EIC speaks at Public Procurement Conference in Croatia
EIC and FIEC assisted the Croatian Association of Employers (HUP) in organising a joint Conference titled "Third country bids in Public Procurement: Towards a fair Construction market" on 19 March 2025 in Zagreb.
In the presence of the Croation government, represented by the State Secretary of the Ministry of Economy, EIC Director Frank Kehlenbach highlighted the connection between the WTO Agreement on Government Procurement (GPA) and the EU Procurement Directives: ‘Every WTO member is free to join the GPA so that its economic operators can benefit from the open procurement markets. Moreover, EU trade partners can ask the EU to negotiate a Free Trade Agreement with a comprehensive Procurement Chapter. If, however, a third country is reluctant to choose one of these options, then the EU acquis communautaire does not grant economic operators from such countries secure access to procurement procedures in the EU and they may be excluded.’
Daniel Stepinac from the Croation Association of Construction Employers reported that both EU and local contractors are losing market shares in Croatia due to third country bidders taking advantage of unlimited labour resources and low wages as well as state subsidies and lower ESG standards. The consequences for Croatia and other Eastern European construction market are dramatic:
Loss of domestic jobs
Loss of references and competitiveness of domestic construction companies
Capital outflow from the country
Decline is state revenues
Long-term degradation of the construction sector
The EU Commission announced during the conference that the legislative process for the revision of the EU Procurement Directives will start in 2026.
Please find the EIC presentation below.
Please find the joint FIEC-EIC press release below.