The European Court of Justice clarifies rules for municipalities awarding no-bid contracts to municipal companies.
CJEU Ruling Clarifies In-House Contracts
The Court of Justice of the European Court has issued a ruling concerning in-house contracts awarded by municipalities to their own companies.
Conditions for Municipal Contracts
Under EU regulations, municipalities may award no-bid contracts (in-house) to their municipal companies only if these firms perform more than 80% of tasks entrusted by the same local government.
In Poland, this threshold is even higher, requiring companies to execute over 90% of such municipal tasks.