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European Commission proposes a European preference in public procurement

The European Commission proposed legislation that would let public buyers favour European companies in services including energy, water and transport. A foreign firm's eligibility could be denied when its home country keeps the corresponding procurement market closed to European companies. In a market worth 2 trillion euros a year, quality rather than price would determine no less than 30 per cent of a supply bid's score.

Economics & Markets··Morning
A turbine component, water valve and railway wheelset approach a transparent evaluation gate with a gold routing mechanism in a bright public-procurement hall.

European companies could receive preference

The legislative proposal, as reported by Euronews, would allow public buyers to favour European companies under the European Commission's plan for energy, water, rail, port, airport and postal services. A company could lose eligibility when its home country keeps the corresponding procurement market closed to European bidders. Its scope covers both services and the purchasing decisions made by public authorities in those fields. The Next Web reported the proposal independently, writing that the Commission would replace the existing procurement directives with a single regulation carrying a European preference framework and a 30 per cent minimum weighting for quality.[1], [2]

Quality would represent at least 30 per cent

The proposal assigns no less than 30 per cent of a supply bid's score to quality criteria rather than price. Stéphane Séjourné said the lowest price alone would not suffice because public buyers would assess the balance between quality and price. Its country-of-origin provision allows bids from closed procurement markets to be excluded.[1]

The market is worth 2 trillion euros a year

Europe spends 2 trillion euros on public procurement each year, a sum equal to 15 per cent of European gross domestic product. The proposal's non-price criteria cover both company eligibility and bid scoring across public purchases ranging from energy and transport infrastructure to postal services. Quality would carry a distinct weighting alongside price in assessments by public authorities.[1]

References

  1. News sourceEuronewsThe European Commission brings a European preference into public buying for energy, water and transport↩1↩2↩3
  2. News sourceThe Next WebEU proposes a single procurement rulebook with a European preference for public buyers↩
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