The European Union has requested full access to Turkey’s public procurement market as a condition for including Turkish goods under the 'Made in Europe' initiative.
According to the Ekonomim website, following a decision last week that opened the door for Turkey’s inclusion in the industrial program, the EU demanded that Ankara remove domestic subsidies and 'discriminatory' practices that favor local companies.
The EU seeks a significant share of a market valued at approximately $75 billion annually. According to EU officials, only about $30 billion of Turkey's public procurement sector is open to fair competition. The EU argued that Turkey must ensure public sector purchases of goods and services are transparent and open to all European firms without exception.
REMOVAL OF DOMESTIC PRICE ADVANTAGES
To remain within the scope of the 'Made in Europe' umbrella, Turkey would need to abolish the 15% price advantage currently granted to domestic bidders in public tenders. The EU also expressed dissatisfaction with the Medium-Term Program and the Five-Year Development Plan, both of which encourage the use of local goods.
Furthermore, Brussels called for an end to the 'bargaining' method in public tenders. In 2024, approximately 31.2% of tenders by value and 43.8% by number were conducted using this restricted method. EU experts suggested that, excluding these limited-competition methods, only 39.7% of the public procurement market is truly open to fair competition.
IMPACT ON DEFENSE AND INDUSTRY
The EU’s demands could significantly impact the defense industry. Brussels urged Ankara to end 'offset' practices — requirements used in defense projects to ensure technology transfers and increase local production. The EU argues these practices are incompatible with European industrial policy.
Instead of price premiums for local goods, the EU recommended that Turkey implement measures to encourage innovation. While reports indicated a 'tacit agreement' on some issues during preliminary talks, experts noted that removing these incentives would be difficult because they are embedded in multiple layers of Turkish legislation.
EU CALLS FOR PROCUREMENT REFORM
The European Commission also emphasized that Turkey’s legal framework for public procurement does not yet meet European standards. The EU called for a comprehensive reform to align exemptions, privileges, and public-private partnerships with EU acquis.
Additionally, the EU requested a more independent system for handling procurement complaints. While Turkey’s Electronic Public Procurement Platform has expanded since August 2025, the EU stressed the need for a fully autonomous Public Procurement Review Board to ensure integrity and transparency throughout the bidding process.
