The changing understanding of public procurement in European Union Funds project: case of Latvia

Abstract

Public procurement important driving force of the economy with a history spanning centuries. For more than past decade, EU has had a strict public procurement regulation that provides specific requirements for procurement procedures, and if these requirements are not met, the regulation of EU financial instruments imposes financial sanctions on beneficiaries of EU funds. The aim of the research is to examine the theoretical definitions of public procurement, additionally analysing the main features of public procurement of EU funds, and to propose a new definition of public procurement that corresponds to the existing procurement practice in EU member states. The study employed the document analysis method, bibliographic analysis and statistical data analysis. It is concluded that the current theoretical definitions of public procurement do not correspond to EU public procurement practice, thus, it is essential to enhance the understanding of the public sector in EU member states and the beneficiaries of EU funding regarding the current aspects of public procurement, which is explained within the framework of article.