On 30 June 2022, the Council of the European Union and the European Parliament reached a political agreement on the Regulation on foreign subsidies distorting the internal market. The latest provisional public version of the legislation is available here.
In recent years, foreign subsidies appear to have distorted the EU’s internal market, including by providing their recipients with an unfair advantage to acquire companies or obtain public procurement contracts in the EU to the detriment of fair competition.
The FSR addresses such distortions and closes a regulatory gap, whereby subsidies granted by non-EU governments go currently unchecked, while subsidies granted by Member States are subject to close scrutiny. It proposes new tools to effectively tackle foreign subsidies that cause distortions and undermine the level playing field in the internal market.