Brussels, 19/10/2001 (Agence Europe) - The European Parliament's Committee on Legal Affairs and the Internal Market adopted the reports by Stefano Zappala (Italian, EPP-ED) on Wednesday on the new European Commission proposals concerning the simplification and updating of existing Community legislation relating to public procurement. In both cases, the vote was very close, revealing a split between those in favour of a raising of the threshold beyond which public procurement contracts would be submitted to Community regulation and those wanting the status quo, recommended by the Commission.
Th Stefano Zappala reports relate to two draft directives examined by the "Internal Market" Council on 27 September (see EUROPE of 1 and 2 October, p.13). The first, so-called "general directive", concerns the co-ordinating of procedures for awarding public supply, public service and public works contracts. It seeks to clarify and merge three existing directives into a single text and introduce electronic purchasing mechanisms as well as new procedures to reflect modern requirements. It also tightens up the provisions on award and selection criteria. The second is a sectoral proposal concerning public procurement for water, energy and transport companies. You may recall that examination of these proposals by the Fifteen last month revealed the existence of deep divides relating two points: the "competitive dialogue" that the British would lie to establish with selected companies at the end of the first phase of selection; and the question of what to do with companies condemned by a Member State an wanting to make a bid having paid their fines.
The Parliamentary Committee adopted the Zappala Report on the general draft directive by 14 votes to 11 and 4 abstentions. On the whole, it shares the Commission's approach, but a certain number of amendments were nevertheless adopted, especially on the controversial question of thresholds, which in part explains why the vote was so close (it cannot be ruled out that the majority should change in plenary). The Committee wants an increase of some 50% of the different thresholds compared to the amounts proposed by the European Executive. The MEPs in favour of that increase said that the existing thresholds were not attractive enough for non-national companies and thus did not allow for cross-border operations in the realm of public procurement to be intensified. Yet, at the same time, local authorities must nevertheless bear the disproportionately high cost of putting work out to tender, the members of the Committee pointed out. The MEPs, in a minority, for their part, backed the Commission in its will to maintain thresholds at their current levels and stressed that such a substantial increase would lead to a massive reduction in the number of cases coming within the new directive's field of application., stressing that the aim of creating a single European market for public procurement would thus be endangered.
Several amendments, moreover, provide for ecological and social criteria being taken better account of in procedures relating to public procurement (to boost employment for disadvantaged people and promote equal opportunities in the workplace, for example), provided these criteria are compatible with Community law and comply with the principles of equal treatment and non-discrimination. This position gels with that o the Belgian Presidency of the Council which would like to link the debate on the proposals here at stake with the Commission's recent proposals on the environmental and social aspects of public procurement.
A certain number of other amendments have as aim to tidy up the Commission's proposals on issues such as the personal, economic or financial standing or the professional capability of tenderers. Touching upon a point of dissent among Member States, the parliamentary committee would like in particular for anyone with convictions for crimes such as racketeering, money laundering or fraud being excluded from tendering, as should those who are bankrupt.
Regarding the proposed sectoral directive, the parliamentary committee also voted, by 16 to 11 abstentions, in favour of a 50% increase in the famous thresholds above which a public procurement contract should be subject to Community regulation. The main amendment adopted here aims to revise the scope of the existing legislation in the light of the gradual liberalisation of the water, energy, transport and telecommunications sectors.
Finally, the parliamentary committee adopted a large number of technical amendments for both proposals, the aim of which is to clarify and strengthen the Commission's proposal on issues relating to the definition of public works contracts, the central purchasing groups, the framework agreements, the need for confidentiality, etc.. Both reports have to be debated in plenary in Strasbourg in November and the Belgian Presidency hopes to reach an agreement by the end of the year.