Foreign Subsidies Regulation (FSR) Guidelines
INITIATIVE See full glossary → External Strategy, Economic Security & Democratic Resilience See full glossary →
The Commission will adopt the guidelines to clarify core concepts (e.g. how distortive effects will be assessed, how any benefits are balanced, and when the Commission may call in below-threshold mergers that threaten a level playing field). Enforcement will be more proactive, with ex officio investigations targeted at strategic sectors to deter subsidy-fuelled distortions before they scale. In parallel, the EU’s defensive toolbox will be tightened: the Commission stands ready to adjust tariffs within WTO-bound ceilings (including for environmental protection), use trade-defence instruments faster (shorter timelines, greater ex officio use), and explore further reforms of the TDI rulebook, ensuring open markets are matched by firm action against unfair subsidisation.