Austria to reform public procurement to boost European value creation

The Austrian government plans to reform public procurement processes to prioritize Austrian and European value creation. Economic Minister Wolfgang Hattmannsdorfer announced that a new guideline will be developed by the end of the year to shift away from a focus solely on the lowest price toward a ‘best bidder’ principle.

This strategic move aims to reduce technological and digital dependencies on the United States and China. According to research from the ASCII institute, the Austrian public sector spends approximately 67 billion euros annually on products and services. Officials intend to use this significant purchasing power as an industrial policy tool to support small and medium-sized enterprises (SMEs) and enhance regional supply chain security.

The initiative, which receives support from Infrastructure Minister Peter Hanke and the GBH union, seeks to ensure that public funds create local jobs and strengthen the European economy. The government also intends to advocate for similar rules at the European level through the Public Procurement Act.