Germany: New rules apply to social standards in official procurement

The German Government issued guidance in September 2009 on new legislation regulating the application of "social standards" in public procurement decisions, such as requiring contractors to comply with minimum pay rates.

In April 2009, a "modernised" Public Procurement Law (Gesetz zur Modernisierung des Vergabrechts) was adopted with the aim of ensuring that, where local authorities and other public bodies use observance of social standards as a criterion in awarding contracts and making purchasing decisions, it is consistent with EU law.