Strategic Public Procurement: A Lever for Good Governance and Sustainability in an Evolving Geopolitical Landscape

Published on 19 Feb 2025

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Amidst the rising waves of protectionism and economic uncertainty, strategic public procurement stands as a crucial mechanism for governments to drive sustainability and transform societal challenges into opportunities for innovation. Nowadays, public procurement transcends its traditional administrative role, appearing as a pivotal strategic instrument capable of fostering sustainable economies, driving innovation, and enhancing public service delivery. This evolution necessitates a departure from mere compliance-based approaches, advocating for strategic public procurement that aligns public expenditure with overarching policy objectives, thereby bolstering institutional efficacy.

The ongoing revision of the European Union’s public procurement directives occurs amid a shifting geopolitical landscape, notably characterised by the resurgence of protectionist policies, such as Buy American provisions in the United States. These measures, including tariffs targeting key EU and global partners including China, Canada, and Mexico, signify a departure from established World Trade Organization norms, emphasising the need for resilient and strategic procurement policies in Europe [1].

These protectionist actions have elicited varied responses among EU leaders [2]. Some nations seek to mitigate tensions through diplomatic engagement and strategic acquisitions, while others advocate for a unified stance to uphold the principles of multilateral trade. The European Commission has expressed concerns regarding the potential economic detriment increased protectionism could inflict on both the US and EU economies, emphasising the imperative of maintaining open international trade channels. The situation is volatile and details are changing daily, but it is already clear that tariffs will continue to cast a dark shadow over trade relations in the coming years.

In this context, the EU’s dedication to strategic public procurement within its legislative reform process becomes increasingly crucial. The Commission is committed to redesigning an approach that addresses the past identified inadequacies, as explained in our blog The Future of Public Procurement: the Council Conclusions on the Court of Auditors’ Report on Public Procurement. By leveraging procurement as a strategic tool, the EU can enhance its economic resilience against external protectionist pressures. Implementing procurement policies that prioritise sustainability, innovation, and inclusivity not only aligns with internal policy objectives, but also serves as a counterbalance to external trade disruptions.

The Policy Dimension of Procurement

Public procurement, traditionally seen as a pure rules-based administrative process, is now increasingly yrecognised as a strategic governance tool. As it represents a significant share of GDP in many countries, it serves as a powerful lever for policy implementation. Moving beyond the lowest-cost paradigm, strategic procurement integrates market dynamics, policy outcomes, and sustainability considerations.

The European Union has increasingly integrated sustainability and strategic objectives into procurement directives, encouraging public authorities to embed green, social, and innovative considerations into their purchasing decisions. Consequently, procurement strategies must now balance cost-efficiency with broader public value creation. This involves not only compliance with regulatory frameworks but also active engagement with market actors, to stimulate responsible business practices and innovation ecosystems.

The European Commission has initiated a public consultation on the revision of public procurement legislation, open until March 2025. This revision represents both opportunities and challenges, as various stakeholders may seek to weaken broader public value components. The possible response by EU institutions is not yet certain. However, we see this process as a critical opportunity to enhance procurement policies, aligning them more closely with the EU’s sustainability and digitalisation goals while addressing emerging global trade and competition challenges. Key themes under review include:

green procurement: aiming to procure goods, services, and works with reduced environmental impacts throughout their lifecycle [3];
digital tools: the integration of digitalisation to enhance transparency and efficiency in procurement [4];
social impact: using public tenders to create jobs, promote decent work, and encourage inclusion, particularly for disadvantaged groups [5].

Institutional Capacity and Procurement Governance

Strategic public procurement’s success relies on institutional capacity. Public managers must develop competencies beyond legal and financial compliance, including market analysis, risk assessment, and impact evaluation. Investing in digital procurement tools, fostering inter-agency collaboration, and enhancing professionalisation within procurement bodies are essential steps to unlocking the full potential of procurement as a governance mechanism.

The European Commission has been actively promoting the professionalisation of public procurement through initiatives such as ProcurCompEU, a competency framework designed to enhance procurement expertise across EU Member States. Strengthening professional skills in procurement is essential to ensuring that procurement decisions effectively contribute to policy goals.

In this context, the role of certification and professional training becomes increasingly relevant. Institutions such as the European Institute of Public Administration (EIPA) play a key role in equipping procurement professionals in the Member States and European institutions and agencies with the necessary knowledge and skills to navigate the evolving procurement landscape. EIPA’s certification for public procurement professionals, alongside its dedicated training programmes such as the upcoming Strategic Procurement course, provides a structured learning pathway to enhance procurement governance and operational effectiveness.

Moreover, the role of political leadership and administrative coordination cannot be understated. Effective strategic procurement requires a clear policy vision, strong cross-sectoral coordination, and the ability to integrate procurement decisions within broader public management reforms. When procurement strategies align with European, national, and regional policy goals, they serve as powerful instruments for structural transformation.

Furthermore, when implemented within organisations that have mainstreamed performance quality management, strategic procurement can drive positive change on both the supply and buyer sides. Frameworks such as the Common Assessment Framework (CAF) provide public sector organisations with structured methodologies to assess and improve their performance. By embedding CAF principles into procurement processes, administrations can enhance transparency, accountability, and efficiency while fostering a culture of continuous improvement. The CAF’s emphasis on continued self-assessment, enhancing stakeholder engagement, and evidence-based decision-making ensures that procurement strategies in the organisations are not only aligned with policy objectives but also contribute to long-term sustainability and innovation.

Public sector organisations that integrate CAF and other quality management tools into their procurement practices benefit from better risk management, increased trust from stakeholders, and enhanced adaptability to emerging challenges. This structured approach to quality-driven procurement ultimately ensures that public resources are allocated effectively to maximise social and economic value.

The Way Forward: Embedding Sustainability and Resilience

Looking ahead procurement must continue to evolve to address the twin challenges of sustainability and resilience. This entails embedding lifecycle costing, circular economy principles, and social impact assessment into procurement decisions. The evolving trade relationship with the US, particularly regarding tariffs and protectionist policies, highlights the urgency for resilient procurement systems [6]. These measures must balance EU’s commitment to sustainability while ensuring economic and trade resilience. Additionally, governments must anticipate future disruptions – whether economic, political, environmental, or technological – and build adaptive procurement systems that can respond to crises while maintaining long-term policy coherence.

The forthcoming revision of the 2014 EU Public Procurement Directives will play a crucial role in this transformation. By incorporating lessons learned from past implementations and adapting to new economic and political realities, the revised directives will shape the next generation of procurement policies in the EU.

The challenge now is not only whether procurement can be strategic, but how governments can accelerate its transformation to meet the demands of a rapidly changing world. To navigate these challenges effectively, organisations need to learn and evolve, and public procurement officials must develop the skills and expertise required to adapt, innovate, and lead in this dynamic landscape.