C287/92 EN OfficialJournaloftheEuropeanCommunities 22.9.97
—completeCommunity harmonization ofindustrial
andintellectual property ;
—strengthen customscooperation atexternalfrontiers ;
and
—developacommonstrategyforimproving accessto
non-EUmarkets .
2.3.11.Onthetime-frame ,theCommittee supports
arevisedschedulebutquestionswhetheritispracticable
toimplement theentireActionPlanby1999.To
guarantee thecredibility andefficiency ofthenew
schedule :
—theCommission mustspecifyhowitintendstospeed
updecision-making inthevariousspheres;—theIGCshouldformalize theMemberStates'com­
mitmenttospeedupcompletion ofthesinglemarket
andadoptanyprocedural reformswhichcould
provenecessarytofulfilthiscommitment ;
—a2002deadlineshouldalsobeconsidered forthe
purposeofsettling,bythatdateandbeforethe
accessionofnewEUmembers ,matterswhichremain
outstanding in1999.
2.3.12.FinallytheCommittee reiteratesitscallfor
theroleofitssinglemarketObservatory toberecognized
formallybytheIGC,perhapsthroughaDeclaration
recallingtheCouncil,Commission andEuropeanParlia­
mentrequestsfortheCommittee tofulfilthisrole.
TheCommittee wouldalsowelcomethementioning of
theworkofitsObservatory intheCommission 'sAction
Plan.
Brussels,29May1997.
ThePresident
oftheEconomicandSocialCommittee
TomJENKINS
OpinionoftheEconomic andSocialCommittee onthe'GreenPaperentitledPublic
procurement intheEuropeanUnion:Exploring thewayforward'
(97/C287/20)
On16December 1996theCommission decided,inaccordance withArticle198oftheTreaty
establishing theEuropeanCommunity ,toconsulttheEconomicandSocialCommittee onthe
'GreenPaperentitledPublicprocurement intheEuropeanUnion:Exploringthewayforward'.
TheSectionforIndustry,Commerce ,CraftsandServices,whichwasresponsible forpreparing
theCommittee 'sworkonthesubject,adopteditsopinionon7May1997.Therapporteur
wasMrMalosse .
Atits346thplenarysession(meetingof29May1997),theEconomic andSocialCommittee
adoptedthefollowingopinionby61votestozero,withtwoabstentions .
1.Introduction Thisinitiative isallthemorelaudablebecauseitenables
anoverallandlong-termassessment tobemadeofwhat
shouldbethetrueobjectives ofaEuropean public
procurement policy.Suchanassessment musttherefore
beveryopenandunrestricted .
1.1.Inpublishing agreenpaperonpublicprocure­
mentinEuropetheCommission haslaunchedawide­
rangingdebateamongallthoseconcerned ,decision­
makersandpoliticalauthorities inthememberstates
andtheEUandamongpublicopiniongenerally .1.2.Suchanassessment mustalsotakeaccountof
theevolution inpracticeofmarketsandcontractual

22.9.97 EN OfficialJournaloftheEuropeanCommunities C287/93
procedures inEurope,especiallyaspartofthegrowth
inprivatefundingofpublicfacilities .canhelptoimprovecompetitiveness ,producejob-rich
growthandcontributetowardsrealmarketintegration .
Increasedsupply-side competition canonlybebeneficial
inmarketswherecompetition isoftenrestrictedbyde
factomonopolies orcartels.
1.3.Thegreenpaperassessesthestateofpublic
procurement intheEUandasksanumberofquestions ,
whichcouldprovideaguidetonewCommission
initiatives .TheCommission doesmentiontheprob­
abilityofaforthcoming communication whichwould
includeaplanofactionintendedto'bolstertheeffective­
nessofthelegalframework andmorefullyachievethe
objectives oftheCommunity 'spublicprocurement
policy'.2.3.TheESCalsothinksitapitythatthereisno
realdebateontheimpactofgoodpublicprocurement
management .TheESCwouldliketheCommission to
studymorecloselytheimpactovertimeofEUrules
intermsofcompetitiveness ,budgetsavings,jobsand
thequalityofworkdoneandservicesprovided .
1.4.Thisinitiative iswelcome .Itisconsistent with
thecommunication ontheimpactandeffectiveness
ofthesinglemarketpublished afewweeksearlier
(COM(96 )520final).Thepolicyofopeninguppublic
procurement ,whichislaiddownintheTreatyofRome,
wasrelaunched in1985bytheprogramme forcompleting
thesingleEuropeanmarket.Thefamous1987Com­
missionreportonthe'costofnon-Europe '(knownasthe
Cecchinireportfromthenameofitsrapporteur-general )
estimatedthebenefitofopeninguppublicprocurement
atECU22bn.TheCommission hopedtomakemajor
growthgainsbyboostingefficiency .Inthegreenpaper
theCommission explicitlyrecognizes thatthispolicy
hassofarnothadtheeffectsandresultshopedfor.2.4.Theverydefinition of'goodmanagement 'in
publicprocurement isasourceofdebate.Theyardstick
ofpriceisnotsufficient .Otherfactorsmaybeinvolved :
quality,respectfordeadlines ,environmental protection ,
workability ,safety,inshorttheoverallcostofoperations
inthelongterm.AEuropeanpolicyonpublicworks
contractsshouldconsolidate thisconceptofthe'best
bidder'bylayingdownconcreterulestobeincludedby
contracting authorities intheirtenderspecifications ,so
astoencourage themtogiveprecedence totheformula
of'themosteconomically advantageous bid',asopposed
tothecheapestbid.
