The Foreign Subsidies Regulation: The Extraterritorial Tax Dimension

In the fourth post in the Renforce Blog Series on the Foreign Subsidies Regulation, Dionysios Pelekis looks at the notion of a “subsidy” in relation to the notion of State aid, and discusses the extraterritorial fiscal implications of the Regulation. Taxation, and the ability to carry out economic, social, and industrial policy via the tax system, is a central aspect of sovereignty. However, due to the width of the notion of a subsidy, and to the scope of the Regulation, this new instrument seems capable of affecting the tax affairs of third countries.

The Foreign Subsidies Regulation: A Paradigm Shift in EU Competition Policy

The European Union (EU) has taken a significant step in addressing the challenges posed by foreign subsidies through the introduction of the Foreign Subsidies Regulation (FSR). The FSR, which applies from today, fills the void that existed between competition and state aid law, introducing an interdisciplinary approach to market governance. In this blogpost, the third in a special series on the FSR, Jasper Sluijs navigates some of the key aspects of this regulation and their potential consequences for EU competition law.

The Foreign Subsidies Regulation: Questions of Democratic Accountability

In the second post in a Renforce special series on the Foreign Subsidies Regulation (FSR), Thomas Verellen looks at the regulation – which applies as of today – from the angle of democratic accountability. In response to geopolitical unrest, the global expansion of state capitalism, and the climate crisis, the EU has significantly strengthened the European Commission’s unilateral trade policy toolbox. How the Commission can be held democratically accountable as it starts to yield its newfound powers, he argues, should be top of mind for everybody concerned about the democratic credentials of the European Union. The FSR cannot be seen in isolation from this broader context.

Introducing the Foreign Subsidies Regulation: New regulatory regime and enforcement powers for the EU

In this piece, the five-part RENFORCE blog series on the new Foreign Subsidies Regulation (FSR) is introduced by Urszula Jaremba.

The FSR – adopted in December 2022, and due to enter into force next week – is an extraordinary piece of EU legislation. Whereas its primary goal is to address distortions on the internal market brought on by subsidies granted by non-EU governments to undertakings active in the EU, the new rules interact and intersect with various EU regulatory regimes in the areas of antitrust, public procurement, and Common Commercial Policy. At the same time, under this novel regulatory regime, the European Commission is designated new, extensive and exclusive enforcement powers which, in turn, give rise to various questions of institutional and constitutional nature pertaining to the democratic foundations of the European Union.

Whereas this blog post offers a general introduction to this new and fascinating regulatory regime and its main features, other authors (details below) will shed light on the FSR from the perspective of their own academic disciplines.

RENFORCE Blog