WRITTEN QUESTION E-2487/99

by Richard Howitt (PSE) to the Commission

(16 December 1999)

Subject: Participation by the Directorate-General for Social Affairs in public procurement policy

What contribution is the Directorate-General for Social Affairs making in the drafting on the forthcoming Commission Communiciation on Public Procurement and Social Aspects?

Bearing in mind the law enacted by the City of Madrid favouring public procurement from companies with a good record of employing people with disabilities and the complaint to the Commission against this law made by the builders' organisation, CNC, will the Commission ensure that the Communication makes explicit that such affirmative action by local government is both legal and to be encouraged?

What account is the Commission taking in preparing the Communication of the provision of incentives to companies complying with good social, environmental labour and human rights standards in third countries, in line with the European Parliament's resolution (A4-0508/98)(1) on EU standards for European enterprises operating in developing countries: towards a European Code of Conduct adopted on 15 January 1999?

(1) OJ C 104, 14.4.1999, p. 180.

Answer given by Mr Bolkestein on behalf of the Commission

(4 February 2000)

Although the objectives of the Directives on public contracts are essentially economic in nature, there are various options for taking into account the pursuit of social objectives, in conformity with Community law on public contracts. The circumstances in which social criteria can be a factor in the award of public contracts have already been described in the Green Paper and the Commission's communication on public procurement in the European Union (11 March 1998(1)). In order to clarify the principles which apply to the pursuit of social objectives and the circumstances in which it can be taken into account, the Commission intends to draft an interpretative communication for adoption in the course of the year 2000.

As regards the draft decree of the Madrid Regional Government, the Commission would refer the Honourable Member to its answer to written question E-185/99 by Mr Carnero González(2). It would, however, point out that it is difficult, under current law, to apply award criteria relating to the structure of the enterprise rather than the quality of the tender. There is, however, nothing to prevent the specifications from laying down conditions for implementation of the contract which take account of the

extent to which tenderers discharge their social obligations, as long as those conditions do not discriminate against tenderers from other Member States and there is adequate transparency (for example, by reference to the conditions in the invitation to tender or in the specifications). Moreover, the Directives on public contracts provide for candidates who have failed to live up to their social obligations or to observe social legislation to be excluded from award procedures.

In its present task of drawing up new financial regulations, the Commission intends to make it possible to exclude candidates who have failed to discharge their social obligations, or who have been involved in fraudulent or corrupt practices, from contracts awarded by the Commission or financed from the Community budget.

(1) COM(98) 143 final.

(2) OJ C 341, 29.11.1999.