2.Generalcomments onthegreenpaper,
2.5.Insomememberstatesbidsaretendingto
becomeabnormally low.Thissituationisbadforall
concerned .Itissocietyasawholethateventually has
tobearalltheconsequences :faultybuildingwork,
companyfailuresandhigherpricesduetocontract
supplements ortheextraworkmadenecessary .Such
practicesalsodistortcompetition betweenfirmsand
endangerworkingconditions andjobs.AEuropean
publicprocurement policytodaycannotignorethis
problemandmusttryandfindsolutionstoit.2.1.TheCommission notesthatthedirectives on
publicprocurement arenotappliedproperlyandthat
thisislargelyduetothememberstatesnotincorporating
themintonationallaw.Whilenotwishingtoplaydown
thisreality,theESCdoesfeelthattwootherfactorsplay
arolewhichisatleastjustasimportant :(i)thegeneral
conditions surrounding marketaccess,withthesurvival
ofmanyobstaclesandbarriers,and(ii)thedifficulties
ofgainingaccesstoinformation ,wheresmalland
medium-sized firmsinparticularareatadisadvantage .
2.6.AEuropeanpublicprocurement policyshould
alsoconsiderwhatmeansshouldbeusedtoenablefirms
tobidforthesecontracts underfavourable conditions :
equaltreatmentandaccess,whateverthelegalstatusof
thebidder,ethicalbehaviour onthepartofthe2.2.TheESCconsidersthataEuropean public
procurement policymust,asapriority,beaninstrument
forbringingaboutasingleEuropeanmarketbyabol­
ishingthepresentfrontiersandbarriers .Inthiswayit

C287/94 EN OfficialJournaloftheEuropeanCommunities 22.9.97
contracting authorities asregardspaymentdeadlines
andrespectforcopyrightprinciples .oftrainingprogrammes usingthesocio-economic groups
andthesetting-up ofassociations orforumsforthe
promotion ofpubliccontracts .TheESCalsopublished
recentlyaseriesofopinionsconcerning standard­
ization^)whichhighlighted theexistenceofconcrete
barrierstotheopening-up ofmarketsdueto-the
application ofrestrictiveand,insomecases,discriminat­
orytechnicalrules.
3.Europeandirectivesonpublicprocurement law2.7.Thegreenpaper'sfiguresontheapplication of
Community procedures donotmeanmuch.Thenumber
ofnoticespublished intheOfficialJournal (upfrom
12000in1987toalmost95000in1995)isinteresting
butdoesnotreallyshowthatmarketshavebecome
moreopen,becauseoftheexistingbarriersmentioned
bytheCommission .Infact,twoofthefiguresquoted
seemtoindicatethatEUdirectives havelittleorno
impact:intheEUonly3%ofdirectpublicpurchases ,
and4-7%ofpurchasesthroughlocalimporters ,have
supposedly beenmadebyfirmsfromanothermember
state.Moreover ,85%ofcontracting authorities ,includ­
inglocalauthorities ,donotcomplywiththedirectives'
publication andtransparency requirements .Buthow
reliableisthislatterfigure,whichtheESCfindshighly
pessimistic ?Canitbetrusted?TheESCsuggeststhat
moredetailedneedstobecarriedout,especially in
frontierregions,wheretheresultsmaybethemost
meaningful .Ittrustsitwillbeinvolvedinthiswork,as
partofitsbriefasSingleMarketObservatory .3.1.TheESCapprovesoftheCommission 'sconcern
forlegalstabilityanddeploresthetardinessofsome
memberstatesinincorporating directives intotheir
nationallaws.However ,itisstillstruckbythecom­
plexityofthepresentarrangements andwouldrequest
somesimplification eventually ,asdirectivesofteninter­
sectandoverlap .Sometimes eitherthecontracting
authorities orthebidderscannotestablishwhichdirec­
tivetheycomeunder,andthedistinction drawnbetween
utilitiesandallothersectorsmayleadtoconfusion .The
ESCalsoapprovesofthepublication ofshort,simple
guidesdrawnupinconsultation withtheparties
concerned andthesetting-upoftrainingprogrammes ,
especially fortheappropriate national,regionaland
localauthorities andotherpublic-sector contractors .
