EFCA, together with EIC (European International Contractors) and UNIFE (the European Rail Supply Industry Association), has recently called on the European Parliament to strengthen the proposed Global Europe Instrument and ensure that EU external financing effectively supports the Union's strategic, economic and geopolitical objectives.
The Global Europe Instrument is crucial because it will play the main role in financing the EU's external action and supporting the delivery of the Global Gateway strategy. It aims to provide greater flexibility and a stronger focus on the Union's interests while mobilising public and private investment for infrastructure and development projects worldwide.
However, European taxpayers' money must contribute not only to the sustainable development of partner countries, but also to European competitiveness, business opportunities and mutually beneficial value chains.
A particular concern relates to projects implemented under indirect management, where EU funds are managed by partner financial institutions or national authorities. The existing safeguards are not sufficient to prevent market distortions or to ensure that EU strategic interests are adequately protected. We therefore support amendments that will enhance eligibility rules across both direct and indirect management of EU funds.
The joint position also highlights the need for stronger measures to address unfair competition. Foreign subsidies and abnormally low tenders undermine the level playing field for EU companies and compromise the projects’ quality and sustainability. Better mechanisms are needed to identify and deter such practices, and this is where the application of strategic procurement principles comes into play. EFCA has long advocated for procurement rules that promote quality, innovation and long-term performance instead of the lowest (initial) cost. The Global Europe Instrument should therefore include the systematic use of the Most Economically Advantageous Tender (MEAT) and Best Price-Quality Ratio (BPQR). For complex infrastructure projects, the two-stage tender can further enhance positive outcomes, allowing contracting authorities to assess technical solutions and expertise before the price.
We also support provisions that enable a ‘European preference’ mechanism in the Global Gateway investments. This will ensure that EU-funded projects truly contribute to sustaining European industrial capacity and engineering excellence, while delivering world-class benefits to partner countries. Furthermore, early and structured dialogue with European industry and service providers during project preparation will only strengthen the quality and effectiveness of investments.
As discussions on the Global Europe Instrument continue, EFCA remains committed to collaborate with both EU policymakers and other private sector stakeholders, to ensure that Global Gateway will deliver high-quality, sustainable and resilient infrastructure worldwide while reinforcing Europe's competitiveness, engineering expertise and strategic interests.