France's Le Maire suggests favouring EU producers in procurement contracts

PARIS (Reuters) - French Finance Minister Bruno Le Maire on Monday said the European Union should consider whether to impose rules favouring European producers in public procurement contracts in the face of competition from China and the United States.

Le Maire was speaking at a joint news conference with his German and Italian counterparts following a meeting on European industrial policy.

"I wonder whether we should not reserve a share of public procurement contracts for Made-in-Europe products or including shares of European products in the procurement contracts of 40%, 50% or 60%, or impose the strictest quality or environment standards," Le Maire said.

The measures would be a way to fend off competition from countries such as China where labour laws and environmental standards are looser than in the European Union and to respond to rising protectionism in the U.S.

German Economy Minister Robert Habeck and Italy's Industry Minister Adolfo Urso supported Le Maire's views but were more cautious.

Urso said such measures, aimed at boosting Europe's competitiveness in technology, would have to respect the rules of the World Trade Organization.

Habeck said a level playing field for European producers was necessary.

(Reporting by Inti Landuro, Dominique Vidalon; Editing by GV De Clercq, Kirsten Donovan)