EU will have a new tool to ensure fair competition on the single market
The proposal, first published by the European Commission in May 2021, for a law that regulates foreign subsidies and enables EU Institutions to investigate financial contributions and eventually redress their distorting effects on the internal market, has been voted by the European Parliament and will now be adopted.
The regulation aims at safeguarding fair competitions between companies in the EU and establishing equal opportunity in the market so that firms subsidized by foreign authorities won’t gain an unfair financial advantage over other European competitors. The law that will soon be published in the Official Journal is fundamental since it addresses a long-standing regulatory gap.
The EU is a particularly open economy: it is one of the world's largest trading blocs, making up 16% of global trade, and just in 2021 it received €117 billion in foreign direct investment. It was noticed that there has been a growing