European Commission proposes preference for EU firms in public procurement

The European Commission has proposed a new public procurement law designed to grant preference to European companies during public tenders. This initiative aims to bolster the continent's industrial competitiveness and reduce strategic dependencies on non-EU nations. Under the proposal, public authorities, including cities and state-owned enterprises, could exclude bids from countries that do not grant reciprocal access to their own markets. This could specifically impact manufacturers from countries like China, such as the electric bus maker BYD.

The proposed rules would apply to critical sectors including energy, water, railways, ports, airports, and postal services. To shift the focus from purely low-cost options, the law suggests that at least 30% of tender evaluations be based on qualitative criteria rather than price alone.

French Industry Minister Sébastien Martin has advocated for the measure, stating that European citizens' public funds should support European industries to prevent the loss of know-how and long-term dependency. However, some member states, including the Czech Republic and Sweden, have expressed concerns that such measures could devolve into protectionism, potentially shielding inefficient firms and straining relations with international trade partners.