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 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 2 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 3 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 crossborder 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) 35 30 25 20 15 10 5 0 24 12 30 28 17 16 7 27 24 10 12 9 9 11 7 19 11 2 11 1 15 14 18 6 11 15 14 13 8 Mandatory e-submission by Member State in 2011 Number of Member States (MS) (Source IDC Italia) PT Mandatory for all 5 MS: DE,FR LV,BE, IT Mandatory in some cases 15 MS: AT, CY, DK, ES FI, IE, NL, PL, SE, SK, UK, HU, LU, BG, SI 3 MS: CZ, RO, LT Mandatory take-up targets 3 MS: MT, EL, EE Mandatory Planned Voluntary 9 Average level of up-take of esubmission by cluster of Member States in 2011 Number of Member States (MS) (Source: IDC Italia) 3 MS: NL, LV, SK No data 5 MS: BG, EL, HU, LU, SI 0% 10 MS: BE, CY, CZ, EE, FI, FR, IT, MT, PL, ES 4 MS: AT, DK, DE, RO below 5% 5-10% IE, 10-30% 3 MS: PT, UK, SE 30-50% LT above 50% Level of up-take 10 Questions? http://ec.europa.eu/internal_market/publicprocurement/index_en.htm For more information contact: Ivo Locatelli ivo.locatelli@ec.europa.eu Tel: +32 2 296 88 85