The European Commission is preparing legislation that would allow European Union (EU) member states to prioritise European companies when awarding public contracts in sectors deemed critical, Bloomberg reported, citing a draft proposal it has seen.
The measure sits within the bloc’s wider “Made in Europe” push and would apply to industries including gas supply, energy extraction, water and electricity infrastructure, rail, ports, airports and postal services.
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Under the draft, public bodies would be able to restrict tender participation, set minimum thresholds for content originating in the EU or “covered” territories, or weight evaluation criteria in favour of European bidders.
Authorities would also have the power to reject bids where components from outside Europe account for more than 50% of total value.
The draft text, as cited in the report, reads: “Public buyers may apply European preference requirements, including by restricting participation, requiring minimum Union or covered origin, or granting evaluation preferences”.
A Commission spokesperson declined to address the leaked document specifically but said the incoming legislation aims to “make public procurement simpler, and to create the right framework to optimise the use of public money to match our strategic objectives”.
The formal proposal is expected to be published once the summer recess ends.
In a related development, EU officials are also considering “Made in Europe” provisions as part of the bloc’s Industrial Accelerator Act, which would set out new rules on foreign investment entering the EU.
The EU has flagged concerns over the extent to which European manufacturers depend on suppliers from China, citing semiconductors and rare earth minerals as particular areas of exposure.
It recorded a €360bn ($411.48bn) trade deficit with China in the past year.
The rule change would touch the EU’s €2.6tn ($2.97tn) public procurement sector as the bloc seeks to reduce economic dependency on external powers amid pressure from both the US and China.
EU heads of government gathered in Brussels last month to discuss the bloc’s expanding goods trade gap with China, which stood at roughly €1bn ($1.14bn) a day.
EU diplomats reported growing agreement among member states that the deficit represents a serious and worsening problem, compounded by reduced access to the US market following new transatlantic tariffs.
