The European Commission intends to utilize the awarding of public contracts within the EU specifically to promote European businesses. According to reports citing sources within the Commission, up to 30 percent of contract awards could potentially move away from being based solely on the lowest price and instead incorporate other criteria. One of these criteria would be whether the bidder is from the EU or if a significant portion of their products are manufactured within the EU (“Made in EU”).
Furthermore, public authorities gain the option to consider how environmentally friendly, socially conscious, or innovative an offer is. This proposal aimed at reforming EU procurement law is expected to be officially presented after the summer break.
The proposal grants public bodies the flexibility to determine how these four criteria are distributed across the 30 percent. They can focus entirely on “Made-in-EU” requirements, combine them with other demands, or specify purely green or social standards. Alternatively, they retain the option to keep price as the deciding factor for 100 percent of the contract.
The new regulations do not mandate the “Made in EU” criteria for anyone; rather, they apply to all sectors. The only exception involves tendering processes that already possess “Made in EU” stipulations, such as those established under the Industrial Acceleration Act (IAA).
While other factors besides price are currently permissible in public contract awards, most tender processes remain reliant on the lowest price, largely due to concerns over legal uncertainty. The Commission’s initiative seeks to change this established practice. The proposal is subject to changes until September, though there are warnings within the Commission concerning the risk of excessive protectionism or isolationism.
