The European Union is proposing new public-procurement rules designed to strengthen European industry and reduce the bloc’s dependence on foreign suppliers, particularly heavily subsidized competitors from China.
Under the European Commission’s initiative, public authorities would be encouraged to give greater weight to quality, environmental performance, working conditions and the resilience of European supply chains when awarding contracts. The lowest price would no longer be the overwhelmingly decisive factor in many tenders.
The proposed reform represents a significant shift in the way Europe uses its enormous public-purchasing power. EU governments, municipalities, hospitals, schools and other public institutions collectively spend around €2.6 trillion each year on goods and services—equivalent to approximately 15% of the bloc’s gross domestic product.
Brussels believes this market can become a powerful industrial-policy instrument. By directing more public demand toward reliable European supply chains, the EU hopes to support domestic manufacturers, protect skilled employment and encourage investment in strategic sectors.
The proposals would introduce mandatory quality weightings in procurement decisions. Quality-related considerations could account for at least 30% of the evaluation in general contracts and at least 50% in labor-intensive sectors. Authorities would therefore assess a wider range of factors instead of automatically selecting the cheapest offer.
These considerations could include a product’s environmental footprint, durability and security, as well as the labor standards followed by suppliers. The reliability and geographic diversity of supply chains could also become important, particularly for essential infrastructure and sensitive technologies.
The plan is widely viewed as part of Europe’s response to growing Chinese economic influence. European manufacturers have repeatedly argued that they face an uneven competitive environment when bidding against Chinese companies that benefit from state subsidies, preferential financing and lower production costs.
Concerns are particularly strong in industries such as electric vehicles, batteries, solar panels, telecommunications, medical equipment and transport infrastructure. European officials fear that continued reliance on the cheapest foreign products could weaken the continent’s manufacturing capacity and leave essential services vulnerable to geopolitical disruption.
The COVID-19 pandemic, Russia’s invasion of Ukraine and subsequent energy crisis demonstrated the risks associated with excessive dependence on external suppliers. Shortages of medical products, semiconductors and energy supplies encouraged European policymakers to place greater emphasis on economic security and strategic autonomy.
The Commission’s initiative would not impose a rigid “Made in Europe” quota across every public contract. Instead, it seeks to provide authorities with clearer legal grounds to prioritize quality, resilience and European economic value when those factors are relevant.
This distinction is intended to keep the rules compatible with the EU’s international trade commitments. Suppliers from countries covered by European procurement agreements, including the United Kingdom, would continue to receive access under the applicable arrangements.
Supporters argue that the reform could prevent public money from undermining European industry. They say it makes little sense for governments to subsidize domestic manufacturing and strategic technologies while awarding major contracts solely to cheaper foreign suppliers.
Critics, however, warn that reducing the importance of price could raise costs for taxpayers and place additional pressure on already constrained public budgets. Smaller European companies may also struggle with more complicated tender requirements unless the rules are designed to keep administrative burdens manageable.
There is also a risk of retaliation from trading partners. China could challenge elements of the policy or introduce restrictions affecting European businesses operating in its market. Some EU governments may therefore seek safeguards to prevent the initiative from escalating commercial tensions.
The proposal will require approval from the European Parliament and EU member states before it can take effect. Negotiations are likely to focus on which sectors should receive special protection, how European content should be assessed and how authorities can balance industrial objectives with value for money.
If adopted, the “Buy European” approach could transform public procurement from a largely administrative process into a central element of the EU’s economic-security strategy. It would also bring Europe closer to the industrial policies already used by the United States and China, where public spending is regularly employed to support domestic production.
