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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.

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1. Public procurement procedures should be guided by the Union policy objectives, including strengthening the competitiveness of the internal market, supporting innovation and the clean industrial base, achieving climate and environmental targets, a fair and inclusive society, in particular fair working conditions, including as fostered by social dialogue, and enhancing the Union’s safety, security, resilience and economic security, including through strategic independence. Taking into account the diversity of national systems and respecting the autonomy of 4 Council Decision 94/800/EC of 22 December 1994 concerning the conclusion on behalf of the European Community, as regards matters within its competence, of the agreements reached in the Uruguay Round multilateral negotiations (1986-1994) (OJ L 336, 23.12.1994, p. 1, ELI: http://data.europa.eu/eli/dec/1994/800/oj).

   Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE..., page 18 (EN)

2. 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.

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3. • 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)

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What the Commission proposes

The European Commission has published an impact assessment and legislative review concerning Directive 2003/87/EC and Decision (EU) 2015/1814 on the EU Emissions Trading System (EU ETS) and the Market Stability Reserve. This initiative serves as the first part of a broad post-2030 framework package aimed at driving competitiveness and cost-effective decarbonisation. It evaluates how stationary installations, aviation, and maritime sectors can deliver necessary emission reductions while ensuring carbon leakage protection and orderly market functioning. The review addresses the shrinking supply of allowances and adapts the system to align with intermediate 2040 targets and 2050 climate neutrality goals.

• Reviews the EU ETS and the Market Stability Reserve to prepare for post-2030 climate targets.
• Assesses pathways toward the 2050 climate neutrality goal and the intermediate 2040 target.
• Focuses on industrial sectors, maritime transport, and aviation to ensure cost-effective decarbonisation.
• Examines carbon leakage protection, free allocation benchmarks, and the funding transition through EU revenues.
• Analyzes market functioning and allowance supply adjustments to prevent trading frictions and price volatility.
• Accompanies related proposals simplifying monitoring, reporting, and verification regulations.

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1. 7 Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions: The Clean Industrial Deal: A Joint Roadmap for Competitiveness and Decarbonisation, COM(2025) 85 final, 26.2.2025, https://eur- lex.europa.eu/legal-content/EN/TXT/?uri=celex:52025DC0085. 8 Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions: Action Plan for Affordable Energy: Unlocking the True Value of Our Energy Union to Secure Affordable, Efficient and Clean Energy for All Europeans, COM(2025) 79 final, 26.2.2025, https://eur-lex.europa.eu/legal- content/EN/TXT/?uri=celex:52025DC0079.

   COMMISSION STAFF WORKING DOCUMENT IMPACT ASSESSMENT REPORT..., page 8 (EN)

2. EN 9 EN Additional legislative proposals on national targets as well as the use of international credits, are expected later in 2026. • Consistency with other Union policies The Clean Industrial Deal brings together climate action and competitiveness under one overarching growth strategy. It is a commitment to accelerate decarbonisation, reindustrialisation and innovation, all at the same time, while making Europe resilient. It aims to present European industry with a stronger business case for large climate-neutral investments in EIIs and clean tech. The review of the EU ETS plays a central role in achieving these objectives and is therefore consistent with the broader set of Union policies that are part of the Clean Industrial Deal.

   Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE..., page 10 (EN)

3. (c) To what extent do Member States have the ability or possibility to enact appropriate measures? Member States are able to act to reduce greenhouse gas emissions that are under the scope of the EU ETS through other national policies and measures. However, they are not able to so to an extent that equally ensures a level playing field, environmental integrity and the integrity of the single market as an EU-level carbon market. 5 https://europa.eu/european-union/about-eu/eu-in-brief_en

   COMMISSION STAFF WORKING DOCUMENT Subsidiarity Grid Accompanying..., page 4 (EN)

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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.

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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 proposes the Cloud and AI Development Act to establish a framework of measures aimed at strengthening Europe's cloud and artificial intelligence ecosystem. The initiative focuses on three pillars, which include research and innovation for greening infrastructure, industrial investments to triple EU data processing capacity, and actions to increase secure data processing capacities for cloud providers in the EU. Ultimately, the proposal seeks to address infrastructure gaps, reduce critical dependencies on non-European providers, and enhance the Union's digital sovereignty and competitiveness.

• Addresses the EU gap in cloud and AI infrastructure capacity through three distinct pillars.
• Promotes research and innovation to accelerate sustainable cloud and AI computing technologies.
• Aims to triple the EU data processing capacity over the next 5 to 7 years via industrial investments.
• Introduces measures to increase secure data processing capacities for high-critical use cases.
• Establishes common criteria for sovereign cloud computing services to reduce extraterritorial dependencies.
• Promotes open-source solutions and joint public procurement activities across the public sector.

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1. 35 Regulation (EU) 2024/903 of the European Parliament and of the Council of 13 March 2024 laying down measures for a high level of public sector interoperability across the Union (Interoperable Europe Act) (OJ L, 2024/903, 22.3.2024, ELI: http://data.europa.eu/eli/reg/2024/903/oj). 36 Interinstitutional Agreement between the European Parliament, the Council of the European Union and the European Commission on Better Law-Making (OJ L 123, 12.5.2016, p. 1, ELI: http://data.europa.eu/eli/agree_interinstit/2016/512/oj).

   Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE..., page 37 (EN)

2. Furthermore, effective enforcement requires robust cross-border cooperation between competent authorities to ensure the consistent application of this Regulation across Member States and the timely sharing of relevant information to address systemic risks within the Union (61) The Union’s objective of strengthening its autonomy should be pursued in a manner that remains open, cooperative and consistent with the Union’s international commitments and partnerships. The policy objectives pursued through Union assurance levels 1, 2, and 3 should therefore be understood as the Union’s capacity to act autonomously where necessary, while remaining engaged with its international partners and fostering mutually beneficial cooperation. Against this background, the

   Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE..., page 30 (EN)

3. 10 Joint Communication from the Commission to the European Parliament and the Council, ‘Strengthening EU economic security’, JOIN(2025) 977 final. 11 Council Conclusions on European Competitiveness in the Digital Decade, 5.12.2025, https://data.consilium.europa.eu/doc/document/ST-16430-2025-INIT/en/pdf.

   Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE..., page 16 (EN)

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