Smart contracts in public administration - analysis of selected EU States
Smart contracts in public administration - analysis of selected EU States

Summary/Abstract: In addition to the private sector, digitalisation is increasingly spreading to public administration. The adoption of new digital technologies is occurring rapidly in all areas. Industries and governments are looking for ways to simplify, automate and make routine operations more economical while providing a completely new level of customer service. New technologies aim to simplify processes and procedures through technical innovation and to process information reliably and securely. The use of blockchain and smart contracts is conceivable for this purpose. This article will explore the relationship between smart contracts and public procurement in legal aspects in Germany, Italy and Estonia. In order to explore this relationship, we have provided a clarification on the concepts of "blockchain" and "smart contract" and how they are applied today in some states. By using blockchain and smart contracts, governments can significantly reduce silos between their entities and build highly transparent and agile decentralized systems. Although it is an emerging technology, with several specificities, its integration into the legal framework of public procurement in public administration is necessary. This article has discussed the possible implications of using smart contracts in the context of EU public procurement. In the European Union, where countries have developed a transparent e-procurement system, smart contracts have been tested in recent years. Smart contracts seem to be more suitable for countries without an e-procurement system, which do not already have an e-procurement that ensures security, transparency, equal treatment and non-discrimination. For digital systems that already comply with these principles the infrastructure can also be upgraded to accommodate smart contracts.

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