EU Parliament: Possible public procurement rules reforms

EU Parliament’s Employment Committee backs linking public procurement to collective bargaining, but final decisions rest with the Internal Market Committee; most firms could be excluded.

The key points: The European Parliament’s Employment Committee has voted to link public procurement rules to compliance with collective bargaining and respect for workers’ rights. The proposal would restrict public contracts to companies engaging with unions or covered by collective agreements.

Why this matters: If enacted, these reforms could exclude many companies from public sector contracts unless they meet stringent labour standards. Given that public procurement represents 15% of EU GDP, the impact could be significant.

What might happen next: The proposal moves to the Internal Market Committee, which may take a different view. The legislative process will determine whether these reforms become law.

What you should be doing: Monitor the progress of this legislation. If your company bids for public contracts, review your collective bargaining arrangements and consider how you might need to adapt to new requirements.

ADDITIONAL INFORMATION:

EMPL committee drafted opinion