Managing Foreign Subsidies in the EU

In this paper, we describe the European Union’s approach to control harmful effects of foreign subsidies on the EU internal market. The EU policy in this area is set out mainly in the EU State aid rules. The purpose has been to identify and avoid harmful support measures while allowing governments to continue to use State aid to facilitate the development of certain economic activities. The effect of subsidies has – to a limited extent – also played a role in the EU antitrust and merge