Germany calls for overhaul of EU foreign subsidy rules

Mace | 23rd December 2025 | Brussels, Uncategorised

Berlin urges a full rethink of EU foreign subsidy controls, warning current rules impose heavy burdens and risk harming investment.

Germany has called for a full reworking of the European Union’s Foreign Subsidies Regulation, arguing that the current framework for policing foreign government support to companies operating in the EU market is overly burdensome and needs substantial revision. Berlin’s criticism comes as EU institutions prepare a formal review of the regulation after more than two years in operation, with businesses and several member states raising concerns about compliance complexity and the sheer volume of notifications required. The Foreign Subsidies Regulation was introduced to plug a gap in EU competition and trade law by tackling distortions caused by subsidies granted by non EU governments. The rules are designed to address situations where foreign financial support can give companies an unfair advantage when acquiring EU businesses or competing for public contracts. Companies meeting certain thresholds must notify the European Commission, which can investigate and impose remedies where distor...

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