No. 119: Buy European Tech Act: Should Public Procurement in Digital Services Prioritize European Providers?
Abstract
During the June 2024 European Parliament election, strategic autonomy and industrial/trade policy emerged as central themes in public debate. Among proposed measures, there was burgeoning support for preferencing European products within procurement frameworks.
This paper examines the rationale, implications, and practical limitations of adopting such a preference regime, with a particular emphasis on its implementation in the digital services sector. It addresses political concerns over Europe’s underperformance compared to global competitors, such as China and the United States (U.S.), and considers a “Buy European Act” as a potential instrument to strengthen the presence of European companies in the internal market and indirectly support domestic industries.
The paper also draws attention to the divergence between political discourse in certain European countries and actual procurement practices. It highlights the need to uphold Europe’s digital sovereignty while acknowledging the challenges posed by the market dominance of U.S.-based firms and limited financial capacities of European digital service providers.
In conclusion, this paper emphasizes the difficulty of aligning public procurement policies with broader industrial objectives. It argues for the development of a coherent and robust regulatory framework aimed at enhancing the competitiveness of European firms in the procurement of digital services.