EU to Probe Spain, Italy, Sweden Public Procurement Laws
BRUSSELS -(Dow Jones)- The European Commission Wednesday opened investigations into public procurement laws in Spain, Italy and Sweden. The moves are part of a repeated attempt by regulators to open up these contracts to greater competition. Earlier this month, the Commission said it was preparing legislation to make it easier for foreign companies to bid for lucrative defense contracts. Wednesday, the Commission took Italy to the European Court of Justice over contracts for the purchase of light helicopters for the police and the National Fire Brigade. It also opened a second case on contracts for maintenance of council houses in Reggio Emilia. In Spain, the Commission requested changes in the way Valencia and Madrid awards public works contracts. It also requested Spain change its overall law concerning public works contracts to open it up further to competing bids from foreign companies. Spain has now 15 days to respond. In Sweden, the Commission warned that a decision by several nuclear operators to exclude a consultancy from their services contracts might break E.U. law. Stockholm now has two months to respond and if the Commission is dissatisfied, it can launch a court case.
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