EU President Calls for Strategic Overhaul in Public Procurement

The European Union needs to update its public procurement rules to favor European products in strategic sectors, President von der Leyen announced. This move aims to ensure supply security for vital technologies and modernize rules to support EU start-ups. Additionally, a 'Clean Deal Industrial Deal' will be introduced to aid the green transition.

The European Union must revamp its public procurement rules to prioritize European products in crucial sectors, a directive issued by the President of the European Commission revealed on Thursday. At present, the EU's extensive, 2-trillion-euro procurement market remains widely accessible to foreign competition, unlike major competitors like China and the United States that emphasize local production.

President von der Leyen, who is pursuing a second term until 2029, aims to ensure supply security for essential technologies and services by updating public procurement regulations. The initiative also seeks to modernize and simplify these rules with a focus on EU start-ups and innovators, according to guidelines released ahead of her reappointment vote in the European Parliament.

Moreover, von der Leyen stressed the need for a new economic foreign policy to establish critical mineral partnerships and encourage investments in Africa, Asia, and Latin America while safeguarding against technology leakage. The policy underscores that Europe's trading power and economic openness are pivotal to its prosperity.

The new EU executive plans to unveil a 'Clean Deal Industrial Deal' within its first 100 days to manufacture the necessary products for the green transition and reduce dependency on Chinese imports. The guidelines also advocate for increasing renewable energy's share in EU electricity generation and facilitating financial pathways for banks and investors to support the green and digital transitions.

(With inputs from agencies.)