Theseguidesshouldshowtheextenttowhichdirectives
havebeenincorporated ineachcountrytogetherwith
clearreferencestotherelevantnationallaws.Large-scale
publication anddistribution oftheguidesmayitself
helpspeedupincorporation asitwouldhighlightthe
mostglaringdelays.2.8.TheESCfeelsthatthereasonwhysofewpublic
procurement contractsareconcluded withfirmsfrom
anothermemberstateisduemoretoexternalfactors
thattoaninadequate application ofdirectives .By
externalfactorstheESCmeansbothsubjectivefactors,
suchasignorance ofnationalcustomsandpractices,
andobjectivefactors,suchasratesofreturnwhichare
sometimes disappointing ,becauseofthehighcostof
tenderingabroad,theexchangerisk,intheabsenceofa
singlecurrency ,legalandregulatory obstacles ,and,
finally,languagebarriers .Thesefactorsareobstacles
particularly forsmallandmedium-sized firms.So,a
Europeanpublicprocurement policymustcoverthe
generalconditions governing marketaccessandaimto
improvetheconditions ofaccesstoinformation .3.2.TheCommission isrighttostresstheproblems
encountered ingettingdirectivesincorporated bymem­
berstatesintotheirnationallaws.Inadditiontodelays
onefindsinsomememberstatesinparticular that
nationaltextsmaycontainprovisions thataremore
complexordifferent,oreventhatsomenationaltexts
whicharestillinforceactuallycontradict European
2.9.TheESChasalreadyspokenoutinfavourof
moreeffectiverulesonpublicprocurement .Inan
additional opiniononpublicprocurement (!)adopted
on30May1996theESCalreadycalledforastepping-up
(2)OJC256,2.10.1995—ESCopiniononpubliccontracts ;
OJC212,22.7.1996—ESCopinionontechnicalstan­
dardsandmutualrecognition ;OJC89,19.3.1997—ESC
opinionontheCommunication fromtheCommission to
theCouncilandtheEuropeanParliament onstandard­
isationandtheglobalinformation society:theEuropean
approach . 0)OJC212,22.7.1996—ESCopiniononpubliccontracts .

22.9.97 EN OfficialJournaloftheEuropeanCommunities C287/95
directives .Insteadof'cleaningup'nationallawsto
bringthemintolinewithEuropean lawtheESC
wonderswhetherothermeansshouldnotbeconsidered
forachieving areallyuniformsetofrules.Itrequests
theCommission toconsidereventually bringingin
European regulations thatwouldsimplyreplaceall
currentnational andEUtexts.Suchconsiderations
mustnot,underanycircumstances ,beusedasa
pretextbythemostrecalcitrant statestodelayor
postponetheirworkofincorporating directivesinto
nationallaw.However ,theCommission shouldnot
ruleouttheregulation option,including itsuseasa
meansofexertingpressuretospeedupdirective
incorporation .3.5.Firmsareoftenwaryofusingappealsprocedures
becauseofthehighcostsinvolvedandtheriskof
reprisalsonthepartofthepubliccontracting
authorities .TheESCwouldemphasize theimportance
ofhavingprocedures whichareeasytoaccess,cheap,
andwhichensurerealprotection fortheplaintiffwith
theprospectofobtainingrapidcompensation where
appropriate .ItsuggeststhattheCommission think
aboutanyinitiativesthatmightbetakenaspartof
theThirdPillarofEuropean Union:choiceoflegal
codes,thenatureandamountofindemnities and
compensation ,legalaid,sharingofresponsibilities ,
especially whensub-contractors areused.TheESC
notesthatcompensation procedures aremostusedin
thosecountrieswheretheycomeunderaspecialist
branchofthelaw.
3.6.InmanyEUcountriesmostpubliccontracts
areinitiatedbylocalauthorities orentities.The
opening-up ofthesecontractsisparticularly important
forsmallandmedium-sized firms.TheESCrec­
ommends theCommission toturnitsattention tothis
matterandsetup,initiallyonavoluntary basis,
procedures forcertifyingcontracting authorities (attes­
tations).Inaddition ,theESCrecommends the
Commission turnitsattentiontosupporting training
programmes forthoseresponsible withinlocalau­
thoritiesandentities .3.3.Appeals,conciliation andcompensation pro­
ceduresareveryimportant inpublicprocurement
rules.However ,suchmachinery shouldbetransparent ,
soastoavoidunjustified appealsbasedonerroneous
oruntrueallegations .Thereisnocleardistinction
drawnbetweenappealstotheCommission andthose
toauthorities inamemberstate.Thecurrentsituation
keepsthingsvagueasregardsallowingbothtypesof
appeal.Itwouldbebettertoclarifythewholeappeals
system.TheCommission shouldpublishguides
informingeconomicoperatorsoftheremediespossible
iftheysuspectthatrulesarebeingbrokenand
explaining clearlythedifferentprocedures ineach
memberstate,howtousethemandwhatthe
possibilities ofcompensation are.Suchguidesshould
alsoexplainwhattheCommission 'sdutiesareas
regardscomplaints overpublicprocurement ,howa
complaint shouldbelodgedwiththeCommission and
howthisprocedure tiesinwithprocedures involving
nationalbodiesortheEuropeanCourtofJustice.3.7.Theuseoflong-term contracts toprovide
privatefinancingforpublicworksisgrowinginseveral
countries .Thesearenotthesameaspublicprocurement
contracts .Suchmethodsshouldbepromotedandused
morewidelyastheyhelpstatessavepublicmoney.
