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PIMEC urges the Generalitat to directly pay subcontractors to combat late payments and strengthen SMEs in public contracts
25/11/2024

PIMEC urges the Generalitat to directly pay subcontractors to combat late payments and strengthen SMEs in public contracts

The president of PIMEC has called for public procurement reserves to reflect SMEs’ real economic weight in the economy, a limited lot division and the updating of public contracts. The President also commended the receptiveness shown by the Catalan Minister to these proposals Barcelona, November 14, 2024. During the conference “The participation of SMEs in the public contracts of the Generalitat of Catalonia”, organized by the Department of Economy and Finance, Antoni Cañete, President of PIMEC, emphasized the urgent need for the Government to implement direct payments to subcontractors in public contracts. This initiative would significantly benefit the Catalan business fabric, generating an estimated impact of 3,000 million euros annually, which represents 50% of the total volume of public procurement. PIMEC recalls that this measure would allow SMEs to be paid in 30 days, instead of the current 68, providing significant financial savings and improving their viability and competitiveness. Aligned with the SME Relief Package announced by the European Commission, PIMEC advocates for the Catalan Government to reserve a proportional share of public procurement contracts for small and medium-sized companies until this participation is equal to their real weight in the economy. “It is essential that the share of SMEs in public procurement reflects their key role in generating Gross Added Value (GVA),” said the president of PIMEC. One of the primary barriers SMEs face in accessing public procurement is contract design. For this reason, PIMEC calls for a regulatory obligation to divide contracts into lots and restrict the number of lots a single company can win, thereby promoting smaller businesses. Dividing into lots means to legislate “thinking small first” and guaranteeing that SMEs can access public contracts under fair conditions, explained Cañete, insisting that legal certainty criteria are needed to prevent large business groups from bypassing these limits through the use from different brands within the same group. In the current context of inflation and significant increases in business costs, PIMEC has also highlighted the need to index and update public contracts. According to Cañete, “the surge in costs has severely affected the margins of SMEs since the pandemic, and adapting contracts to the new prices is essential to avoid tensions in the viability of companies that depend on public procurement.” PIMEC’s president praised the positive reception shown by the Minister of Economy and Finance, Alicia Romero, towards his proposals, and he stressed that “we are committed to fostering public-private collaboration, and we will continue working with all administrations to promote the economic and business environment of the country.”
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