Member states push for single market in public procurement

Date: 05/11/1998

By Renée Cordes

EU GOVERNMENTS are stepping up pressure on the European Commission to create a genuine single market for public sector contracts worth billions of ecu.

Austria, Germany and Finland claim that action to open up the public procurement sector to competition from firms across the EU is long overdue and will call on the Commission to give its "full attention" to the issue in a draft report which is due to be discussed by internal market ministers at a meeting in Brussels next Monday (9 November).

"The Commission has repeatedly said that it will be very difficult to enforce a true single market in public contracts," said an official at Austria's economics ministry in Vienna. "Without increased pressure, they would probably do nothing."

A spokeswoman for Internal Market Commissioner Mario Monti said he would present a progress report on public procurement at the ministerial meeting, but did not intend to present any new proposals for action at this stage.

Monti has repeatedly said the Commission is anxious to create a true single market in public procurement, ensuring equal treatment for companies bidding for public works contracts in a market worth an estimated 720 billion ecu annually.

But some member states claim that despite such pledges, the Commission has in fact been dragging its feet over the issue.

They are calling on the institution to take tougher action against member states which do not comply with EU and self-imposed timetables for putting Union laws on to their national statute books.

"The fact is that the implementation of the directives is not evenly spread over the member states," said one Dutch official. "Some have still not gone far enough, so there is not yet a level playing-field."

While countries such as Denmark have a good track record in implementing single-market public procurement laws at national level, others such as Germany and Italy are lagging far behind. "That is why it is very important that the Commission comes up with proposals," said one official.

Public procurement is not the only area where Austria, Germany and Finland are demanding action to create EU-wide standards.

At next week's meeting, they will call on the Commission to ensure there is a genuine single market in other sectors where gaps remain, arguing that priority should be given to laws governing shareholding companies and corporate take-overs, intellectual property rights and bus standards.

"A simplification of single market regulations both at the Community and member state level is a high priority," states their draft report. They add that the Commission should pay particular attention to more "consumer-friendly" regulations as well as those which could have a positive impact on the jobs market.