Germany's new procurement law permits EU-only tenders and mandates EU-origin content.

Germany's new procurement law permits EU-only tenders and mandates EU-origin content.

Germany has introduced a new procurement law that mandates EU-only tenders and requires EU-origin content. This legislation aims to bolster the European Union's economic independence and security in the face of geopolitical uncertainties.

The new law, effective as of June 19, 2025, prohibits the awarding of public procurement contracts to non-EU companies. This move is part of a broader strategy to reduce reliance on imports from outside the EU and to strengthen the bloc's supply chain resilience. The law also mandates that the content of public procurement contracts must originate from within the EU.

The German government's decision to implement these measures follows a series of geopolitical events, including the ongoing conflict in Ukraine and the potential revival of Russian pipeline gas deliveries through the Nord Stream 2 pipeline [2]. The Federal Ministry for Economic Affairs and Climate Action has confirmed that it is examining amendments to investment inspection laws to prevent the possible sale of Nord Stream 2 AG, a Swiss-registered company within the European Free Trade Association [2].

The new procurement law is expected to have significant implications for the German economy. It may lead to increased domestic production and innovation, as well as job creation in the EU. However, it could also result in higher costs for public procurement, as well as potential disruptions to supply chains that rely on non-EU suppliers.

The EU's push for self-sufficiency in procurement is part of a broader trend towards economic independence and resilience. Similar measures have been implemented in other EU member states, and the bloc as a whole is increasingly focusing on reducing its dependence on external suppliers.

References:
[1] https://finance.yahoo.com/news/first-market-launch-adrenaline-nasal-071700270.html
[2] https://www.pravda.com.ua/eng/news/2025/06/27/7519083/