The EU Payment Observatory's 2025 Annual Report reveals a persistent challenge: late payments. In 2024, over half of companies faced difficulties due to delayed payments, with an alarming trend: average payment periods exceeded 60 days in both B2B and G2B transactions. Governments lagged behind businesses in every Member State, and larger companies were less likely to pay on time. Interestingly, payment performance varies widely across sectors and Member States, rather than within individual countries. This report introduces a new section on payment terms, highlighting a crucial connection: longer payment terms correlate with longer payment periods in 87% of cases. The Commission's survey supports limiting payment terms. Economic uncertainty and a slowdown exacerbate concerns about late payments, which pose significant administrative burdens and hinder investment and growth. This Annual Report, part of a European Commission project, offers a comprehensive overview of key trends in payment performance related to commercial transactions in 2024, shedding light on the challenges faced by businesses across the EU.
