Simplifying the aim and goals of procurement law

Thanks to Prof Carina Risvig Hamer, I had the opportunity to participate in the conference ‘EU Public Procurement anno 2025 - Are the rules fit for purpose?’ at the University of Copenhagen.

This was an interesting couple of days with plenty food for thought — but also worryingly reminiscent of discussions already had back in 2011 during the previous round of review of the EU directives (plus ça change).

I think there was a fair amount of support in the room for the position that the issues with the (in)effectiveness of EU procurement law do not stem from the rulebook, but rather from challenges in implementation and organisational and capacity shortcomings. However, this did not pre-empt discussions on how the rulebook could be improved.

My topic was, perhaps unsurprisingly, the need to simplify the aims and goals of competition law (my presentation is available here). This gave me an opportunity to revisit the (old and newer) arguments for stripping procurement of regulatory gatekeeping functions by offloading market-shaping rules and norms to general legislation, not procurement-specific mandatory requirements (eg on sustainability, see also Halonen (2021)).

In short, my conclusions / main points were that, in relation to the increasing use of procurement as a policy delivery tool:

  • Simplification can only be achieved in a pro-competitive manner if the regulatory burden is placed elsewhere (EU-level legislation applicable across the economy)

  • Explicitly changing goal/s and principles is likely to only have a marginal effect

  • Only investment in capacity and development of active market intelligence strategies can start to make a difference in practice

Expanding the Scope of EU Public Procurement Law

The annual meeting of the European Procurement Law Group a few weeks ago was a good excuse to find focused time to think about the ongoing process of review of the EU public procurement rules—as we are working on an edited book with a series of recommendations and reform proposals. My draft chapter focuses on the scope of application of EU procurement law.

In the draft, I argue that the cornerstone of procurement regulation--what actually constitutes a 'public contract'--is not clear, despite decades of ECJ case law. This undermines the coherence and effectiveness of EU internal market law.

Against the background of the ongoing review, I focus on the scope of application of Directive 2014/24/EU to highlight some aspects of the interaction between the EU procurement rules and other instruments of EU internal market law, including new and proposed tools seeking to (further) leverage procurement as a policy delivery instrument—such as the International Procurement Instrument or the Foreign Subsidies Regulation, as well as the increasing range of mandatory (sustainability) requirements focused on procurement.

After a review of recent trends in the interpretation (and narrowing) of the scope of application of Directive 2014/24/EU, I sketch an alternative functional approach that, in my view, would provide conceptual consolidation, realign EU procurement rules with their internal market logic, and potentially improve their fit as a policy delivery instrument.

I make two key reform proposals:

  • New definition of 'procurement' to step back from current focus on 'acquisition' and 'choice' by the contracting authority, and to include preparatory activities with potential negative impacts on the internal market

  • New definition of 'public contract' to eliminate the requirement of 'pecuniary interest'

As always, I would be very interested in any feedback.

The draft can be freely downloaded from SSRN: Sanchez-Graells, Albert, Expanding the Scope of EU Public Procurement Law -- Realigning the Procurement Directive with Its Internal Market Logic while Improving Its Fit with Strategic Procurement? (April 11, 2025). Available at SSRN: https://ssrn.com/abstract=5213497.

Procurement in the EU's AI Continent Action Plan

The EU has published its ‘AI Continent Action Plan’ (COM(2025)165).

The Plan aims to enhance the EU’s AI capabilities by promoting initiatives around five key areas. One of those key areas concerns the promotion of AI in strategic sectors and, in particular, in the public sector and healthcare.

The Plan includes some high level initiatives that are, however, not new.

  • The Plan refreshes the expectation for the public sector to provide a source of funding and experimentation for AI development: ‘EU public procurement, accounting for over 15% of our GDP, could create an enormous market for innovative products and services.’ This has been a long-standing aspiration (eg Fostering a European approach to Artificial Intelligence, COM(2021)205).

  • In that regard, the Plan reiterates the goal of the Competitiveness Compass to promote ‘European preference in public procurement for critical sectors and technologies in the context of the forthcoming review of the EU rules’, and clearly places AI amongst them. We will have to wait for details, but the compatibility of an EU preference with international procurement law escapes me.

  • The Plan also refers to the upcoming ‘Apply AI Strategy’ which should ‘address adoption by the public sector, where AI in areas like healthcare can bring transformative benefits to wellbeing’.

    The Plan also includes a reference to:

  • a call for funding of up to four pilot projects aimed at accelerating the deployment of European generative AI solutions in public administrations; and

  • the fact that the ‘GovTech Incubator initiative will, over the period 2025-2029, support 21 GovTech actors from 16 countries to co-pilot and develop, as a first step, AI solutions for public procurement, evidence processing and accessibility assistants.’

    Overall, while it is interesting to see procurement being highlighted as part of the Plan, it seems that the Plan is not at the right scale to promote the sort of system-level change required for extensive adoption of AI in the public sector (at Member State level).

    What is more, without a clear strategy on how to address the issues of digital skills within the public sector, and without specific practical tools or guidance on how to procure AI (and the model EU clauses are definitely not an adequate tool, see here), it is hard to see how there can be much movement outside pilot projects. Perhaps the ‘Apply AI Strategy’ will provide some developments on those fronts.