compensation for late payments,
• Stronger enforcement measures.

While HOTREC supports efforts to tackle late payments, it argues the proposal lacks flexibility and risks harming SMEs by limiting contractual freedom. The uniform 30-day rule overlooks regional and sectoral differences and may violate EU principles of proportionality and subsidiarity. HOTREC recommends revising the existing Directive instead of adopting a new Regulation.

The association urges policymakers to avoid negative economic impacts on hospitality SMEs and other financial pressures.

You can find HOTREC’s full position in the document.