Germany's new procurement law slashes red tape for SMEs and infrastructure
The Bundesrat has approved the Procurement Acceleration Act, a move welcomed by the Mittelstand and Economic Union (MIT) in Solingen. The new law aims to simplify, digitise, and speed up public procurement processes. Supporters argue it will cut red tape and boost efficiency in key infrastructure projects. MIT Solingen has praised the decision after months of discussions and advocacy. The group highlighted the law’s retention of SME-friendly structures, ensuring smaller businesses can still compete for public contracts. Sector-specific and partial contract awards remain in place, giving fairer access to firms of all sizes.
Gerlinde Steingruber, chair of MIT Solingen, welcomed the law’s practical approach. She called for faster modernisation, stressing the urgent need for streamlined procedures in areas like school construction, road repairs, and emergency service upgrades. The organisation also expressed gratitude to those who helped shape the legislation to support small and medium-sized enterprises. The law is expected to reduce bureaucracy, improve transparency, and strengthen public trust in government projects. MIT Solingen described the outcome as proof that persistent efforts on behalf of the Mittelstand can deliver results.
The Procurement Acceleration Act will now move forward, with changes designed to benefit both public sector efficiency and private businesses. Faster approvals for infrastructure projects are set to follow, while SMEs retain key opportunities in the procurement process.
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