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EU public procurement policy reform

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2026-09-17 18:47 UTC → 2026-09-26 07:24 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. The proposal seeks to replace three existing directives with a single, directly applicable regulation to reduce administrative burdens by decreasing available procedures from five to three. The Commission estimates these simplifications could generate annual savings of approximately €649 million. A central feature of the reform is the establishment of the ‘Best Price-Quality Ratio’ as the standard award criterion. This requires quality elements to account for at least 30% of the total score, increasing to 50% for labor-intensive contracts. The framework also introduces Article 53, which allows public buyers to value Geographical Indications (DOP and IGP) in food procurement to support sustainability and quality. Furthermore, the proposal emphasizes strategic procurement to promote a circular economy, the use of recycled materials, and enhanced supply chain security, cybersecurity, and digital integration. New details of the proposal include a mandate for Building Information Modelling (BIM) in public works projects valued at €25 million or more during the execution stage. To increase competition, particularly for smaller firms in markets such as Greece, the regulation proposes lowering financial eligibility thresholds; the minimum annual turnover requirement for candidates could be reduced to 50% of the estimated annual contract value. Additionally, requirements for specific prior experience in public contracts will be limited, becoming mandatory only when justified by project complexity. While the Act serves as a strategic lever for economic ~~sovereignty and competitiveness,~~ sovereignty, it has met with mixed reactions. Industry groups like BV-Med have welcomed the focus on supply security, while watchdogs like Swedwatch emphasize the need for firm human rights due diligence. Additionally, the National Council of Architects (CNAPPC) in Italy has warned that the regulation might penalize the intellectual nature of architectural and engineering services by treating them as ordinary services, potentially reducing the emphasis on design quality. Recent feedback from Sveriges Allmännytta has supported the move toward reducing bureaucracy. CEO Cathrine Holgersson noted that “every krona spent on unnecessary administration is a krona that cannot be used for building, renovating, or managing housing.” The proposed framework also includes open, dynamic, and innovation procedures intended to assist small and medium-sized enterprises.

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