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[BUSINESS] · EU · 18 sources

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European Commission proposes Public Procurement Act to reform EU spending

The European Commission has proposed the Public Procurement Act, a major reform aimed at reshaping how the EU spends its annual procurement budget of approximately 2.5 trillion euros. The initiative seeks to shift the focus from selecting the lowest-priced bids to a best price-quality ratio, incorporating social, environmental, and resilience criteria.

Key provisions include requiring that at least 30% of procurement evaluations be based on quality, a figure that can rise to 50% for labor-intensive contracts. The reform also introduces a 'European preference' framework, allowing public authorities to prioritize European goods and services in essential sectors such as energy, water, railways, and postal services. This move is intended to bolster the EU's strategic autonomy and counter economic influence from major powers like China.

To reduce bureaucracy, the Commission proposes a single EU-wide 'Digital Marketplace' and a 'once-only' principle for business registration. The reform is expected to generate approximately 650 million euros in annual net savings. While industry groups like BV-Med have welcomed the focus on quality and supply security, watchdogs such as Swedwatch have cautioned that the legislation must include firm human rights and environmental due diligence requirements to prevent companies from underbidding through labor or environmental abuses.

Entities

BV-Med · CCIA Europe · China · Council of the European Union · Ekaterina Zaharieva · European Commission · European Parliament · European Union · European Union · Stéphane Séjourné · Swedwatch

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1 day ago
about 22 hours ago