The European Commission has approved a major public procurement project in Portugal, allowing the construction of Lisbon’s new “Violet” metro line to proceed—but only after changes to address concerns over foreign subsidies.
The decision marks a milestone in the enforcement of the Foreign Subsidies Regulation, as it is the first time the Commission has cleared a public tender subject to binding commitments following an in-depth investigation. At the center of the case was a consortium led by Mota-Engil, which had included a subcontractor linked to foreign state support.
The investigation began after the Commission identified signs that CRRC Tangshan Rolling Stock, through its Portuguese subsidiary, may have benefited from subsidies that distorted the bidding process. According to the Commission, these advantages allowed the consortium to submit an “unduly advantageous tender,” raising concerns about fairness and competition within the EU’s internal market.
Following a detailed probe, those concerns were confirmed. However, rather than blocking the bid, the Commission accepted a structural remedy: the consortium agreed to replace the subsidised subcontractor with PESA Bydgoszcz, a supplier not linked to distortive foreign subsidies. This change, the Commission concluded, effectively removed the competitive imbalance.
“Today’s decision on the Lisbon metro shows that our efforts bring results,” said Stéphane Séjourné. He added that the EU would remain “vigilant to protect public procurement procedures from distortive practices, while maintaining our openness to trade and investment.”
The ruling clears the way for Metropolitano de Lisboa to proceed with awarding the contract to the most economically advantageous bidder, provided all commitments are respected. The Commission will now focus on monitoring compliance, rather than pursuing further enforcement action.
By opting for a conditional approval rather than a prohibition, the Commission has signaled a pragmatic approach—one that seeks to preserve competition without closing Europe’s doors to international participation.
