Canarias Calls for EU Recognition of Its Peripheral Status in Public Procurement
Matilde Asián, the Canary Islands’ Minister of Finance and Relations with the European Union, has urged the European Union to recognise the archipelago’s status as an Outermost Region (RUP) in the sphere of public procurement. She emphasised that the islands face significant challenges due to their geographical isolation, which reduces competition among businesses, results in fewer bids on contracts, and leads to limited discounts on initial budgets.
Asián made these remarks during a press conference presenting the findings of the report ‘State of Public Procurement in the Canary Islands’, conducted by the University of La Laguna. The study, authored by Javier Mendoza Jiménez and Jorge García Sanabria, recommends adapting public procurement strategies to the unique insular situation in order to enhance competitiveness, attract more companies, and improve results.
“It’s not just about increasing the number of tenders but about improving their quality and fostering an EU framework that acknowledges our unique challenges,” Asián stated. Public procurement is seen as a critical tool for revitalising the local economy, enhancing services, and ensuring efficient use of public resources. However, the islands’ specific conditions often deter interest in regional tenders.
The Canary Islands government reported that the study found both the geographical disadvantages and a lack of competition significantly affect public procurement processes. Alongside these issues, there is a noted disparity in the budget allocations that do not always account for the islands’ higher costs, resulting in fewer bids from external firms and an over-reliance on objective criteria.
A comparative analysis within the report revealed that competition is notably less in the Canaries, with an average of 2.89 bids per contract compared to 5.04 in mainland Spain—a 42.7% reduction. Additionally, 8.93% of tenders remain unawarded in the islands, slightly higher than the 7.65% national average, while the savings from contract awards are also lower in the Canaries.
The report highlights the underrepresentation of small and medium-sized enterprises (SMEs) in the contracting process, where they account for just 53.98% of awards—a figure lower than other comparable regions. Furthermore, a mere 0.79% of bidders are from outside the Canary Islands, starkly contrasting with the 6.10% seen in mainland Europe.
In light of these findings, Asián insists that reforms are essential. Adjusting budgets to reflect the unique conditions of the islands, introducing criteria that prioritise quality and innovation, and enhancing the skills of both buyers and companies are vital steps forward.
Juan Domingo Cabrera, director general of Heritage and Procurement, concluded that aligning public contracting with the realities of the Canary Islands is crucial for increasing participation and improving public services. He also noted the significance of these insights for other regions across Spain.