TheCommission shoulddrawupacommunication
oninterpretation whichsafeguards thenegotiated
statusofsuchcontractswhileensuringtheyhavethe
necessarypublicity .Apartnership betweentheprivate
andpublicsectorsneedsafavourable andspecific
framework .TheCommission muststudythemodels
thathavebeendeveloped here:thePrivateFinance
InitiativecontractsintheUK,whichensureopenness
andrespectforcompanies 'interests,concession
contractswherepaymentcomesfromtheprivate,
mixedorpublicsectorandisspreadovertime(the
Vorfinanzierungsmodell inGermany ,contratsde
promotion inBelgium,marchesd'entreprises detravaux
publicsinFranceandtheTAVformulainItaly).3.4.Onewayofensuringthatcontrolsweremore
efficientwouldbetosetupmonitoring bodiesthat
wereindependent ofthecontracting authorities .Such
nationalorregionalbodies,whichcouldco-operate
withinaEuropean network,wouldbeablebothto
helpcontracting authorities toapplydirectivescorrectly
andprovidebidderswith-aguaranteeofindependent
monitoring ofprocedures .So,theESCbroadlysupports
theCommission inordertoencourage memberstates
tosimplifythefunctioning ofexistingmonitoring bodies
and,wherenecessary ,strengthen theirautonomy .3.8.Thequestionofconcessions shouldalsobe
examined indepth,giventhattheirawardmustbe
transparent andsubjecttoobjectivecriteria.Thereare

C287/96 EN OfficialJournaloftheEuropeanCommunities 22.9.97
concerned ,couldbegiventhetaskofcarryingoutstudies
andassessments withtheaimofavertingimplementation
problems ,detectingviolationsofprincipleandtracking
growthinthecross-frontier awardingofcontracts .fundamental differences between aconcession anda
contract :object,duration,termsforfinancing ,manage­
mentmethodsandtheextentofliability .Toencourage
thespreadofsuchcontractstheCommission could
studywhatformoflegaltoolshouldbeusedfortheir
implementation .
3.9.TheESCwouldalsoliketheCommission to
lookatpartialortotalprivatizations ofpublicsector
corporations .Thisprocessisveryliketheawardingof
apublicprocurement contract,althoughtherearesome
veryspecificdifferences .Becauseoftheabusesnotedin,
thepast(lackoftransparency ,nationalpreferences )the
ESCwouldlikeEUrulestoencompass thisquestionand
dealwithitinaspecificmanner .4.2.Newinitiatives toimproveinformation and
transparency arealwayswelcome .Onemustrefer
explicitlyheretotheneedsofsmallandmedium-sized
firms,thecraftssector,theself-employed andco­
operatives .TheEuroInfoCentres,whichhavealready
beengivenapilottaskalongtheselines,couldbethe
backboneofaEuropeaninformation network .Itis
essentialheretoensurethatinformation iseasytoread
andunderstand and,inparticular ,thatuseoftheCPV(2)
systemiscompulsory ,sothatdetailsofthedifferent
contracts canbecompared instantlywhatever the
originallanguageofpublication .
3.10.Somecontracting authorities havenoscruples
about'splitting-up 'medium-sized contracts soasto
keepbelowthethresholds forcomplying withEU
directivesandpublication requirements .Thispractice
shouldbecondemned andthememberstatesmustsee
thattheprocedures inforceareappliedcorrectly .4.3.Inparallelwiththisefforttoprovidemore
information theESCsupportstheideaofusingexisting
associations orstructures tosetupforumsforthe
promotion ofpubliccontracts .Thesewouldberespon­
sible,inclosecollaboration withtherelevantnational
authorities ,forspeedingupchangesinthinkinginthe
awardingofpublicprocurement contracts .Theforums'
rolewouldcoverinformation ,adviceandpromotion .3.11.TheESCalsoproposesloweringthethresholds ,
especiallyforworks.Thiswouldmakeitpossibleto
increasethenumberofcontractsopenatEuropeanlevel
tosmallandmedium-sized firms,which,becauseof
theirflexibility ,areabletorespondinamorecompetitive
mannertosmallormedium-sized contracts .However ,
thisquestionshouldbedealtwithintheinternational
framework oftheWorldTradeOrganization .4.4.Thechoiceofthebestbidbyanauthorityoften
dependsonthequalifications andcompetence ofthose
responsible fortakingdecisionsinawardingentities.
TheCommission shouldsupporttechnicalandlegal
trainingprogrammes forsuchpersons .TheESCsuggests
thataninitialpilotprogramme becarriedoutherein
jointconsultation withthememberstatesandlocal
authorities .3.12.Toensuregreatertransparency theESCsuggests
thattheprocedures forawardingpublicprocurement
contractsbecoveredbyEuropeandirectivessubjectto
areportthatisaccessibletothepublicandacomplete
assessment oftheoperationonitscompletion (1).
4.Improving accesstopublicprocurement4.5.TheESCsuggeststhattheCommission carryout
pilotpromotion andinformation schemesinfrontier
regions.Suchmeasures ,targetingasaprioritysmalland
medium-sized firms,wouldenablemeaningful resultsto
beachievedrapidlyintermsofparticipation incontracts
inneighbouring countries .Theywouldalsoprovidean
excellentmeansofobserving therealobstaclesand
barrierstotheopening-up ofmarkets .
4.1.TheESCsupportstheideaoffollowingupthe
application ofpublicprocurement rulesandtheirimpact
moreclosely.TheSingleMarketObservatory setupat
theESC,withpropermeansandthehelpoftheparties
4.6.Theselectionconditions setoutincontractsmay
sometimes makeitimpossible forafirmtotenderina
(')TheCommission couldtakeaccounthereoftheexperience
oftheWorldBankwithitsUniformProcurement Stan­
dards. (2)CPV—CommonProcurement Vocabulary .

