Europe’s framework for screening foreign direct investments becomes official

EPA-EFE//OLIVIER HOSLET

European commissioner in charge of jobs, growth, investment and competitiveness Jyrki Katainen gives a news conference on Investment Plan for Europe in Brussels

Europe’s framework for screening foreign direct investments becomes official


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The first EU-wide framework for the screening of direct foreign investment that was proposed by President Jean-Claude Juncker during the 2017 State of the Union address and adopted by the European Parliament and the Council in March 2019 entered into force on 13 April.

The framework will be instrumental in safeguarding Europe’s security and public order in relation to direct investments coming from outside the EU. “We need scrutiny over purchases by foreign companies that target Europe’s strategic assets,” said Juncker after the initiative became official.

The next steps to making the framework fully operational will be carried out the Commission and the 27 remaining members of the European Union before October 2020 and will include the setting up of a new EU-wide mechanism for cooperation that enables the members of the bloc and the Commission to  exchange information and raise concerns related to specific foreign investments.

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