EU Drafts Procurement Rules to Curb Foreign Reliance

Public spending currently accounts for roughly 15% of the EU’s GDP, positioning it as a primary lever for economic policy. The proposed framework would push authorities to move away from awarding contracts solely based on the lowest cost, a practice frequently exploited by state-subsidized firms. Instead, the draft mandates that the 'best price-quality ratio' dictate procurement decisions, with quality criteria required to make up at least 30% of the total score. For labor-intensive contracts, that threshold rises to 50%.

Beyond economic protectionism, the proposal elevates the security dimension of public contracts. Authorities would gain the power to scrutinize a bidder’s ownership structure, financing, and potential exposure to third-country laws that could force the disclosure of sensitive data. By consolidating three existing directives into a unified regulation and launching an EU-wide digital procurement system, the Commission seeks to standardize how member states address risks to critical infrastructure and supply-chain stability. While the proposal was initially slated for a July 1 unveiling, the timeline has shifted to early September, as the bloc navigates the delicate balance between open competition and strategic autonomy.