22.9.97 EN OfficialJournaloftheEuropeanCommunities C287/97
becauseofthepresentthresholds inthedirectives .The
ESCwouldstresstheimportance ofincreasing smaller
firms'involvement inpublicprocurement inEuropeand
recommends thatthethresholds beloweredandthat
appropriate accompanying measuresbeintroduced .The
Commission shouldusetheUSA'sSmallBusinessAct
asaguideforencouraging EUcontracting authorities
topromotebiddingfromsmallerfirms.neighbouring EUcountry :obligation toberegistered
withanationalbody,complywith(sometimes )little­
knownnationaltechnicalstandards ,haveafiscalor
socialrepresentative ,belistedinaprofessional register,
haveaprofessional certificate ,complywithexaggerated
turnoverrequirements .Wheresuchmeasures are
unavoidable ,stepsmustbetakentoseethattheyare
notdiscriminatory orinvolveunnecessary costs,as
isunfortunately thecaseincertaincountries .Such
distortions werenotedbytheESCinarecentown­
initiativeopiniononthecross-border activitiesof
SMEs(1).Theyparticularly penalizesmallbusinesses
andcraftfirms.WethinktheCommission shouldstudy
carefullytheimpactoftheselawsorselectionrulesand
nothesitatetoinstituteproceedings againststateswhich
practisediscrimination . 5.Thepromotion ofcontracting firms
5.1.Theopening-up ofEuropeanpublicprocurement­
marketsisalsoofgreatimportance tothousands of
firmsandmillionsofjobsintheEU.Manyfirms,
especially inthebuildingindustry,areconcernedabout
thepresenttrendtowardscuttingpublicspending .Itis
thereforetimetoconsidertheproblemofcompetition
intermsofequalaccesstomarketswhereunfairand
excessively aggressive practices inanyquarterare
prohibited .4.7.TheESCagreeswiththeCommission thatthe
development ofelectronic technologies forpublic
procurement ,electronictendering isofimportance to
thefutureofpublicprocurement inEurope.Untilsuch
timeastheprivatesectordevelopsattractive services
inthisareatheESCwouldstresstheimportance of
currentprojects,andparticularly SIMAP,wherean
analysisofcostsinvolvedandtheprotection of
intellectual propertyshouldbepublished inareport.
TheCommission mustproposemoreefficientmachine­
ry,sincetherearestilltoofewsubscribers (25000)to
thevariousEuropeaninformation servicesonpublic
procurement .TheESCrecommends thattheCom­
missionshouldintensifysupportfortheworkofthe
EBES(2)ExpertGrouponPublicProcurement ,which
isthefocusofworkonelectronic technologies in
Europeanpublicprocurement .TheESCwouldmention
theinterestofhavinginformation distribution machin­
erythatwasspecifically destinedforfrontierregions,
becauseoftheirattraction forsmallandmedium-sized
firms.5.2.Manyfirmscomplainaboutthecontracting
authorities ,including theEuropean institutions ,
extending paymentdeadlines .Thistrendseemsto
begettingworse,despitethepublication ofanEU
recommendation .TheESCthereforeproposesthat
maximum deadlinesbelaiddown,withpenaltiesfor
latepayment .
5.3.Firmsandprofessional federations alsosaythat
manycontracting authorities donotrespecttheprin­
ciplesofcopyright .Inventions ,innovations orsolutions
submitted inunsuccessful tendersareoftencopied,
withoutanyrealpossibilityofredress.TheESCsuggests
thattheCommission considerformulating acodeof
practiceforcontracting authorities regarding their
behaviourduringcallsfortenders .
4.8.Some90%,oreven95%,ofpotentialsuppliers ,
contractors orsuppliersofservicesinthepublicprocure­
mentsectoraresmallormedium-sized firms.Butthese
aregenerallyexcludedfromthebenefitsofEUdirectives
5.4.Suchacodeofpracticemustalsotacklethe
problemofcorruption ,whichrecentrevelations in
variousEUstateshaveshowntobeextremelyharmful
tothepublicimageofpublicprocurement .Somerecent
caseshavealsohighlighted theurgentneedforincreased
co-operation betweenmemberstates'legalauthorities ,
soastothwartpracticesthatmighteasilydevelopina
Europeanorinternational setting.(])OpiniononSMEsinfrontierregions—problemsencoun­
teredincross-border businessrelations ,includingthose
relatingtotechnicalrequirements .OJC206,7.7.1997,
p.70.
(2)EBES=EuropeanBoardforEDIStandardisation .

