EU’s new public procurement rules could revolutionise railway contracts and boost strategic autonomy

The European Commission’s new public procurement proposal could reshape how rail contracts are awarded across the EU, with consequences for rolling stock, infrastructure works and transport services. Unveiled on 9 September, the draft regulation places greater weight on quality, sustainability, safety and what Brussels describes as “European preference”, while the rail industry is pushing for tougher safeguards to keep third-country bidders on a level playing field.

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e heart of the plan is a tougher interpretation of best value for money. Contracting authorities would still compare price and quality, but the Commission wants a clearer separation between the two and a more rigorous record of how scores are assigned, particularly on higher-value contracts. The proposal would also push procurement decisions towards broader criteria such as environmental performance, social standards, innovation, security, resilience and life-cycle costs.

For rail buyers, that shift could matter significantly. Rolling stock and systems procurement often hinges on upfront cost, but the Commission’s approach would encourage a longer-term view of ownership costs, maintenance and operational performance. It also sets out a more explicit framework for issues such as energy efficiency, circularity, labour conditions and human rights in supply chains.

The direction of travel is broadly welcomed by the European railway industry association UNIFE, along with the European Federation of International Contractors, the European Dredging Association and the European Construction Industry Federation. In a joint statement on 2 September, the four groups argued that procurement should move beyond price-only decisions and adopt a best price-quality ratio approach that reflects total cost of ownership over the full life of an asset.

The Commission is also proposing a formal concept of European preference in strategic procurement. Under the draft, authorities could use origin requirements, limit participation, or give bids an advantage where Union interests require it. In some cases, the Commission could exclude suppliers, products or services that do not enjoy reciprocal access to EU procurement markets.

That point goes to the centre of the industry’s concern. In a joint communication on 3 September, UNIFE, EIC, EuDA and FIEC said access to the European market should be tied to reciprocity. They want stricter rules for companies from countries that do not offer European firms comparable access to their own public procurement regimes, and they support the idea that strategic technologies and services should in some cases be reserved for eligible operators on security grounds.

For rail, that could affect procurement of trains, signalling, equipment and other core technologies. The proposal also introduces security and resilience requirements aimed at critical infrastructure and at reducing dependence on risky suppliers from outside the EU.

The changes would not stop at rail procurement alone. The Commission also wants to amend Regulation 1370/2007 on public passenger transport by rail and road. Although contracts and concessions under that regime would remain outside the general scope of the new rules, the draft says security, resilience and European preference provisions should still apply to them. That could reach rail-based public transport and, depending on how the legislation is applied, tram and metro services too.

Digitalisation is another major strand. The Commission wants an integrated European procurement market built on interoperable national eProcurement systems. In practical terms, companies would be able to submit bids across the EU through connected platforms without repeatedly providing the same documents. Authorities would gain a better ability to verify exclusion grounds electronically, while the Commission says a common data framework should improve transparency and help detect fraud.

The proposal lands at a time when Brussels is already trying to strengthen industrial resilience and cross-border cooperation in sensitive sectors. The Council’s 2023 backing for the EDIRPA defence procurement scheme showed how the EU is prepared to use common purchasing to build scale and reduce fragmentation. In rail, the same logic is now being extended to procurement policy, with competition, strategic autonomy and market reciprocity increasingly intertwined.

Source: Noah Wire Services