Member States’ representatives to the EU agreed on a text on the International Procurement Instrument (IPI) on Wednesday 2 June. They thus re-launched the negotiations with the European Parliament.
This text had been blocked in the EU Council since 2016, when the European Commission proposed a revision. The Portuguese Presidency of the EU Council put the dossier back on the table and submitted a proposal which was approved by the representatives of the Member States.
“The EU will now be better equipped to defend European businesses against discriminatory and restrictive practices applied by some of its major partners”, said Portuguese Foreign Minister Augusto Santos Silva.
According to an EU diplomat, the conclusion of the negotiations on the investment agreement with China at the end of December has given impetus to the discussions on the text. “During the negotiations on the agreement with China, some Member States did not want to move forward on the international procurement instrument, as they considered that it could be an irritant for China”, the source told EUROPE.
This instrument aims to protect European companies against unfair practices in international public procurement.
The European Commission may decide by implementing regulation to investigate discriminatory practices of a third country in its public procurement. After a consultation period of up to 9 months with the country concerned, and if deemed necessary, the Commission may adopt an implementing regulation to restrict access to European public procurement contracts to companies from countries under investigation. To do this, it can either apply a penalty to their score, making them less attractive among other candidates, or exclude them from the procurement process altogether.
The instrument will only be applicable to public procurement contracts above €15 million, in the case of works and concessions, and above €5 million for goods and services.
By approving this text, the EU Council is providing a mandate to resume negotiations with the European Parliament. Several MEPs welcomed the EU Council’s position, beginning with the text’s rapporteur, Daniel Caspary (EPP, Germany). “Good things sometimes take time. [...] This is a promising sign on our path towards a level-playing field in public procurement”, he said.
MEP Reinhard Bütikofer also welcomed the change of heart, but remained vigilant about the future of the negotiations. “The European Parliament has been hoping for this moment, but it is now up to us to make sure that the instrument is not filled with loopholes during the interinstitutional negotiations”, he warned.
Trilogues are scheduled to restart in the autumn.
See the EU Council’s position: https://bit.ly/3yV1h0Y (Original version in French by Léa Marchal)