Antoni Cañete serves as president of the Multi-Sector Platform Against Crime (PMcM), an alliance representing more than a million companies and independent professionals from across Spain’s regions and sectors. For over ten years he has spoken out against practices by the Public Administration and large corporations that extend payment terms for suppliers, undermining SME liquidity. His persistent advocacy with government and parliamentary groups to push legislative improvements aimed at reducing crime and improving payment discipline earned him recognition in the plenary session of the Congress of Representatives, where the bill known as “Create and Grow” received broad applause in the guest gallery. Since 2010, the law has recognized PMcM as an important social interlocutor on SME and criminality issues.
In today’s slow economy and energy crisis, are there signs that payment terms are worsening?
There are early signs of abuse by some dominant players. Some firms demand payments of 120, 160, or even 180 days beyond the legal 60-day limit, despite a prohibition that has been in force since July 2010. The rationale is that delaying payments creates cheaper financing amid rising inflation and higher interest rates. In some cases, giving in can break the payment chain in the medium term, with consequences that worry the broader economy.
The recent ratification of the Create and Grow Law marks a meaningful step in the fight against late payments and related fraud. Yet its practical impact remains to be fully realized.
The law includes a key measure: contractors who work with the public sector must settle accounts with their subcontractors before obtaining work certificates. This change targets the idea that anyone who misses payment deadlines should still access public funds. A large company that manages Spain must not exceed the European 60-day settlement period. The new framework requires that when a main contractor’s work exceeds five million euros, and the contractor provides a completion document, payment will not be charged if the subcontractor has not been paid. This milestone strengthens accountability throughout the supply chain.
The Create and Grow Law has already been published in the official state gazette, but a regulation is needed to implement it. The economy minister indicated that the regulatory framework should be approved within two or three months.
Have you noticed any shifts in the behavior of large firms while this measure awaits full implementation?
No, not yet. Resistance persists. An attempt was made in the Senate to weaken the measure. The organization representing SMEs in social dialogue argues that now is not the time to require proof of timely payments.
Are you referring to Cepyme?
Yes.
What is Cepyme likely to say about this new policy?
This is not the moment to add bureaucratic layers for paying SMEs. With the crisis ongoing, the idea of delaying payments remains appealing to some. It feels as though the message is, “Since we’re in trouble, there’s no urgency to demand prompt payment.”
Which parliamentary group in the Senate advanced this initiative?
A change introduced by the Popular Group would have started counting the maximum 60-day period from the invoice date rather than from delivery. Had that continued, the progress achieved in Congress could have been undone. The amendment carried the number 44 and was rejected after strong opposition. The Platform’s work is about safeguarding the interests of the market and its players, ensuring the right policies protect SMEs.
Furthermore, large companies with more than 250 employees and subsidies exceeding 30,000 euros must prove compliance with payment deadlines through an auditor-certified certificate registered in the Official Registry of Auditors. Will this be effective?
The law states, “If you want public money or subsidies, you must pay properly.” But a formal statement alone may not guarantee timely payments. Some have argued that audits can be misleading. SMEs and micro-enterprises often pay promptly because they lack a dominant position, whereas larger firms are under scrutiny to maintain compliance. The question remains: when will this obligation take effect?
Officials say a precise start date will be announced with the new rules. The goal is for a clear framework to be in place by January 1 of the coming year.
Another measure is the annual publication of a list of delinquent companies that owe more than €600,000 to suppliers. When will the first list appear?
The administration is expected to approve publishing this list as soon as possible. Companies on the list will be required to display their average payment term and invoice volume on their websites, with some exceptions. This transparency helps build credibility for responsible firms.
If all parliamentary groups supported it, why was a sanctions regime not put in place more quickly for those who miss deadlines?
One could ask why it has taken twelve years to ratify a sanctions framework. A bill on this issue passed unanimously last October, but progress has stalled amid dozens of amendments in Congress. Still, notable gains have been achieved. The European Commission has even raised the topic during its annual address, and there is renewed EU support for sanctions against late payments.
There is also an existing gap in the Retail Trade Code concerning payment terms longer than 90 days for fresh and perishable goods or items essential to mass consumption. While large retailers may still delay payments, this practice weakens SMEs and can lead to closures. It is a concern that payment terms in retail sometimes remain flexible to the detriment of smaller suppliers.
In summary, the policy landscape is shifting toward stronger oversight of payments within the supply chain, but ongoing parliamentary negotiation and regulatory work are needed to translate these goals into timely, enforceable practice. For SMEs, continued advocacy and accountability remain crucial, with a clear eye on protecting liquidity and fair competition. (Source: PMcM and parliamentary records)