New rules to prioritize European bids
The European Commission on Wednesday unveiled a proposal to overhaul the EU's public procurement rules, encouraging public authorities to buy more goods and services made in Europe. The plan, part of a broader 'Buy European' strategy, aims to counter China's economic influence. Unlike earlier proposals for clean tech, it does not impose binding 'made in Europe' quotas.[S1]
Brussels officials worry that many public agencies believe existing EU rules force them to choose the cheapest bid, which can lead to contracts going to non-European firms. The new rules would require public buyers to give at least a 30% weighting to quality when awarding contracts, or explain why they disregarded it. For labour-intensive contracts, the quality weighting would be at least 50%.[S1]
Concerns over Chinese competition
The EU is worried about Chinese companies expanding into European transport and infrastructure sectors, often aided by state subsidies that make their bids more competitive than local firms. In April, the commission prevented a Chinese rolling-stock manufacturer from joining a Lisbon metro consortium after determining it had an 'unfair competitive edge' due to subsidies. An inquiry into Chinese security firm Nuctech remains active.[S1]
Public procurement in the EU is estimated at 15% of GDP, about €2.6tn (£2.2tn) a year. The commission sees it as an underused tool that Washington and Beijing already deploy to support domestic companies. The proposals also aim to simplify rules by merging three laws into one, and must be approved by the European Parliament and EU ministers.[S1]
Reactions and implications
Stéphane Séjourné, the EU's lead official on industrial policy, said the regulation would give public buyers legal clarity to prefer European bids and restrict or reject bids from countries without procurement agreements. He argued that spending public money on European goods should become part of public discourse and accountability.[S1]
The proposals have caused concern in the British government, but EU officials stated that UK companies would not be negatively affected because existing agreements ensure mutual market access. Non-EU countries with procurement agreements, including WTO GPA members such as the US and Japan, are not expected to encounter obstacles. Mainland China is not a GPA member.[S1]
