Undertakings And Economic Operators Under The Foreign Subsidies Regulation

The EU's Foreign Subsidies Regulation (EU 2022/2560) (FSR) provides for a mandatory notification and suspensory regime for businesses operating in the EU who receive public funding (so-called "foreign financial contributions") from outside the EU (e.g. funding from the US, China, the Middle East and the UK).

One question that frequently arises in practice is how entities doing business in the EU should calculate their foreign financial contributions for their reporting obligations under the FSR. The definition of foreign financial contributions is very broad and includes direct transfers of funds or liabilities (e.g. capital injections, grants, loans, loan guarantees, fiscal incentives, and debt-forgiveness), the provision of goods or services and the foregoing of monies due.