EU Unveils “Buy European” Public-Procurement Overhaul to Counter Chinese Market Influence

The European Commission released a draft “Buy European” package that would reshape EU public-procurement law. The proposals require national authorities—such as schools, hospitals and local councils—to give greater weight to quality, environmental sustainability and local supply chains when awarding contracts. A minimum 30 % weighting for quality must be applied to all contracts, rising to 50 % for labour-intensive projects, and buyers must justify any decision to ignore these criteria. The draft also merges three existing procurement directives into a single framework and will be examined by the European Parliament and EU ministers before adoption.

The Guardian

Commission officials argue that current rules are interpreted as obliging buyers to select the cheapest offer, which can favour firms from outside the bloc that benefit from state subsidies. By emphasizing non-price factors, the Commission hopes to protect European jobs and reduce the market share of Chinese companies that have entered sectors such as transport, infrastructure and security equipment with subsidised pricing. Stéphane Séjourné, the Commission’s lead on industrial policy, said the changes are intended to give public purchasers “greater legal certainty and clarity” about favouring European bids while allowing them to reject offers from countries that do not adhere to binding procurement agreements.

The Guardian

EU officials estimate that public procurement accounts for roughly 15 % of the bloc’s gross domestic product—about €2.6 trillion (£2.2 trillion) annually. The new weighting rules would therefore affect a substantial portion of European government spending, providing a tool comparable to those used by the United States and China to support domestic industries.

The Guardian

Séjourné, a close ally of French President Emmanuel Macron, framed the initiative as a matter of public-sector accountability, insisting that any preference for European products should be a transparent political choice rather than a rule-driven mandate. He also noted that existing free-trade and procurement agreements with the United Kingdom and other non-EU partners would protect their firms from new barriers, provided those countries remain parties to the World Trade Organization’s Government Procurement Agreement (GPA). The GPA currently includes 22 members, among them the EU (counted as one), the UK, the United States, Canada and Japan; mainland China is not a member.

The Guardian

The draft regulation must still secure approval from the European Parliament and the Council of Ministers. Both bodies are expected to amend the text during the legislative process, and the final rules could be altered before they take effect. An online tool is planned to help public buyers identify which countries are covered by the EU’s network of free-trade and procurement agreements, ensuring compliance with the forthcoming framework.

The Guardian