Legal debate was sparked when several German Länders’ introduced regulations over upholding minimum wage levels and or social standards in the public services market. The debate focused on the compatibility of these provisions with the principle of the freedom to provide services. These provisions result in supplementary economic costs that may dissuade foreign countries from tendering for contracts (c.f. article No.130476) and if so then they would actually be infringing this fundamental EU freedom. In a ruling handed down on 17 November, the CJEU judged that legislation requiring tenderers and their subcontractors to uphold certain minimum wage levels does indeed comply with EU community law. The case concerned centered on a tender for a contract within the postal sector.
RegioPost found itself excluded from the procurement procedure for urban postal services (collection, transport, deliveries) in the German municipality of Landau (Rhineland-Palatinate), because it had refused to commit to paying the minimum wage level (€8.70 an hour before tax), and as a result brought legal action to contest the situation.
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