Strategic buying for Europe: A mission-oriented vision on public procurement
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As the European Parliament votes on its report on Public Procurement, DIGITAL SME’s new position paper urges the introduction of a European preference criteria for strategic digital technologies, such as cloud, AI, connectivity, cybersecurity, digital services, and dual-use systems.
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Such a preference, defined through clear and multidimensional indicators such as company ownership, data localisation, and place of technological development, would channel public demand toward trusted European providers, strengthen sovereignty, and reward innovation by SMEs and startups.
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By unbundling contracts, using pre-commercial procurement (PCP), and ensuring quotas for SMEs, procurement can shift from favouring dominant players to fostering a diverse and innovative European tech ecosystem.
Public procurement shapes not just what governments buy—but also how markets evolve, who gets to innovate, and which technologies gain a foothold. The European DIGITAL SME Alliance’s latest position paper, Strategic Buying for Europe, makes a compelling case for revamping EU procurement rules to reinforce technological sovereignty, boost competitiveness, and unlock SME-driven innovation. The publication comes ahead of the upcoming revision of the EU Public Procurement Directives, which will shape how Europe manages over 14% of its GDP spent through public tenders.
Digital sovereignty requires the EU to retain control over critical digital infrastructures and reduce reliance on non-European vendors. Procurement is the single most powerful tool to accelerate this shift. A clear European preference would channel public demand toward trusted European providers in areas such as cloud, AI, connectivity, and cybersecurity. This establishes the public sector as anchor customer and creates room for SMEs and startups to scale, while enabling public administrations to rely on secure and interoperable solutions developed in Europe.
Recognizing that independent European tech actors often lack scale, the proposal recommends: separating hardware, software, and services to avoid dominant vendor lock-in; using pre-commercial procurement to foster early-stage EU innovation; splitting large contracts into SME-friendly lots; setting minimum SME participation quotas; and applying proximity-based selection to ground tech in regional ecosystems. These moves aim to boost competition, equity, and local economic development.
To tackle red tape and entry barriers, the paper calls for digital transformation of procurement platforms and processes, making them more transparent and accessible—especially to smaller players. It urges better use of EU ICT interoperability standards and the use of a Tech Sovereignty Catalogue to diversify suppliers. Finally, it recommends moving from lowest-price evaluations to value-rich criteria that reward digital, green, and innovative solutions.
With this position paper, DIGITAL SME calls on the EU to seize the upcoming revision of the procurement framework as a mission-oriented policy tool. A well-defined European preference will not only secure Europe’s sovereignty but also lay the foundations for a stronger, more innovative, and competitive digital economy.
