The strategic independence of the Union in some key sectors of industry depends on the defense of European companies. The EU Commission has proposed a shield against takeovers in the Union of companies that receive non-EU state aid and has presented a plan to reduce their dependence on Chinese and other foreign suppliers in six strategic areas such as raw materials, pharmaceutical ingredients and semiconductors. Subsidies granted by third country governments are not to a large extent controlled, while those of Member States are subject to strict controls.
Companies that receive over 50 million euros in foreign subsidies and seek to acquire assets in the EU for over 500 million or want to participate in tenders of at least 250 million will have to notify the operation in Brussels and obtain approval of the EU antitrust. also envisaged the launch of a market investigation to control other situations such as greenfield investments (when the company creates a new production activity abroad) or concentrations and contracts below certain thresholds. The European Antitrust Authority will be able to decide on financial penalties and in the case of transactions subject to notification, it will also have the power to prohibit the subsidized acquisition or the award of the public contract to the subsidized bidder.
In 2019, the stock of foreign direct investments was worth more than 7 trillion euros, recalled the owner of the EU Antitrust and vice president of the Commission Margrethe Vestager. Our market remains open – said the Commissioner for Industry Thierry Breton -. But on our terms. For the vice president Valdis Dombrovskis with responsibility for Trade, the unfair advantages granted through subsidies have long been a scourge of international competition. This is why we have prioritized cracking down on these unfair practices. The EU Parliament and the Member States will discuss the proposal that will follow the ordinary legislative procedure. At the end there will be the final text of the regulation.
The Commission carried out an analysis based on commercial data which showed that out of 5,200 products imported into the EU, there are 137 for which the EU is heavily dependent. They represent 6% of the total value of imported goods, explained Vice President Valdis Dombrovskis, with responsibility for Trade. These are mainly products in energy-intensive industries and health ecosystems (such as active pharmaceutical ingredients). And then there are products relevant to green and digital transitions, many of them from China, Vietnam and Brazil. For me, the political message that emerges from this clear analysis – underlined the vice president with responsibility for Trade -: We need to tackle today’s addictions in an efficient and targeted way. And we need to work with our like-minded partners to strengthen the resilience of our supply chains. The Commission plans to launch two industrial alliances in the digital field: one on processors and semiconductor technologies and another for industrial data, Edge and Cloud.
in the meantime Brussels has frozen the ratification of the investment agreement between the EU and China. Technical work continues but the ratification process, Dombrovskis said, cannot ignore Chinese retaliation against MEPs after European restrictions against Chinese officials for human rights violations in Xinjiang.