C287/98 EN OfficialJournaloftheEuropeanCommunities 22.9.97
5.5.Theexistenceofabnormally lowtendersdisturbs
competition .Theireventualconsequences aregenerally
disastrous forsociety:unfinished work,poorquality,
companyclosuresandunsettledconditions ofcompe­
tition.TheESCsuggestspromoting intheEUasystem
ofcompulsory bondsheldbythecontracting authority
inordertoguaranteeproperperformance ofatender.environmental policies,limitsonanyspecificconditions
thatmightbeinsertedintoacontract (2).Suchcriteria
shouldnot,however ,haveanydiscriminatory effect
whatsoever onthecapacityofafirmfromanother
memberstatetobidforthecontract .Forinstance,ifa
contracting authoritywishestofavourcertaintypesof
people,suchaclauseshouldbesubjecttoacertain
numberofconditions suchasbeinglimitedinits
duration,applyingonlytoagivensizeofcontractand
tocertaintypesofwork,beingreallyaccessibletoany
firmwithoutanydiscriminatory effectandbeingthe
subject,whereappropriate ,ofaspecificpayment .The
application ofenvironmental rulesshouldalsobe
encouraged asapositivecontribution tothewell-being
ofthepeopleslivingintheEU.However ,suchrules
shouldnothaveadiscriminatory effectandshould,
therefore,complywithEUrulesconcerning theenviron­
ment.5.6.AsstatedintheESC'sadditionalopinionadopted
on30May19960),'theCommittee considersthat
sub-contracting isaformoforganization oflabour
suitedtothespecialized aspectsoftheexecutionof
works'.Itshouldbepointedoutthatsub-contracting
contractsmustrespectalltheobligations imposedon
themaincontractors ,especially asregardslabourlaw
andsafety.Withthisendinviewitwouldbeadvisable
toestablishalinkedresponsibility betweencontractor
andsub-contractor .
6.3.Atanyevent,theESCinsiststhatEUtextsmake
itcompulsory forcontractstohaveaveryhighdegree
oftransparency ,sincethepresentlevelisinadequate .
The'unwritten 'rulesreferredtobysomanyfirmstoday
(favouritism towardslocalfirms,varioustypesof
compensation )mustbeclearlyprohibited orlimitedand
withoutanydiscriminatory effects.Unlessthisisdone,
theywillcontinuetoconstitute 'invisible'butveryreal
barrierstofirmstendering forpublicprocurement
contracts .5.7.Inanypublicprocurement contract,and
especiallyintheeventofsub-contracting ,thecontracting
authorities mustbeabletoensurethatcurrentlabour
lawisrespected ,particularly thatrelatingtoclandestine
working .
6.Publicprocurement andotherCommunity policies6.4.BecauseofthescaleofEUfundinginvolved,an
information policyisnecessaryforcontractsinvolving
objective 1regionsandcountries .Thesemustbethe
responsibility asmuchofthememberstatesasof
theCommission .Thedirectorate responsible forthe
cohesionfundhasprovidedinformation ontheprojects
itfinancedinineligiblecountries .Suchapolicyshould
bemademoresystematic andextendedtotheother
structuralfunds,especiallytheERDF.TheCommission
couldalsoseethatthecontracting authorities applythe
principlesofequalaccessmorestrictlywhentheyreceive
EUfunding .Tocheckthatcontractawardprocedures
werebeingfollowedthecertification procedure should
beactuallyimposedinsuchcasesonthosebenefiting
fromEUfunds.6.1.Manyfirmshavenotedheretheexistenceof
unwritten rulesthat,infact,disturbconditions of
competition anddiscourage themfromtenderingfor
publicprocurement contractsinanothermemberstate.
TheESCdeclaresthatonecannotexpectapolicyon
openinguppublicprocurement tosortoutother
questions ,suchasenvironmental ,socialorregional
policyconcerns .Itgoeswithoutsayingthatsuchapolicy
mustbeconsistent withotherCommunity priorities ,
especiallyinthesocialandenvironmental field,andthat
publiccontracting authorities mayincludesuchconcerns
intheirpublicprocurement contracts .
6.5.AsguardianofthetreatiestheCommission must
setanexampleinpublicprocurement .Butunfortunately
6.2.TheESCaskstheCommission tosetoutina
communication ,andaspartoftheregional,socialor
(2)ILOconventions mustbeincludedamongthesecriteria
andbediscussed inrelationtosocialsecurityclausesin
commercial contracts (Conventions 87,98,29,105,100,
111and138).TheILOconvention onsocialsecurityin
publicprocurement isalsoanobviouscriterioninthis
(')OJC212,22.7.1996—ESCopiniononpubliccontracts .context.

22.9.97 EN OfficialJournaloftheEuropeanCommunities C287/99
progressinsomememberstatesonpubliclyfunded
long-termcontracts (!).themanagement ofsomeprogrammes sometimes takes
considerable libertieswiththeruleslaiddownfor
thewholeoftheEU.UnderthePhareprogramme ,
framework contractsvalidfortwoyearsdispensewith
anyrealcallforcompetitive bidstosupplyservices
worthlessthanECU300000(whentheCommunity
thresholdisECU200000),thusgivingaconsortium of
consultants adefactomonopoly incertainsectors.The
PhareandTacisawardprocedures forservicecontracts
alsoincludesuchquestionable practicesastheprep­
arationof'shortlists'withoutannouncing whatcriteria
areusedforselection ,theformingofconsortiafrom
short-listed biddersandnumerous casesofconflictsof
interestwherepersonsworkingundercontractatthe
Commission havebenefitedfromprojectsinwhichthey
wereinvolvedduringtheplanningstage.TheCourtof
AuditorshascriticizedtheCommission onthesegrounds
inits1995report.TheESCaskstheCommission to
introduceonesinglelawforawardingcontractsapplying
toallcontractsirrespective oftheprogramme concerned .
