The European Union is on the brink of introducing sweeping changes to its public procurement rules, with the European Parliament’s Internal Market Committee (IMCO) set to vote on June 26 on a report that includes a controversial amendment—Article 13c. This proposal would significantly curb the ability of public authorities to award contracts to in-house or publicly owned providers without competitive tendering, marking a shift toward mandatory market competition in public service delivery. If adopted, it would signal a radical departure from existing EU principles that uphold the freedom of local governments to decide how to organize and provide public services.
Critics warn that this move is deeply misguided. Not only does Amendment 13c contradict the directive’s own affirmation of local authorities’ autonomy (as stated in Article 13), but it also runs counter to mounting evidence and experience across Europe. Decades of research show that forced outsourcing leads to reduced service quality, higher costs due to profit extraction, and greater risks of corruption. Far from improving efficiency, such models often weaken public capacity and flexibility. Ironically, many municipalities across Europe are now reversing course—remunicipalising services to cut costs and improve outcomes. Mandating competitive tendering would impose unnecessary administrative burdens on already strained local governments, undermining democratic decision-making and decades of hard-won lessons in public service delivery.
More details can be found in this appeal to delete the wording of article 13c and to support the existing practices of awarding contracts in house and with local autonomy. You can sign the appeal until the vote date of June 26.