On 9 September 2026, the European Commission presented a proposal for a comprehensive reform of the EU public procurement rules. The proposed Public Procurement Act – COM(2026) 590 – provides for the existing three main directives in this area to be replaced by a single regulation. Amendments are also planned in a number of other European acts, including Regulation (EC) No 1370/2007 on public passenger transport services by rail and by road.

The proposal is not yet final legislation. It is to be considered by the European Parliament and the Council of the EU, which means that the specific texts can be modified in the course of the legislative process.

For the Federation of Transport Trade Unions - FTTU, the topic has direct significance. Public procurement determines not only how and at what price a number of transport services are provided, but can also directly influence employment, pay, working conditions, staff qualification, and collective bargaining.

ETF defines the proposal as a positive first step, but emphasizes that additional guarantees are needed so that public funds support quality employment and compliance with workers' rights.

Working conditions and social dialogue come into focus! One of the most significant changes is the explicit recognition of fair working conditions and social dialogue as strategic objectives in public procurement.

The proposal provides for contractors to comply with applicable obligations arising from legislation, collective agreements and international labor standards, including ILO Convention No. 87 on Freedom of Association and Convention No. 98 on the Right to Organise and Collective Bargaining.

It is envisaged that contracting authorities will be able to more clearly include social requirements related to job quality, collective bargaining, training and qualification of workers.

It is particularly important that the working conditions of the people performing the contract are recognized as linked to the subject matter of the public procurement. This creates a more solid basis for social and labor criteria to be part of the award itself, rather than being viewed solely as an internal matter for the employer.

Retreat from the "lowest price wins" principle

A significant change is also the transition to a better price-quality ratio, instead of public procurements being decided solely on the basis of the lowest price offered.

It is envisaged that at least 30% of the evaluation will be linked to quality criteria, and for labor-intensive contracts this share will reach 50% under the envisaged "comply or explain" mechanism. Among the quality criteria, the organization, qualification and experience of the staff who will perform the contract can also be included.

This is particularly important for transport. With competition based predominantly on price, there is a real risk that savings will be sought through staff reductions, pressure on remuneration, insufficient qualification or deterioration of working conditions.

The new approach makes it possible to consider the quality of employment and the qualification of workers as part of the quality of the transport service itself.

For public transport, of particular importance is the preservation of the possibility for services to be provided through the so-called in-house mechanisms.

According to ETF information, in the process of preparing the reform, there were demands for public contracting authorities to be required to justify why a given service is not awarded through a competitive procedure. Such a requirement is not included in the Commission's proposal.

This means that European rules in themselves do not impose a mandatory outsourcing of services to external tender, but the possibility for them to be provided by municipal and public operators is preserved. ETF explicitly welcomes the preservation of in-house and public-to-public service provision.

This issue is directly applicable to the existing model of public transport in a number of Bulgarian municipalities.

Subcontracting remains among the controversial issues!

With regard to subcontracting, ETF and ETUC are significantly more critical.

The proposal does not introduce the joint and several liability of the main contractor for violations committed along the chain of subcontractors requested by trade unions. ETF defines the rules against subcontracting abuses as not strong enough.

For the transport sector, this issue is particularly important. The fragmentation of activities among multiple subcontractors can lead to different labor and social standards for people who actually work in the same transport system.

Therefore, European trade unions will insist on stricter limits and stronger responsibility throughout the execution chain.

Security, sustainability and "Buy European" - The proposal also strengthens the strategic dimension of public procurement. The European Commission states that the new framework must take greater account of security, sustainability, social and environmental considerations, as well as create opportunities for European preference in certain public procurements.

In critical infrastructure, including transport, requirements related to cybersecurity, infrastructure protection, crisis resilience and staff preparation can be set.

For workers, this also matters – among the possible requirements are training of key personnel and availability of sufficiently qualified employees for action in emergency situations.

ETF emphasizes that the security and resilience of critical transport infrastructure do not depend only on technology, but also on the presence of highly qualified and motivated workers who are informed and consulted through their trade unions.

The European Commission's proposal also includes an amendment to Regulation (EC) No 1370/2007, which governs public passenger transport services by rail and by road.

Consequently, the reform is not just a technical change of the public procurement regime. It can have a direct bearing on how the state and municipalities award and finance public transport services.

What does the reform mean for FTTU?

For FTTU, the most significant issue is the possibility for working conditions and collective bargaining to be brought out of the periphery of public procurement and become part of the quality assessment of the transport service.

If these principles are maintained and further strengthened in the final regulation, there will be a more solid European basis when awarding transport services to take into account compliance with collective agreements, staff qualification, training, safety, staffing levels and working conditions, instead of competition being reduced predominantly to price.

This also matters for the companies where FTTU has trade union organizations. An employer who, as a result of collective bargaining, provides better remuneration, social benefits and working conditions, should not be placed in a more disadvantageous competitive position compared to an operator that offers a lower price at the expense of labor and social standards.

For urban transport, it is important to preserve the possibility for services to be provided by municipal companies through in-house mechanisms. For public rail and road transport, the amendments to Regulation 1370/2007 must be carefully monitored. For airports, ports and other transport activities, future rules on subcontracting and chain liability are of particular importance.

FTTU will also monitor the final texts regarding collective bargaining and collective agreements, social criteria for award, in-house provision, subcontracting, qualification requirements and sufficient staffing levels.

It is important to remember that FTTU has already raised and defended at national level some of the principles that are now reflected in the proposed European reform.

During the public consultation and subsequent review of the Public Transport Act (PTA), the Federation presented an official position and concrete proposals aimed at protecting the public character of public transport, the workers in the sector, and the role of social dialogue.

Among the issues specifically defended by FTTU was the possibility for the public transport service to be awarded directly to an internal operator, instead of the legislation creating prerequisites for mandatory outsourcing or concessioning.

In the official summary from the public consultation, the proposal of FTTU from 22 December 2025 is noted as "accepted in principle", with the draft being edited so that a public service contract can be awarded directly under the conditions of Regulation (EC) No 1370/2007, including to an internal operator.

FTTU also raised the broader issue of social guarantees in the award and financing of public transport, the risks for municipal transport companies and the need for legislation to take into account the interests of workers. Among the defended principles was also that public funding for transport should be linked to the protection of labor.

Therefore, the direction of the current European reform has clear points of contact with positions that FTTU is already defending in Bulgaria.

The Federation will continue to consistently defend these principles both at national level in the development and implementation of the Public Transport Act, and through CITUB and ETF in the European legislative process.

For FTTU, the main principle remains clear: public funds for transport must be linked not only to the price of the service, but also to its quality – with decent working conditions, respect for and promotion of collective bargaining, sufficient and qualified staff, and real guarantees against social dumping.