Research report: A review of different types of public funding and how these should be understood in the light of EU law

Published

Many municipal companies, non-profit organizations and profit-making companies today perform different types of social services vis-à-vis municipalities, county councils and other public actors. There is currently uncertainty if some of these services are to be procured under the Public Procurement Act (LOU) or not.

There are basically two different ways for public actors to finance these services, either as commission or financial contribution. In short terms, this means that a service is to be procured under LOU if the supplier receives compensation for a completed assignment, but if the supplier receives a financial contribution, the assignment may fall outside the scope of the LOU. However, the boundaries between these types of funding can be surrounded by complex considerations.

This report contains a thorough review of different types of public funding and how these should be understood in the light of EU law. In the light of the fundamental EU legal principles, the author places questions that arouse reflection and strives to clarify these issues.

For additional information, please contact:
Joakim Wallenklint, Research Manager, + 46 (0)76-542 16 03, joakim.wallenklint@kkv.se

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