ISSUES AT STAKE: • Every year around €2.5 trillion, roughly 15 % of the combined GDP of the EU's 27 Member States, is spent on public procurement. The perceived failure of current EU public procurement rules to deliver on the economic potential of this part of the economy lead to a need for review. Findings show competition in public procurement did not increase from 2011 to 2021, a period which comprises the last review of the rules, which date to 2014. Successful public procurement could be leveraged to provide investment in the EU economy, thus playing its part in the drive to improve its competitiveness as a whole and the strategic autonomy of the Union. • The review will be expected to simplify the current rules. The notion of 'simplification' has two potential aspects, namely removal of complexity present in the procurement framework legislation itself, and simplification of the interaction between that framework and sectoral legislation. • The previous revision of the EU's public procurement rules strengthened the power of public authorities to award contracts on non-price criteria. To increase the take-up of procurement on such strategic bases, it will be necessary to improve the legal framework to give greater clarity as to the conditions for such awards. • One aspect of the strategic approach to procurement which has gained significant political traction recently is the encouragement of procurement of goods and services made in the EU – the 'European preference'. This is fully in line with recent efforts to develop the EU's autonomy in strategically important sectors. Complex interrelationships exist between these drivers. Some are in inherent contradiction, while others are necessarily complementary. For example, development of non-price award criteria by means of increased legal certainty implies developing additional, more detailed legal rules. This is prima facie opposed to the simplification agenda, if simplification is to be understood just as reducing the number of rules. Similarly, any 'European preference' will need legal delineation, which, depending on how it is executed, may run counter to any notion of simplification. Developing secure legal criteria for non-price awards will impact positively on the competitiveness gain from EU public procurement, if those rules cater for increased innovative tenders. While an EU preference could support local industries, it could also limit contracting authorities' (CAs) choice of international tenderer, with a possible negative impact on competitiveness. Resolving these trade-offs will be at the heart of the political deal to be struck on this reform. Source : © European Union, 2026 - EP Read more