Foreign Investment Screening: new European framework to enter into force in April 2019

Juncker 2019

© European Union , 2018 / Source: EC – Audiovisual Service / Photo: Etienne Ansotte

This article is brought to you in association with the European Commission.


The Council of the EU today approved a new framework to screen foreign direct investments coming into the European Union, thus concluding the legislative process on this proposal.

This means, the new framework will enter into force in April this year. Based on a Commission proposal presented by President Juncker in his 2017 State of the Union Address, the new framework will help safeguarding Europe’s security, public order and strategic interests when it comes to foreign investments into our Union.

In reaction to the Council’s decision President Jean-Claude Juncker said: “Today’s decision is a proof the EU is able to act quickly when strategic interests of our citizens and economy are at stake. With the new investment screening framework, we are now much better equipped to ensure that investments coming from countries outside the EU actually benefit our interests. I committed to work for a Europe that protects, in trade as in other areas; with this new legislation in place we are delivering on a crucial part of our promise.”

Commissioner for Trade Cecilia Malmström said: “I’m very pleased with the Council’s decision today. The EU gains a lot from foreign investment and it plays a vital role in our economies. However, we have seen a recent increase in investment in our strategic sectors and this has led to a healthy public debate on the issue. With this new framework we are in a much better position to monitor foreign investments and safeguard our interests. I now look forward to working closely with Member States to implement this new legislation effectively.

The new framework will:

  • create a cooperation mechanism where Member States and the Commission will be able to exchange information and raise concerns related to specific investments;
  • allow the Commission to issue opinions when an investment poses a threat to the security or public order of more than one Member State, or when an investment could undermine a project or programme of interest to the whole EU, such as Horizon 2020 or Galileo;
  • encourage international cooperation on investment screening, including sharing experience, best practices and information on issues of common concerns;
  • set certain requirements for Member States who wish to maintain or adopt a screening mechanism at national level. Member States also keep the last word whether a specific investment operation should be allowed or not in their territory;
  • take into account the need to operate under short business-friendly deadlines and strong confidentiality requirements.

Following the today’s approval by Member States in the Council and the positive vote by the European Parliament on 14 February, the new EU legislation establishing an EU-wide investment screening framework is now set to enter into force in the coming weeks, 20 days after publication in the Official Journal. Member States and the Commission will subsequently have 18 months to put in place the necessary arrangements for the application of this new mechanism. Preparations are already ongoing including a regular exchange of information and best practice with the Member States in the dedicated expert group established in 2017.

Background

Currently 14 Member States have national screening mechanisms in place. Although they differ in their design and scope, they share the same goal of preserving security and public order at national level. Several Member States are in the course of reforming their screening mechanisms, or adopting new ones.

The EU has one of the world’s most open investment regimes, as acknowledged by the OECD in its investment restrictiveness index. The EU is the main destination for foreign direct investment in the world: foreign direct investment stocks held by third country investors in the EU amounted to €6,295 billion at the end of 2017.

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

A third of world’s out-of-school youth live in conflict, disaster-affected countries: UNICEF report

‘More support’ vital to put Afghanistan back on a ‘positive trajectory’ – top UN officials

The green hydrogen revolution has started, and it won’t be stopped

President Michel’s MFF proposal not acceptable for Parliament

The Fourth Industrial Revolution is driving Globalization 4.0

Berlin to pay at the end for Eurozone banks’ consolidation

Can China deal with climate change without the U.S.?

Greece did it again

This new solar technology can be printed or woven into fabric

The Central Mediterranean migration route in times of COVID-19

Peace dividend palpable in South Sudan, but ‘grassroots’ are moving faster than elites, says Shearer

Cocaine and opium production worldwide hit ‘absolute record highs’ – major threat to public health says UN study

‘We need to stand up now’ for the elderly: urges UN rights expert on World Day

Health & Sustainable Development Goals: it’s about doing what we can

Do not confuse food charity with ‘right to food’, UN expert tells Italians, labelling food system exploitative

Tourism offers much to the EU gets a little

What does reimagining our energy system look like?

EU elections: The louder the threats and the doomsaying the heavier the weight of the vote

Climate adaptation could make the world more peaceful

Bring killers of journalists to justice: UN agency seeks media partners for new campaign

EU Commission spends billions without achieving targets

Sustainable Infrastructure and Connectivity in the Belt and Road Initiative (BRI): a stimulating China-EU dialogue at European Business Summit 2018

These countries create most of the world’s CO2 emissions

EU approves close to €240 million to strengthen resilience in neighbouring countries hosting Syrian refugees in light of the coronavirus pandemic

How regenerative agroforestry could solve the climate crisis

FROM THE FIELD: ‘Harvested’ rainwater saves Tanzanian students from stomach ulcers, typhoid

UN forum spotlights cities, where struggle for sustainability ‘will be won or lost’

How well you age depends on what you think of old age

Sassoli: Positive measures from Commission. Europe united in face of common challenge of COVID-19

Can autonomous cars make traffic jams a thing of the past?

Medical workforce migration in Europe – Is it really a problem?

More capital and liquidity for the banks

‘Dangerous nationalism’ seriously threatens efforts to tackle statelessness: UNHCR chief

COVID-19 Update: Amidst coronavirus bleeding, Trump’s administration is desperately looking for scapegoats

Yemen: 11 more ‘terrible, senseless’ civilian deaths reported, following attack in Sana’a – top UN official

Ukraine pays the price for lying between Russia and the EU

Tropical Cyclone Idai affects 1.5 million across Mozambique and Malawi, as UN ramps up response

Help African farmers cope with climate change threats, UN food agency urges

Towards a seamless internal EU market for industrial goods

Plastic waste from Western countries is poisoning Indonesia

What India’s route to universal health coverage can teach the world

How Japan and Singapore are reinventing old age

Deep science: what it is, and how it will shape our future

Coronavirus Global Response: European Commission pledges €300 million to Gavi

State aid: Commission approves €12 million Danish scheme to compensate damages caused by cancellations of large public events due to COVID-19 outbreak

How we can work together in the fight against NCDs

Vienna has the world’s best quality of living

Monday’s Daily Brief: the future of food and digital tech, labour justice in focus, denuclearization, and Kosovo

This app lets you plant trees to fight deforestation

‘Historic’ moment: Palestine takes reins of UN coalition of developing countries

MEPs to vote on overhaul of road transport rules in July

Hurricane Dorian: Bahamas death toll expected to rise as thousands remain missing

Afghanistan: Civilian casualties caused by IEDs has reached ‘extreme levels’, UN warns

Stepped-up efforts needed to combat pneumonia; save nearly nine million children’s lives

The built environment has a huge role to play in improving health and wellbeing

To meet development goals, UN agriculture agency ‘cannot only focus on tackling hunger anymore’

How our food system is eating away at nature, and our future

3 strategies for Africa to thrive in this new era of globalization

EU countries invested €5 trillion abroad

What are the real targets of EU’s efforts to fight tax evasion?

More Stings?

Advertising

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s