Brussels, 17.6.2020 COM(2020) 253 final
WHITE PAPER on levelling the playing field as regards foreign subsidies
WHITE PAPER
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on levelling the playing field as regards foreign subsidies
Table of Contents
1 Introduction...................................................................................................................4
2 Problem definition ........................................................................................................6
2.1 Foreign subsidies risk distorting the EU internal market .............................................6
2.2 Overview of cases involving foreign subsidies ............................................................8
3 Gap analysis..................................................................................................................9
3.1 EU competition rules ....................................................................................................9
3.2 EU trade policy .............................................................................................................9
3.3 Public procurement.....................................................................................................10
3.4 EU funding..................................................................................................................12
4 Framework to address distortions caused by foreign subsidies in the internal market generally and in the specific cases of acquisitions and public procurement ................................................................................................................13
4.1 General instrument to capture foreign subsidies (Module 1) .....................................13
4.1.1 Basic features..............................................................................................................13
4.1.2 Scope of Module 1......................................................................................................14
4.1.3 Assessment of distortions in the internal market........................................................15
4.1.4 EU interest test............................................................................................................17
4.1.5 Procedure ....................................................................................................................17
4.1.6 Redressive measures...................................................................................................19
4.1.7 Supervisory authorities ...............................................................................................21
4.2 Foreign subsidies facilitating the acquisition of EU targets (Module 2) ....................22
4.2.1 Basic features..............................................................................................................22
4.2.2 Scope of Module 2......................................................................................................23
4.2.3 Assessment of distortions related to subsidised acquisitions .....................................26
4.2.4 EU interest test............................................................................................................27
4.2.5 Procedure ....................................................................................................................27
4.2.6 Redressive measures...................................................................................................29
4.2.7 Supervisory authorities ...............................................................................................29
4.3 Foreign subsidies in public procurement (Module 3).................................................30
4.3.1 Introduction.................................................................................................................30
4.3.2 Distortions by foreign subsidies in the context of public procurement procedures...................................................................................................................30
4.3.3 Procedure ....................................................................................................................31
4.3.4 Foreign subsidies in procurement pursuant to intergovernmental agreements...........34
5 Foreign subsidies in the context of EU funding .........................................................35
5.1 Problem definition ......................................................................................................35
5.2 Framework and measures to fill the gap.....................................................................36
5.2.1 Direct management.....................................................................................................36
5.2.2 Shared management....................................................................................................38
5.2.3 Indirect management ..................................................................................................39
6 Interplay with other EU and international instruments...............................................40
6.1 EU Merger Regulation................................................................................................40
6.2 EU antitrust rules ........................................................................................................41
6.3 EU State aid rules .......................................................................................................41
6.4 EU public procurement rules ......................................................................................41
6.5 The WTO Agreement on Subsidies and Countervailing Measures............................41
6.6 Trade defence instruments – protection against subsidised imports ..........................42
6.7 FDI Screening Regulation ..........................................................................................42
6.8 Bilateral trade agreements ..........................................................................................43
6.9 The Agreement on Government Procurement and procurement chapters in FTAs ...........................................................................................................................44
6.10 Sectorial rules: safeguarding competition in air and maritime transport....................44
7 Public Consultation.....................................................................................................45
ANNEX I: DEFINITION OF FOREIGN SUBSIDY...............................................................46
ANNEX II: QUESTIONNAIRE...............................................................................................48
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