The EU Anti-coercion Instrument Proposal: Update on the Position of the European Parliament and the Council
On 8 December 2021, the European Commission published its Proposal for a Regulation on the protection of the European Union and its Member States from economic coercion by third countries. The aim of this new instrument is to effectively protect the European Union and its Member States from coercive third-country measures affecting trade and investment (see also our Client Alert of 9 December 2021). Although the Anti-coercion Instrument is primarily designed to end economic coercive action through dialogue and engagement, it also envisages - as a last resort - that the Commission adopts necessary "response measures". Those response measures can take the form of a wide range of restrictions related to trade, investment and funding (Annex I to the Proposal).