Following a consultation, the European Commission has decided that action
is needed to clarify the effect of the public procurement rules to public-private
partnerships (PPPs). PPP's are large business ventures between the private
and public sectors, where they undertake projects needed for public services,
such as the construction of a school or a hospital. Respondents to the consultation
expressed the need for clarification of what is viewed as an "in-house" entity.
The definition of an entity as an "in-house" entity, as opposed to
a third-party entity, has bearing on whether the rules on public contracts
and concessions will apply to the project in question. Fair competition requires
the choice of private partners in PPPs to be transparent. The Commission aims
to introduce measures by the end of this year.

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