The signatories of this statement are closely following the legislative work related to an EU Proposal for a Regulation on foreign subsidies distorting the internal market. International businesses are significant trade and investment partners in the EU, and private investment will play an increasingly important role in supporting Europe’s economic recovery following the COVID-19 pandemic.
The international business community fully supports the objectives of the European Commission in combatting distortions of competition in the EU caused by foreign subsidies. However, we have concerns about important elements of the Regulation. It poses a significant administrative burden on EU and non-EU businesses alike by introducing wide-ranging notification requirements and lengthy investigation periods. A number of concepts being introduced may even pose practical impossibilities for those businesses seeking to act in accordance with the Regulation, and non-compliance could lead to the imposition of substantial sanctions. It is also likely to generate an unnecessarily heavy burden for the Commission. We call upon co-legislators to ensure the final text of the Regulation will be focused and proportionate, and that the new administrative procedures ensure good governance and efficacy.
We set out a number of suggestions that address points which we believe remain highly uncertain. We respectfully encourage co-legislators to consider these concrete recommendations to ensure the workability of the Regulation.
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