The European Parliament has confirmed the creation of new procurement rules for the European Union, designed to reduce red tape, blacklist poor performing suppliers and encourage SME participation.

The announcement of new rulings comes after the UK government pressed for procurement reforms within the EU, following substantial savings within the UK from national procurement reform.

The new rules simplify existing legislation with the creation of standard procurement documentation, designed to reduce administration and increase the participation of SMEs in European procurement programs.

In addition the new EU procurement rulings encourage governments to break large contracts into small lots with public sector mutuals being given exemption from EU competition for a period of three-years.

Minister for the Cabinet Office, Francis Maude, said: “My officials and I have been lobbying on this directive in Brussels and with other member states. The changes will help encourage more public sector mutuals to spin out by protecting the newest from full EU competition rules.”

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