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Public Procurement as Economic and Policy Exercise

In: Public Procurement in the European Union

Author

Listed:
  • Christopher Bovis

Abstract

The regulation of public procurement in the European Union has been significantly influenced by the internal market project. The White Paper for the Completion of the Internal Market1 and the Single European Act represent the conceptual foundations of the regulation of public markets of the Member States. The identification of public procurement as a major non-tariff barrier has revealed the economic importance of its regulation.2 Savings and price convergence appeared as the main arguments for liberalising the trade patterns of the demand (the public and utilities sectors) and supply (the industry) side of the public procurement equation.3 The economic approach to the regulation of public procurement aims at the integration of public markets across the EU. Through the principles of transparency, nondiscrimination and objectivity in the award of public contracts, it is envisaged that the regulatory system will bring about competitiveness in the relevant product and geographical markets, will increase import penetration of products and services destined for the public sector, will enhance the tradability of public contracts across the common market, will result in significant price convergence and finally it will be the catalyst for the needed rationalisation and industrial restructuring of the European industrial base.4

Suggested Citation

  • Christopher Bovis, 2005. "Public Procurement as Economic and Policy Exercise," Palgrave Macmillan Books, in: Public Procurement in the European Union, chapter 4, pages 100-123, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-50144-7_5
    DOI: 10.1057/9780230501447_5
    as

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