The European Commission has initiated its first review of the Foreign Subsidies Regulation ("FSR"), which entered into force on 13 July 2023. FSR enables the Commission to address any distortions to competition caused by foreign subsidies in the internal market. It allows the European Union to ensure a level playing field for all companies, while remaining open to trade and investment. As part of this process, the Commission has launched both a public consultation and a call for evidence, inviting feedback from all interested parties by 18 November 2025.
The review will address:
- the assessment of foreign subsidies that may distort the internal market,
- the application of the balancing test,
- ex officio reviews of potentially distortive foreign subsidies,
- notification thresholds,
- the overall complexity and compliance costs of the FSR framework.
The Commission will present its review report, informed by stakeholder input, to the European Parliament and the Council by July 2026, potentially accompanied by legislative proposals. The objective is to ensure the effective enforcement of the FSR, safeguard a level playing field in the internal market, and balance openness to trade and investment with the need to address distortions caused by foreign subsidies.
(EC – 12.08.2025)
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
