Brussels, August 12, 2025 — The European Commission has launched its first review of the Foreign Subsidies Regulation (FSR), inviting feedback from businesses, Member States, law firms, associations, academics, and individuals ahead of a statutory report due in July 2026.
The review will assess how the FSR — in force since July 2023 — has been implemented and enforced, focusing on areas such as the assessment of foreign subsidies that distort the EU’s internal market, the “balancing test” weighing their positive and negative impacts, the Commission’s ex officio powers to investigate, current notification thresholds, and the complexity and cost of compliance for companies.
Stakeholders can contribute via a public consultation and a call for evidence on the EU’s “Have Your Say” portal until 18 November 2025. The feedback will help shape the Commission’s review report, which may lead to legislative proposals.
Executive Vice-President Teresa Ribera said the 2026 report would be “an opportunity to take stock” of the FSR’s operation and “envisage possible improvements” to ensure the rules address foreign subsidy distortions while minimising regulatory burdens. EVP Stéphane Séjourné stressed that given public procurement’s scale — around 15% of EU GDP — selection processes must remain “fair and not distorted by subsidies from third countries,” while keeping oversight “as unbureaucratic and transparent as possible.”
The FSR empowers the Commission to investigate and address distortions caused by foreign subsidies in any sector, covering acquisitions, public procurement, and other market activities. It mandates a review every three years, with the first due next summer.
Source: https://ec.europa.eu/commission/presscorner/detail/en/ip_25_1954
