Phoenix 24
Security concerns could outweigh price in future tenders.
BRUSSELS, BELGIUM — July 2026. The European Commission is preparing stricter rules that could allow public authorities to exclude foreign companies from European Union contracts when they pose security or interference risks. The draft regulation focuses on sensitive data, critical infrastructure, technological dependence and strategic supply chains. The proposal is expected to be formally presented in September.
Authorities could examine whether a bidder’s ownership, financing or control structure creates a risk of improper foreign influence. Companies may also face restrictions when laws in their home countries could force them to disclose sensitive European data or interfere with contract execution. The rules would apply from the planning stage through the award and implementation of public contracts.
The draft would permit authorities to reject bids for major contracts containing less than 50 percent European content. It could also introduce preferences for EU-based suppliers in strategic sectors, although a mandatory “Buy European” policy is not currently proposed. Price would no longer dominate the selection process, as security, quality and resilience would receive greater weight.
Brussels is increasingly concerned about Europe’s dependence on foreign technology, rare-earth minerals and essential digital services. Several member states have already restricted contracts involving companies such as Huawei, Microsoft and Palantir when sensitive government or public data was involved. Recent disruptions involving Chinese minerals and semiconductor components have reinforced fears that economic dependencies could be used as geopolitical leverage.
Public procurement represents approximately 15 percent of the EU economy, giving the bloc significant influence over international suppliers. The regulation would replace three existing directives and create more consistent rules across member states. It must still be approved by EU governments and could change substantially before adoption.
Europe is turning public spending into an instrument of economic security.