Threshold Values
Financial limits set by the European Commission (revised every two years) that determine whether a procurement must follow full EU Directive procedures. Current thresholds vary by contract type and contracting authority.
In Detail
Threshold values are the financial limits established by the European Commission that determine whether a public procurement contract must comply with the full procedural requirements of the EU Procurement Directives. These thresholds are set in euros and are revised every two years (in January of even-numbered years) based on the World Trade Organization Government Procurement Agreement (GPA) thresholds, which are denominated in Special Drawing Rights (SDRs) and adjusted for currency fluctuations.
The current threshold framework distinguishes between different types of contracting authorities and contract types. Central government authorities have lower thresholds than sub-central (regional and local) authorities, reflecting the greater cross-border interest in national-level contracts. Supply and service contracts have lower thresholds than works contracts, reflecting the higher value typically associated with construction projects. There are also separate thresholds for defense and security procurement, utilities (energy, water, transport, postal services), and concession contracts.
Threshold calculations must include the total estimated value of the procurement, net of VAT, including all lots, options, renewals, and prizes. For framework agreements and dynamic purchasing systems, the estimated value is the total maximum value of all contracts envisaged over the duration. Contracting authorities cannot artificially split contracts to avoid exceeding the thresholds — this is explicitly prohibited by the Directives and constitutes a breach of procurement law.
Practical Context
How it works in practice
Threshold determination is one of the first procedural decisions in any procurement process and has cascading consequences for the entire procedure. A procurement officer planning a new purchase will estimate the contract value and compare it against the applicable thresholds to determine whether TED publication is required, which procedures are available, and what minimum time limits apply. For suppliers, understanding thresholds helps set expectations about the procedural formality and competition level they will encounter. TenderRadar displays threshold status for each opportunity, helping suppliers understand the regulatory framework governing each tender.
Frequently Asked Questions
When are EU procurement thresholds next updated?
Thresholds are revised every two years, effective from 1 January of even-numbered years. The European Commission publishes the new thresholds as a regulation in the Official Journal, typically in November or December of the preceding year. The next revision after the 2024-2025 cycle will take effect on 1 January 2026.
Do the same thresholds apply to all EU countries?
Yes. The EU-wide thresholds are the same for all member states and are set in euros. For member states outside the eurozone, the European Commission also publishes equivalent values in national currencies, which are calculated based on average exchange rates over a 24-month reference period.
What are the consequences of incorrectly calculating the contract value and applying the wrong threshold?
If a contracting authority underestimates the contract value and fails to apply the correct threshold, the procurement may be challenged by aggrieved suppliers. Under the EU Remedies Directive, courts can set aside contracts that were awarded without proper competition. Intentional splitting of contracts to avoid thresholds can result in contract annulment and potential liability for the authority.
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