EU wants to edge out China in public contracts

The European Union (EU) has proposed new regulations to shift government procurement towards domestic companies, particularly in response to competition from China and the United States. This move aims to bolster EU industries, valued at €2.6 trillion ($3 trillion) annually or 15% of the bloc's economic output. Annually, around €600 billion in public contracts are tendered across the 27-member states.

EU Industry Chief Stephane Sejourne unveiled the proposal, which seeks to reduce the complexity of existing rules and establish a unified European platform for public tenders. The reform intends to streamline the process, potentially cutting the number of rule pages from 900 to 200, and create a one-stop shop to facilitate smaller companies' participation.

By focusing on factors beyond price, such as security of supply, sustainability, and European preference, local authorities can better assess providers. Currently, many authorities overlook existing provisions enabling them to prioritize European companies over foreign firms. Sejourne emphasized that local authorities, national governments, municipalities, and regions will now have the power to set criteria, apply them, and choose European or local products. This initiative aims to prevent scenarios where Brussels is blamed for approving Chinese buses.