Important step forward: EU agreement against distortive foreign subsidies
30 June 2022 - The European institutions have reached a compromise on the proposed foreign subsidies instrument. BusinessEurope welcomes the agreement and hopes for an efficient and effective implementation of the regulation to ensure a level playing field in the Single Market for all economic operators.
BusinessEurope Director General Markus J. Beyrer said: "Today’s deal is key to fill existing regulatory gaps in addressing the activity of companies in the European Union that benefit from distortive foreign subsidies. We now need to make sure that the regulation is implemented in a way that effectively addresses the most distortive foreign subsidies while minimising the administrative burden on companies and public administrations. For this, the companies will need a detailed guidance on the different aspects of the regulation."
Beyrer added: “Today’s compromise reflects many of the recommendations the European business community brought forward in its reaction to the European Commission’s legislative proposal. We are confident the new instrument will effectively address market distortions in the Single Market while providing legal certainty to economic operators. Going forward, the EU should also address distortive foreign subsidies in the context of EU funding for projects in third countries. This is essential for making the Global Gateway a success.”
In its reaction to the European Commission’s legislative proposal on distortive foreign subsidies, BusinessEurope had emphasised that the instrument should focus on major subsidies leading to significant distortions of the level playing field, and should be closely aligned with relevant EU legislation. At the same time, BusinessEurope stressed that the EU must remain open to trade and foreign investment, which are critically important to our economic prosperity.