EU proposes new rules to give European firms priority in public contracts

The European Commission has unveiled a draft package that would streamline public‑procurement rules and give member states a clearer path to prioritise European suppliers. The proposal would shrink the rulebook from roughly 900 pages to about 200 and launch a single online portal for all EU tenders.

Why the overhaul matters

Public procurement accounts for about €2.6 trillion a year, roughly 15 percent of the bloc’s GDP, and is a key lever in the competition with China, the United States and other major economies. EU industry chief Stéphane Séjourné told reporters that the sector is "both a strategic tool and a powerful policy lever" as global powers use buying power to advance industrial agendas.

The new framework would let municipalities, regions and national governments set criteria beyond price, such as security of supply, sustainability and a "European preference" clause. That could shift contracts for everything from buses to digital services towards local producers.

We are now giving them the means to favour European buses.

What the new rules could look like

Under the draft, authorities would have the discretion to apply the European‑preference criteria when evaluating bids. Séjourné noted that many local bodies currently do not use existing provisions that allow them to choose EU firms over foreign ones.

Critics warn that the change could raise trade‑law questions, but the Commission says the reforms simply give buyers the tools they already have. If adopted, the single‑platform approach could also benefit SMEs looking to break into the public‑sector market.

Parliament will debate the proposal in the coming months, and if passed, the new system could start shaping tender outcomes as early as next year, signalling a shift in how Europe competes for strategic contracts.