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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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Executive summary

As the biggest economy in Europe, Germany boasts one of the largest public procurement markets in the region. Public procurement represents an estimated 15% of German GDP, an immense sum of EUR 500 billion per year. Public procurement has a considerable impact on all areas of well-being. Public procurement is crucial for delivering public services, whether in health, education, infrastructure or public safety. More indirectly, the goods, works and services Germany purchases via public procurement affect the environment, jobs and many other areas.

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