Vlog: EU’s new foreign subsidy proposal likely to invoke new wave of protectionism

_ Eurasian Studies. Munich, 16 July 2020.

By 2021, the European Commission plans to implement a new legal instrument to redress potential unfair competitive advantages, which foreign companies might have on the single market through receiving foreign state subsidies. The initiative came mainly over concerns that Chinese state-backed enterprises could outcompete and/or buy out European businesses and thus pose a threat to European economic sovereignty, values, and security. Although the initiative surely has some merit to it, there remain important issues to be considered, says economist Yuri Kofner.

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