EU procurement plan favours European firms over China

The European Union proposed new public procurement rules on Wednesday to encourage governments and local authorities to choose European companies over Chinese bidders for public contracts.

The European Commission said the reform is part of a wider effort to strengthen the bloc's industries against rivals in China, the United States and other major economies.

Public procurement is worth 2.6 trillion euros ($3 trillion) a year in the EU, equal to about 15 percent of the bloc's economic output. About 600 billion euros in public contracts are put out to tender across the 27-country bloc each year.

EU industry chief Stephane Sejourne said public procurement had become a strategic tool as major powers use it to support their industrial and economic policies.

The proposal would reduce the volume of procurement rules, according to the EU executive, and create a single European platform for public tenders. Brussels says the platform would cut paperwork and make it easier for smaller companies to bid.

The reform would allow local authorities, national governments, municipalities and regions to assess bids using criteria such as security of supply, sustainability and “European preference”, rather than price alone.

Sejourne said Brussels was giving authorities the means to favour European or local products, including in contracts for buses.