Within the European public sector around EUR 1,500 billion is spent by governments, municipalities and county councils every year. The European Commission estimates that EU countries could save at least 5 percent of their purchasing budgets if they apply consistent and objective competitive tender procedures when dealing with new suppliers.

A 2005 European Commission report on public procurement found that governments could save an estimated 50-80 percent on transaction costs for both buyers and suppliers. The way forward seems clear: increased competition and efficiency in public procurement markets can generate a positive effect on the entire European economy.

The story so far

The use of electronic data transfer has opened up new opportunities to improve the efficiency of the entire public procurement process. EU directives have attempted to apply consistency into public sector purchasing decisions made within EU countries. They aim for non-discrimination, fair play, transparent procedures and open communication to the international supplier community.

These EU directives provide general rules to be applied when awarding contracts to suppliers, with the goal of stimulating e-business in the European market. They cover which public institutions are included, the type of award procedures or purchasing procedures to be followed, technical specifications and rules on advertising. (Long article continued  as pdf document)

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