The European Commission has presented a coordinated legislative package that seeks to rewrite the rules governing how public authorities across the Union spend roughly €2.6 trillion each year, equivalent to about 15 percent of the bloc's gross domestic product. In press remarks delivered in Brussels, Vice-President Stéphane Séjourné and Commissioner Ekaterina Zaharieva set out the rationale for two interlocking proposals: a Public Procurement Act intended to replace the current directive-based framework, and a European Innovation Act designed to channel a portion of that spending toward research and development. The two texts together form a dual-track architecture in which the procurement act supplies the procedural and legal backbone while the innovation act defines the strategic orientation for a subset of purchasing dedicated to advancing the Union's technological capabilities 1.
The existing approach, built on directives that must be transposed into twenty-seven national legal orders, has produced divergent interpretations and uneven enforcement that hinder cross-border participation. Small and medium-sized enterprises, in particular, face disproportionate administrative burdens when bidding across borders, and contracting authorities at national, regional, and local levels — ranging from ministries to municipal utilities — often lack the competences or digital tools to manage complex procedures efficiently. The proposed regulation would apply directly in all member states, eliminating the transposition step and aiming to create a single rulebook that reduces fragmentation and lowers entry barriers for businesses throughout the single market 1.
Simplification is a central theme of the Commission's messaging. Vice-President Séjourné highlighted the sheer volume of the current acquis, noting that the rules framing public procurement today run to roughly 900 pages. The new act intends to condense and clarify those provisions, introducing standardized digital forms, mandatory e-procurement, and clearer criteria for awarding contracts. At the same time, the legislation proposes a lighter regime for contracts below certain thresholds and for innovation-focused purchases, allowing public buyers to move faster when acquiring novel solutions that are not yet commercially mature. This pre-commercial procurement model — where public authorities act as early customers for research and development before a commercial product exists — is explicitly linked to the European Innovation Act, which sets out how such spending should be targeted to maximize strategic impact 1.
The innovation act, as described in the accompanying question-and-answer release, identifies priority domains where the Union seeks to reduce dependencies and build leadership, including advanced semiconductors, quantum technologies, artificial intelligence, and clean energy systems. By earmarking a share of procurement budgets for pre-commercial and innovative purchases, the Commission aims to create a reliable demand signal that de-risks private investment in early-stage technologies. The mechanism is intended to complement existing research funding instruments such as Horizon Europe, translating research outputs into deployable solutions that public services can adopt, thereby closing the loop between discovery and diffusion 1.
Stakeholders across the Union will scrutinize whether the proposed act delivers on simplification without weakening safeguards against corruption, favoritism, and waste. The current directives contain extensive transparency, equal treatment, and non-discrimination requirements that have been refined through years of case law; the regulation must preserve those protections while streamlining procedures. Contracting authorities will need new competences, digital infrastructure, and possibly dedicated innovation procurement units to implement the framework effectively. The Commission has signaled that guidance, training, and a centralized competence center will be part of the implementation package, but the scale of the transition — affecting thousands of buying entities — suggests a multi-year adjustment period 1.
The geopolitical and economic stakes are significant. Public procurement represents one of the most powerful levers the Union possesses to shape industrial trajectories, enforce standards, and promote strategic autonomy. By aligning a substantial portion of that spending with an explicit innovation agenda, the Commission is attempting to turn routine purchasing into a tool for technological sovereignty. The success of the package will depend on the willingness of member states to cede regulatory discretion to a directly applicable regulation, the capacity of local buyers to adopt new digital workflows, and the ability of the innovation act's priority-setting process to remain agile amid rapidly shifting technology landscapes. If implemented as designed, the two acts could reshape how the world's largest single market converts public demand into competitive advantage 1.