EU Proposes “Made in Europe” Public Procurement Rules

The European Union is pushing governments to direct more of their 2.6 trillion euros in public procurement toward local suppliers. According to Sina Finance, the European Commission approved a legislative proposal on Wednesday that would give preference to European suppliers when governments award contracts across key public service areas, including energy, water, rail, ports, airports, and postal services. The proposal would also allow governments to reject bids if more than half of the supplies used in a tender come from outside the EU. EU industry chief Stephane Sejourne said on Wednesday that public funds need to serve common goals and that they are meaningless if they are not used to achieve European objectives. The proposal, called the Public Procurement Act, is intended to further strengthen the EU's efforts to reduce economic dependence on other countries. EU leaders said Europe must be able to operate independently when necessary as the global order becomes more fragmented and previously reliable supply chains come under scrutiny.