European Commission evaluates Public Procurement Directives

Public authorities in the EU spend approximately 15% of GDP a year on public contracts in critical sectors such as energy, transport, healthcare, and education. The EU Public Procurement Directives (Directive 2014/24/EU on Public Procurement, Directive 2014/25/EU on Utilities and Directive 2014/23/EU on Concessions, hereafter referred to as “the Directives” as a whole) govern a substantial portion of this expenditure, with an average annual value of EUR 616 billion, three times the size of the EU budget. Given the strategic importance of these Directives for efficient public spending, competition, and anti-corruption, the European Commission conducted an evaluation covering the period 2016 – 2024 to assess their past performance. This evaluation marks another important step towards revising these Directives.

This newsflash reviews the key findings and conclusions of the Commission.

Effectiveness

Scope and legal certainty

The Directives aim to clarify the legal framework for contracting authorities and economic operators. However, stakeholders reported persistent difficulties in the interpretation of key definitions such as “public contract”, “central government authority”, and “body governed by public law.” Lack of clarity was also reported regarding contracts between public entities, exclusion grounds, and reliance on other entities’ capacities. The interaction between the different Directives has created challenges in terms of interpretation, especially regarding concessions, which have generated significant case law.

Procedural Flexibility and Simplification

Despite the introduction by the Directives of six procedures and two procurement techniques to enhance flexibility, their use remains limited in practice. The open procedure is the most prevalent, accounting for 82% of all cases, while restricted and negotiated procedures are used much less frequently. Stakeholders have highlighted the inability to negotiate outside of well-defined circumstances, along with difficulties adapting to unforeseen situations. The simplification objectives have not been fully met. More than half of open public consultation (OPC) respondents consider the rules insufficiently flexible, and 69% of local/regional authorities report increased complexity due to "gold-plating" (additional national requirements beyond EU rules).

Digitalisation

Digital procurement tools have been positively received, with 42% of OPC respondents acknowledging reduced administrative burden and 38% noting faster procedures. However, tools such as the European Single Procurement Document (ESPD) have not been as effective as anticipated. The integration of digital systems varies across Member States, often requiring economic operators to resubmit documentation, which increases administrative load and limits the full benefits of eProcurement.

Market access and competition

Contract notices on TED increased by nearly 70%, and procurement value more than doubled, suggesting improved accessibility of procurement opportunities. SME participation improved, securing 71% of contracts by number and 55% by value. Cross-border direct awards remain low but, at the same time, indirect cross-border procurement accounts for around 20% of overall procurement. Concerns remain about significant participation by non-EU companies in strategic sectors without reciprocal access for EU companies.

Strategic objectives

The Directives have promoted green, social, and innovation criteria, but the uptake varies widely. Public authorities have a more optimistic outlook on the impact than economic operators do. Green procurement criteria are present in approximately 25% of contracts across 14 Member States, while the weakest perceived impact concerns innovation.

Governance and professionalisation:

Transparency has increased significantly, with almost twice the number of tenders now published on TED. However, data quality and completeness continue to be problematic, which undermines anti-corruption efforts. Efforts to professionalise have not been sufficient in the face of growing procurement complexity.

Efficiency

From 2008–2010 to 2019–2024, economic operators reduced average person-days per tender from 16 to 11, while contracting authorities saw a smaller reduction from 22 to 20 days.

On average, transaction costs per procedure increased from approximately EUR 34,600 to EUR 43,200 (using constant prices).

Each additional bid results in a reduction of the contract price by 2.5% on average, indicating that heightened competition serves to offset transaction costs.

Indirect costs occur due to complex sectoral regulations, language barriers and inadequate pre-commercial incentives. On the other hand, indirect benefits include sustainability, innovation, social inclusion and SME participation.

Coherence

The Directives are internally coherent, with no significant conflicts among themselves. However, external coherence is challenged by the proliferation of procurement provisions in other EU sectoral legislation, causing fragmentation and inconsistencies in terminology, scope, and reporting obligations.

The way in which environmental, social and labour law obligations are enforced varies between Member States, creating a situation of legal uncertainty.

Stakeholders have reported increasing complexity and difficulties in applying overlapping legal frameworks.

Relevance

The Directives and their objectives are still highly relevant, especially given Europe's competitiveness challenges, climate urgencies, and geopolitical context.

The procurement of sustainable works, products and services remains a priority in the face of accelerating climate change and environmental challenges.

The 2014 objective of fostering an integrated internal market is becoming increasingly important for Europe’s economic security and strategic autonomy.

EU added value

The Directives have contributed to increased transparency and competition across the EU, facilitating cross-border participation and SME access. They have also helped harmonise procurement rules, reducing legal fragmentation compared to pre-2014 frameworks.

The EU-wide publication platform TED enhanced visibility and openness of procurement opportunities. However, challenges remain in ensuring equal market access, particularly regarding third-country participation and strategic sectors.

The Directives have facilitated the integration of procurement as a strategic policy instrument for environmental, social, and innovation objectives, even though the implementation remains inconsistent.

Conclusions

The following conclusions can be drawn from the evaluation and its key findings:

• The need for simplified and more flexible EU public procurement rules and procedures continues to exist.

• Ensuring legal coherence and equal implementation of digital tools across Member States is an ongoing challenge that needs to be addressed.

• Green, innovative and social procurement remain strategic priorities to be implemented across Member States. Simultaneously, the necessity for new strategic priorities, including strategic autonomy and economic security, is increasing.

• It remains important to enhance transparency and the quality of data, as this impacts effective governance, strategic decision-making and the fight against corruption.

• Although past investments in the professionalisation and capacity building of procurement personnel have had a positive impact, they have not been sufficient to maximise strategic effects and achieve policy objectives, given the increasing complexity of procurement.

What’s next? 

The evaluation by the European Commission gives valuable insights on the impact of the Directives in the European market. The evaluation is conducted based on different datasets and contributions from stakeholders through an OPC.

It remains to be seen to what extent these findings and conclusions will be reflected in the amendments of the Directives.