A major new investment commitment announced during President Sheikh Mohamed bin Zayed Al Nahyan’s (pictured) state visit to Berlin signals a deeper economic relationship between two countries looking for reliable partners in an increasingly uncertain world.

The United Arab Emirates has announced plans to invest an additional €40 billion in Germany, one of the most substantial signals yet that the economic relationship between Europe’s largest industrial economy and the Gulf state is entering a new phase.

The commitment, announced during President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany, will target sectors including industry, advanced technology, artificial intelligence, digital infrastructure and energy. Of the total, €10 billion is set to be invested in the German state of Bavaria.

The headline figure is striking. But its significance goes well beyond the amount involved.

The UAE has already invested around €34 billion in Germany. The new commitment therefore represents not simply another large capital allocation, but an attempt to deepen a relationship increasingly built around the industries and technologies that both countries see as central to their future competitiveness.

As Dr Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Envoy of the Minister of Foreign Affairs to Germany, put it: “The UAE invests for the long term and builds partnerships that endure.”

For Germany, the fresh injection of long-term capital arrives at an important moment.

The country has formidable strengths in engineering, manufacturing, chemicals, industrial technology and applied research. Yet maintaining that industrial position is becoming ever-more expensive. Artificial intelligence, digital infrastructure, advanced manufacturing, energy systems and industrial decarbonisation all require substantial investment at a time when German companies are also confronting higher costs, geopolitical uncertainty and growing international competition.

The UAE brings a different set of strengths: investment capacity, energy expertise, digital infrastructure and commercial connections across the Gulf, Asia and Africa. The logic of the partnership is therefore not simply that one country has money while the other needs investment. It is that their economic capabilities are increasingly complementary.

This synergy is reflected in the sectors identified for the new commitment. Rather than focusing narrowly on established assets, the investment is intended to support areas expected to shape industrial competitiveness over the coming decades.

Al Jaber said the intention was to support “the industries, technologies and skilled jobs that will drive future growth and competitiveness”, while strengthening energy security and supply chains and helping German companies continue to grow internationally.

That last point matters because the relationship works in both directions.

Germany gives Emirati investors access to one of the world’s deepest industrial and technological ecosystems. German companies, meanwhile, increasingly see the UAE not simply as a domestic market but as a platform from which to reach faster-growing economies across the Middle East, Africa and Asia.

The two countries’ economic relationship has already strengthened significantly in recent years, with a number of notable examples of cooperation. Emirati investment has reached sectors including chemicals and offshore wind, while leading German companies have become increasingly embedded in the UAE economy, with bilateral trade worth more than €13 billion last year, an increase of 15% compared to the previous year.

The new €40 billion investment marks a significant new phase of this deepening relationship, and the timing of the announcement also gives it a wider geopolitical significance.

German President Frank-Walter Steinmeier captured the mood during the state visit when he observed that “the world has become a more turbulent place; old certainties are crumbling.” Against that backdrop, he argued that reliable and rational partners mattered more than ever, telling Sheikh Mohamed: “Germany is that kind of partner for you; you are that kind of partner for us.”

Those comments go to the heart of why Germany and the UAE’s economic relationship now matters far beyond the balance sheet.

Russia’s invasion of Ukraine exposed the risks created by concentrated energy dependencies for Germany and countless other countries in Europe and around the world. Conflict in the Middle East has again demonstrated the vulnerability of trade routes, energy markets and supply chains. Global competition over AI and other critical technologies has made industrial capacity a highly strategic question as well as an economic one.

Both Germany and the UAE have reasons to diversify their partnerships in response.

Germany needs capital, energy relationships, technology partnerships and access to growing markets. The UAE is seeking to diversify an economy historically built around hydrocarbons while deepening its position in advanced technology, industry and global investment.

The €40 billion investment is a powerful statement of intent and a reaffirmation of a long-standing partnership between the two countries that could transform their industrial and technological strategies for years to come.

The European Commission has proposed an overhaul of the European Capitals of Culture programme beyond 2033, aiming to make it easier for cities to join forces, involve more young people and turn a year in the cultural spotlight into a lasting legacy.

The plans draw on more than 40 years of experience and would simplify selection and open the door wider to joint bids, including cross-border partnerships. Inclusive and sustainable urban development would also play a bigger role.

“A city holds the European Capital of Culture title for one year, but the community and its people should feel the benefits for a generation,” said Roxana Mînzatu, Executive Vice-President for Social Rights and Skills, Quality Jobs and Preparedness. “Our proposal puts that lasting legacy at the heart of the initiative.”

