Labour’s spending spree: goldmine for EU27 companies, under EU rules

How the EU procures UK public money

Another exclusive research report by the Facts4EU.Org team

A little-mentioned fact about EU membership is the EU’s control over the €2 trillion of public sector contracts of EU countries each year – at least when these countries obey the rules, as the UK does.

Government and local authority major spending must be put out for tender to all EU countries. This is a huge sum each year.

The UK’s total general government expenditures on works, goods, and services - excluding utilities – equated to 12.8% of UK GDP in the latest report published by the EU.

In cash terms, this amounted to €300 billion (£259 billion GBP) for the UK’s contracts alone in 2017, and that was without including utilities like water and electricity, and without including defence contracts.

Put simply, UK public sector spending is a potential goldmine for the EU. Forced to put its public sector contracts out to tender to the whole of the EU, any Remainer UK government – either Labour or a Labour-led coalition of LibDems, Greens, Plaid and the SNP – will see significant numbers of UK jobs going to German, French or other EU27 companies.

Brexit Facts4EU.Org Summary

Public procurement within the EU – A Brexit Facts4EU.Org summary

Public spending contracts awarded for works and for goods under the EU’s General Directive

Of 21,964 works contracts awarded, only 561 went to UK companies (2.6%)
Of 57,196 goods contracts awarded, only 1722 went to UK companies (3.0%)

Public spending contracts awarded under ALL the EU’s Directives

Of 547,360 of ALL contract notices awarded, only 32,393 went to UK companies (5.9%)

The UK obeys the rules

The UK advertised the highest value of public spending projects – by far
€139.6 BILLION of UK public spending was advertised in the EU27, out of an EU total of €545.4 billion
The UK was responsible for 25.6% of the value of all advertised contracts in the EU

The list of directives and regulations which the UK and all EU27 countries are supposed to obey in respect of public procurement is now lengthy

Public Contracts Directive (2014/24/EU)
Utilities Directive (2014/25/EU)
Concessions Directive (2014/23/EU)
Defence and Security Contracts Directive (2009/81/EC)
Remedies Directive (89/665/EEC)
Utilities Remedies Directive (92/13/EEC)
Passenger Transport Regulation (1073/2009/EC)
Licensing Regulation (1008/2008/EC)
Standardisation Regulation (1025/2012/EU)
E-invoicing Directive (2014/55/EU)
Thresholds Regulation (2015/2172/EU)
Regulation on standard form of notices (2015/1986/EU)
Utilities Exemption Decision (Commission Decision 2016/1804)
Energy Efficiency Directive (2012/27/EU)
Clean Vehicles Directive (2009/33/EC)

Observations

Public spending is now a major topic in the general election campaign. Labour in particular has announced public spending plans which are larger than any government’s since the 1970s.

We don’t comment on domestic politics except where this impacts on what can and cannot be done as a member of the EU. If Labour were backing Brexit, they would be entitled to claim that any increased public spending would provide jobs and boost the economy in the UK.

Given that Labour’s policy – as far as anyone can make out – appears to be to attempt to negotiate with the EU and then campaign against their own subsequent ‘deal’ in another referendum, then we must assume that their public expenditure plans will be set against a backdrop of staying in the EU.

In that case, the UK would continue to be bound by ever growing directives and laws on making all public procurement contracts available to companies from the rest of the EU. This is already law, and it is being enlarged upon continuously by the EU.

Either a massive growth in UK public infrastructure spending will all be spent in the UK, or we remain a member of the EU, where a proportion of this spending will benefit German, French and other EU27 countries.

You can’t have it both ways.

FINALLY, TO ALL READERS:

We live in interesting times. We can only appeal once again to our tens of thousands of readers who have not yet donated, to kindly do so today.

The above article results from original research of official facts, as ever. You will not have seen this on the BBC, Sky News, or in the press. We would love to have the resource to get this out there much further, along with all the other factual information and reports that we produce all the time.

We rely 100% on donations from individual readers like you, and right now these are not enough to keep us going, let alone to do all the extra work we need to do in the coming weeks. Quick and secure donation methods are below this article. We don't have expensive London offices and secretaries, and we don't sell your information to anyone. Thank you for anything you can do.

[ Sources: EU Commission latest data (for 2017) ] Politicians and journalists can contact us for details, as ever.

Brexit Facts4EU.Org, 11 Nov 2019

Click here to go to our news headlines

And please scroll down to COMMENT on the above article.

Something to say about this? Scroll down for reader comments

Since before the EU Referendum, Brexit Facts4EU.Org
has been the most prolific researcher and publisher of Brexit facts in the world.

Supported by MPs, MEPs, & other groups, our work has impact.

We think facts matter. Please donate today, so that we can continue to ensure a clean Brexit is finally delivered.

Any credit card user

Quick One-off

From £5 - £1,000

Monthly

From £3 per month

Paypal Users Only - Choose amount first

Quick One-off

Monthly

PLEASE NOTE IF YOU WOULD LIKE TO COMMENT : You can write your comment under any existing comments below. After you have clicked to preview your comment, you MUST then click on the CAPTCHA system and send you comment, for it to be published. Thank you!

