The proposal replaces the existing procurement directives for public contracts, sector-specific contracts and concessions with a directly applicable regulation for the first time. The Commission aims to simplify the currently complex and fragmented legal framework, to harmonise its application more closely across Member States, and to use public procurement in a more targeted manner to achieve economic and industrial policy objectives.

Simplification and Digitalisation as Core Objectives

One of the key goals of the proposal is to reduce the administrative burden for contracting authorities and businesses. Procurement procedures are to become more standardised, while digital procurement platforms will be better interconnected. To this end, procedures are to be standardised more effectively and digital procurement platforms better interconnected. The Commission also plans to establish a European digital procurement ecosystem designed to facilitate data exchange and cross-border participation in procurement procedures.

From an industry perspective, the drive toward simplification is welcome. It will be crucial, however, to ensure that new requirements do not simultaneously create additional complexity, thereby negating the benefits of the reduced administrative burden.

“Made in Europe” and Economic Security

Particular attention is being paid to the introduction of so-called European preference criteria (“Made in Europe”). In specific strategic sectors, contracting authorities will be able to place greater emphasis on European value creation, security of supply, economic resilience and the reduction of critical dependencies on third countries. In doing so, the Commission is implementing a central objective contained in the political guidelines of Commission President Ursula von der Leyen.

The objective of a more resilient European economy enjoys broad support. For industry, however, it will be crucial that the corresponding rules remain proportionate. The EU’s international obligations must also be respected. Additional documentation and reporting requirements for European companies should be avoided.

At the same time, care must be taken to prevent increasing fragmentation of global procurement markets from weakening the competitiveness of the European economy.

Greater Emphasis on Innovation, Sustainability and Resilience

The PPA also seeks to give greater weight to qualitative criteria in procurement decisions. In the future, contract awards should no longer be based primarily on price but should place greater emphasis on innovation, sustainability and resilience.

The Federation of German Industries (BDI) supports the objective of making public procurement more innovation-friendly and creating demand incentives for new technologies. At the same time, qualitative criteria must be designed in an objective, transparent, comprehensible and legally sound manner. Companies need sufficient planning certainty and predictable evaluation criteria in order to be able to participate successfully in procurement procedures.

Greater Flexibility for Public Buyers

The reform expands the scope for contracting authorities when assessing security- and resilience-related risks. This applies in particular to the consideration of risks in supply chains, security aspects, critical dependencies or geopolitical developments involving third countries. Public procurement is thus intended to contribute more significantly to the implementation of industrial, innovation, security and economic policy objectives.

This is precisely why the consistent application of the rules is of particular importance. Where contracting authorities have greater discretion, the requirements for transparency, legal certainty, predictability and consistent application also increase. This is the only way to maintain a level playing field in the single market.

Outlook

With the Public Procurement Act, the ordinary legislative procedure is now set to begin in the European Parliament and the Council. Negotiations are expected to continue at least until the end of 2027. For European industry, the following issues will be of particular importance:

• the specific details of the ‘Made in Europe’ provisions,

• the requirements regarding resilience and innovation criteria,

• the actual simplification effect of the new regulatory framework, and

• the practical implementation of digital procurement systems.