Activities of Heidi HAUTALA related to 2021/0114(COD)
Legal basis opinions (0)
Amendments (34)
Amendment 43 #
Proposal for a regulation
Recital 2
Recital 2
(2) At the same time, undertakings might receive subsidies from third countries, that provide public funds which are then used, for instance, to finance economic activities in the internal market in any sector of the economy, such as participation in public procurement tenders, or acquisitions of undertakings, including those with strategic assets such as critical infrastructure and innovative technologies, or to otherwise provide unjust advantages that may distort the functioning of internal market. Such subsidies are currently not subject to Union State aid rules.
Amendment 51 #
Proposal for a regulation
Recital 7
Recital 7
(7) To ensure a level playing field throughout the internal market and consistency in the application of this Regulation, the Commission should be the sole authority competent to apply this Regulation. The Commission should have the power to examine any foreign subsidy to the extent it is in the scope of this Regulation in any sector of the economy on its own initiative relying on information from all available sources, including Member States, Member States’ trade association and EU-wide social partners. To ensure effective control, in the specific case of large concentrations (mergers and acquisitions) and public procurement procedures above certain thresholds, the Commission should have the power to review foreign subsidies based on a prior notification by the undertaking to the Commission.
Amendment 53 #
Proposal for a regulation
Recital 9
Recital 9
(9) There should be a financial contribution or an economically equivalent support measure provided, directly or indirectly, by the public authorities of a third country. The financial contribution or an economically equivalent support measure may be granted through public or private entities. Whether a public entity provides a financial contribution or an economically equivalent support measure should be determined on a case-by-case basis with due regard to elements such as the characteristics of the relevant entity and the legal and economic environment prevailing in the country in which the entity operates including the government’s role in the economy. Financial contributions or economically equivalent support measures may also be granted through a private entity if its actions can be attributed to the third country.
Amendment 55 #
Proposal for a regulation
Recital 10
Recital 10
(10) Such a financial contribution or an economically equivalent support measure should confer a benefit to an undertaking engaging in an economic activity in the internal market. A financial contribution or an economically equivalent support measure that benefits an entity engaging in non- economic activities does not constitute a foreign subsidy. The existence of a benefit should be determined on the basis of comparative benchmarks, such as the investment practice of private investors, rates for financing obtainable on the market, a comparable tax treatment, or the adequate remuneration for a given good or service.. If no directly comparable benchmarks are available, existing benchmarks could be adjusted or alternative benchmarks could be established based on generally accepted assessment methods.
Amendment 60 #
(16) The Commission should take into account the positive effects of the foreign subsidy on the development of the relevant subsidised economic activity, in particular as regards of its contribution to the Union’s objectives and the positive social and environmental externalities of such subsidised activities. The Commission should weigh these positive effects against the negative effects of a foreign subsidy in terms of distortion on the internal market in order to determine, if applicable, the appropriate redressive measure or accept commitments. The balancing may also lead to the conclusion that no redressive measures should be imposed. Categories of foreign subsidies that are deemed most likely to distort the internal market are less likely to have more positive than negative effects.
Amendment 65 #
Proposal for a regulation
Recital 21
Recital 21
(21) The Commission should have the power, on its own initiative, to examine any information on foreign subsidies. The Commission should be able to act upon information received from any relevant source, including Member States, Member States’ trade associations and EU-wide social partners. To this end, it is necessary to establish a procedure consisting of two steps, namely a preliminary review and an in-depth investigation.
Amendment 72 #
Proposal for a regulation
Recital 28
Recital 28
(28) Given the potentially significant impact of concentrations on the internal market, the Commission should have the power, upon notification, to examine information on foreign financial contributionsubsidies in the context of a proposed concentration. Undertakings should not be allowed to implement the concentration prior to the conclusion of the Commission’s review.
Amendment 74 #
Proposal for a regulation
Recital 33
Recital 33
(33) The need to address distortive foreign subsidies is especially salient in public procurement, given its economic significance in the internal market and the fact that it is financed by taxpayer funds. The Commission should have the power, upon notification prior to the award of a public contract or concession, to examine information on foreign financial contributionsubsidies to the participating undertakings in the context of a public procurement procedure. Prior notifications should be mandatory above a threshold set in this Regulation to capture economically significant cases while minimising the administrative burden and not hindering the participation of SMEs in public procurement. That obligation of prior notification above a threshold should also apply to groups of economic operators referred to in Article 26(2) of Directive 2014/23/EU of the European Parliament and of the Council40 , Article 19(2) of Directive 2014/24/EU of the European Parliament and of the Council41 and Article 37(2) of Directive 2014/25/EU of the European Parliament and of the Council42 . It should also apply to the main subcontractors and the main suppliers of undertaking. _________________ 40 Directive 2014/23/EU of the European Parliament and of the Council of 26 February 2014 on the award of concession contracts (OJ L 94, 28.3.2014, p. 1). 41 Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC (OJ L 94, 28.3.2014, p. 65). 42 Directive 2014/25/EU of the European Parliament and of the Council of 26 February 2014 on procurement by entities operating in the water, energy, transport and postal services sectors and repealing Directive 2004/17/EC (OJ L 94, 28.3.2014, p. 243).
