European public procurement is increasingly being leveraged as a strategic tool to advance key EU objectives in security, technological leadership, resource independence and environmental sustainability. Public procurement represents roughly 15–20% of global GDP, giving governments immense purchasing power to shape markets. In recent years, the European Union has aligned procurement policies with its strategic priorities, from bolstering defence capabilities and cybersecurity to building digital infrastructure, securing critical raw materials supply, and achieving climate goals. This shift towards “strategic procurement” reflects the EU’s drive for greater open strategic autonomy, ensuring Europe’s long-term resilience and competitiveness in a changing global landscape.
Defence and Cybersecurity: A Strategic Emphasis in Procurement
Conventional defence and cyber defence have become central to European procurement priorities. Russia’s war in Ukraine starkly exposed shortfalls in European defence stockpiles and overreliance on external suppliers. In response, the EU has launched joint defence procurement initiatives to consolidate demand and strengthen Europe’s Defence Technological and Industrial Base (EDTIB). Notably, the European Defence Industry Reinforcement through Common Procurement Act (EDIRPA) was proposed in 2022 as a short-term instrument to co-fund member states’ joint purchases of urgent military equipment. A longer-term programme, the European Defence Industry Programme (EDIP), is under development to sustain cooperative procurement and industrial investment. Together, these tools are designed to “consolidate the European demand, by encouraging joint acquisitions, and make the EDTIB more competitive, by increasing the European defence industry’s production capacity”.
In essence, EU defence procurements are being steered towards European sources where possible, a “Buy European” approach to ensure security of supply and foster an integrated European defence market. Cybersecurity is equally a procurement priority. The EU recognises cyber defence as a strategic domain and is investing in collective capabilities. In 2024, the Cyber Solidarity Act was adopted to strengthen EU-wide cyber resilience, including creating a European cyber reserve and facilitating joint procurement of cybersecurity tools and infrastructure for critical sectors.
Additionally, EU-wide frameworks like the updated EU Cybersecurity Strategy and a revised Cybersecurity Blueprint emphasise coordinated investment in cyber defence assets across Member States. By pooling resources and favouring trusted European providers for sensitive digital systems, Europe aims to reduce dependence on foreign technology that could pose security risks. Public contracts in areas such as secure communications, network equipment and cloud services are increasingly awarded with security considerations in mind, aligning with broader EU efforts to achieve “digital sovereignty”. In practice, this means prioritising European-made solutions for government networks and critical infrastructure – effectively a strategic procurement stance in the cyber world.
Digital Infrastructure: Building Europe’s Technological Sovereignty
Upgrading Europe’s digital infrastructure, from broadband networks and cloud computing to emerging technologies like 5G/6G is another pillar of current EU initiatives. The Digital Decade targets for 2030 set ambitious goals for gigabit connectivity, data infrastructure and digital skills across Europe. Achieving these targets involves significant public investments and procurements.
The EU has been encouraging the use of European firms and technologies in critical projects to strengthen the internal digital ecosystem. For example, in telecommunications, EU policy (via the 5G Security Toolbox) urged limiting high-risk vendors, implicitly favouring European manufacturers for 5G rollouts to protect network security. Similarly, European consortia are being promoted in cloud services (e.g. the GAIA-X initiative for federated cloud infrastructure) and semiconductor production (through the EU Chips Act) to reduce reliance on non-EU providers. Major EU-funded programmes also reflect these procurement priorities. The new IRIS² satellite communications programme, for instance, will procure a constellation of secure satellites predominantly from European aerospace suppliers, ensuring sovereign capability in space-based connectivity. The broader trend is that when public authorities invest in digital infrastructure, whether deploying broadband in rural areas or building high-performance computing centres, they are encouraged to consider not just price and performance but also strategic factors like supplier origin and supply chain security. The European Commission’s recent competitiveness roadmap explicitly calls to “reinforce technological security and domestic supply chains” as part of the upcoming procurement reforms.
This indicates that procurement rules may be adjusted to give preference to EU/EEA companies in strategic tech sectors, striking a balance between an open market and the need to cultivate European champions in the digital arena.
Raw Material Resilience: Securing Critical Supply Chains
Ensuring access to critical raw materials has climbed high on the EU’s strategic agenda, shaping procurement and industrial policies alike. Europe’s green and digital transitions require rare earths, battery minerals, semiconductors and other materials that are often sourced from a limited number of countries. To address this vulnerability, the EU adopted the Critical Raw Materials Act (CRMA) in 2024, aiming to bolster domestic capacity and diversify imports. The CRMA sets clear targets to reduce dependence: by 2030, no more than 65% of the EU’s annual consumption of any strategic raw material should come from a single non-EU country. It also calls for at least 10% of the EU’s demand for such materials to be extracted within Europe and 25% to be met by recycling.
