{"id":105393,"date":"2022-05-06T03:00:26","date_gmt":"2022-05-06T01:00:26","guid":{"rendered":"https:\/\/www.cde.ual.es\/?p=105393"},"modified":"2022-05-05T14:26:35","modified_gmt":"2022-05-05T12:26:35","slug":"new-tool-to-protect-internal-market-against-distortive-foreign-subsidies","status":"publish","type":"post","link":"https:\/\/www.cde.ual.es\/en\/new-tool-to-protect-internal-market-against-distortive-foreign-subsidies\/","title":{"rendered":"New tool to protect internal market against distortive foreign subsidies"},"content":{"rendered":"

To ensure a level playing field for all companies operating in the internal market, member states agreed a negotiating mandate for the regulation on foreign subsidies distorting the internal market.<\/strong><\/p>\n

\"Primer<\/a><\/p>\n

The regulation aims\u00a0to address the distortions created by subsidies<\/strong>\u00a0granted by non-EU countries to companies operating in the EU\u2019s single market. It establishes\u00a0a comprehensive framework<\/strong>\u00a0for the Commission to investigate\u00a0any economic activity benefiting from a third-country subsidy<\/strong>\u00a0on the internal market and to set up a specific framework for subsidies granted by third countries in the context of large concentrations and large public procurement procedures.<\/p>\n

Balancing test<\/strong><\/p>\n

As is the case under the EU state aid control framework, if the Commission finds that a foreign subsidy exists and that it distorts competition, it will perform a balancing test. This is a tool to assess\u00a0the balance between the positive and negative effects<\/strong>\u00a0of a foreign subsidy.<\/p>\n

The Council text\u00a0clarifies the criteria and procedures for applying this test<\/strong>, including through the publication of guidance.<\/p>\n

Governance<\/strong><\/p>\n

The regulation will be implemented exclusively by the Commission. The Council text specifies that\u00a0during this centralised implementation by the Commission, member states will be kept regularly informed<\/strong>\u00a0and will be involved<\/strong>, through the advisory procedure, in decisions adopted under the regulation. It also introduces\u00a0an alert mechanism<\/strong>\u00a0allowing member states to flag up suspected distortive subsidies.<\/p>\n

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Ministers welcome assessment of national plans for Bulgaria and Sweden<\/a><\/h4>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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Public procurement<\/strong><\/p>\n

To make the provisions on public procurement\u00a0more effective and more transparent<\/strong>, the Council text clarifies the procedures applicable to the various existing procedures and stipulates that the Commission should publish\u00a0guidance on the implementation of the regulation in the context of public procurement procedures.<\/strong><\/p>\n

The Council text shortens the deadlines for investigations to ensure that implementation of the regulation\u00a0does not slow down public procurement procedures.<\/strong><\/p>\n

Thresholds and deadlines<\/strong><\/p>\n

The regulation proposes\u00a0three tools which the Commission can use to investigate financial contributions from non-EU governments<\/strong>: two notification-based tools \u2013 to investigate large concentrations and bids in large public procurement procedures \u2013 and a general market investigation tool.<\/p>\n

The Council text\u00a0raises the notification thresholds to<\/strong>:<\/p>\n