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Commission: New Guidelines on Foreign Subsidies

Published January 9, 2026, 14:15
Commission: New Guidelines on Foreign Subsidies

The European Commission has published guidelines for the implementation of the Foreign Subsidies Regulation (FSR), aiming to enhance predictability, transparency, and legal certainty for businesses operating in the single market. The guidelines clarify key aspects of the FSR, providing a practical framework for both businesses and competent authorities. Specifically, the guidelines cover the assessment of distortions caused by foreign subsidies in the single market, the evaluation of distortions in public procurement, the balancing criterion (the process by which the Commission weighs the negative effects of a distortive foreign subsidy against potential positive effects), and the use of the call for tenders mechanism, through which the Commission can request prior notification of concentrations or foreign financial contributions in public tenders, even when notification is not normally required. The European Commission is committed to publishing the guidelines by January 13, 2026, and submitting a review report by July 14, 2026, evaluating the practical application and effectiveness of the FSR. The report will be submitted to the European Parliament and the Council of the European Union. Executive Vice-President Teresa Ribera stated that the guidelines provide "a clear and practical way to turn good intentions into action," clarifying expectations for responsible decision-making to ensure investments proceed in a way that inspires confidence among citizens. Executive Vice-President Stéphane Séjourné emphasized the importance of a level playing field for European businesses, noting that the new guidelines offer clarity in addressing the distortive effects of foreign subsidies, particularly in public tenders, thereby protecting the single market and supporting European industrial competitiveness.