Overview

The European Commission has failed in its case against Spain in which the Commission claimed that the
award of Integrated Action Programmes in Valencia are public works contracts.

The decision is a positive step in the run of cases around development transactions, identifying that there is a need to identify any contractual delivery to the public sector.

The decision makes clear that the Commission, in bringing such cases, has to demonstrate clear reasoning to the Court behind its allegation of a failure to meet the Directives. There can be no presumption that purely because a contract deals with development and contains a public sector body that the transaction must be classified as a public works contract and therefore require compliance with the public procurement Directive obligations. Each transaction must still be considered on its own facts and assessed for procurement risk accordingly.

Find out how this decision is helping public bodies and developers