A works contract awarded by the Krankenhaus Spittal/Drau GmbH, financed 90 per cent by the State of Carinthia is the subject of infringement proceedings by the European Commission (Commission). Initially, Austria indicated that there were doubts that the hospital was a contracting authority but they have subsequently withdrawn that defence. Nevertheless, the Commission appears to be keen to pursue the matter on the basis that not all the works under the €32m contract have been performed yet.