The EC will co-finance a pilot project, driven by eight European countries, which will create the conditions to link all the EU's electronic tendering sites.

Simplifying cross-border procurement will generate savings on administrative and transaction costs, and will benefit taxpayers who ultimately pay for public purchases.

The project will invest more than €19m (£15m) over three years, €9.8m of which will come from the EC's Competitiveness and Innovation Programme.

Viviane Reding, commissioner for Information, Society and Media, said: "E-procurement already allows businesses to bid for the largest buyers in the EU: governments.

"By making sure their systems work together, member states are helping European businesses to win public sector contracts anywhere in the EU. This is a crucial step towards completion of the single European market."

The current strength of the euro against the pound could give UK printers an edge in securing public sector contracts outside the UK.

Government contracts amount to more than 16% of the EU's gross domestic product (GDP), but many European companies, especially SMEs, miss out on this business because of the paperwork required for bidding for government contracts, particularly across borders.