On 11 June 2009, the European Court of Justice (ECJ) ruled that a German statutory sickness fund (the Fund) would fall within the definition of a "body governed by public law" under the procurement rules. In coming to that conclusion, the ECJ took into account that the body is principally funded by mandatory contributions payable by members under rules established by public law. In addition, there is some direct funding by the federal authorities. The fact that funding was provided through a statutory scheme meant that the Fund was being financed by the State, albeit indirectly. The matter came before the ECJ on a reference from a German court in relation to a dispute over a contract for orthopaedic footwear.
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Statutory sickness insurance fund governed by procurement law
- Nabarro LLP
- Cyrus Mehta, Brian Sher and Rachel Bickler
- European Union, Germany
- July 13 2009
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Philip I. Weis
Senior Corporate Counsel
Pfizer