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Every year, over 250,000 public authorities in the European Union spend around 14% of Gross Domestic Product on the purchase of services, works and supplies. Public procurement refers to the process by which public authorities, such as government departments or local authorities, purchase work, goods or services from companies. Examples include the building of a bridge, a state school, contracting cleaning services for municipal buildings, the maintenance of green public spaces, social, health and education services.

Last week I participated in a meeting on public procurement organised by the think tank, the European Policy Centre, with representatives from the EU institutions, industry and local authorities. In the discussions there was common consensus that public procurement is usually perceived as a matter for lawyers, a highly technical subject which is accessible for just a few people. Certainly, no one can deny the complexity of the rules. But beyond this complexity, decision-makers and practitioners should not underestimate that – if well used – public procurement is a powerful instrument to steer smart, effective and efficient public spending. It is also a tool to promote investments, including social investment.

All participants agreed that the updated version of the Public Procurement Directive provides new opportunities to pursue innovation, social and environmental objectives. Member States have until 18 April to convert the Directive into national law. We all agreed that notwithstanding the fact that the deadline is approaching, too little attention is given to public procurement at political level. It was also pointed out that the European Parliament can play an important role as we approach the deadline to increase the attention paid to the topic by decision-makers, as well as the public.

At Social Platform, over the last six years we have engaged with decision-makers to influence the revision of the Directive. The reason why is very simple: public procurement can be used to pursue social policy objectives. Last October we published our guide “Public procurement for social progress”.

During the meeting some representatives from the industry asked if including social and environmental considerations and criteria related to the quality of the services, works or goods procured – not just their price – in tendering procedures is going to increase the complexity of the rules and the administrative burden in preparation of tenders. One participant argued that assessing tenders on the basis of the lowest price is the most effective way.

At the same, there are already companies – including some who were present in the room – that are implementing social considerations. The Commission’s representative stated that it is important to challenge the usual practice of prioritising price above all else.

In response to the intervention of the industry representative, I argued that the Directive allows for public authorities to pursue social progress. Therefore, we strongly recommend Member States to include these provisions in their national laws. It will then be up to public authorities if, when and how to make use of them.

Concerning quality, for contracts for social and health services, quality is an essential element: it is in no one’s interest to pay for services of poor quality that do not empower users and enable their well-being. As well as being bad for service users, it would also be bad for public authorities to spend taxpayers’ money on services that do not bring about change and improvement. On the contrary, promoting green and social procurement would lead to positive policy reforms and savings in public budgets.