Activities of Michiel HOOGEVEEN related to 2021/0114(COD)
Shadow opinions (1)
OPINION on the proposal for a regulation of the European Parliament and of the Council on foreign subsidies distorting the internal market
Amendments (26)
Amendment 52 #
Proposal for a regulation
Recital 5
Recital 5
(5) It iscould therefore necessarybe useful to complement existing Union instruments with a new tool to effectively deal with distortions in the internal market caused by foreign subsidies and ensure a level playing field. In particular, the new tool complements Union State aid rules which deal with distortions in the internal market caused by Member State subsidies.
Amendment 55 #
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. 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 65 #
Proposal for a regulation
Recital 10
Recital 10
(10) Such a financial contribution should confer a benefit to an undertaking engaging in an economic activity in the internal market. A financial contribution 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, tailored lending conditions, 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 77 #
Proposal for a regulation
Recital 16
Recital 16
(16) The Commission should take into account the positive effects of the foreign subsidy on the development of the relevant subsidised economic activity. 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 to 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 positivecan be predicted to have overwhelmingly negative rather than negapositive effects.
Amendment 117 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
(2) This Regulation addresses foreign subsidies grantedconferring an advantage to an undertaking engaging in any economic activity in the internal market. ASuch advantage is deemed to exist from the moment it can cause distortions, including prior to the actual receipt of, or entitlement to, the subsidy by the beneficiary. Among others, an undertaking acquiring control or merging with an undertaking established in the Union or an undertaking participating in a public procurement procedure is considered to be engaging in an economic activity in the internal market.
Amendment 135 #
Proposal for a regulation
Article 3 – paragraph 1 – introductory part
Article 3 – paragraph 1 – introductory part
(1) A distortion on the internal market shall be deemed to exist where a foreign subsidy is liable to improve the competitive position of the undertaking concerned in the internal market and where, in doing so, it actually or potentially negatively affects competition on the internal market. Whether there is a distortion on the internal market shall be determined on the basis of indicators, which may include, inter alia, the following:
Amendment 136 #
Proposal for a regulation
Article 3 – paragraph 1 – point c a (new)
Article 3 – paragraph 1 – point c a (new)
(c a) the sector concerned;
Amendment 137 #
Proposal for a regulation
Article 3 – paragraph 1 – point d
Article 3 – paragraph 1 – point d
(d) the level and evolution of economic activity of the undertaking concerned on the internal market;
Amendment 138 #
Proposal for a regulation
Article 3 – paragraph 1 – point d a (new)
Article 3 – paragraph 1 – point d a (new)
(d a) the level of economic activity of the undertaking concerned on the domestic market;
Amendment 142 #
Proposal for a regulation
Article 3 – paragraph 2
Article 3 – paragraph 2
(2) A foreign subsidy is unlikely to distort the internal market if its total amount is below EUR 5 million over any consecutive period of three fiscal years.:
Amendment 143 #
Proposal for a regulation
Article 3 – paragraph 2 – point a (new)
Article 3 – paragraph 2 – point a (new)
(a) its total amount is below EUR 5 million over any consecutive period of three fiscal years;
Amendment 144 #
Proposal for a regulation
Article 3 – paragraph 2 – point b (new)
Article 3 – paragraph 2 – point b (new)
(b) the Commission has ascertained that the third country granting the foreign subsidy has in place a system for the review of subsidies that guarantees in law and in practice a level of protection against undue state intervention into market forces and unfair competition which is at least equivalent to the level within the Union and which effectively protects not only the market of the third country but also the internal market of the Union. A Commission decision ascertaining equivalence under point (b) of the first subparagraph shall be valid for three years and may be prolonged, if appropriate.
Amendment 145 #
Proposal for a regulation
Article 3 – paragraph 2 a (new)
Article 3 – paragraph 2 a (new)
(2 a) The Commission shall publish guidelines on the application of this Article. Those guidelines shall be regularly updated, in close cooperation with the Member States, while keeping the European Parliament and the Council informed.
Amendment 148 #
Proposal for a regulation
Article 3 a (new)
Article 3 a (new)
Article 3 a The European Commission’s findings of subsidies benefitting third country producers in a given sector made in relevant and recent Trade Defence Instruments (TDIs) investigations, or subsidies documented in reports published by international intergovernmental organizations shall constitute sufficient evidence of distortive subsidies to operators in the countries and sectors concerned having met the relevant threshold.
