EU attacks France, Italy over public contracts

Brussels is on the warpath with France and Italy over their rules on public contracts which it claims lead to unfair competition.

The European Commission will haul Paris before the European Court of Justice for its laws on handing out tenders for social, health and education services.

For such deals, public authorities do not have to advertise when they come up, nor open them up to every company wishing to submit a bid.

French town planning agreements are also excluded from competition requirements under French law.

At the same time the commission will demand that Italy stop giving an domestic company helicopter contracts for police and security services that should be opened up to external bids.

Under EU law, all such public 'procurement' must be opened up for tender across the EU and must be sufficiently broadcast so that companies are aware there is a deal to bid for.

Brussels' move against Italy is the second stage in its infringement procedure known as a 'reasoned opinion'.

If Italy does not prove to the EU that it has ended its unfair practice within two months, it too could face the ECJ.

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