AmCham EU, together with business groups representing key EU trade and investment partners, issued a joint statement expressing concern at significant elements of the proposed Regulation on foreign subsides and calling for amendments to the text. While the proposal rightfully seeks to address those non-EU subsidies which risk distorting the EU internal market, it could inadvertently impact international companies whose home jurisdiction shares Europe’s open market principles.
Foreign subsidies regulation: key EU trade and investment partners raise concerns
AmCham EU, together with business groups representing key EU trade and investment partners, issued a joint statement expressing concern at significant elements of the proposed Regulation on foreign subsides and calling for amendments to the text. While the proposal rightfully seeks to address those non-EU subsidies which risk distorting the EU internal market, it could inadvertently impact international companies whose home jurisdiction shares Europe’s open market principles.
It poses a significant administrative burden on EU and non-EU businesses alike by introducing wide-ranging notification requirements and lengthy investigation periods. A number of concepts being introduced may even pose practical impossibilities for those businesses seeking to act in accordance with the Regulation, and non-compliance could lead to the imposition of substantial sanctions. It is also likely to generate an unnecessarily heavy burden for the Commission. The signatories call upon co-legislators to ensure the final text of the Regulation will be focused and proportionate, and that the new administrative procedures ensure good governance and efficacy.
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