EU Procurement Draft Faces Human Rights Criticism
A Swedish watchdog warns that the new single regulation risks allowing suppliers to win contracts through low prices despite poor labor practices, potentially undermining fair competition and worker safety.
The European Union’s latest proposal to streamline public procurement has drawn sharp criticism from civil society groups who argue it lacks sufficient safeguards for human rights and environmental standards. According to Swedwatch, a Swedish organization monitoring corporate social responsibility, the draft regulation fails to mandate the kind of due diligence necessary to prevent exploitative labor practices in global supply chains. The proposal aims to replace three existing directives with a single regulation that prioritizes quality and European sourcing over the lowest price, yet it does not explicitly require human rights compliance as a condition for awarding contracts.
While the new framework introduces positive changes, such as weighting quality for at least 30 percent of the evaluation score and increasing that share to 50 percent for labor-intensive projects, observers note these measures may not be enough. The regulation moves away from a pure lowest-price model and enhances transparency by publishing contract data from the bidding stage through final payment. However, without mandatory social obligations linked to the Corporate Sustainability Due Diligence Directive, public entities may still be able to select suppliers that cut corners on worker protections, potentially favoring unscrupulous firms over responsible competitors.
Concerns Over Supply Chain Exploitation
Mathieu Vervynckt, head of the supply chains unit at Swedwatch, warned that without firm due diligence requirements, suppliers that ignore human rights norms could continue to win public contracts at the expense of more ethical businesses. He noted that workers producing goods for the public sector, as well as communities affected by supplier activities, remain at risk of severe violations. This concern is grounded in recent investigations linking European public funds to exploitative labor practices in third countries, highlighting a disconnect between procurement goals and on-the-ground realities.
A 2025 report produced by Swedwatch illustrated these risks by examining the procurement of hospital textiles for European healthcare systems. The study found that many workers in Pakistan’s textile industry, who manufactured bed linens and uniforms for these contracts, earned far below the legal minimum wage. These workers often lacked formal employment contracts, social security, and sick leave, while facing significant occupational health and safety hazards. The researchers argued that flaws in the current procurement directive effectively allow taxpayer money to subsidize a system that rewards exploitation, thereby undermining both human rights and fair market competition.
Competitiveness Versus Ethical Standards
Critics of the draft regulation often cite concerns that stringent human rights requirements could hurt European competitiveness. However, Swedwatch challenges this assumption, pointing to evidence from Swedish regions that have voluntarily implemented sustainability-driven procurement practices. These regions have reported notable success in maintaining competitiveness while adhering to human rights and environmental due diligence frameworks. Sofia Käll, a program officer at Swedwatch and leading researcher on the textile report, stated that stronger requirements would prevent companies competing primarily on low prices from gaining an unfair advantage.
Käll further argued that rigorous standards could provide a competitive edge for EU companies that are actively adjusting to emerging sustainability rules, particularly against counterparts from the United States or China. She emphasized that public procurement should serve as a force for good rather than a subsidy for abuse. By ensuring that social criteria carry real weight in the evaluation process, the EU could foster a market environment where ethical conduct is rewarded, not penalized, thereby aligning economic interests with social responsibility.
Path Forward For Procurement Reform
As the legislative process continues, the focus now shifts to whether the final text will integrate mandatory social obligations into the core of the procurement framework. Swedwatch urges that the regulation explicitly recommend human rights due diligence as a preferred award criterion or a contract performance condition. The organization stresses that transparency alone is insufficient if the underlying selection criteria do not penalize non-compliance with labor standards. The coming months will be critical in determining whether the EU’s new rules will truly reshape public spending to reflect higher ethical standards.
Stakeholders are watching closely as the European Commission and member states negotiate the final details of the single procurement regulation. The outcome will have far-reaching implications for global supply chains, influencing how public funds are allocated and how companies are held accountable for their practices abroad. According to GN geopolitics/rights (en-US), the debate highlights a broader tension between economic efficiency and social equity in international trade. The resolution of this issue will set a precedent for how public procurement can be used as a tool for promoting human rights and sustainable development worldwide.
