Analysis of the Draft Law Amending Article 44 of the Law on Public Procurement
Automatically translated summary. The full text is available in Romanian.
This analysis examines the draft law amending Article 44 of the Law on Public Procurement. It assesses whether public authorities can pursue shared societal objectives through economic activity, and weighs the total costs that the proposed means would generate by altering political and economic incentives.
The analysis acknowledges that promoting common objectives for the benefit of society through economic activity is a commendable initiative. However, it argues that the alternative means chosen to achieve such objectives must be examined carefully in light of the total costs created when political and economic incentives are altered.
Its conclusion is that the proposed measure would produce significant distortions in the allocation of public resources. It would also cause long-term costs, as protected producers would be less motivated to innovate. Finally, it would create an uncertain environment, and therefore one unfavourable to foreign investment.
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