EUROCHAMBRES - Association of European Chambers of Commerce and Industry

What the Commission proposes

The European Commission proposes a revision of EU public procurement rules through a new regulation that repeals the existing 2014 directives on public procurement, utilities, and concessions. The initiative aims to modernize and simplify rules, reduce administrative burdens, and enable preferences for European products in strategic sectors to secure supply chains and add EU value. It also amends multiple sector-specific regulations and directives containing procurement provisions to improve coherence and transparency. Furthermore, the proposal addresses high administrative burdens and legal uncertainty identified in previous evaluations regarding public buyers and businesses.

• Revises and replaces Directives 2014/23/EU, 2014/24/EU, and 2014/25/EU with a single Public Procurement Act regulation.
• Enables preference for European products in strategic sectors to ensure security of supply and EU added value.
• Aims to modernize and simplify rules, specifically considering EU start-ups and innovators.
• Amends various sector-specific regulations and directives that contain public procurement provisions.
• Addresses administrative burdens and legal uncertainty that currently affect public buyers and businesses, including SMEs.

Summary written by AI from the Commission's document.

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1. • The need for objective, transparent, and value-creation-based criteria that incentivize EU investment and promote vendor diversity • The importance of considering the origin of operators, including quality jobs, ownership, and tax residence, as well as EU added value • The need for clear definitions and application of Made in Europe criteria, with a focus on strategic industries and avoided blanket rules that could lead to cost increases and supply chain disruptions • The potential to link EU content provisions with sustainability performance, to support industrial decarbonization and innovation, and create green jobs in the EU • The importance of promoting collective bargaining, quality jobs, and regulating subcontracting to contribute to the Made in Europe objective • The need for consistency with EU and WTO law, to avoid discrimination and ensure that the rules are fair and

   COMMISSION STAFF WORKING DOCUMENT IMPACT ASSESSMENT REPORT..., page 320 (EN)

2. • The need for clear and simple rules to determine the origin of products and services • The importance of promoting collective bargaining, quality jobs, and regulating subcontracting to ensure fair working conditions • The need for flexibility and proportionality in the application of Made in Europe criteria, to avoid unnecessary administrative burdens and ensure that the rules are effective in promoting European industries and jobs • The importance of ensuring that Made in Europe criteria do not lead to protectionism or unfair competition, and that they are compatible with EU international commitments and WTO rules • The need for a nuanced and targeted approach, with different criteria and requirements applying to different sectors and industries • The importance of promoting European value chains and ensuring that public money is spent on products and services that support European

   COMMISSION STAFF WORKING DOCUMENT IMPACT ASSESSMENT REPORT..., page 321 (EN)

3. EN 24 EN procurements should be assessed based on an appreciation of all relevant interests taken as a whole, in particular economic, geopolitical and societal interests of the Union, its Member States and its citizens. The relevance of such Union interest is illustrated by sectors such as railways and shipbuilding which, as manufacturing sectors of a dual-use nature, rely on infrastructure, mobile assets and information and communication technology (ICT) and traffic management systems that must be resilient and are critical to military mobility, security, and the Union's strategic autonomy objectives. Their strategic importance has been underlined by recent Union initiatives including the EU Economic Security Strategy, the EU High-Speed Rail Plan, and the EU Maritime Industrial Strategy.

   Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE..., page 25 (EN)

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What the Commission proposes

The proposal introduces a Council Directive, known as the Omnibus on Taxation, which amends six existing directives in the field of direct taxation to simplify the EU corporate tax framework and support business growth and competitiveness. It aims to reduce administrative and compliance burdens for cross-border activities while maintaining high standards of protection against tax avoidance and abusive practices. The initiative aligns existing rules with international tax developments, such as the Pillar Two global minimum tax, and addresses procedural and legal obstacles in areas like withholding taxes and corporate reorganisations. Overall, the measures seek to improve legal certainty and ensure the coherent functioning of the internal market without lowering tax standards.

• Amends Directives 2003/49/EC, 2009/133/EC, 2011/96/EU, (EU) 2016/1164, (EU) 2017/1852, and (EU) 2025/50.
• Simplifies the Union framework on direct taxation to reduce compliance costs for businesses.
• Eliminates overlapping provisions and addresses practical issues arising from the interaction with the Pillar Two Directive.
• Removes procedural barriers and legal uncertainty linked to withholding tax relief.
• Maintains existing safeguards and high levels of protection against tax avoidance and evasion.

What is asked: Respondents expressed their views on simplifying existing EU tax rules to improve the functioning of the internal market and enhance Europe's attractiveness for investment and business.

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1. In addition, by reason of the scale or effects of the proposed action, the objective pursued can be better achieved at an EU level. The proposal will remove overlapping or superfluous EU rules, streamline and simplify procedures, further reduce instances of double taxation and mitigate market distortions, enhance legal certainty, eliminate outdated provisions, and address the inconsistent or divergent application of rules across Member States. It will thus be less costly for businesses to operate across multiple Member States. This will boost EU competitiveness, by making it a more attractive place to establish businesses and invest. For tax administrations, clearer EU-wide rules would simplify compliance checks and tax audits, reduce disputes and lower administrative burden.

