Brussels (Brussels Morning Newspaper) – On Tuesday, the European Commission made its first assessment of the Foreign Subsidies Regulation (FSR), which was introduced in 2023. The regulation attempts to mitigate any ‘distortions to competition’ posed by foreign subsidies and provide a level playing field for businesses in the European Union.
The European Commission has initiated a public consultation and solicited evidence from interested parties until November 18. Following this, it will submit a report to the European Parliament and the Council.
Commission officials are seeking feedback on how the FSR has been implemented and enforced to date. They are also interested in the rules’ complexity, the costs that businesses have faced, and suggestions for potential simplification.
What feedback is the European Commission seeking from stakeholders?
According to the Commission, it plans to seek views through a public consultation, gathering views from all interested parties, including businesses, law firms, Member States, business groups, individuals, and the research community. In addition, it calls for evidence to more widely seek views about the general aims of the FSR review report, its scope, and context.
The Foreign Subsidy Regulation came into force on 13 July 2023, giving the Commission the ability to remediate competition distortions arising from foreign subsidies within the internal market.
How does the Foreign Subsidy Regulation strive to achieve fair competition?
This will enable the European Union to provide an equal playing field for all companies and stay open for trade and investment. Foreign subsidies can enter the internal market through participation in any economic activity and any sector. This includes obtaining control through investing, participating in public procurement processes, in addition to direct investment.
Importantly, the FSR obliges the Commission to assess its own implementation and enforcement of the Regulation by 2026, and then every three years thereafter. The Commission must report to the European Parliament and to the Council and propose any relevant legislative changes if necessary.
