In the new issue of the IPF Notes, Vjekoslav Bratić, Martina Pezer and Branko Stanić analyse the shortcomings in the public procurement system and energy sector in order to increase accountability of institutions and strengthen the rule of law. The analysis includes Bulgaria, Croatia, Hungary, Romania, Albania, Bosnia and Herzegovina, North Macedonia, Montenegro, and Serbia. Common forms of vulnerability and management risks in South-Eastern Europe are highlighted.

Public procurement processes are prone to some form of corruptive activities. The most common form of irregularity recorded in Southeast Europe (SEE) countries is the preferential treatment of companies due to the political connections of their owners. For instance, in Croatia, around half of the total contract value is won by bidders which are not private entities, but companies partially or fully owned by the state, which makes it a typical breeding ground for certain abuses. For this reason, transparent governance of state-owned enterprises is extremely important, especially of those in the energy sector, as they face numerous challenges, particularly concerning governance deficits in public procurement. 

In the IPF Notes, researchers from the Institute of Public Finance comment on current fiscal developments and analyze topics in the field of public finance and public sector economics. They are intended for the interested public and the media.