This article presents an overview of developments concerning fiscal state aid and the fiscal initiatives of the EU Code of Conduct Group, with specific emphasis on how these concepts evolve in the current geopolitical climate. Firstly, the article examines the concept of prohibited fiscal state aid, focusing on the long-established notion of state aid within the EU. It provides an overview of recent case law and other developments, including relaxations of state aid rules in response to geopolitical challenges and the emphasis on competitiveness. Secondly, the article analyses a new instrument aimed at addressing state aid provided by third countries, namely the EU Foreign Subsidies Regulation (FSR). This regulation is discussed in terms of its initial and future implications, specifically in the area of taxation. Additionally, the article explores the tax initiatives of the Code of Conduct Group, offering an overview of its impact on the tax affairs of Member States and its implications for third countries, particularly regarding the EU list of non-cooperative jurisdictions.
EC Tax Review