Move away from focus on lowest price in public procurement, MEPs say

Give non-price criteria a heavier weight in public tenders.

Amend rules to encourage small and medium-sized enterprise (SME) participation, cross-border tenders and buying European.

Replace 907 pages of public procurement law with shorter, clearer rules.

On Tuesday, Parliament adopted its priorities for the upcoming revision of the public procurement framework.

The own-initiative report, adopted in plenary by 432 votes for, 95 against and with 124 abstentions, outlines Parliament’s priorities for the legislative overhaul of the public procurement rules, expected to kick off in the third quarter of 2026. The report drafted by Piotr Müller (ECR, PL) asks the Commission to simplify what are currently lengthy and complicated rules, make it easier for SMEs to take part in tenders, and widen the spectrum of criteria to be taken into account in public procurement processes.

Non-price considerations should play a more important role

One of the report’s main messages is that instead of focusing on the cheapest price, public tenders should give more weight to non-price considerations and seek the best price/quality ratio. Very cheap initial projects often overlook quality or come with disproportionately high maintenance costs at a later stage. Cheaper materials can result in environmental harm, and workers employed on low-cost projects often suffer poor conditions. Public tenders should therefore give more weight to non-price factors, such as social and environmental criteria and other considerations, for example use of in-house workers instead of complicated subcontracting schemes etc, say MEPs.

The report also asks the Commission to assess ways to favour European companies, especially in strategic sectors, to stimulate demand for European-made products and technologies and to anchor industrial capacity within the EU. This should, however, be done without resorting to outright protectionism, MEPs say.

SME participation, simplification and thresholds

MEPs want the Commission to promote small business participation in tender processes and to simplify both the 907 pages of law currently governing public tenders as well as the procurement procedures themselves. SMEs find it nearly impossible to compete in big tenders for lack of sufficient capacity, so splitting tenders into smaller lots would help, for example. Increased flexibility, freedom of choice and autonomy for contracting authorities, would meanwhile help to ensure the prudent use of taxpayers’ money.

MEPs also call on the Commission to reassess the price thresholds that determine the choice of procurement procedure. As significant inflation has driven construction costs up in the EU, the Commission should assess whether to increase the thresholds accordingly.

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Parliament’s rapporteur for the file, Piotr Müller (ECR, PL), said after the vote: “Procurement is worth nearly one fifth of EU gross domestic product – it must be about value for money, not political experiments. Our report defends transparency, competition and flexibility instead of bureaucracy and centralism. We want rules that make sense for SMEs, local authorities and taxpayers alike. Europe’s competitiveness depends on spending public funds wisely and responsibly.”