Electronic Procurement in the EU Opens Doors to Cross-Border Business

The European Commission is moving a step closer to making it easier for companies, in particular Small and Medium Sized Enterprises (SMEs), to bid for public sector contracts anywhere in the EU; a crucial step towards achieving the Single European Market. The Commission will co-finance a pilot project, driven by eight European countries that will create the conditions to link existing national electronic public procurement (e-procurement) systems. Simplifying cross-border procurement will generate savings on administrative and transaction costs and will benefit taxpayers who ultimately pay for public purchases. The project will invest more than € 19 million over three years, € 9.8 million of which will come from the European Commission's Competitiveness and Innovation Programme.

"e-procurement already allows businesses to bid for the largest buyers in the EU: governments," said Viviane Reding, Commissioner for Information Society and Media. "By making sure their systems work together, Member States are helping European businesses to win public sector contracts anywhere in the EU. This is a crucial step towards completion of the Single European Market."

Government contracts amount to more than 16% of the EU’s gross domestic product (GDP), but many European companies, especially SMEs, miss out on this substantial business because of the extensive paperwork required for bidding for government contracts, particularly across borders.

Several Member States have already realised the high impact of e-procurement, generating savings on administrative and transaction costs by eliminating invoices and orders by fax or email, the reduction of data entered manually and the time businesses spend queuing, filling out forms and sorting out paper work. While e-procurement is paving the way for simpler, more open and transparent public procurement at national level, the cross-border challenge remains.

The European Commission is working with Austria, Denmark, Finland, France, Germany, Hungary and Italy as well as Norway (as a member of the European Economic Area) to enable companies from one country to respond to public procurement tenders in another. The project will not replace but rather build on existing national e-procurement systems using information and communication technologies to enable them to communicate with each other. This would allow, for instance, a Czech or Swedish company to bid for a Spanish or Hungarian government contract as easily as for a contract in their home country.

The results go beyond saving taxpayers' money and having leaner procedures: by levelling the playing field for SMEs, the backbone of Europe's economy, cross border e-procurement can boost competitiveness by providing tools for businesses to access the entire European market for public services. At present, SMEs account for 67% of employees in the business sector and 58% of turnover in the EU, but only win 42% of government contracts.

Background
The EU's Competitiveness and Innovation Framework Programme (CIP) aims to encourage the competitiveness of European enterprises. Part of CIP, the ICT Policy Support Programme focuses on stimulating innovation and competitiveness through the wider take-up and optimal use of ICT by citizens, businesses and governments.

This eProcurement project is a Large Scale Pilot driven by participating countries and focusing on cross-border provision of ICT services that are already operating at national, regional or local level. These pilot projects aim to develop common specifications that can gain wide acceptance, enabling different national systems to communicate and interact with each other so that citizens and businesses can enjoy the full benefits of the single market.

This pilot project, called PEPPOL (Pan European Public Procurement on-line), focuses on cross-border activities within the procurement process. It will enable all Member States and other stakeholders, including standardisation bodies, the software industry and SMEs, whether participating in the project or not, to follow the work and influence the definition of specifications as they will be developed.

Later this month the Commission will launch another Large Scale Pilot project on electronic identity that will allow EU citizens, to use their Electronic Identity and access public services wherever they are in Europe.

For further information, please visit:

Most Popular Now

Welcome Evo, Generative AI for the Genom…

Brian Hie runs the Laboratory of Evolutionary Design at Stanford, where he works at the crossroads of artificial intelligence and biology. Not long ago, Hie pondered a provocative question: If...

Research Study Shows the Cost-Effectiven…

Earlier research showed that primary care clinicians using AI-ECG tools identified more unknown cases of a weak heart pump, also called low ejection fraction, than without AI. New study findings...

Remote Telemedicine Tool Found Highly Ac…

Collecting images of suspicious-looking skin growths and sending them off-site for specialists to analyze is as accurate in identifying skin cancers as having a dermatologist examine them in person, a...

New Study Reveals Why Organisations are …

The slow adoption of blockchain technology is partly driven by overhyped promises that often obscure the complex technological, organisational, and environmental challenges, according to research from the University of Surrey...

Almost All Leading AI Chatbots Show Sign…

Almost all leading large language models or "chatbots" show signs of mild cognitive impairment in tests widely used to spot early signs of dementia, finds a study in the Christmas...

Philips Aims to Advance Cardiac MRI Tech…

Royal Philips (NYSE: PHG, AEX: PHIA) and Mayo Clinic announced a research collaboration aimed at advancing MRI for cardiac applications. Through this investigation, Philips and Mayo Clinic will look to...

Deep Learning Model Accurately Diagnoses…

Using just one inhalation lung CT scan, a deep learning model can accurately diagnose and stage chronic obstructive pulmonary disease (COPD), according to a study published today in Radiology: Cardiothoracic...

Shape-Changing Device Helps Visually Imp…

Researchers from Imperial College London, working with the company MakeSense Technology and the charity Bravo Victor, have developed a shape-changing device called Shape that helps people with visual impairment navigate...

Bayer Acquires HiDoc Technologies and Ca…

Bayer is today announcing that it plans to acquire HiDoc Technologies GmbH in the first quarter of 2025 and to start commercialization of the digital health application, Cara Care®. Cara...

AI-Based Chatbot Created for Bioimage An…

Scientists from Universidad Carlos III de Madrid (UC3M), together with a research team from Ericsson and the KTH Royal Institute of Technology in Sweden, have developed an artificial intelligence-based software...

Analyzing Multiple Mammograms Improves B…

A new study from Washington University School of Medicine in St. Louis describes an innovative method of analyzing mammograms that significantly improves the accuracy of predicting the risk of breast...

Emotional Cognition Analysis Enables Nea…

A joint research team from the University of Canberra and Kuwait College of Science and Technology has achieved groundbreaking detection of Parkinson's disease with near-perfect accuracy, simply by analyzing brain...