EU Threshold

EU thresholds are the monetary values above which public procurement must follow the full procedures set out in the European procurement directives — primarily Directive 2014/24/EU for public sector procurement, Directive 2014/25/EU for utilities, and Directive 2014/23/EU for concessions. Established in Article 4 of Directive 2014/24/EU and revised biennially by the European Commission to align with the WTO Government Procurement Agreement (GPA), these thresholds determine whether a procurement opportunity is subject to EU-wide competition rules including mandatory publication on TED, minimum time limits, and full procedural protections.

How It Works

The EU threshold system creates a two-tier procurement landscape across all Member States. Procurements with an estimated value above the applicable threshold must comply with the full EU procurement directives (above-threshold procurement), while those below the threshold are governed by national rules that are generally lighter but must still respect the Treaty principles of transparency, equal treatment, and non-discrimination.

Current Thresholds (2024-2025)

The European Commission publishes new threshold values every two years via Delegated Regulations. The current thresholds, effective from January 1, 2024, are:

Contract Type	Central Government	Sub-Central Authorities
Supplies and Services	EUR 143,000	EUR 221,000
Works	EUR 5,538,000	EUR 5,538,000
Social and Specific Services (Annex XIV)	EUR 750,000	EUR 750,000
Design Contests	EUR 143,000	EUR 221,000

For utilities sector procurement under Directive 2014/25/EU, the thresholds are higher:

Supplies and Services: EUR 443,000
Works: EUR 5,538,000

For concessions under Directive 2014/23/EU:

All concessions: EUR 5,538,000

How to Determine the Applicable Threshold

The contracting authority must determine three things:

What type of contract is it? Supplies, services, works, social services, or a concession? For mixed contracts, the main subject determines the applicable threshold.
What type of authority is the buyer? Central government bodies have lower thresholds than sub-central authorities (regional governments, municipalities, and other public bodies). This distinction exists because central government procurement is subject to deeper GPA commitments.
What is the estimated value? The estimated value is calculated according to the rules in Article 5 of Directive 2014/24/EU — net of VAT, including all options, renewals, and potential modifications. For contracts divided into lots, the aggregate value of all lots is compared against the threshold.

The Anti-Splitting Rule

A critical principle is that contracting authorities may not split a procurement artificially to keep the value below the threshold and avoid EU rules. Article 5(3) prohibits reducing the estimated value of a procurement in a way that circumvents the directive. If a project naturally consists of multiple components that together exceed the threshold, the entire project must follow EU procedures (with limited small-lot exemptions).

Small-Lot Exemption

Article 5(10) provides a limited exception for procurement divided into lots: individual lots below EUR 80,000 (for supplies and services) or EUR 1,000,000 (for works) may be exempt from EU procedures, provided the aggregate value of exempt lots does not exceed 20% of the total value of all lots. This exemption allows authorities to handle small components under national rules without undermining the overall obligation.

Legal Framework

Article 4 of Directive 2014/24/EU sets the threshold values and distinguishes between central government bodies (listed in Annex I to the directive) and other contracting authorities. The thresholds are expressed in euros and also in Special Drawing Rights (SDRs), reflecting their origin in the WTO GPA.

Commission Delegated Regulation (EU) 2023/2495 (and its successor regulations) adjusts the threshold values every two years. These adjustments primarily reflect exchange rate movements between the euro and the SDR, ensuring that the GPA commitments remain consistent in economic terms.

Article 5 of Directive 2014/24/EU provides detailed rules for calculating the estimated value, which determines whether the threshold is exceeded. Key calculation rules include:

Value exclusive of VAT — Tax is always excluded from the calculation.
Include options and renewals — A contract with an initial 2-year term and two 1-year extension options must be valued at the full 4-year potential.
Include prizes — For design contests, the total value includes prizes and payments to participants.
Regular purchases — For supplies and services procured regularly, the value is either the total over the preceding 12 months or the estimated total for the next 12 months.

The threshold system applies differently across Member States because below-threshold procurement is governed by national law. In Germany, procurements below EU thresholds follow the UVgO (Unterschwellenvergabeordnung) or VOB/A (for works), which impose lighter but still structured requirements. In France, below-threshold procurements follow the Code de la commande publique with simplified procedural requirements but the same fundamental principles. The Netherlands applies the Gids Proportionaliteit for below-threshold guidance.

