What is
European preference
Also known as: Buy European, covered suppliers, europeisk preferanse
European preference is the set of rules on favouring European suppliers in the European Commission's proposal for a new procurement regulation (COM(2026) 590), presented on 9 September 2026. Contracting authorities get the option, but not the duty, to prioritise suppliers, goods, services and works from the EU or from "covered" countries. It is a proposal, not adopted law, being handled by the European Parliament and the Council.
How does European preference work?
The rules are in Chapter 5 of Part III, Articles 70 to 77. A key term is "covered" (Article 70). A supplier or product from a country outside the EU is covered if that country is a party to the WTO Agreement on Government Procurement (GPA), has a trade agreement with the EU with procurement commitments, or has a customs union with the EU. This only applies when the specific procurement falls within the EU's commitments. Origin is determined under Article 74, and the Commission is to provide a free online tool showing what is covered (Article 71).
Article 73 gives contracting authorities these tools. All of them are voluntary:
- limit participation to suppliers and subcontractors from the EU or covered countries
- reject other tenders
- require origin in the EU or covered countries, fully, partly or for specific components, with a share the contracting authority sets itself
- give a price deduction or extra points
- reject tenders where the value from the EU or covered countries is below 50 % of the tender's estimated value
The measures must be stated in the summary of the competition. The rules are not limited to particular sectors. Article 73 treats suppliers from the EU and covered countries alike in all measures, so between them the principles of non-discrimination and equal treatment still apply. Preference can still become mandatory in three ways: through delegated acts (Article 75), when a country loses covered status because it does not give EU suppliers the same access (Article 72), or through separate sector legislation (Article 77). The exceptions are in Article 76: crisis, no supplier from the EU or covered countries can deliver, no suitable tenders, or disproportionate costs.
What does it mean for you as a supplier?
If you are based in an EU member state, you are an EU supplier and meet the preference rules directly. The regulation does not define "third country" and does not mention the EEA or EFTA in Chapter 5. Norway is a party to the GPA, and the EEA Agreement is an agreement with procurement commitments. As the proposal is formulated, suppliers from EEA EFTA countries such as Norway are expected to count as covered and be treated like EU suppliers under the preference rules, for procurements within the EU's commitments. Which procurements those are depends among other things on the EEA thresholds and which contracting authorities the agreements cover. The final placement of the EEA countries is settled in the EEA incorporation.
An example: A Dutch municipality requires at least 60 % of the value of an IT delivery to originate in the EU or covered countries. A supplier with its development in the EU, or in Norway as the proposal is formulated, meets the requirement. If you use subcontractors outside Europe, you should know how large a share of the value they account for. Tools like Cobrief help you read the tender documents and catch such requirements early.
Frequently asked questions
When does this apply?
Not yet. The proposal is being handled by the European Parliament and the Council. The regulation applies two years after it enters into force (Article 149), realistically 2029 at the earliest. For EEA EFTA states such as Norway, incorporation into the EEA Agreement comes in addition.
Do contracting authorities have to favour European suppliers?
No. Article 73 says the contracting authority "may". A duty can only come through delegated acts, loss of covered status or sector legislation.
Does this only apply in defence and other strategic sectors?
No. The proposal does not limit the rules to particular sectors.
In short: European preference lets contracting authorities prioritise suppliers from the EU and covered countries. As the proposal is formulated, suppliers from EEA EFTA countries such as Norway are expected to count as covered, but the final placement of the EEA countries is only settled in the EEA incorporation.