Public procurement is a large part of any country's economy, independently of its geographical location, political inclination or level of development. On average, public procurements amount to 17% of GDP among the EU countries (Bolkenstein, Frits, 2004).

Public procurement can be considered as a special case of business transactions between organizations. Public procurement is based on a different and stricter jurisdiction than transactions between private companies.

Just as in the private sector, the public sector strives to get the best possible deal. However, profit is not the driving force in the public sector, which means that public procurements have other and broader consequences than the private sector's purchasing activities.

Purpose

This paper explores, investigates and analyses positive and negative  consequences of different aspects of public procurement and its influence on the market and as a tool to achieve political goals.