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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The impact of public procurement in Germany: Economic effects and beyond

This chapter describes the significant role public procurement plays in the economic system and in citizen well-being, linking it to the policy challenges Germany is facing. Public procurement can be crucial in affecting all dimensions of well-being, including the economic, environmental, social and human aspects. Some countries have been able to attain first results in measuring possible impact of public procurement on these different dimensions of well-being by tracking how procurement can support overarching policy goals. Germany could maximise the impact of public procurement and help secure citizen well-being by designing and relying on a rigorous impact measurement framework.

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