Public procurement plays an important supporting role in this raw materials strategy. The European Commission plans to create a joint purchasing platform for critical raw materials, building on the successful AggregateEU model used for joint gas purchases. Through this mechanism, EU industries’ needs for key minerals (for example, lithium for batteries or rare earth elements for wind turbines) can be aggregated and tendered collectively. Such coordination not only can secure better prices, but also allows the EU to negotiate supply agreements that prioritise reliability and sustainability of supply. Furthermore, when awarding contracts for infrastructure or manufacturing projects, public authorities are increasingly attentive to the provenance of materials – favouring suppliers that source responsibly and from a diversified base. For instance, a tender for electric vehicle batteries or grid equipment might include criteria rewarding use of European-sourced components or recycled materials, in line with the EU’s resilience objectives. This integration of supply chain resilience into procurement ensures that taxpayer-funded projects contribute to Europe’s raw material independence and do not inadvertently deepen strategic dependencies.
Sustainability and Green Procurement
Climate and sustainability goals permeate nearly all facets of EU policy, and public procurement is no exception. The EU sees its purchasing power as a lever to drive the market toward greener, more socially responsible goods and services. The concept of Green Public Procurement (GPP) has been promoted for years, but current initiatives aim to make sustainable criteria a mainstream requirement rather than a niche consideration. The forthcoming revision of EU procurement directives is expected to introduce mandatory sustainability criteria for certain contracts, moving beyond the current framework where environmental and social factors are largely optional. According to the Commission’s Clean Industrial Deal roadmap, the updated rules will embed sustainability and resilience alongside European preference in procurement for strategic sectors.
This means that contracting authorities across Europe will soon be obliged to factor in carbon footprints, circular economy aspects, and broader environmental impacts when buying products or commissioning works. Already, sector-specific EU laws are pushing sustainability through procurement. The Clean Vehicles Directive (2019) mandates that a minimum percentage of public transport bus purchases must be zero-emission vehicles by 2025 and 2030, directly shaping municipal procurement choices in favour of electric buses. Similarly, the Energy Efficiency Directive requires central governments to purchase high-efficiency buildings, products and services, leading agencies to favour suppliers with strong green credentials. The Net Zero Industry Act (NZIA), adopted in 2023, goes further by identifying low-carbon technologies as strategically important and encouraging public authorities to buy from European clean-tech manufacturers.
In total, over 30 EU directives and regulations now include some form of procurement provision to support climate or innovation goals, from renewable energy use to waste reduction, heralding a more prescriptive approach to “what to buy” instead of merely “how to buy”.
In practice, this shift toward sustainable procurement translates into tenders that reward quality over lowest price. Contracts are increasingly awarded based on “best value” considerations, which include lifecycle environmental costs and social impact. For example, a construction contract may require use of low-carbon cement and adherence to labour standards, or an IT equipment purchase might score bidders on energy efficiency and repairability of devices. Such criteria ensure public money supports the EU’s Green Deal objectives and sets an example for private consumers. While this approach can sometimes raise upfront costs, the EU argues it delivers long-term savings (through energy efficiency, etc.) and market stimulation for green innovation. It is a strategic investment in sustainable development via the procurement channel.
Aligning Procurement with Europe’s Strategic Vision
From defence and cybersecurity to digital infrastructure, raw materials and climate action, the European Union is clearly repositioning public procurement at the heart of its strategic autonomy agenda. Procurement policies are no longer neutral or purely cost-driven; they are intertwined with industrial policy, security strategy and sustainability commitments. This comprehensive approach is evident in the emerging “Buy European” preference for key sectors, which the European Commission has floated as part of ongoing reforms. Crucially, any such criteria will operate within the framework of the EU’s internal market and the European Economic Area. The EEA Agreement extends EU procurement rules to Norway, Iceland and Liechtenstein, meaning a strategic “European preference” must inclusively cover all 30 EEA states to avoid distorting competition.
As the EU modernises its procurement directives by 2026, European procurement officials and businesses will need to navigate these new priorities. Tenders will likely become more complex, balancing traditional value-for-money with defence security of supply, supply chain resilience, and green criteria. While challenges such as higher costs or legal trade-offs may arise, the overall direction is set: European procurement is evolving from a procedural exercise into a powerful policy instrument. By strategically targeting investments in defence, digital, critical resources and sustainability, the EU seeks to future-proof its economy and reinforce the Union’s values and autonomy. Procurement professionals across Europe should thus prepare for a paradigm shift where buying decisions actively further Europe’s strategic goals, ultimately strengthening the region’s security, prosperity and sustainable growth.
Sources:
“Buy European” criteria in public procurement should include all 30 EEA States
Europe: The EU’s Critical Raw Materials Act enters into force
