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Its action respects the diversity of situations in the Member States and the roles devolved to national, regional and local authorities to ensure the well-being of their citizens and promote social cohesion, while guaranteeing democratic choices in relation to the level of the quality of services, for example. In sectors which have been harmonized at EU level,20 and where objectives 18 See joined cases C-180/98 to C-184/98, Pavlov, [2000] ECR I-6451, paragraph 118; case C-218/00, INAIL,,[2002] ECR I-691, paragraph 37; and case C-355/00, Freskot, [2003] I-5263.

43 This feature of the public procurement legal framework focuses on price competition being inserted into the relevant markets, and assisted by the transparency requirement to advertise public contracts above certain thresholds44 it would result in production and 41 See Monti, ‘Article 81 EC and Public Policy’, 39 Common Market Law Review, 2002, where it is argued that public policy considerations balance the legality test of ab initio illegal restrictive agreements by virtue of Article 81(1)(2) EC with a set of requirements contained in Article 81(3) EC and also developed by the EC Commission in its jurisdictional capacity to provide individual exemptions.

The price-competitive tendering reflects on the dimension of public procurement regulation as an economic exercise. On the one hand, when the supply side responds to the perpetually competitive purchasing patterns by lowering prices, the public sector could face a dilemma: what would be the lowest offer it can accept. 47 It is 46 See Lawton (ed), Industrial Policy and Competitiveness in Europe, Macmillan, 1998. 47 The European rules provide for an automatic disqualification of an ‘obviously abnormally low offer’.

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