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2. 9 The Draghi report on EU competitiveness 10 European Commission, ‘A competitiveness Compass for the EU’, COM (2025) 30 Final 11 Among the key objectives of the Savings and Investment Union is the breaking down of barriers to integrated financial markets and supporting investments, as explained here: https://finance.ec.europa.eu/regulation-and-supervision/savings-and-investments-union_en#what 12 ‘Commission Recommandation of 2 July 2025 on tax incentives to support the Clean Industrial Deal and in light of the Clean Industrial Dearl State aid Framework’, C(2025) 4319 final. 13 Directive (EU) 2017/1132 of the European Parliament and of the Council of 14 June 2017 relating to certain aspects of company law (OJ L 169, 30.6.2017, p. 46, ELI: http://data.europa.eu/eli/dir/2017/1132/oj).

   Proposal for a COUNCIL DIRECTIVE amending Directives 2003/49/EC,..., page 4 (EN)

3. In accordance with the subsidiarity principle laid down in Article 5(3) TFEU, action at EU level should be taken only when the envisaged objectives cannot be achieved sufficiently by Member States acting alone and in addition, by reason of the scale or effects of the proposed action, can be better achieved by the EU. On this basis, all Member States have their own domestic tax systems which are determined by different economic approaches, financial needs and policy choices. However, in some cases, it has become apparent that EU action is necessary to ensure the functioning of the internal market and the effectiveness of the fundamental freedoms. This is, for example, the case with the IRD and PSD which were adopted to ensure equal tax treatment of dividends, royalties and interests when these payments are carried out between taxpayers in different Member States.

   COMMISSION STAFF WORKING DOCUMENT IMPACT ASSESSMENT REPORT..., page 17 (EN)

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What the Commission proposes

The European Commission has launched a public consultation on territorial supply constraints, which are limitations imposed by large manufacturers to prevent retailers from buying products in one Member State and reselling them in another. These practices fragment the Single Market, limit consumer choice, and lead to significant price differences for daily consumer goods across the EU. The initiative aims to introduce new tools to address these constraints beyond situations currently captured by competition law, as announced in the May 2025 Single Market Strategy. This consultation gathers input from stakeholders to better understand the impact and scale of these supply restrictions.

• Territorial supply constraints hinder retailers from buying goods in one Member State to resell in another
• Such practices fragment the Single Market and limit consumer choice
• They contribute to significant price differences for daily consumer goods across the EU
• The initiative follows the Single Market Strategy announced in May 2025
• New tools are proposed to address these constraints beyond existing competition law

What is asked: Respondents are asked to provide information and comments on territorial supply constraints, their impact on the Single Market, consumer choice, and retail prices, as well as views on potential tools to address them.

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What the Commission proposes

The European Commission is conducting a review of the scope, functioning, and efficiency of Regulation (EU) 2022/1031 on the International Procurement Instrument (IPI). The review evaluates the implementation of the regulation, including investigation processes, consultations, thresholds, exceptions, and the first adopted IPI measure regarding medical devices from China. It aims to assess the instrument's effectiveness in tackling procurement barriers in non-EU countries and ensuring a level playing field for EU operators. The findings will be presented in a report to the European Parliament and the Council by August 2027.

• Review of the scope, functioning, and efficiency of the IPI Regulation pursuant to Article 14.
• Assessment of investigation procedures, third-country consultations, thresholds, and types of measures.
• Evaluation of the application and implementation of the first IPI measure concerning Chinese medical devices.
• Analysis of the efficiency of online complaint tools and rules for determining origin.
• Execution of a 12-week online public consultation through the Have your say portal.
• Publication of a factual summary of consultation results and an implementation report to the European Parliament and the Council.

What is asked: Respondents are asked to provide views and evidence on the implementation, scope, functioning, and efficiency of the IPI Regulation in tackling non-EU procurement barriers, achieving market openness, and ensuring a level playing field, as well as the application of specific measures adopted under the Regulation.

Summary written by AI from the Commission's document.

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1. 4 We are consulting stakeholders to assess the implementation of the IPI Regulation in terms of: - the scope, functioning and efficiency of the Regulation in tackling non-EU countries procurement barriers, achieving openness of non-EU countries public procurement markets and ensuring a level playing field for EU businesses, goods, services and works; - implementation of specific measures adopted under the IPI Regulation. Target audience The target audience is composed of, in particular, interested parties affected by measures or practices in non-EU counties (e.g. businesses, business associations and cross-industry organisations), EU contracting authorities and EU contracting entities.

