Public Procurement in Germany

Strategic Dimensions for Well-being and Growth

image of Public Procurement in Germany

As the largest economy in Europe, Germany has a massive public procurement market, accounting for around 15% of GDP (EUR 500 billion) per year and affecting many areas of the economy and society. This review analyses public procurement's impact on the well-being of Germany's citizens by focusing on six areas: economic impact and beyond, the legal and governance framework, centralisation, e-procurement, strategic procurement and human capital. In addition, it analyses procurement at subnational level, since almost 80% of procurement in Germany is conducted by Länder and local governments.

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Enhancing the legal framework and governance structure for public procurement in Germany

Germany’s 2016 public procurement reform provided profound changes to the procurement system and affected all levels of government. This chapter analyses the legal framework and governance structure of the German public procurement system. It does so while also drawing attention to procurement at the state and municipal levels, which account together for almost 80% of procurement activity in Germany. The chapter identifies areas in which the reform has harmonised regulations, and identifies potential avenues for further streamlining Germany’s layered procurement system.

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