The Public Law Procurement System and its Macroeconomic Effects in Germany and in the Czech Republic Regarding its Compliance with EU Law

Abstract

Summary As one of the essential parts of government administration public procurement system utilizes a significant share of GDP. The purpose of public procurement system is to award timely and cost-effective contracts to qualified contractors and to keep safe that buying of goods and services in the public authorities is done in the legal manner. Furthermore, public procurement should generate the intended development and economic growth. The principal aim of this research is to conduct a comparison of macroeconomic effects of German and Czech public procurement system. Equally, the study intends to assess both similarities as well as outcomes. Based on the available studies, it is estimated that public procurement entails 15 % of GDP in Germany and 14 % in Czech Republic. The study utilizes secondary research methods to generate data which is analyzed with help of quantitative techniques. The most notable similarities include; the types of public procurement contracts and use of e-procurement to enhance efficiency and transparency. Moreover, some divergences were found, where the German procurement system seems to be more efficient compared to the Czech Republic.