WRITTEN QUESTION E-3620/03 by Antonios Trakatellis (PPE-DE) to the Commission. Use of a mathematical formula in awarding public contracts.
Date: 2003-12-05
Institutions: European Parliament, Provisional data
Subjects: Greece, application of EU law, award of contract, public works, restriction on competition, works contract

C 78 E/612

Official Journal of the European Union

EN

27.3.2004

(cid:1) The Commission is going to present a study in 2004 on the links between legal and illegal migration.
This study will examine the potential pull and push factors and will also duly take into consideration
Member States’ experiences and positions on regularization of illegal migration.

(1) OJ L 251, 3.10.2003.
(2) OJ C 240 E, 28.8.2001.
(3) OJ C 45, 25.2.2003.
(4) OJ C 70 E, 20.3.2004, p. 88.

(2004/C 78 E/0646)

WRITTEN QUESTION E-3620/03

by Antonios Trakatellis (PPE-DE) to the Commission

(5 December 2003)

Subject: Use of a mathematical formula in awarding public contracts

In its answer to my previous question (H-0097/03 (1)) concerning the use of a mathematical formula in
the Commission stated that it had sent a letter to the Greek
awarding public contracts in Greece,
authorities to obtain information as to how they apply the formula concerned and its exact content.
However, according to recently published reports, although the Ministry of the Environment, Planning and
Public Works has abolished the formula for large-scale projects, it continues to apply it to small-scale
works. The outcome is that a virtual monopoly situation continues in the public works construction
sector; furthermore, there are indications of the existence of a cartel.

Can the Commission asnwer the following:

1. Have the Greek authorities informed the Commission of the previous and current application of the

mathematical formula?

2.

Is the use of this formula consistent with Community law?

3. Will the Commission reconsider the formula and what measures will it take in response to complaints

concerning its abuse?

4. What measures will the Commission take if the above reports concerning unfair competition prove to

be correct?

5. What measures will the Commission take in regard to the application of the current procedure in

Greece, which is leading to an oligopoly in the public works sector?

In addition to the abolition of the mathematical formula, will the Commission also ask for its replacement
with a transparent procedure which will prevent the violation of the principle of free and healthy
competition in the awarding and execution of public works contracts?

(1) Written answer of 11.3.2003.

Answer given by Mr Bolkestein on behalf of the Commission

(30 January 2004)

As the Commission pointed out in its reply to oral question H-0097/03, which the honourable Member
asked at Question Time during the part-session of March 2003 (1), according to the case law of the Court
of Justice the use of a mathematical criterion for detecting abnormally low tenders is not in itself an
infringement of Community law (Cases C-285/99 and C-286/99). However, the same case law says that a
tenderer whose bid is considered abnormally low (cid:1) even if a mathematical method is used (cid:1) must be able
to submit all the explanations which he deems relevant to explain the content of his bid, and that the
awarding authority must examine all these explanations before deciding whether or not to reject the bid.

27.3.2004

EN

Official Journal of the European Union

C 78 E/613

Following complaints, the Commission was prompted to examine the compatibility of the Greek system
for detecting abnormally low tenders and contacted the Greek authorities several times to clarify the
situation. The matter was also discussed at
the package meeting which took place in Athens on
23/24 October 2003 on the application of Community law to public procurement in Greece.

It emerged from this examination by the Commission that the law in Greece allows abnormally low
tenders to be explained only in very specific cases and that there is provision for a category entitled
‘exceptionally abnormally low tenders’ for which no explanation is allowed. The relevant services of the
Commission feel that this legislation, and the administrative practice derived from it, are apparently
contrary to Council Directive 93/37/EEC of 14 June 1993 concerning the coordination of procedures for
the award of public works contracts (2), as well as to the aforementioned case law of the Court of Justice.

Following bilateral contacts, the Greek authorities have amended their legislation by abolishing the
tenderers whose bids are
category of
considered abnormally low after the application of the mathematical formula may nevertheless submit
explanations.

‘exceptionally abnormally low tenders’, while accepting that

Consequently, the mathematical method has not been abolished, as articles in the press would seem to
indicate, but the procedures for its use by awarding authorities have been changed to make it comply with
Community law.

The Commission is watching to ensure that the new national legislation on the procedures for using the
mathematical method, and more especially on the detection of abnormally low tenders, is being applied in
compliance with Community law.

the
With regard to the allegations concerning the existence of cartels in the construction sector,
Commission does not at this time have any elements allowing it to reach a conclusion on the existence of
a structural market situation in breach of Union competition rules. It would therefore like to urge the
honourable Member to forward any information indicating that public contracts may have been rigged.

(1) Written answer of 11.3.2003.
(2) OJ L 199, 9.8.1993.

(2004/C 78 E/0647)

WRITTEN QUESTION E-3621/03

by Antonios Trakatellis (PPE-DE) to the Commission

(5 December 2003)

Subject: Presence of chlophen in food produced in various regions of Greece

The published conclusions drawn from research carried out by Athens University and the Demokritos
research centre have established the presence of chlophen in milk produce in various regions of Greece,
such as Kozani and Aspropirgos.

In view of the danger associated with the presence of chlophen in food and the fact that these regions are
industrial areas in which clophen discharges have been identified in the past, will the Commission say:

1. whether the competent authorities have carried out checks in the above regions,

2. what measures the Commission intends to take to test for the presence of clophen in food produced

in the above regions, and

3. whether there will be a special control programme and, if so, when it will begin to operate? Should
clophen be found in food and thus constitute a serious health hazard to consumers, what measures
will the Commission take?