The European Commission’s proposed Regulation on foreign subsidies distorting the internal market and the objectives of resolving gaps in its current legal powers in relation to distortive foreign government subsidisation of companies is a step towards creating a level playing field in which companies from around the globe can compete on a fair basis within the European Single Market. Our new position paper highlights a number of areas where we believe the proposal needs to be further refined in order to best achieve the objectives of the Regulation.
Balance and proportion key to tackling foreign subsidies distorting the internal market
The European Commission’s proposed Regulation on foreign subsidies distorting the internal market and the objectives of resolving gaps in its current legal powers in relation to distortive foreign government subsidisation of companies is a step towards creating a level playing field in which companies from around the globe can compete on a fair basis within the European Single Market. Our new position paper highlights a number of areas where we believe the proposal needs to be further refined in order to best achieve the objectives of the Regulation.
The paper discusses the proposal’s definitions of foreign subsidies and distortion before moving onto operating mechanisms that apply generally within the proposal. Further remarks are then provided on each of the three tools (ex-officio, concentrations and public procurement).
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