EU orders CRRC out of Lisbon metro contract
EU: The European Commission has ordered a Lisbon metro consortium to drop Chinese supplier CRRC after finding it received subsidies that distorted competition — the consortium has committed to replacing it with Polish manufacturer Pesa under the bloc’s Foreign Subsidies Regulation (FSR).
The ruling, issued 21 April, follows the first full investigation completed under the FSR and confirms that CRRC’s Portuguese subsidiary received subsidies giving the consortium an unfair competitive advantage.
The Mota-Engil-led consortium may now remain in the tender for Lisbon’s 11.5 km Violet Line — subject to Metropolitano de Lisboa’s own assessment of whether the revised bid meets technical requirements.
First FSR procurement ruling sets enforcement precedent
The Foreign Subsidies Regulation, which has applied since July 2023, gives the Commission authority to investigate financial support from non-EU governments to companies active in the EU market and require remedial action where distortions are found.
In this case, an investigation opened 5 November 2025 concluded that Portugal CRRC Tangshan Rolling Stock Unipessoal had received subsidies enabling the consortium to bid at an artificially competitive level. The Commission accepted the consortium’s commitment to replace CRRC with Polish manufacturer Pesa Bydgoszcz as sufficient to remove the distortion.
Contract award remains with Metropolitano de Lisboa
The Commission’s decision clears the revised consortium to remain in the tender. It does not award the contract. Metropolitano de Lisboa must still determine whether the bid — now with Pesa in place of CRRC — meets the technical and quality requirements set out in the tender documents.
The Commission will monitor the consortium’s compliance with its commitments. No further FSR action is planned unless new subsidy concerns arise.
What the ruling signals for future procurement
This is the first time the FSR has been used to complete a full in-depth procurement investigation and conclude it with binding structural commitments from a bidder. Previous FSR activity had not reached this stage.
The decision establishes that the regulation can require the removal of a subcontractor mid-tender where foreign subsidies are found to distort competition. The mechanism can now be used in any future EU procurement where similar subsidy concerns arise.