EU Plans Tougher Oversight of Inbound Investments Under New Economic-Security Roadmap
The EU Commission has unveiled a new “Strengthening EU Economic Security” roadmap that significantly tightens scrutiny of foreign investments into the bloc.
Key developments:
Portfolio investments to face monitoring for the first time:
The EU plans to work with national supervisors to track non-controlling stakes taken by hedge funds, asset managers and other investors in sectors deemed high-risk. These investments are currently outside the EU’s FDI screening rules.
Towards a stronger, more harmonized FDI framework:
As part of the ongoing review of the 2020 regime, the Commission seeks binding obligations, expanded powers, and greater coordination among member states.
Several governments, however, resist Brussels’ push for broader coverage and want to preserve national control.
Technology-transfer conditions for sensitive sectors:
The roadmap signals the introduction of technology-transfer requirements for deals involving advanced or strategic technologies, potentially including the battery-electric vehicle sector.
Objective: ensure know-how and value creation remain within the EU and avoid creating strategic dependencies.
Use of the Foreign Subsidies Regulation for security risks:
Although designed to counter market distortions, the FSR will be deployed where foreign state support creates economic-security concerns, with the Commission pledging full use of the tool.
Overall impact:
The initiative marks a substantial tightening of the EU’s investment-screening posture, extending oversight beyond traditional FDI and linking investment controls more explicitly to economic-security priorities.
Sources :
For more information, please contact Bruno Lebrun – Partner – b.lebrun@janson.be