The European Commission presented its proposal for a new Public Procurement Act, aimed at making public procurement across Europe simpler, fairer and more strategic.
For the Party of European Socialists, public procurement is not simply about buying goods and services. It is about deciding how public money contributes to our societies and economies. Public contracts should always support quality jobs, collective bargaining, European businesses and SMEs, while helping Europe meet its environmental commitments. In this context, PES EPSCO ministers have called for public procurement rules that reward these standards rather than lowest-price offers resulting in a race to the bottom in wages and working conditions.
After years of negotiations, we welcome the Commission’s proposal as an important step forward, reflecting several of the priorities that the PES has consistently advocated for, despite the significant resistance from the far- right. This includes a stronger role for social considerations, recognition of collective bargaining and measures to facilitate access to public contracts for SMEs. However, the proposal falls short of ensuring that social conditionalities are applied consistently in public procurement.
PES President Stefan Löfven said:
“Public money must work for people and our public objectives. We have long argued that public funding should reward companies that respect workers’ and trade union rights, provide quality employment, ensure fair wages through collective bargaining, and deliver climate-friendly solutions. From here, we will continue to fight for a system that ensures that lower costs never come at the expense of workers and the environment.”
During the upcoming negotiations, the PES will continue to push for improvements to the proposed regulatory framework, ensuring that social and green standards are strengthened in the final text.
