EU Eyes “Made in Europe” Policy for Public Contracts
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EU Eyes "Made in Europe" Policy for Public Contracts
- The European Union is finalizing significant changes to its public procurement rules, aiming to allow national governments to favor European suppliers in critical public services, leveraging a market worth approximately €2.6 trillion annually.
- This strategic shift, expected to be formally proposed by the European Commission on September 9, 2026, seeks to boost the EU's economic sovereignty and reduce its reliance on foreign trading partners, particularly China.
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The European Union is preparing to implement a “Made in Europe” initiative through an overhaul of its public procurement regulations. This move is designed to prioritize European suppliers in key public services, a market estimated at €2.6 trillion annually, representing about 15% of the EU’s GDP. The proposed changes aim to enhance the EU’s economic independence and decrease its reliance on non-EU countries, notably China.
Under the draft proposal, expected to be presented by the European Commission on September 9, 2026, national governments would be able to apply “European preference requirements.” This could include restricting participation to European companies, requiring a minimum amount of EU-origin content, or granting evaluation advantages. Buyers could also reject tenders where non-European content exceeds 50% of the value. Sectors identified for these preference rules include gas supply and energy extraction, water and electricity networks, railways, ports, airports, and postal services. Other areas like energy, transport, health, and digital infrastructure have also been flagged due to supply chain dependency risks, especially concerning security.
This initiative is part of a broader effort by Brussels to strengthen its industrial base and address a growing trade deficit with China, which reached €360 billion last year. The EU has expressed particular concern over its dependence on Chinese suppliers for critical materials such as chips and rare earth minerals. While the new rules are primarily intended to favor EU member states, exceptions may be made for non-EU suppliers from countries with World Trade Organization Government Procurement Agreement membership or trade agreements with procurement chapters, such as the US and UK. Exceptions would also apply if no European supplier can meet demand, no valid bids have been submitted in the previous two years, or if meeting the criteria would lead to disproportionate costs. The European Commission’s proposal will also unify the EU’s fragmented public procurement rulebooks into a single regulation, which would apply immediately once passed by the European Parliament and national governments.