Brussels, 16/11/2007 (Agence Europe) - On Thursday 15 November 2007, following agreement with the European Parliament, the Council formally adopted a draft directive amending Directives 89/665/EEC and 92/13/EEC to give companies greater powers to lodge appeals against the award of controversial public contracts (see EUROPE 9451). The directive introduces a time period of at least ten days as a waiting period during which contracts cannot be signed, in order to give bidders unhappy with the award the time to lodge a pre-contractual appeal with the relevant court. It would be more efficient for companies to lodge appeals against a public contract tender decision rather than having to apply for damages and interest once the decision has been signed. The annulation of an award for tender would mean that the public authority in question would have to issue a new call for tender.
On the penalties national authorities can levy in the event of irregular award of public contracts, the directive introduces a raft of penalties depending on the seriousness of the irregularity in question. Serious violations of rule, like fraudulent decisions to award contracts decided between individuals would lead to cancellation of the contracts in question. Lesser offences could receive lower penalties. Member states will have two years to bring their domestic legislation into line with the EU directive. EU Internal Market Commissioner Charlie McCreevy said in a press release that strengthening appeals procedures will provide greater incentives to companies to bid throughout the EU. (M.B.)