End-to-end e-procurement Committe of the Regions Commission for Economic and Social Policy Brussels, 2 October 2013 Ivo Locatelli e-procurement and economic analysis of procurement markets

2 The economic context -Public expenditure: 19% of EU GDP ! -Difficult economic context – fiscal consolidation -Annual growth survey -Effective public administration key to competitiveness of EU economy o Growth enablers: digitisation, transparency, reduction of administrative burden, reform of public procurement

3 Benefits 1/2 -Facilitates e-government, and stimulates innovation -Advantages for SMEs -Important spill-over effects to other areas of the public administration (and for e-invoicing – to B2B sector) -Advantages: o Shorter purchase-to-pay cycle o Cut of administrative burden o Improved transparency, accountability, traceability o Reduced litigation, corruption, fraud o Better monitoring

Why "end-to-end e-procurement"? - Transition to e-procurement on the way - Extention to other parts/phases increases the potential benefits - Facilitates integration and digitisation of the different parts/phases - Political context (e-invoicing): o EP resolution (April 2012): « make e-invoicing in PP mandatory by 2016 » o European Council conclusions (June 2012): « priority should be given to measures aimed at further developing cross-border online trade, including by facilitating the transition to e-invoicing » - Timing: acting now before it gets too late 4

End-to-end e-procurement - Key actions of Communication: MS strategies for introduction of e-procurement and e-invoicing MS to consider using structural funds for training to facilitate transition Multistakeholder Forum on e-invoicing; creation of similar forum for e-procurement Sharing best practice …and Legislative initiative on e-invoicing in public procurement 5

e-invoicing - "Predominant mode of invoicing in the EU by 2020" Goal: generate savings for administrations and businesses and help reduce payment delays facilitate use of e-invoicing for enterprises and create new business opportunities Objective: Improve the functioning of the Internal Market by introducing mechanisms that would diminish market access barriers in cross- border public procurement, generated by insufficient interoperability of e-invoicing technical requirements or standards. 6

Directive on e-invoicing in public procurement Key elements: o Scope: PP invoices only o Directive mandates standardisation bodies to draw up a new European e-invoicing standard o Buyers obliged to accept electronic invoices compliant with the new standard (technical requirements) o The new standard will: o build on existing specifications developed by CEN and UN/CEFACT o not replace existing e-invoicing standards – national systems can continue to be used o Transposition: 4 years 7

Enterprises sending / receiving both e-invoices in a standard structure suitable for automatic processing and electronic data to/from public authorities in 2011 [%] (Source Eurostat) 8

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