Portugal approves major reform of Public Procurement Code

The Portuguese government has approved the 17th amendment to the Public Procurement Code (Decreto-Lei n.º 177/2026), which is set to take effect on October 1, 2026. This revision aims to reduce bureaucracy, eliminate excessive formalities, and accelerate the execution of public investment and community funds.

Key changes include significant increases in thresholds for direct awards and prior consultations. For works contracts, the threshold for direct awards will rise from 30,000 to 150,000 euros, while the threshold for prior consultations will increase from 150,000 to one million euros.

Legal experts note that while the law provides more flexibility, the challenge remains in overcoming a defensive procurement culture in Portugal, often driven by a fear of litigation and oversight from the Court of Auditors. This reform aligns with broader efforts by the European Commission to modernize procurement frameworks across the EU.