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Stéphane Séjourné introduces new European Commission guidelines to favor domestic goods in public procurement

The European Commission published a legislative proposal on Wednesday to overhaul public procurement rules, encouraging EU public authorities to favor European-made goods and services. The initiative aims to protect the continent's manufacturers from Chinese competition, particularly in sectors like energy, water, railways, and postal services. Public procurement accounts for approximately 15% of the EU's gross domestic product, totaling about €2.6 trillion annually. Stéphane Séjourné, the European Commission's lead official on industrial policy, stated that the new rules will provide public sector buyers with greater legal certainty. Under the proposal, public agencies will be required to give a minimum 30% weighting to quality criteria, such as environmental sustainability and local supply chains, rather than solely selecting the cheapest bid. For labor-intensive contracts, the quality weighting will be at least 50%. While the proposal lacks binding quotas, it allows authorities to exclude non-European companies from countries that do not offer reciprocal market access. China's Chamber of Commerce to the EU responded by stating that such a preference could distort a level playing field for Chinese companies.

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