ARTICLE
17 December 2025

Horizon Scanner: Energy, Planning, Infrastructure And Construction December 2025 - Public Procurement

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Arthur Cox

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The European Commission initiated an in-depth investigation under the Foreign Subsidies Regulation (EU) 2022/2560 in a procurement process in Portugal after finding, based on a preliminary review...
European Union Government, Public Sector
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EU

Foreign Subsidies Regulation

The European Commission initiated an in-depth investigation under the Foreign Subsidies Regulation (EU) 2022/2560 in a procurement process in Portugal after finding, based on a preliminary review, sufficient indications that a bidder was granted foreign subsidies that distort the internal market. Further information is available in summary notice C/2025/6441.

Defence

The Commission is consulting until 17 February 2026 on simplification of the defence procurement legal framework (Directive 2009/81/EC) to strengthen its efficiency, transparency, and competitiveness. The goal is to ensure that Member States can procure defence and sensitive security equipment in a fast, cost-efficient, and coordinated manner, while supporting the resilience and technological autonomy of the European Defence Technological and Industrial Base. The Commission intends to simplify and modernise the rules to reduce legal uncertainty, administrative burden, and fragmentation across Member States.

The European Commission will also present a proposed Regulation on military mobility to the Council and the European Parliament. The proposed Regulation includes establishment of a Military Mobility Transport Group whose tasks will include facilitating joint procurement by Member States of transport and logistic capabilities for military transport. The proposal is part of a newly adopted defence package which also comprises an EU defence industry transformation roadmap and a joint communication on military mobility.

Critical raw materials

The European Commission adopted a RESourceEU Action Plan to support efforts to secure the EU's supply of critical raw materials and build on the Regulation on Critical Raw Materials. A Communication indicates that the Commission is exploring incentives for supply diversification in the context of the revision of the public procurement and defence procurement Directives, as well as in the design of the Defence Readiness 2030 Flagship Projects.

Critical medicines

A proposal for a Critical Medicines Regulation aims to incentivise supply chain diversification, streamline provisions on collaborative procurement, and create incentives to boost pharmaceutical manufacturing in EU countries. The Council has agreed its position which will be negotiated with the European Parliament. Chapter IV sets out provisions on incentivising resilience in public procurement procedures, national programmes supporting resilience in public procurement procedures, and voluntary collaborative procurements.

Electronic invoicing

The European Commission is calling for evidence until 17 December 2025 on revision of the rules on electronic invoicing in public procurement. The objective is to increase harmonisation of eInvoicing rules and ensure its consistent use in public procurement throughout the EU.

European innovation

The European Commission is developing a European Innovation Regulation with the aim of creating cross-sectoral legal framework conditions to remove barriers for bringing innovative ideas to market in all sectors. The European Innovation Council has published a position paper which includes a section on innovation friendly public and private procurement. It states that it supports the revision of EU procurement Directives to prioritise quality and innovation over lowest price, and to encourage wider use of pre-commercial procurement and early testing mechanisms.

IRELAND

Accelerating infrastructure

The Accelerating Infrastructure Report and Action Plan was approved by the Cabinet. Action 25 looks at reform of public procurement processes. Workstreams focus on reforming public procurement law (in the context of the process underway at EU level) and the Capital Works Management Framework; greater use of international recognised forms of contract; and greater procurement standardisation, professionalism, centralisation and training.

Digital roadmap for public procurement

The Office of Government Procurement has published Public Procurement in Ireland: A Roadmap for Digital Development (2025–2031). A decision on mode of delivery is anticipated in Q1 2026. It is intended that this phase will include engagement with key stakeholders, research, external expert consultation and interaction with European counterparts. Options to be explored will include purchasing a system off the shelf, developing a bespoke platform or completing an Innovative Procurement Partnership. The delivery approach and timing of implementation of solutions will follow different paths based on this decision. Once this is determined, a detailed implementation plan will be developed within three months.

Automatic suspension lifted

In Construcciones y Auxiliar de Ferrocarriles S.A. v Iarnród Éireann and Northern Ireland Railways Company Ltd and Stadler Rail Schweiz AG [2025] IECH 645 the High Court in Ireland lifted an automatic suspension of the award of a contract primarily because of the risk that the contract would be extinguished and EU funding lost. We look at the judgment in our insights post: Procurement Update: EU funding a key consideration in lifting of an automatic suspension of contract award.

Appeal allowed in Sere Holdings Ltd v HSE

In Sere Holdings Ltd v Health Service Executive and IAS Medical Ltd [2024] IECA 197 the Court of Appeal allowed Sere's appeal and remitted the case to the High Court to determine the appropriate relief, given that the contract was executed in April 2021. We look at the judgment in our insights post: Procurement Update: Appeal on tenderer eligibility allowed.

This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.

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