The European Union has drafted new public procurement rules that would give European companies a stronger advantage in winning government contracts as part of efforts to reduce reliance on foreign suppliers and strengthen strategic industries.

According to a draft proposal seen by Reuters, public authorities would be allowed to reject bids for major contracts if less than 50% of their content originates from Europe. Although the proposal does not introduce a blanket “Buy European” policy, it seeks to give preference to EU-based firms in strategically important sectors.

The reforms form part of the European Commission’s wider strategy to strengthen industrial resilience, secure critical supply chains and reduce dependence on foreign suppliers. While China is not mentioned directly, the Commission has already introduced measures aimed at reducing reliance on Chinese production of critical materials and addressing the EU’s growing trade imbalance.

If approved by all 27 EU member states, procurement decisions would no longer be driven mainly by the lowest price. Instead, authorities would place greater emphasis on strategic factors such as security, resilience and long-term economic interests.

Originally scheduled for release in July, the proposal has been postponed until early September, with no official reason given for the delay.

Public procurement accounts for about 15% of the EU’s GDP, representing roughly €2.5 trillion in annual spending, making it one of the bloc’s most influential economic policy tools.

The draft states that public purchasing should be used to boost Europe’s competitiveness, protect critical infrastructure and reduce exposure to external economic risks.

Under the proposed rules, contracting authorities would also be allowed to assess whether a bidder’s ownership structure, financing arrangements or foreign control could present national security risks or enable foreign interference. They could further examine whether companies are subject to laws in non-EU countries that might compel them to disclose sensitive information or compromise the execution of public contracts.

Contracts would be awarded based on the “best price-quality ratio,” with quality accounting for at least 30% of the evaluation and at least 50% for labour-intensive projects.The proposal would replace the EU’s three existing public procurement directives with a single regulation to ensure more consistent implementation across member states.

It also requires procurement authorities to consider cybersecurity risks, supply chain resilience, strategic dependencies and the protection of critical infrastructure when awarding contracts.

Additionally, the European Commission plans to introduce an EU-wide digital procurement system featuring electronic business credentials, interoperable procurement platforms and shared national and EU data spaces to improve transparency, oversight and cross-border access to public contracts.