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The EU proposed the Foreign Subsidies Regulation (FSR) in 2021 to address foreign subsidies distorting the Single Market. Operating as a screening instrument behind merger control, it requires companies to notify the European Commission of foreign financial contributions (FFCs) they may receive when participating in public procurement or mergers and acquisitions activity. Preventing FFCs from distorting the Single Market is an important goal – and one that must be achieved without creating its own disruptions.

Together with 14 industry associations from various sectors, AmCham EU has signed a joint statement calling for the withdrawal of horizontal label requirements under the Ecodesign for Sustainable Products Regulation. While supporting the objective of improving the sustainability of products placed on the EU market and providing transparent information to consumers, the group warn that introducing horizontal labelling requirements without specific metrics and methodologies risks creating regulatory complexity and consumer confusion. The signatoires urges EU policymakers to instead address the need for a label and potential related requirements through product-specific measures supported by robust methodologies.

Will Europe choose alignment or fragmentation in foreign investment screening? In a recent blog for fDi Intelligence, Malte Lohan, CEO, and Andrew Hill, Senior Policy Adviser, AmCham EU, examine how divergent national regimes have created legal uncertainty and unnecessary administrative burden for investors and authorities alike. Today’s patchwork encourages over-notification, overwhelms regulators with low-risk cases and introduces avoidable friction for capital. The revised EU Foreign Investment Screening Regulation presents an opportunity to enhance coherence and competitiveness. Its success will depend on consistent implementation across Member States. Convergence would streamline beneficial investment and strengthen the Single Market, while gold-plating risks renewed fragmentation. Read the full op-ed in fDi Intelligence’s Economic Security Watch.