With the Public Procurement Act (PPA) presented on 9 September 2026, the European Commission is proposing the most far-reaching reform of European public procurement law in more than a decade. The objective is to make procurement procedures simpler and more digital while using public procurement more strategically as a tool to strengthen Europe’s competitiveness and economic security. From an industry perspective, the proposal offers significant opportunities but also raises questions regarding practical implementation and administrative burden.

The draft revision of the Sub-Threshold Procurement Regulation (UVgO) is intended to speed up and simplify public procurement. It includes important measures for faster and more digital procurement procedures. However, for this to result in genuine simplification for bidders, there needs to be greater uniformity, transparent competitive conditions, and reliable legal protection. Recommendations on this matter are included in the BDI’s statement on the draft revision of the Sub-Threshold Procurement Regulation (UVgO).

The Act on Accelerating Public Procurement (Public Procurement Acceleration Act) took effect on July 1, 2026. It is intended to simplify, accelerate, make more flexible, and digitize public procurement law; promote small and medium-sized enterprises; and increase the participation of young and innovative companies in public procurement. The BDI supports these goals but sees both positives and negatives when viewed as a whole.

Whether a public construction contract worth 5,404,000 euros or 5,403,999.99 euros is awarded to a bidder has significant implications for legal protection. While the awarding of a construction contract worth 5,404,000 euros or more is subject to effective legal protection under public procurement law—which can prevent the unlawful awarding of the contract to a competitor—such protection does not exist for contracts below this threshold. The BDI is calling for harmonization.

Environmental considerations have played a role in public procurement for many years. German industry shares the goals of environmental and climate protection and has long supported giving greater consideration to contract-specific green criteria. A 2024 paper by the BDI, which remains relevant today, shows how existing law can be better utilized to promote environmentally and climate-friendly procurement and where legal improvements might be appropriate. This is because the role of environmental considerations in public procurement is becoming increasingly important in light of scarce resources.

Public procurement law is increasingly shaped by factors other than the quality of the service and the price. Social criteria often take center stage here. For example, the awarding of public contracts is sometimes contingent on a company promoting women or apprentices, or paying equal pay to men and women. The BDI criticizes this requirement, which often applies exclusively to procurements by public contracting authorities.

Whether it’s laptops, cleaning services, or even an entire building: public contracting authorities at the federal, state, and local levels procure goods, services, and construction work to carry out their respective responsibilities. This presents an opportunity for German industry to offer its services.