European Commission - Press releaseCommission proposes new initiatives to strengthen economic securityBrussels, 24 January 2024The Commission adopted five initiatives to strengthen the EU's economic security at a time ofgrowing geopolitical tensions and profound technological shifts. The package aims to enhance theEU's economic security while upholding the openness of trade, investment, and research for the EU'seconomy, in line with the June 2023 European Economic Security Strategy.Today's proposals are part of a broader three-pillar approach to EU economic security by promotingthe EU's competitiveness, protecting against risks and partnering with the broadest possible rangeof countries to advance shared economic security interests.The initiatives adopted today aim at:further strengthening the protection of EU security and public order by proposing improvedscreening of foreign investment into the EU;stimulating discussions and action for more European coordination in the area of exportcontrols, in full respect of existing multilateral regimes and Member States' prerogatives;consulting Member States and stakeholders to identify potential risks stemming fromoutbound investments in a narrow set of technologies;promoting further discussions on how to better support research and developmentinvolving technologies with dual-use potential;proposing that the Council recommends measures aimed at enhancing research security atnational and sector level.Future EU actions will continue to be informed by the on-going risk assessments and by strategiccoordination with Member States to reach a shared understanding of the risks that Europe faces andof the appropriate actions.Legislative proposal to strengthen foreign investment screeningForeign investments into the EU benefit the European economy. However, certain foreigninvestments may present risks to the EU's security and public order. The Commission has reviewedover 1,200 foreign direct investment (FDI) transactions notified by Member States over the past 3years under the existing FDI Screening Regulation. Building on this experience and extensiveevaluation of the functioning of the current regulation, today's proposal addresses existingshortcomings and improves the efficiency of the system by:1. ensuring that all Member States have a screening mechanism in place, with better harmonisednational rules;2. identifying minimum sectoral scope where all Member States must screen foreign investments;3. extending EU screening to investments by EU investors that are ultimately controlled byindividuals or businesses from a non-EU country.Monitoring and assessment of outbound investment risksThe EU is one of the biggest foreign investors in the world and recognises the importance of openglobal markets. It also acknowledges the growing concerns regarding outbound investments in anarrow set of advanced technologies that could enhance military and intelligence capac...
