EU Public Procurement Code in the Chamber of Deputies: a spotlight on subsidiarity
The decision to use a regulation is under scrutiny: the concern is that it encroaches on the prerogatives of member states
It has reached the House of Commons the European public procurement reform, with an initial review of the principle of subsidiarity. The proposed regulation has been assigned primarily to the Environment Committee and the European Union Policies Committee. It will be up to the MEPs on the committees to examine the extent to which European rules may encroach upon the decisions of individual Member States, and therefore upon Italia’s, regardingpublic procurement. This provision applies only where Member States’ actions are deemed inadequate in relation to the objectives set by Brussels. The deadline for the review is eight weeks, starting from 26 October: Parliament must reach a decision by 11 January.
Above all, the decision to base the new European rules on a regulation is under scrutiny. This decision has been contested from various quarters of the business community, which is turning up its nose at a regulatory revolution that is applicable immediately, with no buffer period for transposition. But that is not all. The regulation, which is directly applicable, will replace the three directives on standard procurement, special sectors and concessions. This paves the way for a dual system, with European rules applying above the EU thresholds and national rules below them. This system risks causing confusion amongst contracting authorities and businesses.
Measures and beneficiaries
Turning to the measures, under the new regulation, the standard procedure becomes the open procedure with negotiation : all companies may submit tenders , followed by negotiations on the elements specified in the invitation to tender. For recurring purchases, a fully digital procedure is introduced, whilst for innovative purchases, the process begins with market consultation.
The main beneficiaries of the new European rules small and medium-sized enterprises which will benefit from reduced eligibility requirements and the division of contracts into lots. Companies will be required to specify in their tender which parts are to be subcontracted.
By 15 December 2030, Member States will be required to access the common system for verifying eligibility criteria, ranging from criminal records to outstanding tax liabilities. Public authorities will be able to set minimum quotas for European products and services.
