The New EU Screening Mechanism for Foreign Direct Investments.When the EU Takes Back Control PDF Download

Author: Loïc Carcy
Publisher:
ISBN:
Category :
Languages : en
Pages : 43

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Book Description
The recent years showed a sudden rise in foreign direct investments (FDI) in the European Union, especially from China. This fact could be anecdotical, but globalisation has created unequal positions of power on the international stage. Targeted investments in dual use technologies or strategic sectors can then give a decisive position to a state towards others andhence weaponize interdependence. By adopting the Regulation 2019/452 establishing a framework for FDI screening, the European Union gives an answer to this phenomenon and stands to protect its strategic and critical assets, even if the framework remains solely about cooperation and without giving the European Commission a veto power. Through deterrence and political action, the EU takes back control.

Author: Jacques H.J. Bourgeois
Publisher: Kluwer Law International B.V.
ISBN: 9403519215
Category : Law
Languages : en
Pages : 345

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Book Description
Foreign direct investment (FDI) has grown considerably worldwide in recent decades, alongside the no-less considerable development of international ‘supply chains’. In the European Union (EU), stock held by foreign investors exceeds EUR 6 billion, while stock held in the rest of the world by EU investors exceeds EUR 7 billion. This important book analyses the current and proposed regimes of FDI screening in the EU, highlighting mechanisms designed to enhance FDI’s advantages and minimize its drawbacks. Leading practitioners, policymakers and academics discuss the 2017 European Commission proposal on FDI screening and its resulting Regulation, focusing on such issues and topics as the following: the economics of FDI screening; rising protectionism versus further investment liberalization; how the EU framework connects with WTO rules; the dangers of foreign investment in sectors essential to public order and security; how the EU regulatory layer interacts with FDI screening at Member State level; and perceived lacunae in the way the EU addresses incoming FDI. Two detailed examples of how FDI screening works in practice are included, along with a comparative view of FDI screening in the United States. Contributions commenting specifically on the EU Regulation deal with the process of adopting the Regulation and the impact of opposing views, and how the Regulation aligns with EU policy in the areas of trade, investment and competition. Companies engaged in FDI or financial services will appreciate the detailed analysis of issues raised by this new EU policy instrument. Practitioners active in competition law, particularly M&A, will welcome this clear commentary and analysis of a crucial component of EU policy in the related areas of trade and investment, and policymakers will be encouraged to consider whether further regulatory changes are called for.

Author: Jens Velten
Publisher: Springer Nature
ISBN: 3031056035
Category : Law
Languages : en
Pages : 371

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Book Description
Foreign Direct Investment (FDI) from third countries—a desirable form of investment to boost the EU’s economy or a threat to important EU and Member State interests that must be mitigated via FDI screening mechanisms? FDI screening is a complex, controversial and highly topical subject at the intersection of law, politics and economics. This book analyzes the political rationale behind FDI screening in the EU, reveals the legal limitations of current FDI screening mechanisms based on security and public order, and identifies legislative options for broader screening mechanisms in accordance with EU and international economic law. In particular, the book identifies the four main concerns in the EU regarding FDI from third countries: distortive competition effects; the lack of reciprocity on FDI treatment between the EU and the investor’s home country; objectives of the investor or their home country that may be detrimental to EU interests; and safety of private information. On this basis, the book analyzes the Screening Regulation (Regulation (EU) 2019/452) and its newly introduced screening ground “security or public order” and asks whether this and other similar screening grounds based on the notions of security, public order and public policy can address these concerns with regard to foreign investors. Based on an analysis of WTO law and EU primary law, it argues that they cannot. Thus, the question arises: Do the EU and Member States have the flexibility to adopt broader FDI screening mechanisms? To answer this question, the book examines the freedoms of capital movement and establishment in EU primary law, as well as various sources of international economic law such as, first and foremost, the WTO’s General Agreement on Trade in Services, but also other bi- and plurilateral trade and investment treaties, including the EU-China Comprehensive Agreement on Investment. In closing, the book identifies various legislative options for broader FDI screening mechanisms—and their shortcomings.

