The French Senate has unanimously passed a proposal to address rising bankruptcy rates by tightening regulations on late payments affecting businesses and public sector buyers.
On February 19, the French Senate adopted a unanimous proposal aimed at combating business bankruptcies by addressing the issue of delayed payments. This legislative move comes in response to mounting tensions with the Ministry of Economy, as the number of bankruptcies rose dramatically to nearly 70,000 in 2025, largely due to ongoing economic uncertainties following the COVID-19 pandemic. The Senate's initiative follows a charter introduced earlier this month by Bercy, intended to support troubled companies more effectively.
The proposal is particularly focused on curbing late payments, which have been identified as a significant contributing factor to the rising bankruptcies among French businesses. The economic climate has deteriorated since 2023, impacting cash flows and creating a hostile environment for many enterprises. By tightening the rules surrounding financial transactions between the public sector and businesses, the Senate aims to promote more reliable payment practices that could ultimately stabilize the market and assist in the recovery of affected companies.
Furthermore, this legislative change signifies a proactive step by the Senate to protect businesses from ongoing fiscal challenges, while also showcasing a commitment to collaboration with the private sector. As public institutions begin to adhere more strictly to payment deadlines, there is potential for a positive ripple effect that could foster greater trust and sustainability in business relationships across France, mitigating bankruptcy risks in the long term.
