European Commission Calls for Common Scrutiny of Foreign Direct Investments

25 September 2017
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Key takeaways

  • 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.