EUROPE: Rail suppliers’ association UNIFE has called on the European Commission to ‘deter’ non-EU companies from bidding for EU public contracts if their home markets are not open to EU suppliers, saying there is a ’different geopolitical context’ to when the ’severely out-of-date’ current procurement rules were drawn up.
Commenting on the Commission’s upcoming review of the Public Procurement Directive, UNIFE said the European rail supply industry faces ‘increasingly unfair competition’ from companies in non-EU countries. These entities are allowed to bid for EU public contracts even if their home country prevents European companies from bidding for its public contracts.
UNIFE’s recommendations
UNIFE has called on the European Commission to:
- deter bidders from non-EU countries bidding for public contracts in the EU if their country of origin does not have an agreement which provides the same market access for EU bidders on public contracts;
- ensure European preference for strategic industries such as rail, especially for projects using EU funding;
- end the lowest price criteria for public contracts, and instead move towards a mandatory most economically advantageous tender approach for rail projects;
- ensure future directives or regulations no longer represent a significant bureaucratic burden for European bidders, in particular for SMEs which have limited resources to address tenders;
- consider a range of other reforms around flexibility and improved terms and conditions in contracts, such as inflation adjustments.
UNIFE has also called for the ongoing review of the Foreign Subsidies Regulation to close existing loopholes.
Creating a level playing field
UNIFE said the EU’s Public Procurement directives were established in 2014, when there was a ‘completely different geopolitical context and operation for trade, competition and markets’. It said accessibility to global markets for EU rail suppliers on average fell from 60% to 59% for the 2021-23 period, according to the 2024 World Rail Market Study conducted by Bain & Co and published by Railway Gazette International’s parent company DVV Media Group in co-operation with InnoTrans.
The European Parliament has already adopted policy suggestions for the public procurement review, and the European Commission will use the rest of this year and the beginning of 2026 to undertake its review and suggest amendments to the directive.
‘Against the background of increasing unfair competition from abroad, we call the European Commission to create a level playing field for EU industry on public procurement’, UNIFE Director General Enno Wiebe said on September 24. ’This will help protect the integrity of global trade and markets through promoting good faith practices, especially at a time when it is being challenged.
’Europe’s future depends on backing strategic and critical industries such as rail supply, and we call on policymakers to undertake these reforms to keep it competitive and strong.
‘The European Rail Supply Industry is responsible for 650 000 jobs, including construction, and leads the world in innovation and quality being at the heart of many EU communities and economies.’
