EU public procurement: looking beyond the lowest price

07/09/2026

What is public procurement and how does it work in the EU?

According to the European Commission, 'Public procurement refers to the process by which public authorities, such as government departments or local authorities, purchase work, goods or services from companies. To create a level playing field for businesses across Europe, EU law sets out minimum harmonised public procurement rules. These rules govern the way public authorities and certain public utility operators purchase goods, works and services. They are transposed into national legislation and apply to tenders whose monetary value exceeds a certain amount. For tenders of lower value, national rules apply. Nevertheless, these national rules also have to respect the general principles of EU law'. (Source: Public procurement - Internal Market, Industry, Entrepreneurship and SMEs)

Why does public procurement matter?

Public procurement is often treated as a technical subject, but its importance extends far beyond that. It accounts for around 15% of EU GDP. EU public procurement rules influence competition, jobs, innovation, sustainability and Europe’s economic security.

What is being debated at EU level and why?

The European Commission plans to introduce a Public Procurement Act on 9 September 2026. The Act is expected to reform the current framework to make it more consistent, simplify procedures and strengthen the strategic role of public procurement. It will also raise questions about market access, administrative capacity and the overall balance between common rules and national flexibility.

A central question will be how public procurement can support European resilience and reduce strategic dependencies. This may include greater scope to consider the European origin of products and services in strategic sectors, as well as foreign ownership, financing and security risks. Such rules could strengthen Europe’s economic security. They could also limit competition or create new burdens if they are too complex or difficult to apply.

Another important issue concerns the balance between price and quality. Although the current rules already allow authorities to take account of quality, sustainability and innovation, price continues to dominate many procedures. The reform is expected to give greater weight to the best price-quality ratio and place greater emphasis on non-price criteria.

Engineering services in construction are one example of why this matters. A low offer may look attractive, but the contracting authority may not be able to judge whether it is realistic for a complex project. Poor planning or weak site supervision can cause delays, defects and extra costs in construction. In such cases, the cheapest offer can become the most expensive one. Similar problems can arise in many other sectors.

What do civil society organisations say?

Civil society organisations, including the liberal professions, support a stronger focus on quality, responsibility and long-term value. They also stress that procedures must remain workable for smaller organisations, independent professionals and SMEs. Public buyers need clear rules, legal certainty and enough flexibility to apply strategic criteria in practice.

What is the EESC position?

The European Economic and Social Committee (EESC) has previously supported wider use of quality, social, environmental and innovation criteria in public procurement. It will prepare an opinion on the European Commission's upcoming Public Procurement Act, on which the EESC plenary is expected to vote in December 2026. My preliminary view, as rapporteur for this EESC opinion, is that:

The direction recommended by the EESC in the past is the right one. Europe should use public money more strategically and focus on long-term value, not only on the initial price. However, the final rules must remain clear, proportionate and workable.

Are there any position papers from stakeholders?

What's next?

The European Commission is expected to present the Public Procurement Act on 9 September 2026. After publication, the EESC and the Committee of the Regions will issue their opinions to contribute to the legislative process. The proposal will also be discussed by the European Parliament and the Council.