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The City of Parla will be able to benefit from a CDGAE measure from the Executive to achieve a lower Payment Period Suppliers

12/05/2026
The City of Parla will be able to benefit from a CDGAE measure from the Executive to achieve a lower Payment Period Suppliers
  • Measures Average Period of Payment to Suppliers
  • The executive’s measure allocates 304 million to municipalities to pay their outstanding debts to suppliers
  • Of the big cities, Madrid and Barcelona are the ones that maintain a payment period below 15 days.
  • The measure fulfils a second objective: to support SMEs and autonomous suppliers of the Administration.

The Executive, through the Delegated Commission of the Government for Economic Affairs (CDGAE), has approved the allocation for 2026 of the amounts necessary to meet the outstanding obligations of certain Local Entities with their suppliers, for a total of 304 million euros.

The City of Parla will benefit from this measure to reduce its PMP that was in February in 167 days and had 169 operations pending, when Europe obliges much lower periods.

The measure thus fulfils the twofold objective of improving the financial situation of municipalities and, at the same time, supporting SMEs and autonomous companies that act as suppliers of the administration.

The Mechanism

The Supplier Payment Mechanism approved on Monday again contemplates a voluntary and mandatory regime when financing the outstanding obligations of certain Local Entities with their suppliers. This mechanism will consist of the subscription of loans that will be charged to the Management Fund compartment, from the Financing Fund to Local Entities, as has already been done in previous years.

These measures of support to municipalities have recently allowed the European Commission to inform the Ministry of Finance that it has closed the infringement procedure opened to Spain after verifying an improvement in the payment deadlines to suppliers in all administrations. That file was open since 2015 for non-compliance with the Late Payments in Commercial Operations Directive.

Parla will be the only city council in Madrid that is obliged to avail itself of this measure. However, there are other towns in Madrid that can voluntarily join it: Brea de Tajo, Brunete, Casarrubuelos, Cenientos, Estremera, Navas del Rey, Santa María de la Alameda, La Serna del Monte, Sevilla la Nueva and Villarejo de Salvanés.