Article 7 — Reliance on the capacity of other entities
In brief
This article allows an economic operator to rely on the capacities of other entities to meet the selection criteria, whatever the legal nature of the link between them. The public buyer must verify that the relied-upon entities meet the relevant criteria and are not subject to exclusion grounds, and can require replacement where they fall short. Buyers may also require proof that the resources will be available throughout performance, joint liability for financial standing, and direct performance by the entity providing technical ability.
Key points
- Operators may rely on other entities’ capacities to satisfy selection criteria, regardless of the legal links involved.
- The buyer must verify those entities against the relevant selection criteria and exclusion grounds.
- An entity that fails mandatory criteria or is subject to mandatory exclusion must be replaced; optional exclusion grounds may trigger replacement.
- Buyers may require proof that the relied-upon resources will be available throughout contract execution.
- For economic and financial standing, buyers may require joint liability; for technical and professional ability, they may require the relied-upon entity to perform the relevant works or services.
What it means in practice
Operators, especially smaller ones, can strengthen a bid by drawing on partners, subcontractors or affiliated entities to meet selection criteria. In doing so they must be ready to demonstrate genuine access to those resources, to replace an entity that does not qualify, and to accept conditions such as joint liability or direct performance where the buyer imposes them.
Official text — Article 7 (COM(2026) 567)
Source: European Commission, proposal for a Regulation establishing the European Innovation Act, COM(2026) 567 final, 9 September 2026. Read the official proposal (PDF). Text may change during the legislative process.
Anthony Bochon’s analysis
Reliance on third-party capacity is a familiar mechanism from the general procurement directives, and this article tracks that established architecture closely: an operator may lean on other entities regardless of the legal nature of the links between them, subject to the buyer verifying that those entities meet the selection criteria and are not caught by exclusion grounds. My reading is that the drafters have deliberately preserved continuity with existing law and the Court’s case law, which will reassure practitioners and reduce interpretive risk.
The provisions worth planning around are the mandatory replacement of a relied-upon entity that fails the criteria, the option of joint liability for economic and financial standing, and the power to require that the lending entity actually perform the works or services underpinning technical capacity. In advising firms structuring research bids, I would treat those as substantive commercial commitments, not paperwork — borrowing another party’s balance sheet or expertise here can carry real, enforceable exposure throughout the contract.