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.

The European Commission wants to cut the EU’s public procurement rulebook from around 900 pages to 200, in a sweeping reform that aims to simplify tendering while giving governments greater scope to favour European economic and security interests, writes Catherine Feore.

Executive Vice-President Stéphane Séjourné held up the existing body of rules alongside its much slimmer replacement, to illustrate his point. 

“These here are the European rules which currently govern public procurement in Europe: 900 pages,” he said. “And this is what we are proposing today… down to 200 pages.”

The proposed Public Procurement Act would replace three EU procurement directives with a single regulation, with a view to simplifying procurement provisions spread across 26 sectoral laws and cutting the number of procedures from five to three.

The Commission estimates the changes could save businesses and public authorities €650 million a year in administrative costs.

The reform matters because of Europe’s massive purchasing power involved. EU public procurement exceeds €2.5 trillion annually, around 15% of EU GDP, covering everything from trains and hospitals to energy infrastructure, schools and IT systems.

From lowest price to strategic purchasing

The proposal is not just about cutting red tape. Brussels wants governments to use their purchasing power more strategically.

The Best Price-Quality Ratio would become the standard method for awarding contracts, with quality normally accounting for at least 30% of the assessment and 50% for labour-intensive contracts. Authorities could consider environmental and social performance, innovation, security and resilience alongside price.

The commitment to a so-called European preference has been tempered by the EU’s international commitments, but access can be restricted when a country doesn’t reciprocate market access. Restrictions could also be imposed where reliance on foreign suppliers creates security-of-supply dependencies or threatens EU economic security.

“European public money should, wherever possible, create jobs, investment and opportunities in Europe rather than filling the order books of our competitors,” Séjourné said.

Five procurement procedures would become three: open, dynamic and innovation procedures. Each would allow negotiation between buyers and bidders.

The Commission also plans an integrated EU digital procurement marketplace connecting national e-procurement platforms. A company registered through one connected system should be able to bid elsewhere in Europe without repeatedly submitting the same documentation. This is intended to reduce bureaucracy and tackle one of the current system's weaknesses: too little competition, particularly from SMEs and companies bidding across borders.

National, regional and local priorities may appreciate this flexibility in theory, but constrained budgets often mean that price will remain the bottom line for many. This legislation offers greater freedom in determining needs, but it remains to be seen what its impact will be.

PHOTO CREDIT: European Commission Executive Vice-President Stéphane Séjourné says the rules reduced from 900 pages to 200 pages © European Union

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