Framework for screening of foreign direct investments (Regulation)

Against the backdrop of increased Chinese foreign direct investments in the EU, the Commission wants to create a legal "framework" for screening foreign direct investments (FDI). The Regulation does provide clarity about the screening procedure to be used by Member States. Vague terms however carry a protectionist risk.


cep considers it important to maintain the EU’s existing openness towards FDIs. If the Commission starts off by using catch-words such "critical infrastructures", "critical technologies", "critical resources" and "sensitive information" for (permitted) restrictions on the free movement of capital, this may result in Member States misusing the resulting latitude for protectionist purposes.