EU legislation on public procurement is being overhauled, in order to ensure a level playing field for contracts tendered by public bodies across the EU. Comprising almost 1/5 of total GDP in the Union, and covering sensitive sectors, services and public utilities, the package adopted today by the European Parliament, aims to ensure the application of simpler, more transparent and consistent rules, and to prevent discriminatory behaviour whilst preserving the basic freedom to provide services across borders.

EU legislation on public procurement is being overhauled, in order to ensure a level playing field for contracts tendered by public bodies across the EU. Comprising almost 1/5 of total GDP in the Union, and covering sensitive sectors, services and public utilities, the package adopted today by the European Parliament, aims to ensure the application of simpler, more transparent and consistent rules, and to prevent discriminatory behaviour whilst preserving the basic freedom to provide services across borders.

ALDE members have fought for a lighter touch regime, removing the administrative burden from small and medium enterprises whilst strongly backing transparency and competition in public procurement procedures to ensure efficient use of taxpayers' money. At the same time, the directive clarifies that cost should not always be considered the sole factor in awarding contracts, but also environmental and social criteria.

Jürgen CREUTZMANN (FDP, Germany), the liberal MEP in charge of the dossier said: "The new rules will make public procurement easier, more modern and transparent, and curb corruption and nepotism. Companies have now better opportunities than ever to take part in public tenders all over in Europe. We have successfully fought to divide large contracts into smaller lots. This helps especially SMEs who create most of the jobs in Europe. Our internal market will significantly grow for the benefit of taxpayers and businesses."

For the first time and in line with the public procurement rules, Parliament has also adopted EU rules on concession contracts, as definitions and rules vary between Member States. The rules will apply to contracts worth over €5 million, with exceptions for various sectors including energy, gambling, civil defence, ports, emergency services. The liberals also supported the exclusion of the water sector in order to ensure that the new rules not lead to a forced privatisation in this sector, which was never the intention of the proposal.

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