Directive 2011/7/EU
Late Payment Directive
Directive 2011/7/EU is the European regulation on late payment in commercial transactions. It establishes clear rules: standard term of 30 days, maximum 60 between businesses (with explicit agreement), 30 for public administration, and automatic late interest at the ECB rate + 8%.
How it works #
The directive was transposed into Italian law through Legislative Decree 231/2002 (amended in 2012). On paper the rules exist: 30 days standard, automatic interest, flat compensation of €40 per late-paid invoice. In Italian practice it is as if they don’t exist — the average Italian DSO is 80 days, well beyond the 60-day maximum.
What it’s for #
It should protect suppliers — particularly small businesses and freelancers — from structural late payments. In countries like Germany (24-day DSO) and the Netherlands (27-day DSO) the directive works. In Italy the gap between law and reality is enormous.
Why it matters #
The directive demonstrates that Italy’s late payment problem is not legislative — the laws exist. It is cultural and structural: the reputational cost of asserting one’s rights exceeds the economic benefit, and the system relies on the creditor’s docility.