Glenn Micallef, Commissioner for Intergenerational Fairness, Youth, Culture and Sport, said the new framework would bring “broader territorial participation, stronger youth involvement, new horizons for artists and creative industries, and greater attention to long-term legacy”.

Surge in visitor numbers

A Commission-funded study found that host cities staged an average of 1,000-1,200 cultural activities in their title year, drawing 38.5 million audience attendances and visitor numbers jumped by an average of 30–40%.

The investment impact was also significant: a modest EU investment of €3-5 million helped per year had leveraged around €900 million in cultural investment across Europe between 2013 and 2022.

Long-term benefits

The benefits can stretch well beyond the title year. The evaluation points to urban regeneration, increased cultural budgets, stronger creative sectors and greater civic participation. It also highlights the programme’s European added value in fostering international cultural cooperation, cultural diplomacy and a shared European identity.

Launched in 1985, the initiative has had 85 title-holders. Oulu and Trenčín hold the title in 2026, followed by Évora and Liepāja in 2027.

Under the proposal, third countries participating in or associated with Creative Europe could compete from 2034. The European Parliament and Council will now negotiate the plans, with a final agreement targeted for mid-2027.

PHOTO: Toripolliisi statue ('The Bobby at the Market Place'), Oulu, European Capital of Culture 2026 © European Union

Rugby spent its first century as an amateur game run by national unions that answered to nobody but themselves, then three decades of professionalism have changed that. Players sign contracts across borders, clubs compete in cross-border leagues, and private capital owns stakes in its biggest competitions. That places rugby inside the reach of European Union law, which treats an athlete as a worker and a governing body as an undertaking.

Competitions and the European sport model

In December 2023 the EU's top court ruled in football's Super League case that a governing body can only block a rival competition if its rules for doing so are clear, applied equally and no stricter than necessary. 

In October 2025, eight national rugby unions declared that anyone joining the proposed R360 franchise league would lose eligibility for Test rugby. If that ban is challenged, unions would likely keep the power to say no, but they will have to publish rules for saying it, as UEFA did after its defeat.

Grassroots, Inclusion and the Emerging Nations

Below the regulated professional game, the EU's influence comes through money rather than courts. Erasmus+ has a sport budget aimed at grassroots participation and equality, and rugby has already used it for women's projects, some built around sevens, where the calendar of rugby sevens fixtures gives newer unions a realistic way into international competition. 

The Parliament wants that budget increased from 2028, which matters most to unions outside the Six Nations and its broadcast deals.

Workers who happen to play rugby

A rugby player is a worker in the eyes of EU law, and that has shaped who clubs can sign for thirty years. Bosman in 1995 stopped leagues capping the number of EU players in a squad, and Kolpak later gave the same rights to players from countries with EU trade deals, including South Africa. 

Brexit ended both for clubs in England, Wales and Scotland while Ireland's provinces kept them, so one league now recruits under two sets of rules. 

The next shift is about conditions rather than passports. In October 2025 the European Parliament backed treating athletes as employees with full labour rights and player unions having a say on calendars and welfare.

Autonomy on condition

Rugby's governing bodies still write their own laws, calendars and eligibility rules, but what has changed is that those choices are now reviewable by courts and shaped by policy that treats sport as an economic activity first. Autonomy remains, but only on condition of compliance, and the exceptions keep narrowing.

The European Commission has adopted a Communication on a new Strategic Approach to Research and Innovation for competitive, resilient and sustainable agriculture, forestry, rural areas and food systems. This strategic document brings together two closely interlinked frameworks, to guide future research, innovation, deployment and uptake across the entire agri-food sector. These frameworks are AgRI 2040, focusing on agriculture, forestry and rural areas, and Food 2040, focusing on food systems, including fisheries and aquaculture.

The Communication aims to strengthen the agri-food innovation ecosystem from early-stage research and innovation to deployment and market uptake, and to accelerate the uptake of knowledge and innovation across the entire sector. It puts greater emphasis on users’ challenges and needs and on the delivery of real impact on the ground by bringing together multiple actors including end users, researchers and businesses, to co-create, test and demonstrate solutions in real-world settings. This will also help startups, scaleups and SMEs to move promising innovations closer to the market.  

