NoC106/6 OfficialJournaloftheEuropeanCommunities 27.4.92
OpinionontheproposalforaCouncilDirectiveamendingDirective90/531/EEConthe
procurementproceduresofentitiesoperatinginthewater,energy,transportandtelecommuni­
cationssector
(92/C106/03
On27November1991,theCouncildecidedtoconsulttheEconomicandSocialCommittee,
underArticle100AoftheTreatyestablishingtheEuropeanEconomicCommunity ,onthe
abovementioned proposal.
TheSectionforIndustry,Commerce,CraftsandServices,whichwasresponsibleforpreparing
theCommittee'sworkonthesubject,adopteditsOpinionon6March1992.TheRapporteur
wasMrKaaris.
Atits295thPlenarySession(meetingof25March1992),theEconomicandSocialCommittee
adoptedthefollowingOpinionbyamajorityvoteinfavourandsevenvotesagainst,with
nineabstentions .
GENERALREMARKS 3.ItisaremarkableachievementfortheCouncilto
agreeonthisnotwithstanding thebackgroundwhereby
nationalmarketsforpublicpurchasesremainedvir­
tuallyclosedtooutsidecompetitionfromthesigningof
theRomeTreatythroughouttheseventiesandeighties.
Until1985localandnationalgovernmentsthroughout
theCommunityfeltitentirelywithintheirrightstouse
publicpurchasesasatooltocreatelocalemployment .1.Theproposalappliestothemainutilitysectorsfor
whichitcombinesinaconsolidateddirectiveexisting
provisionsonproceduresforworkcontractsandfor
purchasesofgoodswithnewprovisionsonservices.It
istoenterintoforceon1January1993.
4.1.TheversionsofCommissionproposalsretained
bygovernmentsplacemoreemphasisonprotectingthe
confidentiality ofcontractsthanonmakingthemarket
transparentforunsuccessfulbidders.1.1.Specialprovisionsforservicesareproposedonly
totheextentnecessitatedbythespecialcharacterof
thesecontractsascomparedwithpurchasesofgoods.
4.2.Membergovernmentshavewishedtoexclude
moresectorsandactivitiesfromCommunitysuper­
visionthantheCommissionwouldhaveliked.1.2.Thisconsolidated directiveforutilitieswill
complementthedirectivesalreadyadoptedforthepub­
licsectoringeneralandthetworemediesdirectives
for,respectively,thepublicsectoringeneralandthe
utilities.
4.3.Governments haveshiedawayfromdrastic
interferenceinexistingprocedures,fromseverepenal­
tiesforinfringementsandespeciallyfromaccepting
thatunlawfulprocedurescouldbesuspendedbyCom­
munityintervention .1.3.TheCommitteewondersifaclearerdefinition
ofapubliccontractingentityshouldbeintroducedin
thetextoftheDirective.
2.TheCommitteecongratulates Commissionand
Councilontheirjointprogresstowardsbringinginto
placeaframeworkfortheopeningtoCommunity-wide
competitionofthisimportantsectorbytheoriginal
targetdateof1January1993.5.Foritspart,theCommitteehasarguedconsist­
entlyinitsOpinionsfortransparency ,forclearand
commonobligations,foreffectivesupervisionandfor
dissuasivepenaltiesagainstinfringements .
2.1.Thisachievement willbeamilestoneinthe
integrationofMemberStatesintoatrueeconomic
Community .Acompetitiveframeworkforpublicsector
purchasesincludingprivatelyownedutilitiesisanindis­
pensableelementinagenuinelyunifiedmarket.5.1.Inthiswayithassoughttocontributetowards
theequalityofrightsofallpotentialsuppliersand
towardsobligationsonpurchasingauthoritieswhich
arenotundulyburdensomeandcanbeevenlyapplied
throughouttheCommunity .

