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A NEW TOOL TO HELP EU COMPANIES IN INTERNATIONAL PROCUREMENT


The EP has adopted its negotiating position on the instrument for international procurement, to offer opportunities to European companies bidding for tende rs outside the EU.

Parliament supported the general objective of the legislative proposal on the instrument for international procurement (IPI - International Procurement Instrument), but changed its scope and the discretionary powers of EU countries in its application.

The IPI encourages the opening of public procurement markets of countries that protect this sector by introducing measures that restrict access to EU public tenders for companies from non-EU countries that do not offer similar access to businesses European. The tool would empower the Commission to determine whether, and to what extent, third-country firms should be subject to an IPI measure.

The text was approved with 590 votes in favor, 8 against and 99 abstentions.

Two options for the EU Commission

MEPs agree on two types of IPI measures that the Commission can choose to remedy the inequality of access to public procurement markets: adjusting the bid score of companies subject to the IPI (without affecting the price to be paid to the successful bidder), or exclude the company from the tender.

Furthermore, Parliament reduces to two the number of exceptions where national contracting authorities may decide not to apply IPI measures (when all bids come from companies from countries subject to an IPI measure and in cases where public interest prevails on IPI considerations, such as in the areas of public health or environmental protection), thus extending the intended effectiveness of the tool. However, MEPs insist on exempting companies from less developed and developing and vulnerable countries.

The text also includes all European public administrations in the scope of the IPI, so as to ensure uniform implementation in all EU countries.

More tenders interested MEPs propose two thresholds for determining which procurement procedures are subject to an IPI measure: minimum € 10 million for works and concessions (such as the construction of motorways) and € 5 million for goods and services.

CITATION

Rapporteur Daniel Caspary (EPP, DE) said: "With a strong vote, Parliament paved the way for the IPI, a necessary overhaul of EU instruments to respond to an increasingly hostile trading environment. With changes to the Parliament, we have an IPI that is easy to understand and apply and that red tape is reduced to the bare minimum. Our aim is to complete negotiations with EU ministers by next spring. Now it is up to the Council to start working with us , without delay, on the final version of an effective, functional and simple tool ".

NEXT STEPS

The adopted text will serve as a mandate for the EP delegation which is expected to start interinstitutional negotiations with the Council on the final form of the legislation on 16 December.

CONTEXT

The EU has opened up its public procurement markets to a significant extent to competitors from third countries and has supported the end of protectionist measures on international public procurement markets

Parliament has been working on the dossier since the original Commission proposal in 2012, which was amended in 2016. EU governments only reached agreement on their negotiating position in June 2021

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