News 2025

On 3 July, the European Parliament’s Internal Market and Consumer Protection Committee (IMCO) adopted, by 34 votes to 13, its own initiative report on revising the EU Public Procurement Directives.

The committee urges a focused update of the existing directives - rather than replacing them with a regulation - and merge and simplify procedures while retaining national flexibility. FIEC welcomes this approach, applauding in particular the call for tougher reciprocity instruments and a harmonised method to exclude abnormally low, state subsidised bids, which it sees as key to defending fair competition inside the Single Market.

MEPs also back automatic price revision clauses to offset inflation or sudden cost hikes, a long standing FIEC demand and a clear win for contractors. By contrast, the proposal to raise the financial thresholds that determine which procedure must be used draws FIEC’s criticism: in its view, higher thresholds risk eroding transparency and squeezing SME access. The report recommends joint and several liability between contractors and subcontractors to curb social dumping; here FIEC remains cautious, warning that poorly defined rules could hamper day to day site management.
 

On the perennial question of dividing contracts into lots, IMCO opts for mandatory subdivision with an opt out where duly justified. FIEC notes that the wording leaves broad room for interpretation, potentially widening practice gaps among Member States. The committee preserves full freedom for public authorities to carry out works in house - an outcome FIEC regrets - yet upholds technological neutrality while allowing stronger social and environmental criteria, a balance the federation can accept provided it avoids national “gold plating.” Finally, the report champions a digital first approach centred on a Public Procurement Data Space and GovTech tools; FIEC supports the ambition but presses for strict platform interoperability, notably for BIM and e procurement solutions.

The IMCO text now moves to a plenary vote in September 2025. The European Commission will complete its evaluation and impact assessment by the end of the year and is scheduled to table a legislative proposal in 2026, with FIEC committed to ensuring the final reform delivers fair, clear and workable rules for Europe’s construction sector.

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  7-JUL-2025-Compromise-Amendments-1-through-11-on-public-procurement-draft-own-initiative-Report.pdf

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