Fortheawarding ofservicescontracts itcallsin
particularfor:6.7.TheESCnotesthatthespecialandstrategic
natureofthedefencesectorisrecognized byArticle223
oftheTreatyofRome.However ,careshouldbetaken
toseethatcivilordual-usecontractsandsuppliesofthe
defenceandarmedforcesadministrations aresubmitted
toordinarylaw,asrecommended intheopinionadopted
bytheESCon19March1997(2).Someformof
opening-up andgreatercompetition canbeenvisaged
forsensitiveproductsaspartofintergovernmental
co-operation ,particularly inconnection withtheplan
foraEuropeanarmaments agency.
7.Procurement outsidetheUnion
6.5.1.Compulsory advancecallsfortenders,inorder
todrawupshortlists.7.1.Theopening-up ofpublicprocurement innon-EU
countriestoEUfirmsmustbeapriorityfortheEU.
6.5.2.Thepublication ofshortlistsintheOfficial
Journal .7.2.Itshouldbepossibletoidentifyobstaclesto
accesstonon-EUcountriessoastoobtainguarantees for
contracting partiestotheWorldTradeOrganization 's
Government Procurement Agreement (GPA)regarding
theremovalofsuchobstacles .
6.5.3.Theprohibition ofagreements betweenshort­
listedbiddersbeforethecontracthasbeenawarded .
7.2.1.TheESCwouldliketheCommission tostudy
theconditions foraccessbyforeignfirmstoEU
procurement contractsandcomparethemwiththe
conditions foraccessbyEUfirmstothemajornon-EU
markets (Japan,theUSA,AustraliaandCanada).6.5.4.Theprohibition of'framework contracts'
wheretheseruleoutanyformofcompetition .
6.5.5.Stricterapplication ofethicalruleswithinthe
Commission ,prohibiting anypersonwhohasworked
withtheCommission underanyformofcontract
whatsoever frombeingabeneficiary ofacontract
awardedbytheCommission foraperiodofatleastfive
yearsaftertheendofhisorhercontractwiththe
Commission .7.3.Asapilotscheme,theCommission couldpro­
motethedissemination ofinformation onpublicpro­
curement innon-EUcountries (priorinformation and
notcallsfortenderspublishedintheOfficialJournalor
theTEDbank,wherethedeadlinesaregenerallymuch
tooshort).Onsomebigforeignprojectsco-operation
betweenEUfirmsshouldbeencouraged ,asshouldthe
searchforpotentialsub-contractors intheEU.
6.6.Projectsfortrans-European networkssufferfrom
theabsenceofasinglelegalimplementing framework ,
which,amongotherthings,wouldensurelegalstability
asregardstheimplementation ofconcessions .AEuro­
peancommunication alongtheselineswouldhelpthe
emergence ofEuropeanpublicprocurement concessions .
Itshouldbebasedontheexperiments currently in(J)PFIcontractsintheUK,the'Vorfinanzierungsmodell 'in
Germany ,'Marchesd'entreprises detravauxpublics'in
France,'Contratsdepromotion 'inBelgium,theTAV
formulainItaly.
(2)OJC158,26.5.1997—ESCOpinionontheCommuni­
cationfromtheCommission —Thechallenges facingthe
European defence-related industry,acontribution for
actionatEuropean level.

C287/100 EN OfficialJournaloftheEuropeanCommunities 22.9.97
8.3.3.Callsuponthecontracting authorities ,as
regardspublicprocurement contracts ,totakemore
accountofthequalityofthebidssubmittedtothemin
termsofeconomicadvantages ,ofwhichpricemayonly
beonefactoramongothers;7.4.TheESCwishestostresstheEU'sobligations as
regardsopeningupitspublicprocurement contracts
undertheGPA.TheEUandthenational bodies
responsible mustseethatforeignfirms,includingsub­
contractors ,biddingforcontractsonitsterritoryoperate
practicesthatcomplywiththestandardsoftheInter­
nationalLabourOrganization andwiththesocial
legislation inforce.8.3.4.Submitstheideaofanapproximation oflaws
andexchangeofbestpracticesinthefieldoflegal
appealsprocedures ,withintheframework oftheThird
PillaroftheEuropeanUnion; 7.5.Asregardscontractsforlong-termworkcarried
outonEUterritorybyforeignfirms,includingsub­
contractors ,andinordertoavoid'socialdumping',the
appropriate nationalauthorities musthavetherightto
requirecompliance withnationalprovisions onsocial
matters .8.3.5.SuggeststhattheEuropeanCommission make
thedifferentappealsprocedures morevisibleandmore
consistent withoneanother;
8.3.6.Desiresthatconcessions bethesubjectofa
specificregime,especially asregardstrans-European
networks ;7.6.Thereseemstobegroundsforprovidingtechnical
assistance forthecountries ofcentralandeastern
EuropeandtheMediterranean countriesinthepublic
procurement sector.Thebestwayfortransferring
essentialknow-how wouldbethroughcourseswith
monitoring orawardingentitieswhichappliedEUrules
strictly. 8.3.7.ProposesthattheCommission encourage the
promotion ofnewcontractual arrangements basedon
privateinvestment inpublicinfrastructures ;
8.Conclusions andfinalresolution8.3.8.CallsuponthememberstatesandtheEuropean
Uniontotightenuptheobligations ofpubliccontracting
