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[BUSINESS] · EU · 20 sources

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European Commission proposes Public Procurement Act to reform EU spending rules

The European Commission has proposed the Public Procurement Act, a major reform intended to modernize EU procurement rules by consolidating three existing directives into a single regulation. The initiative aims to shift the focus of public spending from the lowest price to the best price-quality ratio, incorporating social, environmental, and innovation criteria.

A key strategic objective is to enhance European economic resilience and autonomy, particularly by allowing authorities to prioritize European goods and services. This move is seen as a way to counter the economic influence of competitors like China. The reform also seeks to simplify procedures through a unified digital marketplace, which is expected to reduce administrative burdens and generate approximately 650 million euros in annual savings.

Under the new rules, quality must account for at least 30% of evaluation criteria, increasing to 50% for contracts involving high labor volumes. 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 to prevent companies from underbidding through unethical practices.

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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