EU trade policy operates in a framework which has tended to ignore governmental assistance to non-domestic multinational operations setting up/expanding in EU countries. At the same time, support for indigenous industries is illegal except in extreme, agreed circumstances. This differential policy has allowed certain substantial sectors of nations' economies to become foreign-owned, which can deleteriously affect a nation's ability to fund socio-economic policies. National governments and regions compete to attract non-national companies, while being unable to support domestic companies against this new competition. Along with increased market shares of foreign imports, this displacement of "national" ownership of the economy leads to an important decline in the GNP:GDP ratio, mainly because of transfer pricing and tax avoidance
