There is a dispute between the European Commission (Commission) and Germany concerning arrangements for the maintenance of district roads in eight German regions or Länder. The Road Acts in the local regions provide that the administrative districts (Landkreiser) are responsible for the construction and maintenance of the roads but they can entrust the State entities with the maintenance of the roads against reimbursement of the costs incurred. These contracts generally do not go out to tender. Germany considers that these agreements are acts of internal State organisation and do not constitute public service contracts and are therefore not subject to the requirements of the procurement directive (2004/18/EC). The Commission has sent Germany a reasoned opinion refuting its claims and stating that the arrangement does not involve the transfer of the responsibility of the maintenance of the roads but rather the contractual obligation to provide maintenance services. Therefore, the contracts should be tendered. If the matter is not resolved over the next two months, the Commission may take an action before the European Court of Justice.
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German district road scheme in dispute
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