The organisations call for stronger safeguards to ensure fair competition in public procurement across the European Union. They warn that the growing use of in-house procurement and public-public cooperation without competitive procedures reduces market access for private companies and weakens investment incentives in key sectors.
Public procurement remains a central pillar of the European economy, especially for small and medium-sized enterprises. Open and transparent procurement procedures support the free movement of goods and services and contribute to the objectives of the European Union industrial strategy. According to the signatories, competitive markets are essential for attracting private investment and driving innovation.
At the same time, competition for public contracts has declined in recent years. This trend was also identified by the European Court of Auditors. The organisations argue that the current evaluation and revision of the procurement directives provide an opportunity to address this development. However, they criticise the limited attention given to proposals aimed at restricting in-house procurement and public-public cooperation in the consultation reports published in 2025 and 2026.
The statement also refers to the European Parliament resolution adopted on 9 September 2025. While the resolution recognises fair competition as a fundamental principle, it supports exempting cooperation between public authorities from procurement rules without additional restrictive conditions.
The signatories argue that preferential treatment for public entities, including state-owned companies, should remain limited to exceptional cases. They state that procurement without competition distorts markets and discourages private investment. In-house procurement and public-public cooperation should therefore only be used where they are necessary and objectively justified.
To strengthen transparency and competition, the organisations propose the introduction of a mandatory “competition test”. Under this approach, contracting authorities would have to launch a competitive procurement procedure whenever qualified private operators are available on the market. Only in the absence of capable private providers could contracts be awarded directly to in-house entities or within public-public partnerships without tendering procedures.
The statement also calls for stricter conditions regarding the use of urgency or emergency exemptions. According to the organisations, such exemptions should not be interpreted broadly in order to justify direct awards. In cases of public-public cooperation, authorities should additionally demonstrate that exclusive rights comply with the Treaty on the Functioning of the European Union and are supported by evidence of market failure.
Furthermore, the organisations propose tighter rules for jointly controlled in-house entities. Each contracting authority should hold a significant ownership share in the entity concerned. The signatories also call for a reduction of the activities that in-house entities and public-public partnerships may perform for third parties outside their public mandate. They argue that the current threshold of 20 per cent of turnover creates competitive advantages and market distortions.
According to the joint statement, applying competition and procurement rules consistently would ensure that public contracts are awarded based on quality, price and delivery capacity. The organisations describe this reform as necessary to maintain fairness, transparency and competition in the European procurement market.
Waste management sector
The waste management sector considers competitive procurement essential for achieving the objectives of the European Union circular economy strategy. The signatories warn that the increasing market presence of public operators in waste management limits opportunities for private investment in collection, sorting and recycling infrastructure.
The statement refers to estimates by the European Investment Bank Group and the European Commission, according to which an additional €1.229 trillion in investments will be required between 2025 and 2040 to achieve the objectives of the Circular Economy Action Plan. This corresponds to an annual investment gap of €82 billion. Around 27 per cent of the gap relates to end-of-life activities, particularly recycling.
According to the organisations, private investors currently account for 93 per cent of circular economy investments. They argue that stable and competitive procurement procedures are necessary to maintain this investment capacity.
Digital services and infrastructure
In the digital sector, the organisations stress that Europe’s technological sovereignty depends on cooperation between public authorities and private companies. They argue that direct awards to public information technology providers reduce opportunities for European digital small and medium-sized enterprises to offer innovative and scalable solutions.
Open competition in digital procurement, the statement says, would strengthen innovation, cybersecurity and resilience while reducing dependence on individual providers or legacy systems.
Construction sector
The construction sector organisations emphasise that open competition is essential for project quality, efficient use of public funds and investment in low-carbon technologies. They warn that increasing use of in-house arrangements removes a significant share of public demand from the market and weakens specialised small and medium-sized enterprises.
The statement highlights concerns about the assignment of construction projects to in-house entities beyond their technical capabilities or corporate purpose. The organisations also criticise the broad interpretation of urgency and emergency exemptions in some cases.
According to the signatories, some in-house entities lack the necessary resources to perform projects directly and subsequently subcontract the work to private operators. They argue that this practice should not be permitted. In addition, they state that public in-house entities compete directly with private construction companies when recruiting skilled personnel or acquiring machinery and equipment, increasing pressure on labour and supply markets.
