European Ombudsman

Strasbourg, 14-12-2007

Mr José Manuel Barroso
President
European Commission
B-1049 Brussels
BELGIQUE

Mr President,

Article 195 of the Treaty establishing the European Community empowers the European Ombudsman to conduct inquiries on his own initiative in relation to possible instances of maladministration in the activities of Community institutions and bodies. In his own-initiative inquiry OI/5/99/(IJH)GG, the Ombudsman investigated the subject of late payment by the Commission. This inquiry was closed on 16 February 2001.

In his decision closing that inquiry, the Ombudsman reached the conclusion that the Commission had taken steps to tackle the problem that appeared to be satisfactory. He added, however, that he would consider opening a new inquiry if it should prove in the future that notwithstanding these measures late payment by the Commission continued to pose serious problems.

Seven years after, and in light of a number of cases I had to deal with in recent years (see, for example, my decisions on complaints 818/2005/PB, 3067/2005/(MHZ)MF and 2692/2006/BB), it appears to me that there is scope to launch a new own-initiative inquiry with a view to ascertaining what further measures have been taken by the Commission in this respect and whether there are still problems needing adequate remedy concerning timeliness of payments.

In particular, I would like to recall that I received two consecutive complaints from a German citizen who regularly works for the Commission as an expert (complaints 1266/2005/MF and 2569/2006/WP) which both concerned delays in payment by the Commission. In my decision on complaint 2569/2006/WP, which was adopted on 19 July 2007, I stated that I considered it appropriate to look into the issue of late payment again on a broader basis, by way of conducting a new own-initiative inquiry. I added that this inquiry would include an examination of the effectiveness of the measures taken by the Commission in order to accelerate payments.

It may be useful to add that after having closed my inquiry into case 2569/2006/WP, I received a further complaint by the same complainant (complaint 1945/2007/WP) that also concerns delays in payments by the Commission. This inquiry is still pending. I note, however, that in its opinion on this complaint (which I have just received) the Commission accepts that there were delays and presents its apologies for these delays.

I have therefore decided to open a new own-initiative inquiry into the subject of timeliness of payment by the Commission.

I would very much appreciate it if the Commission could inform me of the steps it has taken to identify and deal with the causes of delays in making payments to contractors and to beneficiaries of grants and subsidies.

In this context, it would be most useful if the Commission could also present statistical data that might illustrate the problem or the remedial action taken by the Commission. I would be particularly interested in receiving information on the number and percentage of cases where delays in payment occurred, on the extent of the delays that occurred, on the sums involved and on the cases where interest was paid on account of late payment.

I note that, in its opinion on complaint 2569/2006/WP, the Commission referred to Article 106 of Commission Regulation No. 2342/2002 of 23 December 2002 laying down detailed rules for the implementation of Council Regulation No. 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities(1) as establishing the default mechanism for the payment of interest. This Article provides as follows:

"Payment time limits and default interest

1. Sums due shall be paid within no more than forty-five calendar days from the date on which an admissible payment request is registered by the authorised department of the authorising officer responsible (...).

(...)

5. On expiry of the time limits laid down in paragraphs 1 and 2, the creditor may, within two months of receiving late payment, demand interest (...)."

In its opinion on complaint 2569/2006/WP, the Commission pointed out that, therefore, it did not automatically pay interest, but only upon request by the creditor.

I would very much appreciate it if the Commission could inform me as regards the practicalities of paying interest on account of late payment. In particular, I would be interested to learn whether creditors are specifically reminded of their right to claim interest when the delayed payment is made.

It would also be useful to know how many creditors who would be entitled to claim interest do in effect present such a claim.

I would also appreciate it if the Commission could provide me with its views on whether the need to present a claim for interest and to do so within two months upon receipt of the delayed payment may not dissuade certain of its partners from insisting on their rights.

I would very much appreciate it if the Commission could send its opinion by 31 March 2008 at the latest.

If you should have any queries concerning this case, please do not hesitate to contact my principal legal adviser, Mr Gerhard Grill (+ 33 3 88 17 24 23), who will be responsible for this inquiry.

Yours sincerely,

P. Nikiforos DIAMANDOUROS

(1) OJ 2002 L 357, p. 1.