The European Parliament, the Council and the Commission reached a political agreement on an EU framework for screening of foreign direct investment.
The package agreed will ensure that the EU and its Member States are equipped to protect their essential interests while maintaining one of the most open investment regimes in the world.
President of the European Commission, Jean-Claude Juncker said: “Europe must always defend its strategic interests and that is precisely what this new framework will help us to do. This is what I mean when I say that we are not naïve free traders.“
Commissioner for Trade Cecilia Malmström said: “This is an important milestone in the process we initiated only a year ago to protect critical technology and infrastructure in Europe. In an increasingly interconnected and interdependent world, we need means to protect our collective security while keeping Europe open for business. I count on the European Parliament and Member States to swiftly approve the investment screening mechanisms agreed today.”
The new European framework for screening of foreign direct investment creates a cooperation mechanism where Member States and the Commission will be able to exchange information and raise specific concerns; allows the Commission to issue opinions in cases concerning several Member States, or a project of interest to the whole EU; encourages sharing experience, best practices and information regarding investment trends. The new framework will not affect the Member States’ ability to maintain their existing review mechanisms. The two co-legislators have now to give the final greenlight to the proposal so that it can enter into force.
