EU Threshold
EU thresholds (EU-kynnysarvot) are the contract value limits above which public procurements must follow EU-wide procurement procedures. When the estimated value of a procurement exceeds the applicable EU threshold, the contract notice must be published in TED and the full EU procurement directives apply.
Definition
EU thresholds are monetary values set by the European Commission that determine whether a procurement falls under EU-wide procurement rules. The thresholds differ by type of contracting authority and type of contract. For central government authorities, the threshold for supplies and services is EUR 143,000; for other contracting authorities (municipalities, etc.), it is EUR 221,000; and for works contracts, it is EUR 5,538,000. These thresholds are revised every two years. Procurements above these thresholds must comply with the full EU procurement procedures, including publication in TED and minimum time limits. They are defined in Section 26 of the Public Procurement Act (1397/2016).
Practical Example
A Finnish municipality plans to procure IT consulting services with an estimated value of EUR 250,000. Since this exceeds the EU threshold of EUR 221,000 for sub-central authorities, the procurement must be published on both Hilma and TED, and full EU procurement rules apply, including ESPD requirements and minimum time limits.
Common Mistake
Contracting authorities sometimes try to split a procurement into smaller lots to stay below the EU threshold. This is explicitly prohibited (lot-splitting prohibition). The estimated value must include the total value of all lots, and artificial splitting can be challenged.
Frequently Asked Questions
How often are EU thresholds updated?
The European Commission reviews and updates EU procurement thresholds every two years to reflect changes in exchange rates and economic conditions. The thresholds apply from January 1 of the update year.
What happens if the actual contract value exceeds the EU threshold after the procedure?
The threshold assessment is based on the estimated value at the time the procurement is initiated. If the authority made a reasonable and good-faith estimate that was below the threshold, the fact that the final contract value exceeds the threshold does not invalidate the procedure.
Related Terms
Contract Notice
Learn about contract notices in Finnish public procurement. The official announcement published on Hilma and TED to invite tenders from suppliers.
National Threshold
Learn about national procurement thresholds in Finnish public procurement. The minimum values above which hankintalaki applies to public contracts.
Estimated Value
Understand how estimated value is calculated in Finnish public procurement. Rules for determining contract value under hankintalaki 1397/2016.
Hilma Platform
Learn about Hilma, Finland's official public procurement notice platform. How to find and respond to procurement opportunities on hankintailmoitukset.fi.
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