EU boosts defence readiness with first ever financial support for common defence public procurement

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The European Commission has approved funding for five cross-border projects to support more coordinated and efficient defence procurement among EU Member States. Implemented under the European Defence Industry Reinforcement through Common Procurement instrument (EDIRPA), each of the 5 selected projects will receive €60 million, representing a total amount of €300 million funding.

Bringing greater value for money through economies of scale, the common procurement will make critical defence capabilities more affordable for Member States’ armed forces. With products procured in common, Member States’ armed forces will have improved interoperability. The clearer perspectives and greater predictability, which come with larger contracts, will strengthen the European industry, and allow it to adapt its production capacity to Europe’s defence needs. All in all, the common procurement will reinforce defence readiness in the EU Member States. Continue reading “EU boosts defence readiness with first ever financial support for common defence public procurement”

International Procurement Instrument : Council gives green light to new rules promoting reciprocity

World Economy

The Council adopted a regulation to promote reciprocity in access to international public procurement markets.

This legislative act will enable us to introduce a new trade policy tool to ensure access and a level playing field for EU companies on third countries’ public procurement markets, thereby increasing business opportunities for these companies. Public procurement currently accounts for 15 to 20% of global GDP.

The EU’s public procurement markets are among the largest worldwide in terms of value and are broadly open to competition. But European companies do not always have equal access to procurement markets in non-EU countries, where they are often subject to discriminatory restrictive practices. Fewer than half of the world’s public procurement markets are currently open to European companies. Continue reading “International Procurement Instrument : Council gives green light to new rules promoting reciprocity”

Public authorities should be required to allocate tenders based on lifecycle impact of purchased goods and services

Ecology

In a newly adopted report, the European Economic and Social Committee (EESC) calls for mandatory circular public procurement across Europe to break governments’ unsustainable consumption patterns.

With an annual expenditure accounting for some 14% (some 2 trillion EUR per year) of the EU’s overall GDP, governments are Europe’s biggest consumers. Their expenditure stems mainly from public tenders to purchase the works, services and supplies they need from companies.

To encourage public authorities to embrace more sustainable consumption patterns through lifecycle thinking, looking beyond short-term needs to the longer-term impacts of each purchase, considerable work has been done in the EU over the last few years.

The European Commission has since 2017 issued guidance in the form of Green Public Procurement criteria, phasing in circular economy elements to close energy and material loops in supply chains, while minimising negative environmental impacts and waste creation. Continue reading “Public authorities should be required to allocate tenders based on lifecycle impact of purchased goods and services”