Brussels, 12/09/2007 (Agence Europe) - Hervé Novelli, French Secretary of State for Enterprise and Foreign Trade, met with EU Internal Market Commissioner Charlie McCreevy on Tuesday 11 September to discuss small and medium-sized enterprises' (SMEs) access to public contracts. This was their first meeting and provided Novelli with an opportunity to reiterate France's preference for a special clause to be added to the International Agreement on Public Tenders (AMT) to allow some public contracts to be reserved for European SMEs (see EUROPE 9364 and 9357). Such a clause would be included in the European Commission's revised offering to be submitted to the World Trade Organisation when negotiations start again in Geneva in October.
After the meeting, Novelli said that the Commission's revised offering would include 'part' of France's demand. Companies originating outside the EU which have clauses favouring access for their SMEs to public contracts would be deprived of EU funding when they apply for public tender, he explained. This clause would apply to contracts awarded by public bodies receiving EU finance from the Structural Funds, for example. The Commission calculates that the total value of the contracts concerned is around EUR 40 billion.
Novelli explained that France was not wholly satisfied with the Commission's proposals because France wanted 'reciprocity' through the introduction of measures that other countries party to the AMT have also introduced, rather than 'punishing' certain economic operators. At the 133 Committee of EU member states' trade experts, three groups of countries are emerging - eight countries (including Germany and Italy) which back the French demand; seven member states (including Denmark, Spain, Lithuania, the Czech Republic and the United Kingdom) which back the Commission's proposal; and the other member states which are sitting on the fence.
The Commission is reported to be working on other special measures for SMEs, moving beyond specific public tender issues. A spokesperson for Charlie McCreevy told this newsletter that the measures are expected to be announced in November when the Commission unveils it revised strategy for the internal market. Hervé Novelli said that this meant the Commission recognised that SMEs were central to the question of economic growth. (mb)