Summary Position – The Foreign Subsidies Regulation draft Implementing Regulation
ERT is concerned about the effects the proposed implementing Regulation for the Foreign Subsidies Regulation (FSR) would have on companies, public procurement procedures and M&A activity in Europe.
We therefore strongly support a dialogue with relevant stakeholders to develop a revised implementing Regulation which provides a sensible limitation of and clearer guidance on information to be collected and ensures a proportionate and effective implementation of the FSR.
ERT supports the goal of the FSR of creating a level playing field for all undertakings operating in the EU internal market by ensuring that companies do not use subsidies granted outside the EU to obtain an unfair advantage in the EU.
We would like to draw attention, particularly to the following three major issues:
- The Draft IR disregards the purpose of the FSR by front-loading the information and document production requirements in initial notification processes.
- The Draft IR loses sight of the FSR’s aim of addressing distortive subsidies regarding major M&A and public procurement activities.
- The Draft IR ignores that it is impossible for companies to provide the required information in the short term and to ensure completeness even in the long term.
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