Strengthening the public procurement economic lever

Executive summary

Public procurement is one of Europe’s most significant economic levers. The 2014 Public Procurement Directives established a strong framework, but inconsistent implementation across Member States has prevented their full potential from being realised, limiting cross-border participation and European competitiveness.

Many inefficiencies stem from national and sub-national barriers rather than flaws in the directives themselves. Fragmentation of tender requirements and compliance rules increases administrative burdens, particularly for SMEs and bidders from other Member States.

A targeted revision – focused on harmonisation, enforcement and better procurement tools – will be more effective than an overly complex overhaul. Overcomplicating procurement with excessive policy objectives would only introduce more bureaucracy and undermine European competitiveness.

Instead, the reform should prioritise simplification and scale:

• Joint procurement is a key mechanism for achieving economies of scale, yet remains underutilised outside crises. Expanding voluntary, strategic joint purchasing mechanisms would enhance Europe’s industrial base whilst preserving national autonomy in procurement decisions.
• EU preference in procurement has become more pressing as global competitors increasingly favour domestic suppliers. However, blanket EU preference would inflate costs, limit innovation access and weaken Europe’s position in critical technologies. Instead, the reform should refine ‘most advantageous tender’ selection to prioritise reciprocity, sustainability and resilience criteria in procurement.
• Enhancing public procurement requires better digital tools. Further standardising e-procurement tools is necessary to reduce administrative burdens and improve efficiency.
• Strengthening collaboration between public authorities and industry – including innovation procurement pilots – would further drive process improvements and joint procurement efficiency.

Europe has an opportunity to transform public procurement into a strategic driver of competitiveness, innovation and resilience. Procurement reform must be pragmatic and future-proof to ensure that European companies have the scale, access and tools they need to compete across the single market and on the global stage.