The new law was
proposed by the European Commission and adopted by the Council of
Ministers and European Parliament on Thursday. It provides
that public authorities will need to wait for at least 10
days after deciding who has won a contract before the contract can
actually be signed. This 'standstill period' is designed to give
unsuccessful bidders time to challenge the decision.
If this standstill period has not been respected, the Directive
requires national courts to set aside a signed contract, by
rendering the contract ineffective. National courts will also be
able to render public contracts ineffective if they have been
illegally awarded without transparency and prior competitive
tendering.
Public procurement accounts for some 16% of EU GDP, according to
the Commission.
Internal Market and Services Commissioner Charlie McCreevy said:
"I am pleased that this Directive has been adopted so rapidly. We
need effective procedures for seeking review in all EU member
states in order to make sure that public contracts ultimately go to
the company which has made the best offer. By strengthening
national review procedures in line with this Directive, businesses
will have stronger incentives to bid for public contracts anywhere
in the EU."
The Directive will soon be published in the EU's Official
Journal. EU Member States will then have 24 months to implement it
in their national laws.
