Public Procurement reform will lead to more efficient, simple and flexible procedures

17 July 2013, Last updated at, 11:32 EEST
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author: AFP/Scanpix

Today Lithuanian Presidency secured support of the Committee of Permanent Representatives (COREPER I) for the final compromise text of the Public Procurement reform package, negotiated by the Council and the European Parliament.

Ambassador Arūnas Vinčiūnas, Chairman of the Permanent Representatives Committee, received the mandate and signed the letter on behalf of the Council with the compromise text attached, which will be sent to the IMCO Committee, informing that this text is acceptable to the Council and proposing that an agreement in first reading could be reached.
This legislation is part of a Single Market Act I, and has a significant potential for enhancing growth, innovation and job creation while supporting the most efficient use of public funds.
The Package consists of three legislative proposals - Directive on public procurement (Classical directive), Directive on procurement by entities operating in the water, energy, transport and postal services sectors (Utilities Directive) and Directive on award of concession contracts (Concessions Directive).
The Directives aim at:

  • Creating a modern public procurement legislative framework and ensuring greater efficiency of public procurement;
  • Simplification and flexibilisation of rules;
  • Reducing the administrative burden on public authorities and potential contractors;
  • Facilitating Small and Medium Enterprises' participation;
  • Stimulating of greater competition across the Single Market;
  • Switching to electronic procurement;
  • Promoting innovation and contributing to a better use of resources.

It is the first time that a Directive on Concessions has been developed as a separate legal instrument regulating the award of concessions.
The Chairman of the Committee of Permanent Representatives ambassador Arūnas Vinčiūnas thanked the previous Danish, Cypriot and Irish Presidencies for their substantial work on the Public Procurement Reform package. The Irish Presidency negotiated the package with the European Parliament and reached a provisional agreement that required significant compromise on the part of all three institutions.

The process of adoption of the Public Procurement reform package will be finalized after European Parliament votes on it, and after the Council formally adopts it.
This is important package for fostering economic growth of the EU: the World Bank estimates that e-procurement can trigger savings of 6 to 13.5% of the total public procurement expenditure.

Public authorities in EU spend 18% of EU GDP, worth 420 billion euros in total. Therefore the agreement will significantly contribute to achieving the objectives of the Europe 2020 Strategy to ensure the optimal use of funds in order foster growth and job creation.

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