The Euro­pean Union wants to modernise the regu­la­tions of public procure­ment law.

JR – 04/2025

With an annual volume of around two trillion euros, public procurement is one of the key economic sectors in the European Union (EU). The European Commission is planning a fundamental revision of the 2014 public procurement regulations. This has been called for by new digitalisation requirements and the findings from a decade of practical application.

Need for moderni­sa­tion after ten years of appli­ca­tion

Both the technical and political landscapes have changed significantly from the time the public procurement regulations came into force. This especially applies to the areas of energy, security, and health. Under the new circumstances, a revision of the regulations should further ensure the efficient use of public funds, strengthen competition in the internal market as well as promote transparency and integrity. A public consultation on this ended on 7 March 2025. A specific legislative proposal is planned for 2026.

Different polit­ical prior­i­ties

According to initial statements from the Commission, there should be, in particular, procedural simplifications for small and medium-sized enterprises (SMEs). In addition, digital technologies should be used at every procurement phase to streamline the procedures involving the award of contracts. The EPP (European People's Party) is calling for radical simplification and acceleration of procedures, the abolition of mandatory preferential treatment of green technologies, an update of the thresholds, and a database of approved companies for assistance. Likewise, the S&D (Socialists & Democrats) support the simplification of the regulations, but they want to see environmental and social requirements taken into account.

A clash between reform expec­ta­tions and the complex reality

The Committee on the Internal Market and Consumer Protection (IMCO) in the European Parliament is also engaging with public procurement law, aiming to set the political tone with a resolution. The MEP Piotr Müller created a Preliminary report on this, summarising the core points of criticism and reform proposals. According to Müller's report, the current practice is negatively impacted by outdated and complicated mechanisms, a decline in competition and a lack of transparency that increases the risk of corruption. Müller therefore calls for standardised monitoring mechanisms, a focus on innovation, long-term value and price-performance ratios as well as fair competition - the latter also towards non-EU providers. A framework for emergency procurements in critical supply situations, for instance, should also speed up procedures, without compromising transparency or competition. Facilitating structural improvements is as important as mapping analogue processes digitally in the course of digitisation.

Reso­lu­tion in consul­ta­tion

With their Statement, the Committee on Employment and Social Affairs (EMPL) has already responded to the report and emphasised on better accessibility of SMEs to public procurement. Companies that comply with labour law as well as companies that uphold corporate social responsibility and sustainability should be given greater support. The consulting International Trade Committee (INTA) is calling for greater integration of international trade into European public procurement law and will vote on its Amendment proposals between 14-15 May. The competent Committee on the Internal Market and Consumer Protection (IMCO) will then adopt the final text of the resolution between 25-26 June. Adoption by the plenary meeting of the European Parliament is planned for July.

Opinion of the German Social Insur­ance (DSV)

The DSV welcomes the review of the public procurement regulations and calls for more flexibility, shorter deadlines and legally compliant supplementary public procurement criteria over and above the lowest price principle. It also supports the proposal to conditional preferential treatment of medicinal products manufactured in Europe under the 'Critical Medicines Act'.

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