Questions and answers on the findings of the first review of the Foreign Subsidies Regulation

European Commission — DG Competition · 2026-07-14 · EU · verified record

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

Ecosystems: EU Foreign Subsidies Regulation

Under Article 52(2) of the Foreign Subsidies Regulation (FSR), the European Commission is obliged to review its practice of implementing and enforcing the rules and present a report to the European Parliament and the Council every three years. Where the Commission considers it appropriate, it may combine the report with relevant legislative proposals. What is the goal of the FSR review? This regular assessment ensures that the regulation remains effective, fit for purpose, and responsive to subsidies control systems set up by third countries. More precisely, the aim of the review is to evaluate on a regular basis: the assessment of foreign subsidies that distort the internal market; the application of the balancing test between any positive effects of the foreign subsidy and its distortive effects; the assessment of foreign subsidies with a possible distortive effect in the internal market on the Commission's own initiative; the notification thresholds; and more generally, the need for, and scope of, simplification in line with the Commission's policy priorities. What is the FSR review based on? The Commission relied on several sources of evidence for the review: a public consultation questionnaire , which gathered views on specific aspects of the implementation and enforcement of the FSR; a call for evidence , which invited general feedback from interested parties; targeted interviews and meetings with stakeholders and Member States; An FSR Review Study by an external contractor. The study provided an evidence-based assessment of the functioning of the FSR, drawing on surveys of practitioners, an analysis of the Commission's enforcement practice, and a review of subsidy control systems in third countries; and The Commission's internal analysis of its enforcement practice. This included feedback from case teams, and an analysis of internal data and case experience relating to both concentrations and public procurement procedures. Together, these sources provided the Commission with a broad and balanced evidence base for the review. What are the main findings of the FSR review? The review finds that the FSR is fit for purpose and an important tool to address distortions caused by foreign subsidies in the internal market. The Commission's review spans the FSR's different chapters, including the ex officio procedure.…