The Communication will help turn Europe’s scientific excellence into practical solutions for farmers, foresters, rural communities, researchers, food businesses and consumers, for a more competitive, resilient and sustainable agri-food sector. It contributes to the objectives of the Vision for Agriculture and Food and the Strategy for European Life Sciences and complements the EU Bioeconomy Strategy by supporting innovation and sustainable value creation.

By developing the AgRI 2040 and Food 2040 frameworks, a common strategic approach for EU-funded R&I that enables competitive, sustainable, resilient and fair agri-food systems will be ensured. Both frameworks will be deployed under Horizon Europe 2028-2034 and relevant parts of the European Competitiveness Fund.

Agriculture and Food Commissioner Christophe Hansen said:

"Research and innovation can make a real difference to how we farm and manage our rural areas: from crops that can better withstand drought and extreme temperatures, to faster ways of detecting plant diseases, more sustainable crop protection and digital tools for smarter use of resources like water. Our task is to make sure these ideas do not stay in the laboratory, but are tested, adapted to local conditions and turned into practical solutions that can be used and scaled up. In this way, research can have a real impact on the ground, helping farmers and foresters respond to new challenges and build a more competitive, resilient and sustainable agri-food sector."

Startups, Research and Innovation Commissioner Ekaterina Zaharieva said:

"Europe is leading in science and research, but too many breakthrough solutions still struggle to reach consumers and markets. The ultimate goal is to help innovators, start-ups and businesses turn bold ideas into innovative solutions that boost competitiveness, strengthen food security, food safety, sustainability and resilience, and deliver real benefits for people and the planet. Europe can lead with confidence, unity and ambition."

The next major milestone will be the EU AgRI 2040 Conference – “Future-proofing EU Agri-Food through research and innovation”, taking place in Brussels on 24 and 25 September. Christophe Hansen, Commissioner for Agriculture and Food, and Ekaterina Zaharieva, Commissioner for Startups, Research and Innovation, will open the conference, which will bring together key stakeholders from across the agri-food sector and the research and innovation community to contribute to shaping future EU research and innovation priorities.

Background

Vision for Agriculture and Food and Life Sciences Strategy

The new Strategic Approach brings the Vision for Agriculture and Food and the Strategy for European Life Sciences together to cover agriculture, forestry, rural areas and food systems, providing long-term policy direction without prejudging the next EU budget negotiations.

The agri-food sector is strategically important for Europe’s food safety and security, jobs and skills, competitiveness and strategic autonomy. It faces increasing challenges from climate change, resource constraints, geopolitical instability, labour and skills shortages, changing consumer attitudes and global competition.

AgRI 2040 and Food 2040

AgRI 2040 will focus on agriculture, forestry and rural areas. Its eight preliminary areas of action will cover soils and agri-ecosystems, cropping and livestock systems, the bioeconomy, multifunctional forests, rural areas and stronger agri-food value chains, as well as digitalisation, artificial intelligence and robotics.

Food 2040 will focus on food systems, including fisheries and aquaculture. Its six areas of action will address place-based food systems; healthy and sustainable diets; resource efficiency and zero pollution in food systems; food environments and consumer empowerment; scaling innovations, business models and fair food systems solutions; and aquatic food.

The two frameworks are guided by six shared priorities: competitiveness, startups and scaleups; food security, resilience and preparedness; natural resources and circularity; food and feed safety, nutrition and health; fairness; and global cooperation. Common enablers include governance, technologies, and territories and communities.

Evidence and stakeholder engagement

The Commission Staff Working Document accompanying this Communication provides the evidence base for the new approach. It assesses the achievements, investments, results and implementation experience of the 2016 strategic approach to agricultural research and innovation, and the Food 2030 framework.

Stakeholder consultations highlighted the need for stronger links between research, deployment and market uptake, better alignment with users’ needs, improved monitoring and governance, and greater attention to competitiveness, resilience, sustainability, strategic autonomy, health, circularity, fairness and public trust. Their engagement will continue as AgRI 2040 and Food 2040 are implemented.

Future-proofing EU agri-food through research & innovation

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The European Commission has proposed mobilizing €1.1 million from the European Globalization Adjustment Fund for Displaced Workers (EGF) to support 351 workers in Finland dismissed by four paper manufacturers.

The EGF helps build a more dynamic and competitive European economy by improving the skills and employability of dismissed workers. Since 2007, the EGF has been mobilized in 192 cases, allocating €737 million to offer support to more than 185,000 people across 20 member states. This funding complements national active labour market measures.

