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Clifford Chance

Clifford Chance


EU proposals for new powers to address foreign subsidies

19 June 2020

The European Commission has published a White Paper with proposals for a new legal framework to address subsidies granted by non-EU governments that distort markets in the EU. Its main components comprise general powers to impose remedies to address distortive foreign subsidies, specific powers to prohibit subsidised acquisitions of EU businesses and changes to the EU public procurement rules to allow foreign subsidies to be addressed in individual public tenders.

If adopted, the proposals would create significant new risks and compliance costs for foreign State owned entities and other foreign investors with links to non-EU public bodies.

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