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European Union

EU Takes Czech Republic to Court Over Public Contract Procurement Rule Breach

Strategic Insights

— 1 min read

The European Commission has referred the Czech Republic to the Court of Justice for breaching EU public procurement rules by not opening up a public contract for military tactical transport aircraft to EU-wide competition. The Czech Republic directly awarded the contract worth 132 million to the company supplying the aircraft, CASA-295M, without organizing a tendering procedure. The Commission considers this to be a breach of the EU rule, as it prevents competition on the European market and may waste taxpayers' money.

Key Takeaways:

  • The European Commission has referred the Czech Republic to the Court of Justice for breaching EU public procurement rules by not opening up a public contract for military tactical transport aircraft to EU-wide competition.
  • The Czech Republic awarded the contract worth 132 million to the company supplying the aircraft, CASA-295M, without organizing a tendering procedure, which is in breach of the EU rule on public procurement.
  • The EU public procurement rule aims to ensure fair competition for public contracts in Europe, creating opportunities for European companies and ensuring best value for public money.
  • Total public procurement in the EU is estimated at about 17% of the Union's GDP, and the open and transparent tendering procedures required under EU public procurement rules mean more competition, stronger safeguards against corruption, and better service and value for money for taxpayers.
  • The Czech Republic has so far failed to demonstrate why a public tender for unarmed transport aircraft would pose a risk for its essential security interests.
  • The Commission considers the Czech Republic's actions to have prevented competition on the European market and may have wasted taxpayer's money.

Statistics:

  • Total public procurement in the EU is estimated at about 17% of the Union's GDP.
  • The contract worth 132 million was awarded directly to the company supplying the aircraft, CASA-295M, without organizing a tendering procedure.

Sources:

  • European Union, "European Commission referred Czech Republic to the Court of Justice for breaching EU public procurement rules"
  • European Union, "Public procurement"
  • European Union, "Latest information on infringement proceedings concerning all Member States"
  • European Union, "MEMO/10/530"

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