Practical Examples

Example 1: Above-Threshold Services. A regional hospital (sub-central authority) plans to procure medical imaging software. The estimated value is EUR 280,000. Since this exceeds the EUR 221,000 threshold for sub-central authorities, the procurement must follow Directive 2014/24/EU — requiring publication on TED, use of an EU procedure (e.g., open procedure), eForms-format notices, and minimum time limits for tender submission.

Example 2: Below-Threshold Supplies. The same hospital needs office supplies worth EUR 50,000. This is well below the EUR 221,000 threshold, so EU rules do not apply. The hospital follows national procurement rules, which may require obtaining three quotes, publishing on a national platform, or following a simplified procedure — but TED publication and full EU procedural requirements are not triggered.

Example 3: Anti-Splitting Scenario. A ministry needs to renew its IT infrastructure: EUR 100,000 for servers, EUR 80,000 for networking equipment, and EUR 60,000 for installation services. Although each component individually falls below the EUR 143,000 central government threshold, they form a single procurement need with an aggregate value of EUR 240,000. Splitting them into separate contracts to avoid EU rules would violate the anti-splitting prohibition.

Key Considerations for Suppliers

Understand which threshold applies to your target buyers. The distinction between central and sub-central authorities significantly affects the threshold. If you primarily serve municipalities (sub-central), the supplies/services threshold is EUR 221,000. If you serve national ministries (central government), it drops to EUR 143,000. This difference can mean that a EUR 160,000 opportunity from a ministry is published on TED, while the same-value contract from a municipality is not.

Below-threshold opportunities are substantial. While above-threshold procurements receive the most visibility due to TED publication, the majority of public spending occurs below the threshold. National procurement platforms in each Member State publish below-threshold opportunities that may not appear on EU-wide databases. Monitor national platforms alongside TED for a complete view of the market.

Know when thresholds change. Thresholds are revised every two years (effective January 1 of even-numbered years). When thresholds decrease, more opportunities become visible on TED. When they increase, some borderline procurements may move below the threshold and only be visible nationally. Stay informed about threshold revisions to adjust your monitoring strategy.

Consider the lot-level implications. For multi-lot procurements, even if individual lots are small, the aggregate value determines EU applicability. This means that small lots within a large procedure are still published on TED and follow EU rules, providing opportunities that might otherwise only be visible nationally.

Use thresholds to estimate competition levels. Above-threshold procurements attract EU-wide competition, meaning you may face bidders from across the EU. Below-threshold procurements typically attract primarily domestic or regional competitors. This difference affects your competitive strategy and pricing approach.

Estimated Value — The value calculated by the contracting authority and compared against thresholds to determine applicable procurement rules.
Lot — When a procurement is divided into lots, both individual lot values and aggregate values interact with threshold calculations.
Procedure — Above-threshold procurements must follow one of the EU-mandated procedure types.
Contract Notice — Mandatory TED publication required for above-threshold procurements.
eForms — The standardized notice format required for above-threshold publications on TED.
Contracting Authority — The buyer type (central vs. sub-central) determines which threshold applies.

Frequently Asked Questions

How often are EU procurement thresholds revised?

The European Commission revises the thresholds every two years, with new values taking effect on January 1 of even-numbered years. The adjustments are made through Delegated Regulations and primarily reflect exchange rate movements between the euro and the SDR (Special Drawing Rights) used in the WTO Government Procurement Agreement. The next revision will take effect on January 1, 2026.

What happens if a contract value is close to the threshold?

If there is any doubt about whether the estimated value exceeds the threshold, the safest approach is to follow EU procedures. Underestimating the value to avoid EU rules risks having the contract challenged and potentially annulled. Contracting authorities must include options, renewals, and potential modifications in their calculation, and any reasonable estimation method that excludes these elements can be challenged.

Do EU thresholds apply to contracts funded by EU institutions?

Contracts funded by EU institutions (European Commission, European Parliament, etc.) follow the Financial Regulation (EU) 2018/1046 rather than the procurement directives. These institutions have their own threshold framework, which differs from the Member State thresholds. However, EU-funded projects implemented by national authorities (such as those under structural funds or recovery programs) follow the national transposition of the procurement directives and their associated thresholds.