White Paper on levelling the playing field as regards foreign subsidies

Summary:

Communication published by the European Commission on 17 June 2020, setting out a White Paper aimed at dealing with the effects caused by foreign subsidies in the Single Market.

Further information:

This White Paper outlines the rationale for addressing foreign subsidies, including those which appear to undermine the level playing field in the internal market. It presents an analysis of the existing legal instrument to address foreign subsidies and discusses the question of a regulatory gap. The document also sets out preliminary substantive and procedural orientations for legal instruments to address the regulatory gap in relation to:

• Foreign subsidies distorting the internal market regarding:
  • general market operation of economic operators active in the European Union (EU);
  • acquisitions of EU undertakings;
  • public procurement procedures;
• Foreign subsidies in the context of access to EU funding.

A public consultation was launched to seek views and input from stakeholders on the options set out in the White Paper. This consultation was scheduled to remain open until 23 September 2020.

• Primary Source

• Alternative Source

Commentary and Analysis

Politico, 16/06/2020: Brussels forges new weapons to shield EU market from China https://www.politico.eu/article/brussels-eu-china-weapons-shield-market/

Euronews, 17/06/2020: Acquisition blocks and redressive payments: what's in the EU's new foreign subsidy action plan? https://www.euronews.com/2020/06/17/acquisition-blocks-and-redressive-payments-what-s-in-the-eu-s-new-foreign-subsidy-action-p

CNN News, 17/06/2020: Europe is building defenses against Chinese takeovers of key industries https://edition.cnn.com/2020/06/17/business/eu-competition-china/index.html

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News

EurActiv, 17/06/2020: EU seeks to beef up its defences against foreign subsidies https://www.euractiv.com/section/competition/news/eu-seeks-to-beef-up-its-defences-against-foreign-subsidies/

The Irish Times, 17/06/2020: EU moves to protect firms from unfair foreign competition https://www.irishtimes.com/business/retail-and-services/eu-moves-to-protect-firms-from-unfair-foreign-competition-1.4281771

Reuters, 17/06/2020: EU puts up barricade plan for state-backed foreign buyers https://uk.reuters.com/article/idUKKBN23O265

Jornal Económico, 17/06/2020: Brussels wants to oversee the purchase of European Union companies by foreign entities https://jornaleconomico.sapo.pt/en/news/brussels-wants-to-oversee-the-purchase-of-companies-from-the-european-union-by-foreign-entities-601954

EUObserver, 18/06/2020: EU plans tougher checks on foreign takeovers https://euobserver.com/economic/148678

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Official

European Commission: Public Consultation on the White Paper on Foreign Subsidies https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12452-White-Paper-on-Foreign-Subsidies/public-consultation

European Commission: Press Release, 17/06/2020: Commission adopts White Paper on foreign subsidies in the Single Market https://ec.europa.eu/commission/presscorner/detail/en/ip_20_1070

European Commission: Statement by Executive Vice-President Margrethe Vestager on adoption of White Paper on foreign subsidies in the Single Market (17 June 2020) https://ec.europa.eu/commission/presscorner/detail/en/statement_20_1121

European Commission: Discours du Commissaire Thierry Breton - Livre blanc sur les effets de distorsion liés au subventions étrangères au sein du marché unique (17 June 2020) https://ec.europa.eu/commission/presscorner/detail/en/speech_20_1119

Chinese Mission to the European Union: Remarks, 18/06/2020: Spokesperson of Chinese Mission to the EU Speaks on a Question Concerning EU White Paper on Foreign Subsidies http://www.chinamission.be/eng/fyrjh/t1789662.htm

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