The Foreign Subsidies Regulation Under Scrutiny - A Legal Analysis of its Consistency with the General EU Principle of Legal Certainty
(2025) HARH13 20251Department of Business Law
- Abstract
- The Foreign Subsidies Regulation (FSR) came into effect in July 2023, with the aim of addressing foreign subsidies which potentially lead to distortions in the internal market of the European Union (EU). Since the Commission published its proposal for the Regulation, the FSR has come under consistent scrutiny from both scholars and stakeholders. In particular, scholars have noted the lack of clarity in the FSR with regard to its key definitions and procedural framework, an opinion also shared by different industry professionals. In an attempt to address these concerns, this essay aims to answer the question of ‘To what extent is the Foreign Subsidies Regulation consistent with the EU principle of legal certainty?’ Assessing the coherence... (More)
- The Foreign Subsidies Regulation (FSR) came into effect in July 2023, with the aim of addressing foreign subsidies which potentially lead to distortions in the internal market of the European Union (EU). Since the Commission published its proposal for the Regulation, the FSR has come under consistent scrutiny from both scholars and stakeholders. In particular, scholars have noted the lack of clarity in the FSR with regard to its key definitions and procedural framework, an opinion also shared by different industry professionals. In an attempt to address these concerns, this essay aims to answer the question of ‘To what extent is the Foreign Subsidies Regulation consistent with the EU principle of legal certainty?’ Assessing the coherence between the Regulation and the principle of legal certainty offers also reflections on the Regulation’s broader coherence within the constitutional framework of the EU. To fulfill this purpose, this essay follows the legal dogmatic method and begins with an analytical overview of the principle of legal certainty, defining both its scope and placement within the legal order of the EU. As a principle, legal certainty is broad and far-reaching, and often denoted as an “umbrella principle” with regard to its different sub-principles. This essay observes the traditional definition, anchored in jurisprudence from the Court of Justice of the EU and legal doctrine. Legal certainty thus entails that legislation is clear, precise, and foreseeable, with a particular emphasis on its derivative principles: legitimate expectations and non-retroactivity. A de lege lata assessment of the Foreign Subsidies Regulation is thereafter undertaken in order to define the Regulation in its current legal form, followed by an analysis of the interaction between the Regulation and the principle. This legal study therefore demonstrates that the FSR converges with the principle of legal certainty to a certain extent, recognizing that the concerns of legal uncertainty are not unfounded, and urges the Commission to produce a narrower and more definitive framework of the FSR in the upcoming 2026 Commission Guidelines. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9197460
- author
- Neubacher, Victoria LU
- supervisor
- organization
- course
- HARH13 20251
- year
- 2025
- type
- M2 - Bachelor Degree
- subject
- keywords
- European Union, Legal Certainty, Foreign Subsidies, Financial Contribution, Competition Law, Legitimate Expectations, Retroactivity, General Principles.
- language
- English
- id
- 9197460
- date added to LUP
- 2025-10-08 09:14:13
- date last changed
- 2025-10-08 09:14:13
@misc{9197460,
abstract = {{The Foreign Subsidies Regulation (FSR) came into effect in July 2023, with the aim of addressing foreign subsidies which potentially lead to distortions in the internal market of the European Union (EU). Since the Commission published its proposal for the Regulation, the FSR has come under consistent scrutiny from both scholars and stakeholders. In particular, scholars have noted the lack of clarity in the FSR with regard to its key definitions and procedural framework, an opinion also shared by different industry professionals. In an attempt to address these concerns, this essay aims to answer the question of ‘To what extent is the Foreign Subsidies Regulation consistent with the EU principle of legal certainty?’ Assessing the coherence between the Regulation and the principle of legal certainty offers also reflections on the Regulation’s broader coherence within the constitutional framework of the EU. To fulfill this purpose, this essay follows the legal dogmatic method and begins with an analytical overview of the principle of legal certainty, defining both its scope and placement within the legal order of the EU. As a principle, legal certainty is broad and far-reaching, and often denoted as an “umbrella principle” with regard to its different sub-principles. This essay observes the traditional definition, anchored in jurisprudence from the Court of Justice of the EU and legal doctrine. Legal certainty thus entails that legislation is clear, precise, and foreseeable, with a particular emphasis on its derivative principles: legitimate expectations and non-retroactivity. A de lege lata assessment of the Foreign Subsidies Regulation is thereafter undertaken in order to define the Regulation in its current legal form, followed by an analysis of the interaction between the Regulation and the principle. This legal study therefore demonstrates that the FSR converges with the principle of legal certainty to a certain extent, recognizing that the concerns of legal uncertainty are not unfounded, and urges the Commission to produce a narrower and more definitive framework of the FSR in the upcoming 2026 Commission Guidelines.}},
author = {{Neubacher, Victoria}},
language = {{eng}},
note = {{Student Paper}},
title = {{The Foreign Subsidies Regulation Under Scrutiny - A Legal Analysis of its Consistency with the General EU Principle of Legal Certainty}},
year = {{2025}},
}