The European Commission has confirmed a new Public Procurement Act in its 2026 Work Programme, with a legislative proposal expected in Q2 2026. This is the most significant overhaul of EU procurement rules in over a decade — and it will reshape how €2 trillion in annual public spending flows across the continent.

If your business sells to the public sector, or is considering it, this is the moment to pay attention.

Why Now? The Current Rules Aren't Working

The existing procurement framework is built on a patchwork of directives adopted in 2014. The Commission's own evaluation, published in October 2025, was blunt: the current directives have "only partly achieved their goals."

The problems are well known. Rules are overly complex, especially for SMEs. Cross-border participation remains low. Strategic objectives — sustainability, innovation, resilience — are bolted on rather than built in. And enforcement varies wildly across the 27 Member States.

The new Act aims to consolidate these fragmented directives into a single, coherent regulation. That alone would be a landmark shift.

The Scale of What's at Stake

To understand why this matters, consider the numbers:

EU public procurement accounts for 13.6-15% of GDP — roughly €2 trillion per year
Over 700,000 contract notices are published annually on TED (Tenders Electronic Daily)
Those notices represent contracts worth €670+ billion
Over 3,000 notices go live every working day
TED data covers only about 20% of all procurement — the rest falls below EU thresholds and is published on national portals

This is, by any measure, one of the largest marketplaces in the world. And it's about to get new rules.

What the New Act Will Change

Based on the Commission's stated priorities and the evaluation findings, here are the major shifts businesses should expect.

1. "Made in Europe" Preference Criteria

The most politically charged change: the introduction of preference criteria for strategic sectors. The Commission has identified steel, cement, aluminium, automotive, and net-zero technologies as areas where European suppliers may receive preferential treatment in public tenders.

This doesn't mean non-EU companies are locked out. But it does mean that origin, supply chain resilience, and manufacturing location will carry weight in tender evaluations — a significant departure from the current price-driven model.

2. Sustainability and Social Criteria Go Mainstream

Environmental and social considerations will no longer be optional add-ons. The new framework is expected to mainstream sustainability, resilience, and social criteria across all procurement procedures.

In practice, this means companies will increasingly need to demonstrate carbon footprint data, fair labor practices, and circular economy credentials — not just for large contracts, but as standard requirements.

3. Simplification of Complex Rules

The Commission has acknowledged what every procurement professional already knows: the rules are too complex. The new Act promises simplification, particularly for SMEs and for cross-border participation.

Expect streamlined procedures, reduced documentation burdens, and clearer criteria. The goal is to make public procurement accessible, not just technically open.

The Digital Infrastructure Is Already Being Built

While the legislative proposal is still ahead, the digital backbone for the new era is already in place.

eForms: The New Standard

eForms became mandatory in October 2023 for all TED notices. This standardized XML format replaces the old TED forms and enables machine-readable procurement data across all Member States.

Portugal implemented eForms in March 2024, joining the majority of countries that have completed the transition. This is not a minor technical change — eForms make procurement data structured, searchable, and comparable at scale.

The Public Procurement Data Space (PPDS)

The Commission launched the Public Procurement Data Space (PPDS) on September 24, 2024. This initiative aims to connect procurement datasets across the EU, making it possible to analyze spending patterns, detect irregularities, and benchmark performance across borders.

Together, eForms and the PPDS create the data layer that the new Procurement Act will build on. The Commission is not just rewriting rules — it's building the infrastructure for a data-driven procurement market.

Timeline: Don't Expect Overnight Change

Here's a realistic timeline for what's ahead:

Q2 2026: Legislative proposal from the Commission
2026-2028: European Parliament and Council negotiations (expect significant debate on "Made in Europe" provisions)
2028-2029: Final text adoption
2030-2031: Full implementation across all 27 Member States

Full implementation is unlikely before 2030-2031. But the direction of travel is clear, and smart companies are already adapting.

What Businesses Should Do Now

You don't need to wait for the final text to start preparing. Here are five concrete steps.

1. Audit your sustainability credentials. Environmental and social criteria are going mainstream. If you can't document your carbon footprint or supply chain practices, start now. By the time the rules take effect, these will be table stakes.

2. Understand eForms. The standardized data format is already live. If you monitor tenders, make sure your tools can parse eForms data — it contains richer, more structured information than the old formats.

3. Map your strategic sector exposure. If you operate in steel, cement, aluminium, automotive, or clean tech, the "Made in Europe" provisions could work in your favor — or against you. Understand where you stand.

4. Invest in cross-border capability. The simplification agenda is designed to lower barriers for companies bidding outside their home market. If you've avoided cross-border tenders due to complexity, reassess.

5. Build your procurement data capability. With the PPDS and eForms generating structured data at scale, the companies that can analyze procurement patterns — buyer behavior, pricing trends, competitor activity — will have a significant edge.

The Bottom Line

The EU Public Procurement Act is not a distant policy exercise. It's a structural shift in how the largest public marketplace in the world operates. The companies that prepare now — building sustainability credentials, mastering procurement data, and positioning for the "Made in Europe" era — will be the ones that win when the new rules take effect.

The transition period is your competitive advantage. Use it.

Winly tracks procurement changes across European and Portuguese public markets, helping companies find and win public contracts with real-time intelligence and analytics. Learn more about how Winly can help you stay ahead.

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