Author: Wolf Zwartkruis
Publisher:
ISBN:
Category :
Languages : en
Pages : 25

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Book Description
In March 2019, the EU has adopted a Regulation on the screening of foreign direct investment (FDI) which will apply from 11 October 2020. Member States are allowed to use a national screening mechanism for FDI from outside the EU on grounds of widely defined public order or security, including the protection of key technologies. A cooperation mechanism is established between the Member States and the European Commission. The European Commission is authorized to give a non-binding opinion if the FDI affects Union interests. The Regulation reflects a new attitude of the EU towards FDI, triggered by geopolitical developments especially involving Chinese state-owned enterprises taking over European companies with key technologies. However, the EU's ambitions are faced by legal and practical challenges. From a legal perspective, the Regulation seems to require an extensive interpretation of the grounds for restriction of free movement as developed by the ECJ and codified in the Regulation. From a practical perspective, making coordination work will not be easy. It requires a significant effort from the Member States and the Commission, and success is by no means guaranteed.

Author: Carlos Esplugues
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Book Description
Until 2009, the legal regime of international investments in the EU was characterised by its very high degree of fragmentation due to the complex division of competences between the EU and its member states. While the former has mainly intervened to promote greater liberalisation of capital markets, member states have usually been concerned with the post-establishment aspects of international investments. Only since 2009, with the entrance into force of the Treaty of Lisbon and the consequent extension of the Common Commercial Policy (CCP) to cover FDI, has the EU has gained full competence in FDI. However, the exclusive competence of the EU as regards FDI is still under construction and its full implementation by the EU will take time. Fears about Chinese State Controlled Enterprises (SCEs) have increased steadily in Europe over time. There are growing concerns about investment projects from this and other countries, in many cases sovereign-driven investment, targeting certain strategic areas of the EU economy. This situation has supported the debate about the need for a common EU response to foreign investment in certain strategic sectors. Growing concerns about the potential control of large areas of the economy of EU member states by foreign corporations have increased the popularity in some EU countries of national screening systems to determine on the grounds of national interests what FDI is and is not acceptable: France or Germany are good examples of this move. At the same time, FDI originating from the PRC and other emerging countries has provided a forceful push for the development of a common European screening system to evaluate FDI on national security grounds. EU and national authorities are aware of the fact that foreign investors are in many cases interested in acquiring certain technology or patents rather than in running a firm. In order to prevent this situation, the Proposal for a Regulation of the European Parliament and of the Council establishing a framework for screening of foreign direct investments into the European Union was published by the European Commission on 13 September 2017. This article analyses in depth the Proposal and its relationship with the development of the EU Common Policy on Investment.

Author:
Publisher:
ISBN: 9789276433873
Category :
Languages : en
Pages : 0

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Book Description
The first Annual Report on EU FDI Screening makes clear that: y one year on the Regulation and the EU-wide cooperation mechanism have already proven their clear value; y the EU screening cooperation mechanism ensures EU-wide oversight of foreign direct investment ("FDI") into the Union, and allows the European Commission and Member States a say in that respect; and y the EU remains open to FDI, with prohibitions or conditions being the clear exception.

Author: Stephan W. Schill
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Book Description
This article analyzes the justification for the recent enactment in the European Union (EU) of a regulation establishing a framework for the screening of inward foreign direct investment (FDI). It argues that the new regulation, which constitutes a first step for a more comprehensive EU investment screening system, should not be considered to be exclusively aimed at protecting the internal market and defensive Union or Member State interests. Instead, the regulation has a tangible external economic policy justification and outlook because it can be seen as a starting point to build up, at the Union level, possibilities to limit inward FDI, which in turn can be used by the EU as a bargaining chip in its trade and investment negotiations with economically powerful countries, such as the United States or China, in order to achieve, on the basis of reciprocity, better access of EU investors to foreign markets. Paradoxically, establishing a framework for the screening of inward FDI at the Union level can therefore be seen as serving the EU's constitutionally enshrined goal to achieve further investment liberalization, rather than as shielding the internal market from undesired external influence.

