European Commission proposes EU-wide public procurement overhaul

Brussels, Belgium. The European Commission has proposed new public procurement rules that would create an EU-wide platform, reduce paperwork for companies and allow governments to consider EU content criteria when assessing bids.

The proposal would replace three existing EU public procurement directives with a single regulation covering all sectors except defence.

Single market and competitiveness

The proposal is part of a series of Commission measures aimed at strengthening the Single Market, security and supply-chain resilience, and preventing industrial decline following warnings by former European Central Bank president Mario Draghi and former Italian Prime Minister Enrico Letta.

Public procurement represents about 15 per cent of the European Union’s gross domestic product, or around €2.5 trillion ($2.91 trillion) in 2025. The Commission said the sector could be used to address international competition and supply-chain vulnerabilities.

Companies bidding for public contracts have complained about different templates, languages and duplicated procedures across the EU’s 27 jurisdictions, including federal and regional authorities.

Contract award criteria

The proposed rules would simplify tender procedures and make it harder for authorities to award contracts primarily on the basis of cost. The measures are intended to address concerns over low-priced goods, including Chinese products that may be subsidised.

“This is a radical simplification, as we are moving from three directives to a single regulation,” Commission Executive Vice President Stéphane Séjourné told reporters.

Séjourné said strengthening the internal market was part of Europe’s economic response as major powers including China, India and the United States use procurement in their industrial and economic strategies.

Strategic and innovation measures

Under the proposed regulation, national discretion in applying procurement rules would be reduced. Authorities would be encouraged, and in some cases required, to consider risks involving critical infrastructure, cybersecurity, supply-chain disruptions, strategic dependencies and foreign influence when awarding contracts.

Procurement is also a central part of the European Innovation Act, another Commission initiative proposed on Wednesday to improve EU competitiveness. The act is intended to create sufficient demand for innovations to reach the market through increased investment, including by public bodies.