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EU public procurement policy reform

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2026-09-10 18:29 UTC → 2026-09-11 11:06 UTC · added ~~removed~~

The European Commission has formally proposed the Public Procurement Act, a major reform designed to restructure the management of the EU’s annual public procurement budget, which is approximately 2.6 trillion euros and represents 15% of the Union’s GDP. Building on previous efforts to streamline processes, the proposal seeks to replace three existing directives with a single, directly applicable regulation. This change aims to reduce administrative burdens by decreasing the number of available procedures from five to three. The Commission estimates these simplifications could generate annual savings of approximately €649 million for public authorities and economic operators. A primary political objective of the Act is to strengthen European economic sovereignty and competitiveness, specifically in response to competition from China. While the rules do not mandate the purchase of European goods, they provide a ‘toolbox’ for authorities to favor EU companies. This includes prioritizing quality—which must account for at least 30% of the evaluation score, or 50% in labor-intensive contracts—and considering factors such as environmental sustainability, cybersecurity, and supply chain security. The reform also introduces clearer legal bases for green procurement, emphasizing the circular economy and energy efficiency. Furthermore, the reform intends to create a single digital market for public procurement through the implementation of a ‘once-only’ data principle. A central component of this is the creation of a pan-European ‘Digital Marketplace’ that would connect national and local electronic procurement platforms. This marketplace is expected to boost competition, increase the number of bids, and enable automated eligibility checks. The Commission projects the digital marketplace alone could save public buyers €220 million annually, with the overall revision benefiting small and medium-sized enterprises (SMEs) and providing a net annual saving of approximately €650 million.

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