Procurement law in Dresden: dispute sparked over new rules

Procurement law in Dresden: dispute sparked over new rules

The Saxon cabinet recently launched a draft of a new procurement law, which sparked discussions within the coalition. The law aims to attach additional conditions to public contracts, particularly with regard to social and environmental aspects. Prime Minister Michael Kretschmer had previously caused irritation with his statements on this topic by describing the attitude of the economy as crucial for the law.

A central component of the draft law is the requirement that public contracts no longer be awarded exclusively to the cheapest provider, but rather awarded according to the best bidder principle. This is intended to promote innovation as well as social and environmental sustainability. Economics Minister Martin Dulig emphasized the need for fair conditions for competition and for the state to set appropriate rules of the game.

The draft procurement law also stipulates that public transport services can only be awarded to companies that comply with minimum working conditions and wages. Minister Dulig warned of possible consequences such as termination of collective agreements and a shortage of skilled workers if companies do not meet these requirements.

Reactions to the bill were mixed. While the German Trade Union Confederation expressed relief at the first step, it also called for improvements in the further legislative process. The Chemnitz Chamber of Crafts rejected the draft and criticized the bureaucratization in practice. Minister Dulig acknowledged that his ideal of a procurement law differs from the current draft, but emphasized the need for a social compromise.