27.4.92 OfficialJournaloftheEuropeanCommunities NoC106/7
5.2.TheCommitteeispleasedtonoteevidenceof
anincreasinglycompetitiveenvironmentforpurchases
inthesectorsoftransport,telecommunications ,energy
andwater.overseascompetitors .Ontheotherhand,notevery
activityoflargebusinesses,whetherinthepublicor
privatesectors,ismostefficientlyorbestdonebysub­
contractors .Abalancehastobestruck.Providedthis
isacknowledged ,encouragement ofsubcontracting
activitiesunderconditionsoftransparencywillhelp
boththeEuropeansubcontracting marketandtheper­
formanceofpublicbodiesandutilities.Encouragement
forsubcontracting underconditionsoftransparency
mightwellbetheinnovationneededtoturnEuropean
legislationintoatrulyeffectiveinstrumentforefficiency
inpublicutilities.TheCommitteeconsidersitessential
fortheCommunitytodevelopaEuropeanmarketin
subcontracting .TheCommissionshouldensurethat
thereisadequatetransparencysothatentities,often
protectedfrommarketforces,arenotallowedtocross­
subsidizetheirin-house/non-coreactivitieswhenthey
areincompetition .6.1.Thenewlegalframeworktobeeffectivefrom
january1993isgenerallyregardedonlyasafirstgener­
ationofCommunityrules,tobeadaptedasexperience
isgainedthroughtheirapplication.TheDirectivesare
allsubjecttofuturereview.Indeedamajorobjective
ofCommunitylegislationistoprovidetheinformation
onthescopeandpracticesofprocurementoperations
inMemberStates,necessaryfortheformulationof
appropriate,revisedCommonregulation.
SPECIALOBSERVATIONS ONSERVICES6.2.TheCommitteelooksforwardtoshareinfor­
mationonexperiencegainedfromtheapplicationof
thenewlegislationandexpectstobeconsultedon
futurerevisions.TheCommitteeisspeciallyconcerned
abouttheeffectsofthenewprocurementpracticeson
employment ,thelevelofworkers'protection,social
conditions—includingworkingconditions—and,in
particular,therespectofminimumnormsandstan­
dardsbyallsupplierstoECgovernmentsandpublic
institutions .IntheCommittee'sview,onlythoseten­
dersshouldbeconsideredwhicharesubmittedbyenti­
tiesthatattheveryleastobservetherulesgoverning
socialandlabourmarketconditionsasadoptedby
theelevenMemberStateswhichhaveconcludedan
agreementonsocialandlabourmarketpolicy.7.1.Servicespurchasedbypublicutilitiesaccount
foraboutECU45billionannually,representing 15­
20%oftheirtotalprocurement .
6.3.Thefutureaccessofsmallandmedium-sized
companiestocontractsfromutilitiesisalsoamatter
ofpredominantconcerntotheCommittee .7.2.Therulesproposedforthesecontractsarelarge­
lyidenticalwiththerulesforprocurementofservices
bythepublicsectoringeneral,onwhichtheCommittee
expresseditselfon29May1991(1).Rulesconcerning
thresholds (ECU400000andECU600000)anddesign
contestsareidentical.Toolowthresholdsshouldany­
waybeavoided.
7.2.1.TheCommitteewouldbemostconcernedat
theabolitionofthe'thirdcountryclause'inArticle29
inviewoftherepercussionsthiswouldhaveonthe
wholeareaofserviceprocurementsince(i)alarge
proportionofthepublicsectormarketwouldbe
excludedfromtheliberalizationprocessand(ii)sub­
stantialreciprocalsafeguardsdonotexistforthird
countrymarkets.6.4.Itisdifficulttopredicttowhatextentthenew
legalframeworkwillbeadequatetosolveitsintended
purposeofcreatingacompetitiveenvironmentforsup­
plierstothepublicsectorincludingprivatelyowned
utilitiesandthusrenderpublicinstitutionsincluding
theutilitiesmoreefficient.Toalargeextent,theanswer
willdependontheremediesdirectives.TheCommittee
doesnotfeelitselfinapositiontoevaluatewhether
thesewilleffectivelydeterpurchasingofficersfrom
deliberateinfringementofCommunityrules.Ifnot,
theimmediatepracticaleffectsofthewholelegislative
exercisewillbeextremelylimited.TheCommitteecon­
sidersitessentialthattheremediesdirectivesenterinto
forceatthesamedateasthedirectiveonprocedures .7.3.Bothsetsofrulesdivideservicesintoapriority
category—forwhichitisdesirabletointroducerulesfor
Community-wide competitionimmediately—andother
services,subjectonlytotransparencyrequirements .
