Differences between Cristóbal Montoro are fueling doubts about whether service providers will get paid on time. The Finance Minister proposes sanctions on the companies that cannot pay within the set terms: 30 days for administrations and 60 days for private companies, De Guindos wants to extend the term limit for those who enter formal agreements to do so.
The Minister of the Economy also frowns on sanctions for those who can't pay the service providers on time even though 68% of outstanding contracts are flouting the anti-default payment law and construction companies are going an average of 277 days without paying any interest. To make good on his promises, Montoro should make administrations pay on time. The agreement between service providers and companies or governments leaves these small companies defenseless and forced to sign unfavorable agreements if they want to stay in business.
