New rules on public procurement and concessions: ensuring that public money is spent efficiently

Public authorities in the Member States spend around 18% of GDP on public works, goods and services. The overall value of the calls for tender published in the Official Journal of the EU represent around 19% of the total expenditure on public works, goods and services.

Today in the European Parliament, MEPs approved new EU rules to be applied when public authorities award contracts to private companies, whether through public contracts or concession contracts.

These new public procurement rules, approved by an overwhelming majority of MEPs (CLASSIC- 620 votes in favour, 31 against, 30 abstentions, UTILITES - 618 votes in favour, 36 against, and 26 abstentions), will ensure better quality and more transparency in the awarding of contracts by public authorities.

“Our priority was to make the rules more flexible and easier to apply”, explained Frank Engel, EPP Group Spokesman on the dossier. “New rules will also enable a greater strategic use of public purchasing power to achieve green, social and innovation-related objectives. The rules also needed to be modernised to increase the use of new procurement techniques and tools such as joint buying and e-procurement."

“The EPP Group particularly welcomes that Small and Medium-Sized Enterprises (SMEs) will now be able to participate more easily in Europe-wide public tenders”, underlined Frank Engel.

On the Concessions Directive, which was also adopted with a large majority (598 in favour, 60 against, 18 abstentions), EP Rapporteur Philippe Juvin MEP underlined: “This Directive is creating a brand new legal framework at EU level. We are filling in the gaps left in the legislative framework and taking new steps towards the reinforcement of the Internal Market, which the EPP Group has been pushing for. In view of the multiplication of case law and of the diverging interpretations of key notions between Member States, it was high time to clarify the legal framework throughout the EU to ensure legal security and stability and create a healthy economic environment essential for all actors.”

"Now, public authorities will have at their disposal a new legal instrument, the concession contract, to support their action in favour of the development of economic infrastructures and the promotion of public services, especially in the context of economic crisis and budgetary constraints. With a clear and effective legal framework, all economic operators will be on an equal footing: the rules of the game will be known to everyone", Philippe Juvin added.

Through the adoption of a ‘light approach’ pursued by the Rapporteur Philippe Juvin, the final text has been clarified, made more pragmatic, more efficient, and far more adapted to the specific nature of concessions, which are mostly long-term, complex contracts, often renegotiated several times.

Juvin added: “The text that we adopted today in plenary has survived despite many misunderstandings and false arguments. No, the Directive is not going to lead to the privatisation of public services! And no, the Directive will not lead to low-cost public services. Public authorities remain free to decide how to manage their public tasks and to define the awarding criteria, including characteristics, linked to the quality of the services."

“Today’s vote is a victory for EU citizens, as the new rules on public procurement and concessions will make sure that public authorities get better quality and value for money when they buy works, goods or services, ensuring that public money is spent in the most efficient way”, concluded the MEPs.