In our previous posts (here and here) regarding the new Public Spend Matters Europe website, we talked to Peter Smith, who leads the site as well as serves as managing editor of Spend Matters UK, about the importance of having one source where chief procurement officers from around the continent can depend on for information and the latest news regarding government spend.
Why is such a site necessary? As Peter pointed out in a previous post, public procurement is a major part of Europe’s economy. Third-party government spending accounts for an estimated 20 percent of total European GDP.
Peter also noted that public spend is typically higher in European countries than it is in the United States - all the more reason to have a website dedicated specifically to reporting on public procurement in various European countries.
In the U.K. especially, public procurement accounts for a large chunk of government spending. A report from the Centre for Economics and Business Research published last year stated the U.K. has the highest combined costs for public sector departments and the bidding private sector company in all of Europe. The report said the U.K.’s cost for the competitive procurement process is about $59,300 (or 45,800 Euros) - more than $10,000 (8,000 Euros) of which falls on the government seeking bids. This makes U.K.’s public procurement process 90 percent more expensive than the average cost in the EU, according to the report.
While U.K. may win as far as government spend, public procurement is a hot topic throughout all of Europe. And, there is a lot of news coming out on the topic. Public Spend Matters Europe plans to bring you a wide array of coverage from throughout the European continent. Stay tuned for future coverage on this area.