Amendment 226 #
Proposal for a regulation
Article 17 – paragraph 1
Article 17 – paragraph 1
In a concentration, the assessment whether there is a distortion on the internal market within the meaning of Articles 3 or 4 shall be limited to the concentration at stake. Only foreign subsidies granted in the three calendar years prior to the conclusion of the agreement, the announcement of the public bid, or the acquisition of a controlling interest or known future subsidies that have been decided and will become effective within one year following the concentration, shall be considered in the assessment.
Amendment 233 #
Proposal for a regulation
Article 18 – paragraph 3 – point b
Article 18 – paragraph 3 – point b
(b) the undertakings concerned received from third countries an aggregate financial contributionaggregate foreign subsidies in the three calendar years prior to notification of more than EUR 50 million.
Amendment 238 #
Proposal for a regulation
Article 18 – paragraph 4 – point b
Article 18 – paragraph 4 – point b
(b) the joint venture itself and its parent undertakings received from third countries an aggregate financial contributionsubsidy in the three calendar years prior to notification of more than EUR 50 million.
Amendment 241 #
Proposal for a regulation
Article 18 – paragraph 4 a (new)
Article 18 – paragraph 4 a (new)
(4 a) By way of derogation from paragraphs 3 and 4 of this Article, sector- specific aggregate turnovers in the Union are taken into account for a “notifiable concentration” to be deemed to arise in the field of emerging technologies.
Amendment 243 #
Proposal for a regulation
Article 19 – paragraph 1 a (new)
Article 19 – paragraph 1 a (new)
(1 a) Undertakings may request pre- notification consultations with the Commission based on good faith, the exclusive aim of which shall be to establish whether or not the formal thresholds for notification have been met.
Amendment 250 #
Proposal for a regulation
Article 19 – paragraph 5
Article 19 – paragraph 5
(5) The Commission may request the prior notification of any concentration which is not a notifiable concentration within the meaning of Article 18 at any time prior to its implementation where the Commission suspects that the undertakings concerned may have benefitted from foreign subsidies in the three years prior to the concentration or where there are reasonable grounds to suspect that an undertaking will benefit from foreign subsidies in the year following the concentration. That concentration shall be deemed to be a notifiable concentration for the purposes of this Regulation.
Amendment 253 #
Proposal for a regulation
Article 22 – paragraph 1
Article 22 – paragraph 1
The aggregate financial contributionoreign subsidies to an undertaking concerned shall be calculated by adding together the respective financial contributionoreign subsidies received from third countries by all undertakings referred to in Article 21(4), points (a) to (e).
Amendment 254 #
(8 a) Each preliminary review or in- depth investigation is communicated to the Member States that may be concerned
Amendment 256 #
Proposal for a regulation
Article 25 – paragraph 2
Article 25 – paragraph 2
(2) In addition, the Commission may impose fines by decision on undertakings concerned finesthat benefit from a foreign subsidy referred to in Article 2 and Article 19(3). Fines will not exceeding 1 % of their undertakings' aggregate turnover in the preceding business year where they, intentionally or negligently, supply incorrect or misleading information in a notification pursuant to Article 19 or supplement thereto.
Amendment 288 #
Proposal for a regulation
Article 33 – paragraph 1
Article 33 – paragraph 1
(1) A financial contributionsubsidy notified in the context of a concentration under Article 19 may be relevant and assessed again under this Regulation in relation to another economic activity.
Amendment 322 #
Proposal for a regulation
Article 46 – paragraph 1
Article 46 – paragraph 1
Amendment 326 #
Proposal for a regulation
Article 46 – paragraph 1 a (new)
Article 46 – paragraph 1 a (new)
Where the report referred to in paragraph 1 recommends amendments to this Regulation and where the Commission considers it appropriate in light of its practice during the application of this Regulation and taking into account the effectiveness of application, the report may be accompanied by relevant legislative proposals, including: a) to amend the thresholds for notifications as set out in Articles 18 and 27; b) to exempt certain categories of undertakings concerned from the obligation to notify pursuant to Articles 19 and 28, especially where the practice of the Commission enables the identification of economic activities in respect of which foreign subsidies are unlikely to distort the internal market; c) to establish specific thresholds for notifications for certain economic sectors, especially where the practice of the Commission enables the identification of economic activities in respect of which foreign subsidies are more likely to distort the internal market; d) to amend the timelines for review and in-depth investigations as set out in Articles 24 and 29; e) to repeal this Regulation if the Commission considers that multilateral rules to address distortive subsidies have rendered this Regulation fully redundant.