EU Member States and the Commission are strengthening their cooperation on identifying and addressing investments from third countries that threaten EU security or public order, according to a Commission report published today.
The 4th Annual Report on the screening of foreign direct investments (FDI) into the Union observes that the number of notifications to the EU cooperation mechanism increased by 18% since the EU framework was put in place in 2020.
The Report highlights the increased levels of attention being paid to the risks that certain investments from third countries may present to the security or public order in the EU and/or to EU projects and programmes of common interest. In addition, it showcases the growth in the number of Member States now screening foreign investment.
The European Commission's recourse to detailed assessment has remained targeted and limited to exceptional cases: of the 488 cases notified in 2023, the vast majority (92%) were closed by the Commission within 15 days, while just 8% required a so-called second phase involving a more detailed security assessment.
The EU continues to be an open global investment environment. This is further confirmed by a positive cumulative trend of foreign investment into the EU over the past decade, the Report shows.
Screening has been particularly relevant in 2023 in the face of heightened geopolitical tensions and growing awareness of issues linked to economic security, which culminated in a Joint Communication setting out the EU's first Economic Security Strategy.
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European Union
Cooperation on screening of foreign direct investments
The European Commission aims to strengthen the EU's security.
European Commission/AICEP
17th Oct 2024