The paper industry has faced significant challenges in recent years, as demand has fallen due to digitalisation. In Finland the sector has also been hit by the closure of the border with Russia and the halt in wood imports following Russia’s war of aggression against Ukraine. It concerns four paper manufacturers: Metsä Group, Stora Enso, UPM Communication Papers, and SAPPI.

Today’s proposal will support the dismissed workers through measures such as job-search assistance and career counselling, including an AI-based pilot project to identify recruitment needs and skills demands in the affected labour market and improve job matching. 

It will also fund training in new professional and transferable skills, recruitment incentives, mobility allowances, financial support for business start-ups, and allowances during the set-up phase.

The total estimated cost of the package is €1.8 million, of which 60% (€1.1 million) will be covered by the Commission and 40% (€735,000) by the South Karelia and Lohja-Karkkila Employment Regions, the local public employment services.

Finland began supporting the workers concerned in January 2026 and the EGF may reimburse these costs retroactively.

Next steps

The EGF proposal now requires approval by the European Parliament and the Council. It needs a simple majority in the European Parliament and a qualified majority in the Council.

What is the EGF?

Since 2007, the European Globalization Adjustment Fund for Displaced Workers has supported more than 185 000 people in 20 EU countries, with €737 million in funding. It works alongside national employment services to improve skills and employability and to build a more dynamic European economy.

The EGF was originally designed to support people who had already lost their jobs. It now also helps workers at risk of unemployment. Since May 2026, the EGF can fund training for workers who are likely to be dismissed, so they can move into new roles in the same company or find jobs elsewhere. EU countries can apply for EGF support while companies are still restructuring, so help can start before dismissals happen.

In November 2025, the Commission launched a Skills Guarantee pilot to support workers in transition by helping them acquire new skills. This flagship initiative under the Union of Skillls will strengthen strategic and growing sectors, in line with the future European Competitiveness Fund.

How does it work?

Following an application from a member state for EGF support, the Commission assesses the request on the basis of the number of displaced workers and targeted beneficiaries, the measures proposed to help workers return to employment, and the estimated costs.

Support may include career counselling, job search assistance, upskilling and reskilling, recruitment incentives, allowances, and financial support for business start-ups. 

Commission proposal

Press release

On 9 September, the European Group on Ethics in Science and New Technologies (EGE) released its new statement, Governing Neuro-AI: Towards an Infrastructure Approach.

Neurotechnology and artificial intelligence are increasingly converging as neurodata can be collected, combined and reused to develop AI models and applications across different contexts. This creates opportunities for healthcare, rehabilitation and scientific research, but also raises important questions for fundamental rights, democratic accountability and the public interest.

In this context, the EGE calls for a systemic and anticipatory approach to governing neuro-AI. The Statement shifts the focus from individual devices and neurodata privacy to the wider impacts of the infrastructures through which neurodata are collected, processed and reused. It also addresses questions of European technological sovereignty and public-interest infrastructures.

The EGE recommends:

1. Robust protection of neurodata: define and reinforce protections for neurodata and neurodata-derived inferences under EU data protection law
2. Responsible development of neuro-AI technologies: ensure possible development of Brain Foundation Models and related neuro-AI infrastructures
3. Strong Rights protection: ensure that individuals are protected against disproportionate control where neurodata and neurodata-derived data inferences are used in consequential contexts
4. Enhanced governance capacity: build European public-interest governance capacity for neuro-AI infrastructures
5. Comprehensive fitness check: conduct a targeted regulatory assessment of the EU framework governing neuro-AI systems

Background

Neuro-AI Infrastructures are interconnected systems through which neurodata are collected, processed and reused to create, deploy and manage AI-powered neurotechnology applications.

The European Group on Ethics in Science and New Technologies (EGE) is an independent, multi-disciplinary body of experts providing ethical advice, and its secretariat within the EC.

It is part of the Ethics Advice Mechanism (EthAM), which provides the European Commission (EC) with high quality, independent advice on all aspects of EU legislation and policies, where ethical, societal and fundamental rights issues intersect with the development of science and new technologies.

More information

Statement: Governing Neuro-AI: Towards an Infrastructure Approach

The EU welcomes Cambodia’s decision to join the Multi-party Interim Appeal Arbitration Arrangement (MPIA) for WTO members, contributing to efforts to uphold a rules-based multilateral trading system. 

With Cambodia’s participation, the MPIA now covers 62 World Trade Organization (WTO) members and 60.4% of world trade.  

The MPIA brings together participants from all continents and at different levels of development, united by a shared commitment to upholding the rules-based trading system. 

