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EU: Guidelines on the Foreign Subsidies Regulation

Published January 9, 2026, 16:22
EU: Guidelines on the Foreign Subsidies Regulation

The European Commission has published guidelines based on the Foreign Subsidies Regulation (FSR) to increase predictability and transparency for businesses. The guidelines clarify various aspects of the FSR: a) the assessment of distortions, b) the assessment of distortions specifically in public procurement procedures, c) the balancing criterion (the Commission’s process for weighing the negative effects of a distortive foreign subsidy against potential positive effects), and d) the use of the call-for-tenders mechanism for mergers and public procurement procedures (the Commission may request prior notification of mergers that do not normally require notification, as well as foreign financial contributions in public procurement procedures, when certain conditions are met). The Foreign Subsidies Regulation also requires the European Commission to submit a report to the European Parliament and the Council by July 14, 2026, reviewing its practice for the implementation and application of the regulation. Executive Vice-President for a Green Deal, Industrial Ambition and Competition, Teresa Ribera, stated that the guidelines provide a clear and practical way to translate good intentions into action and enable responsible investment decisions. Executive Vice-President for Jobs and Social Rights and Skills, Stéphane Séjourné, stressed that the goal is to ensure a level playing field for European companies and protect the single market.