The EU framework for screening of foreign direct investment (FDI) has been fully operational to control actions on foreign investments. The FDI monitoring started on 11 October 2020. Over the last eighteen months following the adoption of the first EU investment screening regulation, the Commission and Member States have put in place an effective coordination framework. It will now become instrumental in preserving Europe’s strategic interests while keeping the EU market open to investment.
The EU is and will remain open to foreign investment. But this openness is not unconditional.
Valdis Dombrovskis, Executive Vice-President
Executive Vice-President Valdis Dombrovskis added: “To respond to today’s economic challenges, safeguard key European assets and protect collective security, EU Member States and the Commission need to be working closely together. If we want to achieve an open strategic autonomy, having an efficient EU-wide investment screening cooperation is essential. We are now well equipped for that.”
The FDI screening regulation adopted in March 2019. It established an EU-wide framework in which the European Commission and the Member States can coordinate their actions on foreign investments. Following the formal entry into force of the FDI Screening Regulation in April 2019, the Commission and Member States have worked on putting in place the necessary operational requirements for the full application of the Regulation starting 11 October 2020.
This has included:
Following recommendations by the Commission in March 2020 guidance, Member States have also agreed to cooperate informally on FDI screening where a foreign investment could have an effect on the EU single market.
Several Member States are also in the course of reforming their screening mechanisms, or adopting new mechanisms.
The EU is one of the world’s most open investment destinations. EU is also the main destination for foreign direct investment in the world. FDI stocks held by third country investors in the EU amounted to €6,441 billion at the end of 2017. FDI provide Europeans with 16 million direct jobs.
To protect EU strategic interest related to foreign investment, the EU regulation of March 2019:
On 25 March 2020, the Commission issued guidance to the Member States. EU called inter alia upon all Member States to set up a fully-fledged screening mechanism. They will also ensure a strong EU-wide approach to foreign investment screening at a time of public health crisis and related economic vulnerability.
President Ursula von der Leyen debates priorities ahead of hard winter at the State of the European Union #SOTEU at…
More than two million refugees have now been forced to flee their homes in Ukraine to find safety in neighbouring…
The European Commission proposed an outline of a plan to make Europe independent from Russian fossil fuels well before 2030, starting with gas, in…
In response to Russian President Putin’s unprecedented and unprovoked military attack against Ukraine, the EU is responding by adopting a…
Finish Prime Minister Sanna Marin said Russia’s invasion of Ukraine will change the debate around NATO membership within her country.…
EU leaders held a joint press conference with NATO Secretary-General sending the message that the world can see that unity…
We use cookies to ensure that we give you the best experience on our website.