The MPIA preserves the right to appeal in trade disputes among participating WTO members, at a time when the WTO’s Appellate Body remains non-functioning. It helps ensure that disputes can continue to be resolved in an orderly and binding manner, avoiding appeals 'into the void'. 

“I welcome Cambodia to the MPIA. The arrangement plays an important role in upholding the rules-based trading system. Each new participant helps reinforce the predictability, stability and credibility of global trade rules. I encourage other WTO members to join the MPIA,” said EU Trade and Economic Security Commissioner Maroš Šefčovič. 

Background 

The MPIA was established in 2020 and has proven its effectiveness in many WTO disputes.  

Under the MPIA, appeals are heard by arbitrators randomly selected from a pool of 10 standing appeal arbitrators set up by the participating WTO members. These arbitrators are persons of recognised authority, with demonstrated expertise in law, international trade and WTO agreements.  

The MPIA is open to all WTO members as a practical tool for appeal arbitration, pending the restoration of a reformed and fully functioning WTO dispute settlement system. 

As of 1 June 2025, the MPIA has an updated pool of appeal arbitrators to ensure that appeals continue to be heard by independent arbitrators of the highest calibre. 

At the WTO Ministerial Conference that took place earlier this year, MPIA ministers stressed the importance of the MPIA for the security and predictability of the multilateral trading system.  

The current MPIA participants are Australia, Barbados, Benin, Brazil, Cambodia, Canada, China, Chile, Colombia, Costa Rica, Ecuador, the European Union (and its Member States), Guatemala, Hong Kong (China), Iceland, Japan, Liechtenstein, Macao (China), Malaysia, Mexico, Moldova, Montenegro, New Zealand, Nicaragua, Norway, Pakistan, Paraguay, Peru, the Philippines, Singapore, Switzerland, Ukraine, the United Kingdom, Uruguay and Vietnam.

More information

MC14: Supporting the rules-based multilateral trading system: the role of the MPIA

On 9 September, Biodiversa+ launched the BiodivFuture call to support innovative research on the biodiversity, socio-ecological consequences and future trajectories of novel ecosystems. Novel ecosystems are ecosystems that, often as a result of human influence, differ from those that prevailed historically in an area, and that are unlikely to return to previous conditions, with or without human intervention.

The funded research projects will produce actionable knowledge to drive nature-positive transformative change and reverse biodiversity decline. That knowledge will help sustain resilient and ecologically functioning ecosystems, thus contributing to the goals of the EU Biodiversity Strategy for 2030 and the Kunming-Montreal Global Biodiversity Framework.

With a total budget of around EUR 40 million, this call will address the causes, effects and consequences of novel ecosystems in different environments across the world, supporting high-quality research projects with holistic, systemic, and integrated approaches.

The call covers three non-mutually exclusive themes that cover key aspects of novel ecosystems: 

1. understanding the functioning of novel ecosystems
2. studying pathways to novel ecosystems
3. studying the fair and equitable sharing of biodiversity benefits in the context of novel ecosystems

Successful proposals must demonstrate significant added value at transnational level and are strongly encouraged to pursue inter- and transdisciplinary approaches, involving also non-academic stakeholders to co-produce new knowledge relevant for society.

How to apply

To be eligible for funding, transnational research consortia will have to include eligible partners from at least three different countries financially participating in the call (including from at least two EU member states or EU Associated Countries).

The complete announcement and call documents, including full eligibility and evaluation criteria, are available on the Biodiversa+ website. The Partnership also organises a general information webinar for interested researchers on 10 September 2026.

What is Biodiversa+?

Biodiversa+ is the European co-funded biodiversity partnership supporting excellent research on biodiversity with an impact for policy and society. It was jointly developed by BiodivERsA and the European Commission and was officially launched on 1 October 2021. Biodiversa+ is part of the European Biodiversity Strategy for 2030 that aims to put Europe’s biodiversity on a path to recovery by 2030. The Partnership has launched six co-funded joint research calls over the seven years of its implementation with an estimated budget of around €250 million.

European Partnerships such as Biodiversa+ bring the European Commission and private and/or public partners together to address some of Europe’s most pressing challenges through concerted research and innovation initiatives. They are a key implementation tool of Horizon Europe, and contribute significantly to achieving the EU’s political priorities. Biodiversa+ currently gathers 81 research programmers and funders and environmental policy actors from 40 European and associated countries, and aims to connect science, policy and practice for transformative change.

