© Reuters. FILE PHOTO: The European Union flags flutter forward of the gasoline talks between the EU, Russia and Ukraine on the EU Fee headquarters in Brussels, Belgium September 19, 2019. REUTERS/Yves Herman
By Foo Yun Chee
BRUSSELS (Reuters) – EU nations and lawmakers will on Thursday kick off discussions on a European Fee plan focusing on overseas state-backed consumers of European firms amid fears of a Chinese language shopping for spree.
The 27-country bloc fears Chinese language firms strengthened with state funding could purchase European corporations whose share costs have been dented by the COVID-19 pandemic.
The Fee, which introduced the proposal final 12 months, stated the measure takes purpose at subsidies which hurt competitors.
The measure additionally covers bids in public tenders with the intention to forestall overseas subsidies used to develop market share or underbid European rivals to achieve entry to strategically necessary markets or essential infrastructure.
Each EU nations and EU lawmakers agreed on their frequent positions on Wednesday, forward of the negotiations to thrash out the ultimate particulars of the proposal earlier than it will possibly develop into regulation.
EU nations nevertheless need the principles to use to takeovers of EU firms with a turnover of 600 million euros ($633 million) and for procurement contracts above 300 million euros versus the Fee’s proposed 500 million euros and 250 million euros respectively.
EU lawmakers alternatively wish to set the bar decrease to cowl extra acquisitions and public tenders.
EU nations additionally wish to shorten to 5 years the interval throughout which the Fee can retrospectively examine subsidies granted earlier than the regulation enters into power.
“With this regulation we will lastly finish the longstanding regulatory free-for-all that pits European firms, topic to rigorous state help management, towards overseas firms that may profit from distortive overseas subsidies on the interior market,” EU lawmaker Christophe Hansen, who’s steering the controversy, stated in an announcement.
($1 = 0.9486 euros)
