Position paper - Foreign Subsidies Regulation evaluation response

The FSR has resulted in significant new resource allocation needs across various teams within companies, as well as strained the Commission’s ability to efficiently process notifications due to the overwhelming number of filings. To mitigate these challenges, the paper proposes key legislative changes, including annual reporting mechanisms, waivers for minor filings, a materiality safe harbour and alignment with State aid rules to reduce unnecessary compliance efforts. These recommendations aim to streamline the FSR’s implementation, lower the burden on businesses and ensure that the regulation effectively supports EU competitiveness without unduly restricting investment or innovation.