Amendment 77 #
Proposal for a regulation
Recital 39
Recital 39
(39) In the interest of transparency and legal certainty, it is appropriate to publish either in full or in a summary form all decisions adopted by the Commission, as well as in-depth investigations and balancing assessments.
Amendment 78 #
Proposal for a regulation
Recital 43
Recital 43
(43) The implementation of this Regulation by the Union should comply with Union law, be consistent withe WTO Agreements and be consistent with commitments made under other trade and investment agreements to which the Union or the Member States are parties. This Regulation should be without prejudice to the development of multilateral rules to address distortive subsidies.
Amendment 79 #
Proposal for a regulation
Recital 48
Recital 48
(48) In order to ensure a level playing field on the internal market also in the long term, with a view to ensuring adequate coverage of cases investigated both through notifications as well as ex officio, the power to adopt acts in accordance with Article 290 of the Treaty should be delegated to the Commission in respect of specifying economically equivalent support measure to a financial contribution, establishing criteria for identifying actions that can be attributed to third countries, specifying the methodology underlying the balancing assessment, adopting a methodology for determining that a serious risk of substantial and irreparable damage to competition arises on the internal market, amending the notification thresholds for concentrations and for public procurement procedures, exempting certain categories of undertakings from the notification obligations under this Regulation, as well as amending the time limits for the preliminary review and the in-depth investigations of notified concentrations or notified financial contributions or economically equivalent support measures in the context of a public procurement procedure. In relation to financial contributions or economically equivalent support measures in the context of a public procurement procedure, the power to adopt such acts should be exercised in a way that takes into account the interests of SMEs. It is of particular importance that the Commission carries out appropriate consultations during the preparations of those acts, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making47 . In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council should receive all documents at the same time as Member States' experts, and their experts systematically should have access to meetings of Commission expert groups dealing with the preparation of delegated acts. _________________ 47 Interinstitutional Agreement between the European Parliament, the Council of the European Union and the European Commission of 13 April 2016 on Better Law-Making (OJ L 123, 12.5.2016, p. 1).
Amendment 84 #
Proposal for a regulation
Article 2 – paragraph 1
Article 2 – paragraph 1
(1) For the purpose of this Regulation, a foreign subsidy shall be deemed to exist where a third country provides a financial contribution or an economically equivalent support measure which confers a benefit to an undertaking engaging in an economic activity in the internal market and which is limited, in law or in fact, to an individual undertaking or industry or to several undertakings or industries.
Amendment 89 #
Proposal for a regulation
Article 2 – paragraph 2 – point a a (new)
Article 2 – paragraph 2 – point a a (new)
Amendment 90 #
Proposal for a regulation
Article 2 – paragraph 2 – point b – introductory part
Article 2 – paragraph 2 – point b – introductory part
(b) the financial contribution or an economically equivalent support measure provided by the third country shall include the financial contribution or an economically equivalent support measure provided by:
Amendment 92 #
Proposal for a regulation
Article 2 – paragraph 2 a (new)
Article 2 – paragraph 2 a (new)
(2 a) The Commission is empowered to adopt a delegated act for the purpose of specifying the definition of financial contribution, the definition of economically equivalent support measure, as well as for establishing criteria for identifying actions that can be attributed to third countries as referred to in paragraphs 1 and 2 of this Article.
Amendment 99 #
Proposal for a regulation
Article 3 – paragraph 2 a (new)
Article 3 – paragraph 2 a (new)
(2 a) The Commission is empowered to adopt a delegated act for the purpose of supplementing the indicators referred to in paragraph 1.
Amendment 101 #
Proposal for a regulation
Article 5 – paragraph 1
Article 5 – paragraph 1
(1) The Commission shall, where warranted, balance the negative effects of a foreign subsidy in terms of distortion on the internal market with positive effects on the development of the relevant economic activity, including positive environmental and social externalities providing a contribution to EU policy objectives.
Amendment 105 #
Proposal for a regulation
Article 5 – paragraph 2 a (new)
Article 5 – paragraph 2 a (new)
(2 a) The balancing assessment referred to in paragraph 1 shall be disclosed on a dedicated webpage of the Commission. The Commission shall also provide for a justification on the same webpage whenever a balancing test is not carried out pursuant to paragraph 1 and shall carryout, where warranted, a consultation with Member States, Member States’ trade associations and EU-wide social partners.
Amendment 106 #
Proposal for a regulation
Article 5 – paragraph 2 b (new)
Article 5 – paragraph 2 b (new)
(2 b) The Commission is empowered to adopt delegated act for the purpose of specifying the methodology underlying the balancing assessment and in particular for the determination of positive effects referred to in paragraph 1 as well as criteria for outweighing effects.
