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(2004/C 33 E/266)

WRITTEN QUESTION E-2379/03

by Christopher Huhne (ELDR) to the Commission

(18 July 2003)

Subject:   Small business and public procurement

Is the Commission satisfied that small businesses have adequate access to public procurement contracts within the EU? What measures does the Commission intend to improve the situation? Will it specifically consider reducing the threshold on the contract size that must be notified and simplifying the notification procedures?

Answer given by Mr Bolkestein on behalf of the Commission

(5 September 2003)

In reply to the Honourable Member's question about small businesses and public procurement in the European Union, the Commission would emphasise that it attaches particular importance to creating the best possible legislative framework in order to ensure optimum market access for all players. The Commission's main objectives are to create a genuine internal market in Europe in the field of public procurement and to meet the needs of businesses in terms of simplification and transparency.

The proposals to amend the public procurement Directives in force at the present time (1) are currently the subject of a co-decision procedure between the Parliament and the Council, and represent a significant advance over the way things currently stand. In addition to simplifying procedures, these proposals contain measures that will be of direct benefit to small and medium-sized businesses (SMEs). These include allowing awarding authorities to divide up single public contracts into smaller lots in order to make them more accessible to small businesses, and facilitating the use of electronic procedures. Access to information has also been greatly improved since May 2002 thanks to increased standardisation of the content of contract notices.

In parallel to this legislative work, the Commission has launched a study to provide a more accurate picture of SME access to European public procurement. The findings of this study will be available by the end of 2003. Initial estimates show that the participation of SMEs in public contracts above the Community thresholds is, on the whole, satisfactory. However, improvements could be made in a number of areas. The main obstacles to greater access to public procurement by small businesses are basically a lack of information on contracts and the procedures in force, too great an administrative and financial burden, the size of the contracts, a lack of preparation on the part of businesses and, finally, the difficulty of accessing legal redress mechanisms.

In its Communication entitled ‘Internal Market Strategy — Priorities 2003-2006’ (2), the Commission describes the steps it is planning to take in order to improve the situation. However, the Commission reminds the Member States that they ‘will have to play a much bigger role in ensuring that rules, which they themselves have agreed, are effectively applied. They should also simplify their national rules, and standardise procedures as much as possible across procurement entities to make it easier for companies to participate in calls for tender.’ The Commission also invites the Member States to ‘streamline and simplify their own legislation and standardise procedures’.

As regards public contracts below the Community thresholds, which are of most interest to SMEs, European legislation offers businesses a number of guarantees in terms of transparency, equal treatment and non-discrimination. The study on SME access to public procurement may also prove an interesting source of inspiration for economic operators, legislators and national awarding authorities alike. It will set out, in the form of two guides, a number a good practices at European level that will enable the parties concerned to take the necessary steps to ensure greater SME participation whilst complying with Community legislation.

As regards the thresholds for applying the Directives on public procurement and procurement by utilities, Parliament, in its vote on 2 July 2003 at second reading, endorsed the thresholds given in the Council's common positions, which reflect those currently in force. In other words, there are no plans to reduce these application thresholds.

As for the simplification of notification procedures, this should come about as a result of the proper transposition of the new Directives into national law, once these have been adopted at European level, of course. The Commission also intends to propose an amendment of the ‘remedies’ Directives applicable in the field of public procurement with a view to improving access and clarifying national redress procedures.

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(1)  Cf. the Common Position of 30 March 2003 with a view to the adoption of the Directive of the European Parliament and of the Council co-ordinating the procedures for the award of public works contracts, public supply contracts and public service contracts (2000/0115 (COD)).

(2)  Cf. Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions entitled ‘Internal Market Strategy, Priorities 2003-2006’, COM(2003)238, 7.5.2003.

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