What to do with competition for public contracts in the EU

This opinion paper addresses the observed decline in competition for public contracts in the European Union (EU), despite the growing importance of public procurement and sustained legal efforts to stimulate competition. It explores why there is limited competition and what can be done. The paper provides a synthesis of recent research, policy documents, examples from practice, and procurement data. Competition for public contracts is under pressure, as reflected in fewer bids, increased single bidding, and more tender cancellations. Notably, this trend predates recent geopolitical and policy developments that further complicate market dynamics. Several contributing factors can be grouped into market behaviour, buyer behaviour, and legal and institutional frameworks. The paper proposes a range of short-term responses, including making it easier to submit bids, ensuring fairer risk allocation, extending or bundling consecutive contracts, and avoiding excessively large or complex tenders. In the long term, legal and institutional reforms are proposed. These include measures to support more attractive tendering, to mandate more dialogue with suppliers, and a shift in accountability from compliance toward outcomes. This paper provides an integrated view of competition decline in EU public procurement. It offers both immediate and structural policy options, highlighting the need for a cultural shift, from a compliance-driven, risk-avoiding practice to a value-oriented, dialogic profession capable of fostering better competition. This would also make procurement more accessible for SMEs and facilitate more strategic procurement.