|Author (Corporate)||European Commission|
|Series Details||COM (2017) 487|
Legislative proposal - published by the European Commission in September 2017 - setting up a framework for screening foreign direct investment (FDI) into the European Union.
The proposed Regulation includes:
This draft law responds to concerns about foreign investors, notably state-owned enterprises, taking over European companies with key technologies for strategic reasons, in a scenario where EU investors often do not enjoy the same rights to invest in the country from which the investment originates. While the proposed Regulation went through the ordinary legislative procedure, the European Commission decided to immediately proceed with two additional measures: setting up a coordination group on inward foreign direct investment, chaired by the Commission and comprising representatives from Member States; conducting an in-depth analysis of foreign direct investment flows into the European Union.
This proposal was adopted by the Commission on 13 September 2017, alongside the accompanying Communication on 'Welcoming Foreign Direct Investment while Protecting Essential Interests'. Following the adoption of their respective negotiating positions, the European Parliament and the Council of the European Union reached an informal agreement on a compromise text on 20 November 2018. The European Parliament formally endorsed it on 14 February 2019.
|Subject Categories||Business and Industry, Trade|
|Keywords||Foreign Direct Investment [FDI]
|International Organisations||European Union [EU]|