Several multinational companies, including U.S.-based Intel and Raytheon Technologies, Germany’s BASF SE and Siemens, Japan’s Panasonic, and U.K.-based AstraZeneca, signed a letter addressed to the European Commission warning about the bloc’s new rules for reporting foreign subsidies.
The firms warned that the requirements of the new foreign subsidy rules are onerous and could disrupt mergers and acquisitions and hamper public offerings.
The companies noted that they supported the general goal of the rules but stressed that the commission underestimated the amount of work required to comply with them.
- The foreign subsidy rules give EU regulators new tools to prohibit companies from making certain acquisitions or winning large public contracts if they previously benefited from government aid that the commission believes was distortive.
- It’s part of a broader effort by the EU to protect its economic interests.
- EU lawmakers also recently reached an agreement on another tool to address economic coercion.
- The tool would make it easier for the bloc to retaliate against countries that try to use trade or investment restrictions as a pressure tactic.
