Every two years, the European Commission adjusts public procurement thresholds based on the euro exchange rate. These thresholds determine the amount above which a public contract must be advertised Europe-wide.
The new threshold amounts were published in the Official Journal of the European Union on Nov. 16, 2023, and apply from Jan. 1, 2024, to Dec. 31, 2025.The threshold amounts have increased slightly from the previous period. This means that the euro has become slightly weaker relative to the other currencies in the basket of special drawing rights, which is used to determine the value of the thresholds. Special drawing rights are a unit of account used by the World Trade Organization (WTO) to set thresholds for public procurement.
The new threshold amounts depend on the sector and type of contract. Below is an overview of the main changes:
The following amounts apply to traditional sectors:
- Supplies and services (central governments): from EUR 140,000 to EUR 143,000.
- Supplies and services (decentralized authorities): from EUR 215,000 to EUR 221,000.
- Works: from EUR 5,382,000 to EUR 5,538,000.
The following changes apply to the special sectors and the defense & security sector :
- Supplies and services: from EUR 431,000 to EUR 443,000.
- Works: from EUR 5,382,000 to EUR 5,538,000.
For concessions, the threshold defining the scope of the directive has also changed:
From EUR 5,382,000 to EUR 5,538,000.
Please note that all threshold amounts do not include VAT.
Before they take effect on Jan. 1, 2024, they still need to be transposed into national regulations. We expect this RD to be published in the coming weeks.
These new threshold amounts have implications for contracting authorities and companies seeking to participate in public contracts. It is important to stay abreast of these changes and follow the proper procedures.
Do you have questions about the new threshold amounts or want to know more about public procurement in general? If so, please contact us. We will be happy to help you further.