   Report from the Commission to the European Parliament and to the..., page 4 (EN)

2. Basis for EU action (legal basis and subsidiarity check) The legal basis for this initiative is Article 14 of the IPI Regulation, which requires the Commission to review the scope, functioning and efficiency of the IPI no later than four years after the adoption of an implementing act or no later than 30 August 2027, whichever the earlier, and every five years after that. The initiative falls under a policy area where the EU has exclusive competence under Article 207 of the Treaty on the Functioning of the European Union. Therefore, the subsidiarity principle does not apply. Legal basis Article 14 of Regulation (EU) 2022/1031 of the European Parliament and of the Council of 23 June 2022 on the access of third-country economic operators, goods and services to the Union’s public procurement and concession markets and procedures supporting negotiations on access of Union

   Report from the Commission to the European Parliament and to the..., page 2 (EN)

3. 2 A. Political context, problem definition and subsidiarity check Political context The International Procurement Instrument Regulation (IPI Regulation), which entered into force on 29 August 2022, aims to improve reciprocal access to international procurement markets in areas not covered by international commitments under the Agreement on Government Procurement or bilateral free trade agreements. The IPI Regulation tackles procurement barriers in non-EU countries by empowering the European Commission to initiate investigations against alleged restrictions in third- country procurement markets and consult with the countries concerned to encourage market opening. If consultations do not lead to satisfactory results, the EU may restrict access to its procurement market for companies, goods and services from countries that continue applying restrictions to EU firms.

   Report from the Commission to the European Parliament and to the..., page 2 (EN)

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What the Commission proposes

The European Commission has launched an initiative to review Regulation (EU) No 1215/2012 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters. The initiative aims to simplify, clarify, and modernize the existing rules to reduce litigation costs, address legal fragmentation, and support the EU single market and competitiveness. It will be supported by a back-to-back evaluation and impact assessment, with a legislative proposal planned for the fourth quarter of 2027. The review addresses challenges identified in an application report, stakeholder consultations, and Court of Justice case law.

• Review and potential legislative amendment of Regulation (EU) No 1215/2012.
• Address inconsistent jurisdiction rules, particularly for defendants outside the EU.
• Improve procedural tools for collective redress and assess aspects relevant to strategic lawsuits against public participation (SLAPs).
• Evaluate parallel cross-border enforcement mechanisms under Regulation (EC) 805/2004.
• Consider policy options ranging from the baseline scenario to targeted clarification, simplification, and modernization.
• Planned adoption of the initiative in the fourth quarter of 2027.

What is asked: Respondents are asked to provide views on the Commission's understanding of the problem and possible solutions, and to give any relevant information including on the possible impacts of the different options.

Summary written by AI from the Commission's document.

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1. 4 This option includes everything set out in Option 2 but adds more substantial amendments to the Regulation, such as the introduction of jurisdictional rules for defendants domiciled in non-EU countries and specific new rules on collective redress actions. C. Likely impacts 1. Economic impacts, including the impact on competitiveness The initiative is expected to strengthen legal certainty and predictability and improve the competitiveness of EU companies by ensuring a level playing field between EU and non-EU businesses and individuals involved in international transactions. In this context, the initiative is expected to contribute, in particular, to reducing litigation costs and increasing confidence in cross-border dealings, particularly for SMEs and start-ups. 2.

   Recast of Regulation (EU) No 1215/2012 of the European Parliament..., page 4 (EN)

2. 3 jurisdiction; and • effective access to justice. The challenges addressed by this initiative arise in cross-border judicial proceedings, which inherently extend beyond the scope of national legal systems. Consequently, these issues can only be effectively resolved at EU level. Practical need for EU action There is a clear need for EU action to review and possibly amend Regulation (EU) No 1215/2012 in order to improve the efficiency, clarity and coherence of cross-border civil and commercial litigation within the single market. Given the cross-border nature of the challenges involved, only coordinated action at EU level can provide a coherent and effective response. B. Objectives and policy options Policy objectives General objectives: • To strengthen the international competitiveness of EU businesses and the EU’s attractiveness for investment.

   Recast of Regulation (EU) No 1215/2012 of the European Parliament..., page 3 (EN)

3. In this context, the Regulation is a key enabler for the EU’s single market, including by creating an attractive business environment, and for the EU’s competitiveness, as recognised most recently in the Commission’s Communication towards a 28th regime for EU companies (COM(2026) 320 final). The Report on the application of the Brussels Ia Regulation (the Application Report) found that after over 10 years, the Regulation largely meets its goals of legal certainty and streamlined enforcement but identified areas that could benefit from clarification, simplification and modernisation. For example, the Application Report noted inconsistent jurisdiction rules for defendants outside the EU, creating an uneven playing field; it referred to the possible simplification of the jurisdictional rules concerning contractual and tort claims as well as of the specific provisions on consumer contracts;

   Recast of Regulation (EU) No 1215/2012 of the European Parliament..., page 1 (EN)

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