EU drafts 'Buy European' rules for public tenders to curb foreign dependence
The European Commission is drafting 'Buy European' regulations for public tenders to reduce reliance on foreign suppliers, particularly in strategic sectors. The rules would allow authorities to favor EU-based companies and reject bids with less than 50% European content.
Why it matters
This policy represents a significant shift toward economic protectionism within the EU, aimed at countering Chinese industrial dominance and securing supply chains.
The measures stop short of a blanket "Buy European" requirement, but would allow European authorities to rule out bids for big public contracts that have less than 50% European content and favour EU companies in strategic sectors.
Although the draft document does not specifically name China, the European Commission has already put forward other Buy European policies as it seeks to reduce China's dominance of critical materials production and narrow a trade gap that expanded by 10% in the first four months of this year.
The proposal, which could change before publication and will require endorsement from the 27 EU member states, would make it harder for authorities to award contracts largely on the basis of cost to counter the cheap goods offered by heavily subsidised Chinese companies.
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