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Straightforward guide to foreign direct investments by the EU

Coordinating national screening processes in critical sectors amidst external investors seeking acquisition: A challenge for the EU

Explaining Foreign Direct Investment in the EU Context
Explaining Foreign Direct Investment in the EU Context

Straightforward guide to foreign direct investments by the EU

On the 18th of September, 2025, an important event titled "Rethinking global supply chains: insights for a changing world" is scheduled to take place. This event is being organized by an unspecified entity and is funded by the European Union's Horizon Europe research and innovation programme.

The discussion at the event will focus on the EU's efforts to reduce risks, track projects, and coordinate national procedures related to non-EU investments in companies and critical infrastructure. The EU is particularly concerned with investments from countries such as China, the U.S., and others.

The European Commission, member states, and the European Parliament are involved in ongoing talks regarding how to revise the rules regarding non-EU investments. As part of these discussions, the EU is considering the implementation of a 28th regime, or pan-EU legal framework, to address bureaucratic backlogs.

One potential solution that may be discussed is the implementation of a unified, EU-wide mandatory investment screening mechanism. This mechanism would cover critical sectors such as transport, technology, critical infrastructure, media, election infrastructure, critical raw materials, agriculture, semiconductors, artificial intelligence, military goods, and dual-use goods. Member states retain the right to include additional sectors in their national screening systems.

The decision on significant investments from these countries in EU companies or critical infrastructures would be made through this EU-wide mechanism, which is coordinated by each EU member state but aligned with EU regulations under the EU Screening Regulation.

A related project, "Rethinking Global Supply Chains: measurement, impact and policy" (RETHINK-GSC), has also received funding from the European Union's Horizon Europe research and innovation programme. The project aims to address the issue of deciding which deals are important for the EU.

The grant agreement number for the RETHINK-GSC project is 101061123. The Sound of Economics will feature a discussion on non-EU investments, featuring Rebecca Christie, Niclas Poitiers, and Damien Levie, head of the FDI screening unit in the European Commission's Directorate-General for Trade and Economic Security.

This event and the related discussions highlight the stakes involved in these discussions, as the EU seeks to protect itself from investments that could pose a risk to its security and economic stability. The event "Rethinking global supply chains: insights for a changing world" is open to the public and can be found on the event's website.

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