In a significant move concerning the procurement of new trains, the Belgian national railway, NMBS, has awarded a €3.4 billion contract to the Spanish company Construcciones y Auxiliar de Ferrocarriles (CAF).

This decision comes despite a lower offer from the French multinational Alstom, which proposed a bid approximately €107 million less than CAF's.

The Belgian government defended its choice by citing the perceived superior quality of CAF’s trains.

However, this decision has faced backlash, with critics arguing that the substantial price differential should have led to a re-evaluation of the contract award.

Calls for a governmental review have emerged, urging transparency in the criteria for selection, especially considering this procurement involves taxpayer money.

A noticeable concern among critics is the potential job loss in Belgium.

Alstom employs a considerable workforce within the country, and there are fears that the selection of CAF may jeopardize these jobs.

Detractors argue that public funds should prioritize Belgian companies and employment.

Belgian regulations stipulate that preference cannot be given solely to local companies in public procurement contracts, complicating the decision-making process for government officials.

Political pressures are mounting for a review of the selection process, as local leaders emphasize the difficulty in balancing cost, quality, and economic impact in such large-scale government spending decisions.

The situation intensified as both Alstom and Siemens initiated legal proceedings, claiming that the NMBS did not adhere to regulatory protocols during the selection process.

A hearing is set for April 8, 2025, where the court will examine the claims brought forth by the two companies.

Until the Belgian Council of State reaches a final decision, NMBS is prohibited from engaging with CAF regarding the implementation of the contract.

Officials have expressed concern that should the court rule against the government, the timeline for acquiring new trains could extend significantly, potentially disrupting service and affecting public transportation in Belgium.

Trade union representatives have voiced their apprehensions about job security, indicating that while current orders will sustain employment until mid-2024, numerous positions remain at risk if Alstom and Siemens fail to secure the contract in the aftermath of the court ruling.

This dispute has sparked broader discussions about the implications of European procurement regulations on local employment opportunities.