State Aids, Procurement & Public Services
The European Union’s state aid rules govern the way that public (or state) expenditure is used to support certain types of economic activity within the single European market. The state aid rules cover a wider range of activities, including:
- Regional aid targeted at the regions lagging behind,
- Aid to SMEs,
- Aid for environmental actions,
- Aid to R&D,
- Aid to training and employment initiatives,
- Aid to sectors undergoing restructuring, and
- Public support to services of general interest.
They are of key importance to public authorities and private bodies using public funding to support economic activity.
Public Procurement, which accounts for over 16% of EU GDP, is equally important, and viewed by EU policy makers as a key area through which the European Union can positively encourage the movement towards a single European market place, by enshrining the principle that public sector procurement must follow transparent open procedures ensuring fair conditions of competition for suppliers.
Issues such as public private partnerships, support for services of general economic interest, and the scope of public service have come onto the EU agenda in recent years, in particularly driven by the drive for efficiency and innovation in public service provision in countries like the UK.
