European Commission proposes new public procurement regulations

On September 9, 2026, the European Commission introduced a new Public Procurement Regulation designed to streamline tender processes across the European Union. This proposal seeks to consolidate existing rules, creating a unified platform to reduce bureaucratic burdens and simplify participation for companies across the bloc’s 27 jurisdictions. Public procurement currently accounts for approximately 15% of the EU’s GDP, totaling roughly €2.5 trillion in 2025.

The reform aims to shift procurement criteria away from a primary focus on the lowest cost, encouraging authorities to prioritize quality, innovation, sustainability, and security. By simplifying procedures, the Commission estimates annual administrative savings of €650 million, with businesses expected to save €570 million and public authorities €80 million. The proposal grants governments the option to exclude specific bids based on EU content requirements to improve supply chain resilience.

These measures follow recommendations from former ECB president Mario Draghi and former Italian Prime Minister Enrico Letta, who warned that the EU was failing to leverage its collective economic strength against international competition. This initiative serves as part of a broader Commission strategy to address industrial decline and bolster Single Market security. Following extensive consultations with stakeholders including trade unions and civil society, the regulation is now set to undergo the formal legislative process to replace existing frameworks.