The new EU Foreign Subsidies Regulation

In 1957, six European States strongly believed that the establishment of a Common Market within the continent could provide them with a new source of economic growth1. Accordingly, within the Treaty of Rome (TEC), these States agreed to create a European Economic Community (EEC), tasked with constantly ensuring the wellfunctioning of this newly established level playing field. Europe has been accusing for a long time that “the EU should not be a naïve open economy,” pointing out that current demands require the inclusion of a new block in European competition law. The Covid crisis has exposed several areas where Europe must enhance its resilience to prevent and withstand future shocks. While remaining committed to open and fair trade, Europe must prioritize reducing its dependence and strengthening the security of its supply. To achieve this, Europe must focus on enhancing its strategic autonomy, economic security, and potential for job creation.

(From the Introduction)