ABSTRACT
The main objective of the European rules on public procurement, as implemented by Member States in the form of domestic laws is the establishment of the principle of transparency in the award of public contracts. The legislation on public procurement has put much faith on the principle of transparency. The impact of the law and policy of public purchasing upon the demand side in particular has exposed two fundamental limitations which are integral to the legislative framework. Imbalances in social policy will also occur, as a result of the restructuring of the public monopoly and also the industries which are dependent on it. The legislation on public procurement is far from perfect. It has envisaged the creation of a framework which will enhance competition in public markets, but the actual mechanism in delivering the objectives has revealed a number of limitations with its impact on the demand and supply sides.
