The European Commission has proposed a new regulation aimed at simplifying and modernizing public procurement rules across the EU while strengthening the integration of strategic policy priorities, including environmental, climate, social, and innovation objectives. 

Under the proposed regulation, public buyers would be expected to look beyond price when making sourcing decisions. Quality-based criteria would also play a greater role, covering aspects such as environmental performance, social responsibility, innovation, security, and resilience. 

Public procurement represents a significant share of the EU economy, with annual spending of approximately €2.5 trillion—around 15% of the EU’s GDP. 

Moving Beyond Price-Only Procurement 

The proposed regulation seeks to simplify the existing procurement framework by consolidating and updating three directives introduced in 2014. The European Commission identified several shortcomings in the current system, particularly the continued prevalence of price-only awards and the limited adoption of social, environmental, and innovation-related requirements. 

To address this, the proposal introduces the Best Price-Quality Ratio (BPQR) as the standard approach for awarding public contracts. Under this model, quality criteria would receive a minimum weighting of 30%, increasing to at least 50% for labour-intensive contracts, creating greater scope for social considerations. 

Contracting authorities would retain flexibility in selecting the most relevant quality criteria. The BPQR approach would operate on a “comply-or-explain” basis, allowing authorities to use alternative approaches provided they explain how the required level of quality will otherwise be ensured. 

Sustainability and Strategic Policy Priorities 

The proposed rules are designed to make public procurement a stronger tool for achieving the EU’s wider policy objectives, including: 

• Environmental and climate action – reducing environmental and climate impacts across the lifecycle of products and services. 

• Circularity and resource efficiency – encouraging procurement practices that promote resource efficiency and circular economy principles. 

• Competitiveness and innovation – supporting innovation, strengthening European manufacturing, and accelerating the clean industrial transition. 

• Social responsibility – promoting social inclusion, labour-market integration, gender equality, non-discrimination, and decent working conditions. 

• Human rights – strengthening human rights considerations throughout supply chains. 

• Security and resilience – enhancing the EU’s economic security, resilience, and strategic autonomy. 

The regulation would also allow public buyers to introduce criteria designed to achieve a high level of environmental protection, promote circularity, and improve resource efficiency throughout the lifecycle of procured goods and services. 

Stronger Focus on Socially Responsible Procurement 

The proposal highlights several “socially responsible” procurement criteria, including measures that promote social inclusion and labour market integration for persons with disabilities and disadvantaged groups, gender equality and non-discrimination, the social economy and access to affordable housing, as well as human rights protections throughout the supply chain, among other objectives.