BENNIS Hamza

CEMR calls for a simpler, fairer revision of the EU public procurement directives, putting local realities at the centre of the reform

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Local and regional governments (LRGs) are Europe’s largest public investors, spending more than €3 trillion a year through procurement. From care services to construction, from digital tools to energy infrastructure, every euro spent through public contracts has a direct impact on citizens’ daily lives. Yet the rules governing how LRGs buy are growing increasingly fragmented, complex, and out of sync with local realities.

As the European Commission prepares to revise the 2014 Public Procurement Directives, CEMR has adopted a position paper setting out what LRGs need from the reform. The message is clear: the revision must prioritise simplicity, flexibility, and subsidiarity instead of adding new layers of mandatory obligations to already overstretched towns, cities and regions.

A flexible framework that works for all

Most LRGs in Europe are small, operating with limited legal, technical, and administrative capacity. The current framework, scattered across more than 60 EU sectoral legislative acts, was not designed with them in mind. CEMR calls for a directive-based approach that preserves flexibility, and for EU-level clauses on environmental, social, and innovation considerations to remain voluntary. A comprehensive review mechanism should consolidate procurement obligations across sectoral legislation to eliminate contradictions and reduce the burden on contracting authorities.

Higher thresholds, fewer unnecessary procedures

EU procurement thresholds have not been changed in over a decade, despite significant inflation and rising costs. As a result, an ever-growing number of public purchases are now subject to full EU-level procedures, despite no real cross-border interest. Indeed, direct cross-border procurement accounts for just around 2% of all contract awards. CEMR calls for a substantial increase in thresholds, in line with cumulative inflation since 2014, alongside an automatic indexation mechanism to prevent the same problem from recurring.

Made-in-Europe and strategic goals must not come at local cost

CEMR supports the Commission’s broader ambitions on European competitiveness and strategic autonomy, goals that matter equally to LRGs who depend on resilient supply chains. However, a “Made in Europe” approach will significantly increase costs for contracting authorities if applied broadly. LRGs must not be penalised when EU supply is unavailable and must not be responsible for verifying complex supply chain origin documentation. That responsibility should lie with economic operators, supported by EU-level certification.

Protecting public-public cooperation and in-house provisions

LRGs regularly collaborate across boundaries to pool resources and deliver services more efficiently, especially in rural or low-capacity areas. Yet, Article 12 of the current directive remains too restrictive and unclear, creating legal uncertainty for many legitimate forms of public-public cooperation and in-house arrangements. CEMR therefore calls for a broader and clearer exemption for genuine cooperation between public authorities, and for in-house procurement to be protected from market-oriented interpretations, allowing LRGs to retain the democratic discretion to organise and deliver public services in the way that best serves their communities.

CEMR will continue to engage actively with the European institutions throughout the revision process to ensure that the voices of local and regional governments shape the outcome of this crucial reform.

Read our latest statement on our position paper here

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