7.4.Atthesametimetheproposedrulesforservices
followthedirectivefortheexcludedsectorsasfaras
freechoiceofprocedureandunburdensome publication
requirementsareconcerned.
6.5.Acredibleandgenerallyrespectedlegalframe­
workisanecessaryprerequisiteforchangetowards
effectivecompetition .Thereisalso,however,asupply
dimensiontochange.Withoutacompetitivenetwork
ofspecializedsubcontractors ,Europe-basedsuppliers
tothepublicsector—andnotleasttopublicutilities—
risktoremaingloballyuncompetitive inrelationto(i)OJNoC191,22.7.1991.

NoC106/8 OfficialJournaloftheEuropeanCommunities 27.4.92
examplewouldbeiftherewereanexceptionalneed
forcommercialsecrecy—apoint,inrelationtoservice
contracts,towhichtheEconomicandSocialCommittee
attachedimportanceatPoint3.9ofitsOpiniononthe
Coordination ofProceduresintheAwardofPublic
ServiceContractson29May1991(1).Thisshouldbe
possiblewithoutviolationofEEC-rules,alsoincases
wheretheoriginalpurchasecontractfailedtoinclude
maintenance serviceswithouttimelimits.
9.Articlella(l)7.5.Thetwospecificinnovationscontainedinthis
proposalaretheexclusionofin-houseservicesand
intra-grouptransactions ,reflectingthegroupstructures
andjointventuresprevalentinthepublicutilitysector,
andaseriesofexemptionsfromtheobligationtopub­
lishtechnicalspecificationsoftendersaswellasaward
noticesinordertoprotecttheconfidentiality ofplans
andintentions .
7.6.TheCommitteeproposesthatthebeginningof
Article23(1)readasfollows:
'Thecontractingentityisobligedtostateinthe
contracttheauthority...(restunchanged).'
8.1.TheCommitteeendorsestheCommission'spro­
posalsforservicesandconsequentlythewholeconsoli­
datedDirectiveforthepublicutilities,subjecttothe
followingreservationswhichrelatetotheseparationof
servicesintothetwocategorieslistedinAnnexAand
AnnexB.
8.2.Theseparationofthesetwocategoriesisnot
uncontroversial .Suchcontroversycouldhoweverbe
minimalizedifthepossibilitywereofferedtoutilitiesto
changespecificcontractsfromAnnexXVIAtoAnnex
XVIBbyaletterofintenttotheCommissionindicating
thereasonforthedesiredchange.AvalidreasonforThefigureof85%shouldbereplacedby75%.
10.Article12
Addthefollowingadditionalparagraphattheend:
'12(d)Inassessingtheestimatedvalueofaservice
contractacontractingentityshalldeductthe
amountofthevaluewhichisattributabletopur­
posesotherthanthepursuitoftheiractivitiesas
describedinArticle2(2),andifthetotalvalue
remainingaftersuchdeductionisgreaterthanthe
amountdeducted,thentheprovisionsofthisDirec­
tiveshallapplytotheentirecontract.'
HOJNoC191,22.7.1991.
DoneatBrussels,25March1992.
TheChairman
oftheEconomicandSocialCommittee
MichaelGEUENICH