Small and Medium Sized Enterprises (SME) are at the heart of the economies of all Member States. However, many deem their share of public contracts insufficient. This article provides a detailed discussion of the most important ‘innovation’ of the EU Public Sector Directive 2014/24/EU directed at increasing the participation of SMEs in public procurement: the regime on the division of larger contracts into smaller lots. The analysis considers economic theory and a selection of national laws transposing the Directive. It is argued that, due to a low level of harmonisation, no substantial change occurred compared to the previous Directive. It is thus unlikely that SME participation in public procurement will increase in many Member States through this regime on the division into lots
