European Public Procurement Reform: What Changes in 2026

In March 2026, the European Commission unveiled its Industrial Accelerator Act, a major reform set to transform public procurement across the European Union. With €2,500 billion spent annually on public contracts (approximately 15% of EU GDP), the stakes are enormous. The public consultation has now closed and a legislative proposal is expected in Q2 2026. Here's a breakdown of the key changes.

A context of European industrial revival

The Industrial Accelerator Act is part of the European Commission's drive to strengthen the continent's industrial competitiveness. Facing growing international competition, the EU is leveraging public procurement as a strategic tool to support its businesses and accelerate the energy and digital transitions.

This plan is accompanied by massive infrastructure investments, notably Germany's €500 billion infrastructure plan, which further amplifies the volume of available contracts.

New European thresholds 2026-2027

European thresholds have been revised DOWNWARDS for 2026-2027, meaning more contracts will need to be published at EU level (TED). Specifically:

Works and concessions: **€5,404,000** (down from €5,538,000 previously)
Supplies and services (local authorities): **€221,000** — Supplies and services (central authorities): **€143,000**
Social and specific services: **€750,000** — In force since 1 January 2026

"Made in EU" and low-carbon requirements

One of the most significant changes is the introduction of European content requirements in certain strategic public contracts. Contracting authorities will now be able to favour "Made in EU" products and services, particularly in the defence, energy, and critical technology sectors.

Furthermore, environmental criteria are gaining importance: companies offering low-carbon solutions will benefit from a competitive advantage in bid evaluation. This is excellent news for European businesses committed to the green transition.

Simplified access for SMEs

The reform places particular emphasis on accessibility for SMEs:

1. Enhanced lot splitting — Increased obligation to divide contracts into lots so SMEs can bid
2. Simplified applications — Reduced administrative requirements at submission stage
3. Shorter payment deadlines — Payment time limits to prevent cash flow issues for SMEs
4. Accelerated digitalisation — Widespread adoption of electronic platforms to simplify bidding

What this means for your business

For Belgian and European businesses, this reform represents a major opportunity. The overall volume of public contracts continues to grow, rules are being simplified, and selection criteria are evolving in favour of local and responsible players. Moreover, the mandatory e-invoicing obligation being progressively enforced further underscores the need to digitalise. Companies that prepare now — by structuring their public procurement monitoring, adapting their bids to environmental criteria, and mastering the new procedures — will be best positioned to benefit.

Timeline and next steps

The European legislative process follows a precise timeline. Here are the key milestones to keep in mind:

January 2026 — The Commission closed its public consultation on procurement reform
Q1-Q2 2026 — Impact assessment underway, analysis of contributions received
Q2 2026 — Legislative proposal expected from the European Commission
2027-2028 — Member states will have approximately 2 years to transpose the directive into national law

New European thresholds 2026-2027 — All amounts in detail
Mandatory e-invoicing — What you need to know
Below-threshold contracts — How to find them
How to respond to a public tender — Practical guide
Our monitoring services — Personalised public procurement surveillance