European Commission proposes a major procurement reform
The European Commission presented a proposal in September 2026 to modernise and simplify the EU framework for public contracts and concessions.
Among the objectives are reducing administrative barriers, increasing competition and making it easier for small and medium-sized enterprises (SMEs) to participate in public procurement.
Lower financial capacity requirements
One of the more interesting proposed changes for smaller businesses concerns minimum turnover requirements.
Under the proposal, the minimum annual turnover required from a bidder would generally be limited in relation to the estimated annual value of the contract.
This could reduce one of the barriers that currently makes participation in larger public procurement procedures more difficult for smaller companies.
The proposal also seeks to limit unnecessary requirements for previous public procurement experience unless such experience is justified by the nature or complexity of the contract.
Businesses should not have to submit the same information repeatedly
Digitalisation is another important element of the proposed reform.
The “once only” principle aims to reduce situations in which businesses repeatedly provide public authorities with information and documentation that is already available to them.
For companies regularly participating in public tenders, this could mean less administration and a simpler bidding process.
Greater emphasis on quality
The proposed framework also aims to place greater emphasis on quality, innovation, sustainability and resilience rather than focusing primarily on the lowest price.
This could create additional opportunities for businesses competing through better technology, higher-quality services or innovative solutions rather than price alone.
The new rules are not yet in force
It is important to emphasise that this is currently a European Commission proposal.
It must still go through the EU legislative process, meaning businesses should not yet apply the proposed rules as if they were already in force.
Nevertheless, the direction of the reform is particularly relevant to SMEs that have previously avoided public procurement because of administrative requirements or demanding participation criteria.
👉 K2A advises: Public procurement can be an additional sales channel for smaller businesses. If the proposed simplifications are adopted, companies that have previously avoided public tenders may want to reconsider whether the public sector could become an attractive market.