25 June 2020, 10:20
On 17th June the European Commission published a White Paper on levelling the playing field as regards foreign subsidies.
The White Paper launches a broad discussion on the challenge posed to the competitive spirit of the EU single market by foreign government subsidies aimed at investments and operations in the EU, such as the acquisition of EU companies.
A debate on this topic is needed because the EU rules in place do not address this problem, as state aids, trade defence and investment screening provisions do not address subsidies granted by foreign governments to their national companies for investments in the single market.
This White Paper is the Commission’s response to the call from the European business community to address this problem and could lead to a legislative proposal in the next years. If on the one hand the EU keeps opposing protectionism, on the other hand it considers regulating foreign governments subsidies to preserve competition in the single market.
The White Paper puts forward for discussion a framework that could answer the distortions caused by foreign subsidies provided to an economic operator in the EU market (Module 1) and, on the other hand, the distortions caused by foreign subsidies in the context of acquisitions of EU undertakings (Module 2) and of public procurement (Module 3).
The White Paper is subject to a public consultation and is open for comments until 23rd September 2020.
Source: CECE - Committee for European Construction Equipment