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European Commission publishes proposal for a EU-wide framework for screening of foreign direct investment

  • 15/09/2017
  • News

On 13 September 2017, the European Commission published the Proposal for a Regulation of the European Parliament and of the Council establishing a framework for screening of foreign direct investments into the European Union.

Currently, approximately half of the EU Member States screen foreign direct investment. In light of the significant increase in Chinese foreign direct investment into the European Union in recent years and the perceived regulatory gap with respect to the scrutiny of foreign direct investment in the European Union, certain EU Member States are increasingly concerned about the need to strengthen the European Union’s capacity to defend its strategic industrial expertise. In February this year, the German, French and Italian ministers of economy formally called on EU Commissioner for Trade Cecilia Malmström to take action to that effect.

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