authorities towardsbiddingfirms:reductionofpayment
deadlines ,respectforcopyright inbids,drawing-up of
acodeofpracticeforcontracting authorities ;8.1.Considering theadvantages ofgreatertrans­
parencyinapplyingrulesontheawardingofpublic
procurement contractsintheEU,inparticular :greater
effectiveness inachievingthesinglemarket,abetteruse
ofpublicresources ,lesscorruption ,moretradewithin
theEU,higherqualitygoodsandservices,betteruseof
theknow-how offirmsinourcountries ;8.3.9.Requeststhatamajoreffortbemadeat
Community andnationalleveltoimproveaccessto
information ,especially forsmallandmedium-sized
firms,andcallsupontheCommission inthisconnection
tolaunchpilotprojectsinfrontierregions;
8.2.Considering tootheeconomicimportance of
publicprocurement intheEUandthenumberoffirms
andjobsthatdependonit; 8.3.10.ProposesthattheEuropeanCommission sup­
portapilottrainingprogramme toimprovetheskills
andcompetence ofthoseinchargeofcontracting
entities;
8.3.TheEconomic andSocialCommittee ,inreaction
tothegreenpaperoftheEuropeanCommission :
8.3.1.Deploresthedelaysincertainmemberstates
inincorporating directivesintonationallawandasks
theCommission totakeeverysteptoremedythis
situation .8.3.11.SupportstheCommission 'sproposalto
developforumsforthepromotion ofpublicprocurement
whichshouldberunbyeconomic andsocialinterest
groupsandsupportstootheideaofcertification schemes
toencourage contracting authorities toapplyEUrules
inpractice;suchmachinery ,whichisenvisaged as
voluntary ,couldbecompulsory forcontractsfinanced
bytheEU;8.3.2.Requests ,however,alsothatworkbestarted
onsimplifying andclarifyingthepresenttextsatboth
Community andnationallevelandthatparticular
consideration begiventotheeventualdraftingofa
singlelegalframework ,whichcouldbestbeachieved
througharegulation ;8.3.12.Stressestheneedtogiveprioritytoeducation
andtrainingoverstricteradministrative controlsand
strongerremedies ;

22.9.97 EN OfficialJournaloftheEuropeanCommunities C287/101
theWorldTradeOrganization ,recommends thatthe
European Unionconcernitselfasaprioritywiththe
conditions foraccessbyEUfirmstopublicprocurement
contracts innon-EUcountries andstressesthatthe
opening-up ofEUmarketstoforeignfirms,including
sub-contractors ,cannotbetothedetriment ofsocial
standardslaiddownbytheInternational LabourOrgan­
ization,currentlabourlaworsafetyrules,andmust
complywithprovisions settingoutclearlythelegaland
socialresponsibilities ofthepartnersinvolved;8.3.13.Proposesthatmachinery forobserving the
impactandeffectsofopeninguppublicprocurement
besetupinliaisonwiththeESC'sSingleMarket
Observatory ;
8.3.14.Requeststhatthoughtbegiventodeveloping
performance guaranteeprocedures tocombattheeffects
ofabnormally lowbids;
8.3.15.Notestheexistenceofenvironmental ,social
andregionalconcernsthatmayinfluencethechoices
madebycontracting authorities ,recognises thelegit­
imacyofsuchconcerns,whichareinkeepingwithEU
priorities ,butinsiststhatsuchcriteriashouldnotbe
allowedtohavetheleastdiscriminatory effect;
8.3.16.Recognises theimportance ofopeningup
publicprocurement onaninternational scaleunder8.3.17.Requests theEuropean Commission to
improveasquicklyaspossibleitsownprocedures for
awardingcontracts ,especiallyinthefieldofservices,so
astosetagoodexample .
Brussels,29May1997.
ThePresident
oftheEconomicandSocialCommittee
TomJENKINS
OpinionoftheEconomicandSocialCommittee onthe'ProposalforaCouncilDirectiveon
theassessment oftheeffectsofcertainplansandprogrammes ontheenvironment '(!)
(97/C287/21)
On6May1997theCouncildecidedtoconsulttheEconomic andSocialCommittee ,under
Article130softheTreatyestablishing theEuropeanCommunity ,ontheabove-mentioned
proposal .
TheSectionforProtection oftheEnvironment ,PublicHealthandConsumer Affairs,which
wasresponsible forpreparingtheCommittee 'sworkonthesubject,adopteditsopinionon
15May1997.Therapporteur wasMrPellarini .
Atits346thplenarysession (meetingof29May1997)theEconomic andSocialCommittee
adoptedthefollowingopinionby49votesinfavorwithfourabstentions .
1.Introduction international commitments enteredintoundertheEspoo
Convention (2).
1.2.Assessment wouldbebroughtforwardtothe
pre-adoption phaseofplansandprogrammes whichset
thegeneralframework forindividualprojects .
1.3.Scopeisrestrictedtolanduseplansandpro­
grammesadoptedbycompetent bodiesbymeansofa1.1.Theproposal complements environmental
assessment ofprojectsundertheEIADirective
(85/337/EEC),whichwasrecentlyrevisedbytheCouncil
withaviewtomakinganumberofprocedural adjust­
mentsonthebasisofacquiredexperience ,aswellasof
0)OJC129,25.4.1997,p.14. (2)OJC393,31.12.1994.CouncilDecisionof3March1997.