tighten

Published on
09/07/2026 – 13:31 GMT+2

In a draft regulation obtained by Euronews and due to be presented in September, the European Commission plans to tighten access to the EU market by allowing public authorities to exclude foreign companies that present risks of interference from public procurement.

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The draft proposal comes amid heightened geopolitical tensions, with concerns over data leaks from sensitive public services to Beijing and Washington and as well as the weaponisation of the EU’s dependence on rare earths and technology products from China.

The draft document proposes that “public buyers shall take appropriate measures, where relevant at any stage of the procurement procedure, from planning and market consultation to contract award and execution, to ensure the protection of the security and public safety interests of the Union.”

The document adds that risks to security or public safety in a public contract may arise from firms whose “ownership, control, or financing structure” bears “risks of undue interference or influence over it,” as well as companies whose “exposure to third-country legislation […] may compel disclosure of sensitive information or interference with contract performance.”

Finally, public buyers would be allowed to introduce a European preference in public procurement, although the draft regulation would not make it compulsory.

Such provisions could confirm the EU’s protectionist shift towards a “Made in Europe” strategy, which the EU executive already proposed last March for strategic sectors such as clean technologies, the automotive industry and energy-intensive industries.

The risks of foreign interference and data transfer have become more acute in recent years, with the US and China both adopting legislation allowing them to request that companies under their jurisdiction transfer data stored in the EU.

Some European governments are already taking steps to mitigate these risks. In April, the French government ended its contract with Microsoft to protect French health data, and in June, it replaced US tech company Palantir with French company ChapsVision for the processing of sensitive information held by the the country’s domestic intelligence service, the Directorate General for Internal Security.

Over the last few years, several EU countries, including Germany, France, Italy and Denmark, have also cancelled or denied public contracts to the Chinese telecoms giant Huawei over security concerns.

The draft regulation also seeks to protect “critical infrastructure, critical supply chains, critical technologies or essential services, resilience against physical, cyber, or hybrid threats, and prevention and protection against risks of their disruption including due to harmful strategic dependencies on third-country suppliers.”

Last year, China cut off the EU from exports of rare earth minerals, which are essential for green technologies and the defence sector. It also stopped the Dutch-based Nexperia, owned by China’s Wingtech, from importing Chinese chips essential to the EU’s car industry.

June 26 (Asia Today) — South Korean banks are restricting mortgages and personal loans months earlier than usual as rapid household debt growth threatens to exhaust their annual lending quotas.

The country’s five largest commercial banks – KB Kookmin, Shinhan, Hana, Woori and NH NongHyup – recorded household loan growth through May that exceeded targets agreed upon with financial regulators, according to banking industry data released Friday.

Their combined household loan balance increased from 767.296 trillion won ($496.4 billion) at the end of April to 770.823 trillion won ($498.7 billion) at the end of May.

The one-month increase was 3.527 trillion won ($2.3 billion).

Mortgage growth slowed, but personal credit borrowing rose rapidly as a strengthening stock market encouraged more investors to borrow money to buy shares.

Outstanding personal credit loans at the five banks increased by 2.174 trillion won ($1.4 billion), from 104.341 trillion won ($67.5 billion) in April to 106.515 trillion won ($68.9 billion) in May.

Banks have responded by reducing loan limits, restricting online applications and suspending products that allow borrowers to receive larger mortgages.

Hana Bank will suspend enrollment Wednesday in mortgage insurance and guarantee programs that allow banks to lend without deducting an amount reserved to protect tenants’ small security deposits.

Without the programs, the maximum mortgage available for an apartment may fall by about 55 million won ($35,600) in Seoul and 48 million won ($31,100) in Gyeonggi Province.

KB Kookmin Bank suspended the programs Friday, while NH NongHyup Bank had already stopped offering them.

Industrial Bank of Korea also stopped accepting some individual loan applications submitted through outside loan consultants.

Banks have also reduced unsecured credit limits.

Hana Bank and Woori Bank lowered their personal credit loan limits to 100 million won ($64,700).

Shinhan Bank is reducing the limits on revolving credit lines by as much as 20% when customers renew them.

Online lenders KakaoBank, Kbank and Toss Bank have also reduced limits on personal loans and revolving credit accounts and restricted some new lending.

Banking officials said the restrictions began unusually early this year.

Banks ordinarily introduce stronger lending controls around October or November as they approach their annual household loan limits.

This year, however, regulators set substantially lower growth targets and banks are attempting to prevent a rush of applications late in the year.

One banking official said loan applications and inquiries increased after the government signaled that it would continue tightening household debt controls.

Some borrowers are seeking loans earlier because they fear financing will become more difficult later in the year, the official said.

Annual lending restrictions are not new in South Korea.

Banks sometimes receive permission to issue additional loans if their annual limits are exhausted earlier than expected. In other cases, borrowers must delay loans until the following year.

Lee Eun-hyung, a researcher at the Korea Research Institute for Construction Policy, said banks have repeatedly adjusted lending levels to comply with annual debt-management targets.

“Whether additional lending capacity is provided at the end of the year depends on the government’s policy direction and market conditions at that time,” Lee said.

Banking officials said additional lending allocations appear unlikely this year because the government remains focused on controlling household debt and stabilizing the real estate market.

Easing restrictions while housing prices remain elevated could further stimulate demand, they said.

The possibility that banks could exhaust their quotas early has prompted some prospective borrowers to accelerate home purchases or seek loan approval before further restrictions are introduced.

— Reported by Asia Today; translated by UPI

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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260626010009438