EU’s foreign-subsidy powers kick in amid debate and fears of red tape

MLex Market Insight

The European Union has new powers to police subsidies handed out by foreign governments — powers designed to ensure that state support doesn’t distort merger activity and public procurement. However, with new powers comes great responsibility — and a solid supply of red tape. The European Commission will also be able to open investigations into state subsidies of its own initiative — yet achieving the goal of a level playing field may yet prove elusive.