"Significant bureaucracy and legal uncertainty loom"
The EU-Commission wants to take tougher action with a Regulation against subsidies that distort competition on the Internal Market. Ulrich Ackermann, Managing Director of VDMA's Foreign Trade Department, says:
“In principle, it is right that the EU-Commission is taking action now against subsidised products and other subsidised economic activities of third countries in the EU's Internal Market. We have been calling for this for a long time. Because such subsidies also distort production costs in the machinery sector and have negative effects on competition in Europe. However, the EU-Commission's proposal for a Regulation on foreign subsidies that distort the Internal Market, which was presented today, does not meet our expectations. The proposed Regulation is very complex and there is a risk that its implementation will lead to considerable additional bureaucracy and legal uncertainty for our member companies.