Author:
Publisher:
ISBN: 9789276433453
Category :
Languages : en
Pages :

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Book Description
This Report is the first Annual Report by the European Commission regarding the application of the EU Foreign Direct Investment (FDI) Screening Regulation (the "FDI Screening Regulation", or the "Regulation"). Prior to the entry into force of the FDI Screening Regulation on 11 October 2020, there was no EU-wide formalised cooperation among Member States and the European Commission on these matters. The European Commission had no role in the screening of FDI into the EU. This Report provides transparency around the operation of FDI screening in the EU, and developments in national screening mechanisms. It contributes to the accountability of the Union in an area where, given the security interests at stake, transparency regarding individual transactions is neither possible nor appropriate. This first Annual Report, based on the reports by the 27 Member States and other sources, confirms the clear value-added of the Regulation and the cooperation mechanism.

Author: Vera Eichenauer
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Book Description
In an increasing number of sectors, concerns are rising that foreign firm participation may pose risks to public order. Many developed countries have adopted or extended their investment screening mechanisms to control inward foreign direct investment in strategically important sectors over the last years. This paper documents the development of investment screening in OECD and EU countries and provides the first discussion from an economic perspective. We review existing and propose new explanations for the adoption of investment screening. Our exploratory quantitative analysis suggests that countries with higher levels of technological development and with a stricter regulatory environment for foreign investment are more likely to introduce investment screening. Contrary to the popular wisdom, we do not find evidence that higher Chinese inward investments are associated with the implementation of investment screening.

Author: Van Bael & Bellis
Publisher: Kluwer Law International B.V.
ISBN: 9041139346
Category : Law
Languages : en
Pages : 1400

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Book Description
European trade defence law has expanded sufficiently in the last few years to require a new edition of this definitive work, last revised in 2004. As trade law practitioners and scholars have come to expect from the Brussels law firm Van Bael & Bellis, the fifth edition provides comprehensive, up-to-date analysis and critical commentary on EU trade defence instruments dealing with anti-dumping measures, countervailing measures, and safeguard measures, as well as measures under the Trade Barriers Regulation. It gives detailed attention to all EU cases and other developments at WTO level that have occurred up to December 2010. The emphasis throughout is on practical application of the rules. The authors cover every issue likely to arise in any trade defence matter, including all of the following and more: determining the dumping and injury margins; determining the subsidy margin; determining the causal link between dumping or subsidy and injury; determining if 'Union interest’ calls for intervention; differences between anti-dumping and anti-subsidy legislation; procedural rules applicable to complaints, initiation of proceedings, investigations, protective measures, reviews, and refunds; conditions for accepting an undertaking; measures that may be taken to prevent ‘circumvention’ of anti-dumping measures; rules for the determination of permissible adjustments; rules governing the standing of various interested parties before the European Courts; rules and procedure applicable to non-market economy countries; special rules on products originating in a developing country; allocation and administration of quantitative quotas; surveillance measures; and whether and to what extent safeguard measures are subject to judicial review. For each of the four major categories of trade defence instruments, chapters deal with the substantive rules of the trade defence instruments concerned, the relief that may be ordered under these instruments, and the procedural provisions. The important changes in the EU decision-making process for trade defence cases to be introduced in March 2011 are taken fully into account. An extensive battery of tables and annexes leads the practitioner to all the essential primary source material in the field. As a detailed and practical commentary on the international trade legislation of the Union as actually applied by the Union Institutions, this is the preeminent work in the field. Lawyers and academics involved with trade contracts or disputes need have no doubt that it is still without peer as a guide to EU trade defence instruments.