More information

2026-2027 Joint Call - BiodivFuture

Biodiversity research and innovation

Nature-based solutions

On 9 September, the European Commission adopted a proposal for a new Regulation to modernize and simplify the EU's public procurement framework to support effective investments in public services and infrastructure in line with the Union's policy objectives.

Drawing on extensive consultations with public buyers, businesses, trade unions, and civil society, the Commission is proposing an ambitious reform to make public procurement simpler, more flexible, and more effective. It will help complete a Single Market for public procurement, which accounts for around 15% of the EU's GDP.

Public procurement is central to both the European economy and citizens' daily lives, covering
everything from transport, infrastructure, and energy systems, to schools and health care services. The proposal is expected to deliver significant administrative annual savings of €649 million, resulting from a burden reduction of €80 million for public buyers and of €570 million for economic operators.

The proposed Public Procurement Regulation builds on the strengths of the Single Market
in four key ways.

Simpler and clearer rules
The proposed Public Procurement Act makes the rules simpler and clearer by consolidating into one directly-applicable Regulation the three existing public procurement directives and procurement provisions currently spread across sector-specific legislation. This will create a more coherent and predictable procurement framework, reducing complexity, administrative burden, and inconsistencies in how the rules are applied with three procedures instead of five currently. It will reduce complexity and inconsistency resulting from separate legislative acts and divergent national transposition choices.

The new framework gives public buyers greater flexibility, allowing negotiations with the applicant during the procedures. It encourages better market consultation, simplifies administrative procedures and allows for negotiations, making public procurement more similar to private procurement. It also introduces an innovation procedure for the development and acquisition of innovative solutions not yet available on the market. One single platform for all procurement in the EU Key to simplification and administrative burden reduction is the creation of an integrated digital procurement marketplace consisting of interconnected and interoperable member states' eProcurement platforms.

The digital marketplace will simplify and facilitate procurement for public buyers (for example, through the automatic verification of exclusion criteria). It will allow companies to take part in procurement procedures and submit tenders across the EU through any of the connected eProcurement platforms applying the ‘once-only' principle, avoiding repeated requests for information and documentation requirements. This will promote access to new business opportunities and increase the number of offers public buyers receive, maximising the potential of the single market.

The digital marketplace will moreover streamline data exchanges between member states' eProcurement systems through the creation of a unified framework for data management, thereby strengthening transparency, accountability, and anti-fraud capabilities. Stronger support for environmental, social, and innovation goals The proposal makes the Best Price-Quality Ratio (BPQR) the standard award method, with quality criteria accounting for at least 30% (50% for labour-intensive contracts), subject to a ‘comply or explain' mechanism. Contracting authorities may deviate from this approach if they explain how quality will otherwise be ensured, for example through minimum quality requirements.

Public buyers will thus have to systematically consider not only price, but also quality, including environmental, social, innovation, security and resilience, and 'European preference' considerations. Public buyers will have full discretion over which quality criteria to apply and in which proportion in individual procurement procedures, with the proposal offering practical tools to support public buyers in this. Greater security, resilience and strategic autonomy In line with the recommendations of the Draghi report, the proposal reflects the growing geopolitical importance of public procurement. It enables, and in some cases requires, public buyers to address risks related to security and public safety of the Union or member states, sensitive information, cybersecurity, and undue third-country influence.

New provisions on resilience and security of supply would apply to contracts involving entities linked to critical infrastructures and aim to support diversification of supply chains, security of supply and crisis preparedness. Finally, the Regulation introduces a horizontal European preference framework for public procurement in line with the Union's international legal obligations. It clarifies which operators and products are covered by the Union's international procurement commitments and makes this easier to check. The Commission would be able to restrict such coverage where a market access analysis establishes that a third country has failed to grant Union operators fair market access in line with its commitments, or where restrictions are needed to avoid security of supply dependencies or protect our economic security interests.

Next steps
The proposed Regulation will be negotiated by the European Parliament and the Council of the European Union before its adoption and entry into force. Background The revision was announced in President von der Leyen's Political Guidelines. It responds to long-standing shortcomings identified by the European Court of Auditors , including declining competition, limited SME and cross-border participation, and the rise of single-bid procedures. It also follows calls from the Council of the EU and the European Parliament for a strategic, simplified, and competitive framework. It also responds to the recommendations of the Draghi and Letta reports, which highlight public procurement as a strategic tool to strengthen Europe's industrial base, support innovation, advance the green and digital transitions, and reinforce economic security.