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Public Procurement Financial Thresholds in the EU and their Relationship with the GPA

P. Telles, Pedro Telles Orcid Logo

European Procurement & Public Private Partnership Law Review, Volume: 11, Issue: 3, Pages: 205 - 219

Swansea University Author: Pedro Telles Orcid Logo

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DOI (Published version): 10.21552/epppl/2016/3/9

Abstract

The regulation of procurement within the European Union is binary: above certain financial thresholds, contracts are subject to full EU regulation, whereas below they are only subject to national rules (in general). First introduced in the 1970s, the financial thresholds are arbitrary without a clea...

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Published in: European Procurement & Public Private Partnership Law Review
ISSN: 21947376 21947384
Published: 2016
Online Access: Check full text

URI: https://cronfa.swan.ac.uk/Record/cronfa27786
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first_indexed 2016-05-10T15:56:49Z
last_indexed 2018-11-14T13:44:48Z
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spelling 2018-11-14T08:15:40.6974795 v2 27786 2016-05-10 Public Procurement Financial Thresholds in the EU and their Relationship with the GPA cbb9f02a4820888c1b6c3ce352009a0b 0000-0002-0666-6351 Pedro Telles Pedro Telles true false 2016-05-10 LAWD The regulation of procurement within the European Union is binary: above certain financial thresholds, contracts are subject to full EU regulation, whereas below they are only subject to national rules (in general). First introduced in the 1970s, the financial thresholds are arbitrary without a clear justification for their specific values. Thresholds remained fairly stable in nominal terms and over the years became solely dependent on the commitments assumed in the various revisions of multilateral procurement agreements, currently the Government Procurement Agreement (GPA) 2014. In consequence, the external market access commitments accepted by the EU in the GPA determine today the size of public procurement internal market. While it is true that inflation and currency fluctuations have progressively reduced the real term value of thresholds, no proactive reductions have been undertaken by EU lawmakers, contrary to what was done with trade tariffs. In consequence, current threshold levels do not reflect any productivity improvements or transaction cost reductions achieved during the last 40 years. By remaining stable in nominal and changing only due to external pressures and inflation inertia, the thresholds have effectively functioned as a ceiling and a floor to the concept of internal market in public procurement within the EU. Journal Article European Procurement & Public Private Partnership Law Review 11 3 205 219 21947376 21947384 public procurement, thresholds, cross-border, government procurement, GPA, Government Procurement Agreement, WTO 31 8 2016 2016-08-31 10.21552/epppl/2016/3/9 COLLEGE NANME Law COLLEGE CODE LAWD Swansea University 2018-11-14T08:15:40.6974795 2016-05-10T11:50:50.7543573 Faculty of Humanities and Social Sciences Hilary Rodham Clinton School of Law P. Telles 1 Pedro Telles 0000-0002-0666-6351 2 0027786-21072016160926.pdf TellesAM.pdf 2016-07-21T16:09:26.7370000 Output 196691 application/pdf Accepted Manuscript true 2016-07-21T00:00:00.0000000 true
title Public Procurement Financial Thresholds in the EU and their Relationship with the GPA
spellingShingle Public Procurement Financial Thresholds in the EU and their Relationship with the GPA
Pedro Telles
title_short Public Procurement Financial Thresholds in the EU and their Relationship with the GPA
title_full Public Procurement Financial Thresholds in the EU and their Relationship with the GPA
title_fullStr Public Procurement Financial Thresholds in the EU and their Relationship with the GPA
title_full_unstemmed Public Procurement Financial Thresholds in the EU and their Relationship with the GPA
title_sort Public Procurement Financial Thresholds in the EU and their Relationship with the GPA
author_id_str_mv cbb9f02a4820888c1b6c3ce352009a0b
author_id_fullname_str_mv cbb9f02a4820888c1b6c3ce352009a0b_***_Pedro Telles
author Pedro Telles
author2 P. Telles
Pedro Telles
format Journal article
container_title European Procurement & Public Private Partnership Law Review
container_volume 11
container_issue 3
container_start_page 205
publishDate 2016
institution Swansea University
issn 21947376
21947384
doi_str_mv 10.21552/epppl/2016/3/9
college_str Faculty of Humanities and Social Sciences
hierarchytype
hierarchy_top_id facultyofhumanitiesandsocialsciences
hierarchy_top_title Faculty of Humanities and Social Sciences
hierarchy_parent_id facultyofhumanitiesandsocialsciences
hierarchy_parent_title Faculty of Humanities and Social Sciences
department_str Hilary Rodham Clinton School of Law{{{_:::_}}}Faculty of Humanities and Social Sciences{{{_:::_}}}Hilary Rodham Clinton School of Law
document_store_str 1
active_str 0
description The regulation of procurement within the European Union is binary: above certain financial thresholds, contracts are subject to full EU regulation, whereas below they are only subject to national rules (in general). First introduced in the 1970s, the financial thresholds are arbitrary without a clear justification for their specific values. Thresholds remained fairly stable in nominal terms and over the years became solely dependent on the commitments assumed in the various revisions of multilateral procurement agreements, currently the Government Procurement Agreement (GPA) 2014. In consequence, the external market access commitments accepted by the EU in the GPA determine today the size of public procurement internal market. While it is true that inflation and currency fluctuations have progressively reduced the real term value of thresholds, no proactive reductions have been undertaken by EU lawmakers, contrary to what was done with trade tariffs. In consequence, current threshold levels do not reflect any productivity improvements or transaction cost reductions achieved during the last 40 years. By remaining stable in nominal and changing only due to external pressures and inflation inertia, the thresholds have effectively functioned as a ceiling and a floor to the concept of internal market in public procurement within the EU.
published_date 2016-08-31T03:33:45Z
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score 11.012924

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