The possibility for municipal subsidiaries to seek in-house public contracts and EU funding for local and regional development projects
The possibility for municipal subsidiaries to seek in-house public contracts and EU funding for local and regional development projects

Summary/Abstract: The aim of the article is to analyse the issues of establishing and functioning of municipal subsidiaries and the lawfulness of such companies applying for EU funding for local and regional development projects. In this article, the author attempts to answerthe following questions: what limitations are there in the procedurefor founding municipal subsidiaries?; can municipal subsidiaries seekpublic contracts within the framework of in-house procurement?; canmunicipal subsidiaries apply for EU funding? The study wasconducted using the legal-dogmatic method and it was based on ananalysis of legislation and selected decisions of the Court of Justice ofthe European Union and the Polish National Appeals Chamberrelating to the awarding of in-house public contracts and the foundingof municipal subsidiaries. Further analysed were the legal possibilitiesfor such companies to be awarded in-house public contracts and toapply for EU funding to invest in their projects. The study allowed toanswer the questions posed. The concept of new business entities, or municipal subsidiaries, being founded by local authorities or their municipal companies is not only permitted by law, subject to certain statutory restrictions, but it may also turn out to be advantageous when it comes to awarding public contracts on an in-house basis or seeking EU funding for local and regional development projects. The study allowed for the creation of legal grounds for the practical use by local government units of the concept of municipal subsidiaries, in particular in terms of in-house public contracts and applying for EU funding for local and regional development projects.

• Details
• Contents