WRITTEN QUESTION No. 519/97 by Karin RIIS-JØRGENSEN to the Commission. National interpretation of EU procurement rules
Date: 1997-02-14
Institutions: European Parliament, RIIS-JOERGENSEN
Subjects: Denmark, EU control, application of EU law, award of contract, competition law, invitation to tender, municipality, public authorities, public contract, single market













EUR-Lex - 91997E0519 - EN






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91997E0519

WRITTEN QUESTION No. 519/97 by Karin RIIS-JØRGENSEN to the Commission. National interpretation of EU procurement rules  


Official Journal C 319 , 18/10/1997 P. 0099 





WRITTEN QUESTION P-0519/97 by Karin Riis-Jørgensen (ELDR) to the Commission (14 February 1997)Subject: National interpretation of EU procurement rulesI refer to the Commission's letter of 6 September 1995 to the Danish Government in which it stated that local authorities may not carry out tasks for public authorities in areas where there is greater competition from private undertakings than for example child care. To judge from the Danish Government's most recent statement on the implementation of Law No 378/1995 by the Danish local authorities, there would appear to have been a breach of this requirement.Does the Commission consider that, in the light of the Danish Government's statement, there are grounds for action to establish greater transparency in financial transactions between local and regional authorities and their commercial activities, possibly by hiving them off?Answer given by Mr Van Miert on behalf of the Commission (11 April 1997)The Commission considers that, at this stage, transparency in respect of activities falling within the scope of Act No 378/1995 authorising municipalities and counties to perform certain services for other public authorities is satisfactory.Pursuant to ¶ 2(2) of the Act, municipalities and counties may conclude such service contracts if they have been submitted to a public tender procedure according to Danish legislation and if important enough, according to Community directives on public procurement. This obligation ensures that the provision of such services is based on commercial market conditions.Moreover, pursuant to ¶ 2(4) of the Act, municipalities and counties are required to make a full calculation of all costs involved in providing the service before they conclude a contract with another public authority. In addition, at the expiry of the contract the supplier must include an accounting statement about the fulfilment of the contract in its annual accounts. These accounting statements are publicly available.Moreover, reports have been submitted to the Commission about the implementation of the Act. These show that the contracts are in many cases of a low value, local in nature and related to services which are unlikely to affect trade between Member States (park maintenance, laundry services, and supply of food). The report also shows that a number of contracts of a higher value and relating to services which might affect trade between Member States (consulting services, and laboratory analysis) have been awarded using a Community-tender procedure. However, the Commission will continue to monitor the implementation of the Act and take measures if required.