|Author (Corporate)||European Commission: DG Competition|
|Series Details||COM (2021) 223|
|Content Type||Blog & Commentary, News, Policy-making|
Legislative initiative tabled by the European Commission on 5 May 2021, aimed at establishing a new instrument to address potential distortive effects of foreign subsidies in the European Union's Single Market.
The draft law proposes the introduction of three tools, two notification-based and a general market investigation tool. In this context, the European Commission acquires the power to investigate financial contributions granted by public authorities of a non-EU Member State which benefit companies engaging in an economic activity in the European Union and redress their distortive effects, as relevant.
The proposed Regulation aims at closing the regulatory gap in the Single Market, whereby subsidies granted by non-EU governments currently go largely unchecked, while subsidies granted by Member States are subject to close scrutiny.
This initiative was tabled on 5 May 2021, following the adoption of a White Paper on levelling the playing field as regards foreign subsidies in June 2020 and a consultation process with stakeholders. It is seen as a key element of an updated EU Industrial Strategy which was published on the same day. The plenary of the European Parliament adopted a negotiating position on 4 May 2022. The Council of the European Union adopted its general approach on that same day. An informal agreement between the co-legislators on compromise text for this file was reached on 30 June.
|Subject Categories||Internal Markets|
|Subject Tags||Competition Law | Policy, Industrial Policy, Single Market|
|Keywords||Foreign Direct Investment [FDI], Public Procurement
|International Organisations||European Union [EU]|