The Public Procurement Tool

The public procurement tool is intended to prevent foreign subsidies (as defined in Art. 3 FSR and outlined here) from distorting competition in the internal market. This happens when companies are able to submit unduly advantageous bids that drive competitors unsupported by state funds out of the market, for example because they are subject to the strict prohibition of intra-EU State aid under Art. 107(1) TFEU. The need to counteract market-distorting subsidies from third countries is "particularly pronounced" in public procurement, since public contracts are financed with taxpayers' money.

Like the concentration tool, the procurement tool will create a new "world" of regulatory oversight for large-scale projects, requiring considerable flexibility and advance planning by both contracting authorities and bidders. It applies in principle to all procedures for the award of public contracts subject to EU procurement law, i.e. works, supply and service contracts as