Reader Comments 12

1. Norman , Monday, November 11, 2019, 09:12:

I note that all of these are covered by either regulations or directives.
It is unfortunate that the it would appear the whole of the press and media are now trying to persuade Nigel Farage to withdraw his candidate from the forthcoming General Election so that Boris can force his Brexit deal through. Problem is that is not Brexit, it is another con. If we don't stand against this then we will have been sold down down the river. If that happens it will take another three generations before we are able to put it right and in the mean time we will suffer like we have never done before in this nations history.

2. Concerned , Monday, November 11, 2019, 10:07:

Norman (1) Great comment, it is that dire a position the country is now in. Shame we had not already left, Scunthorpe steel could have been saved rather than being sold off to the Turks or now the Chinese.
Mad hatters running the country into the ground for the benefit of the EU, who cannot stand the idea of a competitive country being offshore to their socialist ‘empire’

3. tarien , Monday, November 11, 2019, 12:16:

Find it hard to know that the Scunthorpe Steel works has been sold to the Chinese, a nation that is completely undemocratic, a Dictatorship and a nation that is creeping further into our nations enterprises that could eventually create an inbalance against us all in Britain. Surprised with the number of UK Billionaires we currently have that one of them could not have found the odd £70 million to support this operation?

4. James Bertram , Monday, November 11, 2019, 14:17:

Off topic - latest developments:
https://www.youtube.com/wat...
10.45 mins into this video Nigel Farage says he saw Boris Johnson on a video on Sunday night (10/11/19) saying 'he will not extend the transition period beyond the end of 2020..... and he said we would negotiate a trade deal, a super Canada+ trade deal, with no political alignment.'
It is on the basis of that video that Farage has stood down 317 Brexit Party candidates in the Tory seats held at the 2017 election. Farage's new strategy is to attempt to keep Johnson and the treacherous Tory Party honest to those promises made in that video of Sunday night, and to stop any backsliding by these Con merchants on Johnson's statements therein.
-
So, as a first step, it is really important that that video is made widely available to the public so as to hold the Tories to account, and I hope that the BrexitFacts4EU team can get hold of it, and publish it as part of tomorrow's output. Thanks for your efforts in trying to do so.

5. Steven , Monday, November 11, 2019, 14:23:

Norman, if that fake ‘ Brexit’ deal goes through there won’t even be a country left to save let alone any British companies! Boris poses as a great patriot and unbelievably condemns Jeremy Corbyn for being an IRA supporter yet the fact is HIS wretched deal/new EU Treaty that will effectively give the IRA/NewIRA what they have always wanted ie a ‘united’ Ireland and one that doesn’t have unionist consent!
If the news concerning the Brexit Party is true then it will have merely confirmed the suspicions of many that Nigel is a fake, a Tory at heart and the Brexit Party was only ever his personal hobby horse/one man tribute band and that Labour Leave supporters in Labour seats were rightfully wary about his true motives and hence they WON’T vote for his ‘party’s’ candidates. As of today, the Brexit ‘party’ has ceased to exist!

6. James Bertram , Monday, November 11, 2019, 14:24:

This is the video, I think (I cannot play it on my computer):
https://www.thesun.co.uk/ne...
and
https://www.conservativehom...

7. Steven , Monday, November 11, 2019, 14:28:

Personally, I hope that if Boris The Buffoon wins and tries to ram this fake and DANGEROUS UK-wrecking new EU treaty through the House of Commons the Queen just for once, stands-up to the idiot and refuses it Royal Assent.

8. Steven , Monday, November 11, 2019, 14:33:

Nigel must be either a complete idiot or a closet Tory to believe A SINGLE WORD the clown in No. 10 says. Boris is an inveterate LIAR that lies to such an extent he must have some form of a mental problem.

9. James Bertram , Monday, November 11, 2019, 14:39:

Agreed, Steven. Johnson's plans for Northern Ireland remain totally unacceptable. Obviously very disappointed here, today - and my vote has been completely disenfranchised. No, I will not be voting for Johnson and the Tories here in Guildford [A Conservative/ Liberal marginal as from today] until it is completely clear that Johnson has abandoned pursuing a withdrawal agreement with the EU; and thereby abandoning his plans to annex NI too.

10. James Bertram , Monday, November 11, 2019, 17:29:

Now Farage will not oppose the Tories in 317 Tory-held seats (at 2017), the question is how will the Tories reciprocate?
Will they stand down Tory candidates in the Brexit Party's 50 most winnable seats against Labour? Will they now behave honourably and put the Country first? Or will they remain treacherous and duplicitous, and, as usual, selfishly put their own party interests ahead of the Country? And will Aaron Banks and the right-wing press stop their bleating that Farage will let Labour in, and now turn their guns on the Tories to tell them to PUT THE COUNTRY FIRST?
I doubt any of this will happen. Tories always knife you in the back.
So I am now considering voting tactically in our very marginal Con/Lib seat of Guildford.
Unless the Tories reciprocate, and equally stand down candidates to help the Brexit Party, I shall vote them out by voting Liberal.
Better a Corbyn government than a Johnson' BRINO.
Better to Remain than a Johnson' BRINO.

12 comments, page 1 of 2

Add comment:

Please note: Your email address is never published unless you choose to enter it.