First Article 52(2) FSR review report COM(2026) 368

Council of the European Union — public document register · 2026-07-14 · EU · verified record

Themes: Cross-sector · Mergers & acquisitions · Public procurement

Ecosystems: EU Foreign Subsidies Regulation

11947/26 COMPET.1 EN Council of the European Union Brussels, 14 July 2026 (OR. en) 11947/26 RC 16 COMER 115 MI 785 COVER NOTE From: Secretary-General of the European Commission, signed by Ms Martine DEPREZ, Director To: Ms Thérèse BLANCHET, Secretary-General of the Council of the European Union No. Cion doc.: COM(2026) 368 final Subject: REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the implementation and enforcement of Regulation (EU) 2022/2560 of 14 December 2022 on foreign subsidies distorting the internal market, in accordance with Article 52(2) thereof Delegations will find attached document COM(2026) 368 final. Encl.: COM(2026) 368 final EN EN EUROPEAN COMMISSION Brussels, 14.7.2026 COM(2026) 368 final REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the implementation and enforcement of Regulation (EU) 2022/2560 of 14 December 2022 on foreign subsidies distorting the internal market, in accordance with Article 52(2) thereof {SWD(2026) 183 final} 1 1. INTRODUCTION Regulation (EU) 2022/2560 of the European Parliament and of the Council of 14 December 2022 on foreign subsidies distorting the internal market ( 1 ) (the ‘FSR’) was adopted to address distortions to the internal market caused by subsidies granted by third countries to undertakings engaging in economic activities in the European Union (the ‘Union’). The FSR seeks to ensure a level playing field in the internal market by enabling the European Commission (the ‘Commission’) to identify, assess, and, where necessary, redress distortive foreign subsidies. Before the adoption of the FSR, undertakings active in the Union were able to finance economic activities in the internal market with subsidies granted by third countries. This concerned any sector of the economy and included, inter alia, participation in public procurement procedures, acquisition of undertakings, or engaging in any other economic activities in the Union. Such foreign subsidies were not subject to Union State aid rules. The Union legal framework contained no mechanism to tackle distortions caused by these foreign subsidies to the internal market, as the traditional trade defence mechanisms apply only to imports of traded goods.…