Thu. Sep 21st, 2023

The IA underpinning the proposal to tackle foreign subsidies is based on solid internal and external research, which compensates an admitted lack of data. It is transparent about methods, underlying assumptions and certain limitations.

The intervention logic of the IA is clear, even if the complex set-up of the policy options and their assessment could have been more structured and coherent. The IA does not present operational objectives and few, yet pertinent, monitoring provisions.

While the mostly qualitative assessment is thorough and contains selective quantitative information, total cost and benefits could not be estimated. Potential negative effects in case of a significant drop of foreign investments, for instance on employment or prices, could have been addressed in more detail.

© European Union, 2021 – EP

Source: Briefing – Tackling distortions of foreign subsidies – PE 694.218 – Committee on International Trade

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