EU Drafts New Public-Procurement Rules to Favor European Companies

On July 9, 2024, the European Commission released a draft regulation that would reshape EU public procurement. The proposal would let authorities exclude bids for large contracts that contain less than 50 % European content and give preference to EU firms in sectors deemed strategic. While the draft does not name any country, it aligns with the Commission’s broader “Buy European” agenda aimed at curbing reliance on foreign suppliers, particularly in critical-materials production.

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Public procurement represents roughly 15 % of the EU’s gross domestic product, amounting to about €2.5 trillion (? $2.86 trillion) based on the bloc’s 2025 GDP forecast. The draft frames procurement as a “strategic relevance” tool, allowing buyers to assess whether a bidder’s ownership, control, or financing poses a risk of foreign interference. Quality criteria must account for at least 30 % of the total evaluation score, rising to 50 % for labour-intensive contracts, and the regulation would replace the three existing procurement directives, reducing national discretion.

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The document stresses that procurement decisions now carry security implications, urging authorities to consider risks linked to critical infrastructure, cybersecurity, supply-chain disruptions, strategic dependencies, and foreign influence when awarding contracts. It also calls for the creation of an EU-wide digital procurement system, featuring electronic business credentials, interoperable platforms, and shared data spaces to improve transparency and cross-border access.

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• “The way public buyers spend money has become a matter of strategic relevance,” — EU draft regulation

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• “Authorities would be encouraged, and in some cases required, to take account of risks linked to critical infrastructure, cybersecurity, supply-chain disruptions, strategic dependencies and foreign influence when awarding contracts.” — EU draft regulation

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• “Contracts would have to be awarded on the basis of the "best price-quality ratio", with quality criteria accounting for at least 30% of the total score and at least 50% for labour-intensive contracts.” — EU draft regulation

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The Commission had initially planned to unveil the proposals on July 1, but the schedule now sets an early-September announcement. Final adoption will require endorsement from all 27 EU member states.

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