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European Commission Calls for Common Scrutiny of Foreign Direct Investments
25 September 2017
View Client Update
The European Commission has proposed a common framework to vet foreign takeovers and investments into the EU. Less than half of the EU’s Member States currently have a formal foreign investment review mechanism in place, and those are not applied consistently.
The ultimate decision on whether or not to approve an investment will remain with Member States. However, the Commission will have new powers of oversight and influence over those processes.
In parallel, the Commission will start a detailed analysis of foreign direct investment flows into the EU to help identify joint strategic concerns and solutions in the area of foreign direct investment.
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