Amendment 114 #
Proposal for a regulation
Article 7 – paragraph 1
Article 7 – paragraph 1
The Commission may on its own initiative examine information from any source regarding alleged distortive foreign subsidies. The Commission shall examine substantiated information submitted by Member States, Member States’ trade associations and EU-wide social partners.
Amendment 117 #
Proposal for a regulation
Article 8 – paragraph 1 – introductory part
Article 8 – paragraph 1 – introductory part
(1) The Commission shall seek all the information it considers necessary to assess, on a preliminary basis, whether the financial contribution or the economically equivalent support measure under examination constitutes a foreign subsidy and whether it distorts the internal market. To that end, the Commission may in particular:
Amendment 119 #
Proposal for a regulation
Article 8 – paragraph 3
Article 8 – paragraph 3
(3) Where the Commission, after a preliminary assessment, concludes that there are no sufficient grounds to initiate the in-depth investigation, either because there is no foreign subsidy or because there are no indications of an actual or potential distortion on the internal market, it shall close the preliminary review and, inform the undertaking concerned and publish its preliminary assessment.
Amendment 123 #
Proposal for a regulation
Article 10 – paragraph 1 – point 1
Article 10 – paragraph 1 – point 1
(1) there are indications that a financial contribution or an economically equivalent support measure constitutes a foreign subsidy and distorts the internal market; and
Amendment 125 #
Proposal for a regulation
Article 10 – paragraph 1 – point 2 a (new)
Article 10 – paragraph 1 – point 2 a (new)
Amendment 126 #
Proposal for a regulation
Article 10 – paragraph 1 – point 2 b (new)
Article 10 – paragraph 1 – point 2 b (new)
(2 b) The Commission is empowered to adopt a delegated act for the purpose of supplementing paragraphs 1 and 2 with a methodology for determining that a serious risk of substantial and irreparable damage to competition arises on the internal market.
Amendment 129 #
Proposal for a regulation
Article 12 – paragraph 7
Article 12 – paragraph 7
(7) Upon request ofnotification to the Commission, a Member State shall in its own territory carry out any inspection or other fact- finding measure under its national law in order to establish whether there is a foreign subsidy distorting the internal market.
Amendment 131 #
Proposal for a regulation
Article 14 – paragraph 3
Article 14 – paragraph 3
(3) Where an undertaking concerned, including a public undertaking which is directly or indirectly controlled by the State, fails to provide the necessary information to determine whether a financial contribution or an economically equivalent support measure confers a benefit to it, that undertaking may be deemed to have received such benefit.
Amendment 151 #
Proposal for a regulation
Article 31 – paragraph 7
Article 31 – paragraph 7
(7) The principles governing public procurement, including proportionality, non-discrimination, equal treatment, and transparency and compliance with obligations relating to applicable due diligence, environmental, social and labour law and standards, or governance, shall be observed as regards all undertakings involved in the public procurement procedure. The investigation of foreign subsidies pursuant to this Regulation shall not result in the contracting authority or the contracting entity treating the undertaking concerned in a way that is contrary to those principles.
Amendment 154 #
Proposal for a regulation
Article 34 – paragraph 1
Article 34 – paragraph 1
(1) Where the information available substantiates a reasonable suspicion that foreign subsidies in a particular sector, for a particular type of economic activity or based on a particular subsidy instrument may distort the internal market, the Commission may conduct a market investigation into the particular sector, the particular type of economic activity or into the use of the subsidy instrument concerned. In the course of that market investigation, the Commission may request the undertakings or associations of undertakings concerned to supply the necessary information and may carry out the necessary inspections. The Commission may also request the Member State or third country concerned to supply information, or consult Member States’ trade associations and EU-wide social partners.
Amendment 156 #
Proposal for a regulation
Article 34 – paragraph 2
Article 34 – paragraph 2
(2) The Commission mayshall publish a report on the results of its market investigation into particular sectors, particular types of economic activity or particular subsidy instruments and invite comments from interested parties.
Amendment 158 #
Proposal for a regulation
Article 44 – paragraph 1 – point -a (new)
Article 44 – paragraph 1 – point -a (new)
(-a) specifying the definition of financial contribution, the definition of economically equivalent support measure, as well as for establishing criteria for identifying actions that can be attributed to third countries as set out in Article 2;
Amendment 159 #
Proposal for a regulation
Article 44 – paragraph 1 – point -a a (new)
Article 44 – paragraph 1 – point -a a (new)
(-a a) supplementing the indicators set out for determining distortive subsidies in the single market as referred to in Article 3;
Amendment 160 #
Proposal for a regulation
Article 44 – paragraph 1 – point -a b (new)
Article 44 – paragraph 1 – point -a b (new)
(-a b) specifying the methodology underlying the balancing assessment and in particular for the determination of positive effects as well as criteria for outweighing effects referred to in Article 5;
Amendment 161 #
Proposal for a regulation
Article 44 – paragraph 1 – point -a c (new)
Article 44 – paragraph 1 – point -a c (new)
(-a c) for the purpose of adopting interim measures, specifying a methodology for determining that a serious risk of substantial and irreparable damage to competition arises on the internal market as referred to in Article 10;