Procurement law, funding, EU subsidies

These are three legal areas which operate at the interface between the public purse and the private sector.  

Procurement law governs and structures the way in which the public sector acquires goods and services. Orders must be awarded via a transparent procedure, in which all participating companies are treated equally. This legally regulated procurement process is also used outside the area of state administration if private sector companies are in receipt of public funding. Our approach towards procurement management has been honed over a period of many years. We offer reliable consultancy services that cover every part of your tendering procedure including full administrative processing and documentation. We act for public sector contracting parties at a conceptual level by scrutinising their duties to call for proposals. Wherever possible, we develop structures which do not involve entering into competitive tendering processes.

Service portfolio procurement law

• Scrutiny of duties to tender in respect of public contracts, service concessions and construction concessions (public sector contracting party, recipients of public funding)
• Evaluation of legal risks
• Structures which avoid the need to enter into tendering processes (e.g. awarding in-house contracts, cooperation agreements between local government authorities)
• Design of contractual and tendering documentation in conjunction with our experts in the law of contracts and private construction law
• Preparation of public announcements
• Management of bidder enquiries, drafting of responses
• Complaints in the tendering process
• Review procedures before the Procurement Supervisory Committee
• Complaints procedures before the Public Procurement Division of the courts
• Procurement compliance
• Development and review of internal procurement rules

Public funding may only be used in accordance with the stipulations set out in the financial regulations and for the purpose shown in the respective allocation notices. Procurement law also applies alongside this earmarking of funds. Our core expertise lies in the guidance and representation of grant beneficiaries in order to ensure that funding received is used in a legally correct way. We also provide both extrajudicial and judicial support in circumstances where a demand for return of funding has been issued. We assist grant authorities in structuring their funding and in the assertion of recovery claims before the civil and administrative courts.

Service portfolio funding

• Design of funding notices
• Guidance on the lawful use of funding
  • Duty to apply procurement law
  • Use of funding in accordance with the proper purpose
    • Rent commitment
    • Conditions imposed
    • Where-used list
• Guidance and representation for and during recovery proceedings
• Representation before the civil and administrative courts

The aim of the ban on state subsidies in EU law is to protect the EU single market from distortions to competition caused by financial contributions made from the public purse. This does not merely apply to large projects such as motor sports venues, airports or destruction of animal carcasses. Brussels has also put far-reaching requirements in place in core areas of local government budgeting. These relate particularly to financial relations with public sector companies, and all public bodies need to ensure that they abide by the rules. Any infringements are robustly penalised by the EU Commission, and existing contracts may be rendered null and void as a consequence. This is an area in which there are considerable liability risks. Our experts provide consultancy services at all levels of the public sector. They also provide guidance to all public and private companies on all matters relating to EU subsidies.

Service portfolio EU subsidy law 

• Public company financing in line with subsidy law
• Infrastructure financing (e.g. swimming pools, broadband, tourism)
• General subsidies check
• Subsidies for publicly owned groups
• Guarantees and loans for public bodies
• Services of general economic interest
• General Block Exemption Regulation
• Act of entrustment
• Grants to private sector entrepreneurs
• Aid for SME’s
• Undertakings in difficulty
• Subsidy monitoring
• Subsidies during insolvency

Contact partners

The Procurement Law, Funding Law and EU Subsidies Practice Group pools our expertise at the interface between the public sector and the private economy. Its members possess proven legal expertise and have detailed knowledge of the particular commercial characteristics of this field of consultancy. This collaboration between the different disciplines allows project support to be delivered from “a single source”.

In order to take care of your legal interests in the best possible way, we also make use of our network of external consultants and experts when appropriate and necessary. In the event of a dispute, we will represent you in all court proceedings including in cases that are referred to the European Court of Justice.