The European Commission says its first review of the EU’s Foreign Subsidies Regulation has found the rules are “fit for purpose”, while outlining plans for targeted changes to cut complexity and administrative workload.
The regulation, known as the FSR, allows the Commission to examine whether financial support from non-EU governments gives companies an unfair advantage in the EU’s single market, the EU executive informed in a statement on Tuesday.
It said the first three years of enforcement show the system is working in practice across mergers, public procurement and investigations opened on the Commission’s own initiative.
New figures show the Commission reviewed more than 5,000 submissions linked to public procurement during the period, and said this allowed public authorities to secure goods and services without delays.
It added that formal “prenotification” discussions before filings were made remained low in procurement cases, but the Commission handled numerous requests from companies and public bodies to keep procedures running smoothly.
The Commission also pointed to the opening of two in-depth investigations using its “ex officio” powers — meaning cases launched on its own initiative — including one involving threat detection systems and another in the wind sector.
Simplification plans and timetable
Concerns raised during consultations included the administrative burden of collecting and reporting data on foreign financial contributions, as well as the length and complexity of some procedures, the Commission said.
It also cited uncertainty over its ability to “call in” certain mergers that fall below notification thresholds, and requests for clearer reporting obligations and more transparency about enforcement.
The Commission stated it is preparing targeted adjustments to the procedural framework, including increasing the turnover threshold that triggers notification for mergers, and introducing a simplified notification route for certain cases.
Other options under consideration include raising reporting thresholds for foreign financial contributions and creating additional exemptions from reporting where contributions are not in categories “most likely” to distort the internal market.
For public procurement, the Commission said it is considering simplifying and clarifying notification and declaration forms, revising the approach to companies seeking waivers to limit disclosure of certain information, and clarifying rights and obligations around access to files and handling confidential information.
Draft changes are due to be published in the autumn for stakeholder comment, with adoption planned for 2027.
The review drew on an assessment of 103 contributions from two consultations and an independent external study.
