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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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Foreword

In recent years, countries around the globe have increasingly used public procurement more strategically, by leveraging its economic impact and its unique role as the interface between public service delivery, citizens and business. Governments aim to achieve broader policy objectives by using procurement’s vast economic potential. While they have to ensure that every cent of public money is efficiently spent, governments also seek to maximise impact on the economy, achieve broader policy objectives and address societal challenges.

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