ABSTRACT
Social policy considerations in relation to public procurement have been associated with the term “contract compliance”. Contract compliance is a system of public procurement whereby, unless the supply side complies with certain conditions relating to social policy measures, contracting authorities can lawfully exclude it from selection, qualification and award procedures for public contracts. The application of the Transfer of Undertakings Directive in public procurement contracts poses a significant obstacle to the integration of public markets in the sense that the policy choices are painfully apparent. The regulation of public markets focuses on economic considerations and competition. The delay of their regulation can be attributed to the resistance from Member States in privatising their monopolies and the uncertainty of the legal regime that will follow their privatisation. The industrial policy dimension of public procurement is also reflected in the form of strategic purchasing by public utilities.
