European preference enters EU public procurement rules under Commission proposal

The European Commission has proposed a new Public Procurement Regulation that introduces a horizontal European preference framework for public contracts alongside new rules on quality, security and resilience.

The proposal would overhaul an EU public procurement market accounting for around 15% of the Union’s GDP and covering areas including public transport, infrastructure and energy systems. Among the central elements of the text is the introduction of European preference considerations into a common procurement framework, together with provisions addressing access for third-country operators and products.

According to the European Commission, the reform would also simplify procurement procedures and generate estimated annual administrative savings of €650 million: €80 million for public buyers and €570 million for economic operators.

The proposal is not yet applicable legislation. It will be negotiated by the European Parliament and the Council of the European Union before its adoption and entry into force.

The proposal follows the Industrial Accelerator Act presented by the European Commission in March 2026, which introduced targeted “Made in EU” and low-carbon requirements for public procurement and public support in selected strategic sectors, including cars, steel, aluminium and net-zero technologies. The new Public Procurement Regulation addresses European preference at the horizontal procurement level, establishing a framework applicable across EU public contracting while allowing restrictions on third-country access under specified market-access, security-of-supply and economic-security conditions.

European preference enters EU public procurement rules

The proposed Regulation introduces what the European Commission defines as a “horizontal European preference framework” for public procurement, to be applied in accordance with the Union’s international legal obligations.

The framework would clarify which economic operators and products are covered by the EU’s international procurement commitments and provide public buyers with a clearer basis for checking that coverage.

A further provision concerns access to EU procurement by operators from third countries. Under the proposal, the Commission would be able to restrict coverage where a market-access analysis establishes that a third country has failed to provide EU operators with fair market access in accordance with its commitments.

Restrictions could also be applied where they are considered necessary to avoid security-of-supply dependencies or to protect the EU’s economic security interests, according to the Commission.

For sectors with substantial volumes of publicly procured vehicles and infrastructure, including public transport, these provisions form part of the proposed rules governing future public contracts. The source provided by the Commission does not specify dedicated European preference percentages, local-content thresholds or specific requirements for bus procurement.

European preference included among quality considerations

European preference also appears in the proposed framework for evaluating public tenders.

The Commission proposes making the Best Price-Quality Ratio, or BPQR, the standard award method. Quality criteria would have a weighting of at least 30%, increasing to 50% for labour-intensive contracts, subject to a “comply or explain” mechanism.

Public buyers would therefore systematically consider price alongside quality. According to the Commission, the quality component can cover environmental, social, innovation, security and resilience criteria, as well as “European preference” considerations.

Contracting authorities would retain discretion over the quality criteria selected and their weighting in individual procurement procedures. Authorities could depart from the proposed quality weighting where they explain how quality will otherwise be ensured, including through minimum requirements.

For public transport procurement, the Commission’s proposal therefore places European preference within the same overall framework that can incorporate environmental, security and resilience requirements. The material released by the Commission does not establish a specific weighting for European preference in individual tenders.

Security of supply and third-country access included in procurement reform

The European preference provisions sit alongside new measures concerning security, resilience and strategic autonomy.

The proposed Regulation would allow, and in some circumstances require, contracting authorities to address risks related to EU or Member State security and public safety, sensitive information, cybersecurity and undue third-country influence.

New resilience and security-of-supply provisions would apply to contracts involving entities connected with critical infrastructure. According to the Commission, these provisions cover diversification of supply chains, security of supply and crisis preparedness.

The Commission links this part of the proposal to recommendations contained in the Draghi report, which addressed the use of public procurement within the EU’s industrial and competitiveness framework.

Single Regulation and fewer procurement procedures

Alongside the European preference provisions, the Commission proposes consolidating the three existing public procurement directives and procurement rules currently distributed across sector-specific legislation into one directly applicable Regulation.

The number of procurement procedures would be reduced from five to three. Public buyers would have greater scope to negotiate with applicants, while the proposal also provides for increased market consultation and an innovation procedure covering solutions that are not yet available on the market.

The Commission also plans an integrated digital procurement marketplace connecting Member States’ eProcurement platforms. Economic operators would be able to submit tenders across the EU through connected platforms under a “once-only” principle intended to reduce repeated information and documentation requirements.

The proposal follows the public procurement revision announced in European Commission President Ursula von der Leyen’s Political Guidelines for 2024-2029. The Commission also cites findings from the European Court of Auditors concerning declining competition, limited SME and cross-border participation and single-bid procedures, as well as recommendations contained in the Draghi and Letta reports.