INTERNAL MARKET : DEBATE IN PARLIAMENT ON CONCESSIONS DIRECTIVE CALMING DOWN.

Tensions started to die down at the European Parliament when the compromise amendments to the draft directive on the award of concession contracts(1) were finalised. The shadow rapporteurs finalised a text that is clearer and is the product of a compromise. This text will lay down the rules for works and services concessions.

In total, 114 compromise amendments summarise the initial amendments - of which there were close to a thousand - that were examined on 10 January by the Committee on the Internal Market and Consumer Protection (IMCO). The rapporteur, Philippe Juvin (EPP, France), said he was satisfied with the progress made during the debates with his colleagues. "We proposed clear, light, effective and pragmatic rules, which steer clear of discrimination and prevent abuse as well as guaranteeing that public authorities will be flexible".

This light' version of the directive (see Europolitics 4482) aims to loosen procedural constraints recommended by the Commission both in the negotiation phase and in the execution of a contract which - because of its incomplete nature and the fact that it would evolve in time - would be modified in nearly all cases. It also amends the definition of concessions to ensure that they are clearly differentiated from public procurement and makes explicit the notion of the value of a contract according to its turnover, whether for works or for services. The text also focuses on the limited duration of concessions but moves away from the Commission's overly accountant' approach, which adjusted this duration on a return on the operator's investment. Furthermore, MEPs clearly wanted to assert the principle of the total autonomy of public authorities to choose the legal framework to carry out their missions. MEPs agreed on a level of implementation of the directive, which has gone from 5 million to 8 million. Joanna Szychowska, speaking in the name of the EU executive, said this could lead to a violation of the EU's obligations both with regard to the World Trade Organisation (WTO) Agreement on Public Procurement (which imposes a threshold of 5 million for the clause of equivalent treatment of national bidders) and with certain...