The European Union has drafted new public procurement rules aimed at giving European companies a stronger advantage in securing government contracts, as Brussels moves to reduce the bloc’s dependence on foreign suppliers and strengthen strategic industries.
According to a draft proposal seen by Reuters, the reforms would allow public authorities to reject bids for major public contracts if less than 50% of their content originates within Europe. While the measures stop short of introducing a blanket “Buy European” requirement, they are intended to give EU-based firms greater preference in strategically important sectors.
The proposal forms part of the European Commission’s broader effort to strengthen the bloc’s industrial resilience, secure critical supply chains and reduce vulnerabilities linked to foreign dependence. Although the draft does not specifically mention China, the Commission has already introduced similar policies aimed at reducing Europe’s reliance on Chinese production of critical materials and narrowing the bloc’s growing trade imbalance.
If approved by all 27 EU member states, the new rules would shift procurement decisions away from being driven primarily by the lowest price. Instead, contracting authorities would be encouraged to place greater emphasis on strategic considerations, including security, resilience and long-term economic interests.
The proposal, originally expected to be unveiled in July, has now been delayed until early September. EU officials have not provided a reason for the revised timetable.
Public procurement accounts for around 15% of the European Union’s gross domestic product, representing an estimated €2.5 trillion in annual spending and making it one of the bloc’s most powerful economic policy tools.
The draft argues that public purchasing has become increasingly important in strengthening Europe’s competitiveness, safeguarding critical infrastructure and reducing exposure to external economic risks.
Under the proposed rules, authorities would be empowered to examine whether a bidder’s ownership structure, financing arrangements or foreign control could pose national security risks or create opportunities for foreign interference.
Officials would also be permitted to consider whether companies are subject to laws in non-EU countries that could compel them to disclose sensitive information or otherwise undermine the performance of public contracts.
The reforms would require contracts to be awarded based on the “best price-quality ratio,” with quality accounting for at least 30% of the overall evaluation and at least 50% for labour-intensive projects.
The proposed legislation would replace the EU’s three existing public procurement directives with a single regulation, reducing differences in how member states apply the rules while promoting greater consistency across the bloc.
The proposal also requires procurement authorities to consider cybersecurity risks, supply chain resilience, strategic dependencies and the protection of critical infrastructure when awarding contracts.
In addition, the Commission plans to establish an EU-wide digital procurement system featuring electronic business credentials, interoperable procurement platforms, and shared national and EU data spaces to improve transparency, oversight and cross-border access to public contracts.
Goodness Anunobi
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