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The
EU executive will present a broad document on its strategy along
with a proposed revision to its law on foreign direct investment
screening that will require all EU countries to screen and
possibly block foreign investments in the bloc if they pose a
security risk.
Screening will also extend to investments within the EU if the
investor is controlled by a foreign company, according to
documents seen by Reuters.
The plans will not name any country, but the EU has stressed
working with "reliable partners" and "de-risking", the bloc's
policy of reducing economic reliance on China, which dominates
green tech and key mineral production and which the bloc regards
with more suspicion due to its close ties to Russia.
The Commission will push for greater EU coordination of export
controls, particularly for products that could have military
applications, and more awareness of the need for security in
research into key technologies, especially if third countries
are involved.
It will also press for measures that would limit leakage of
sensitive technologies to destinations or countries "of
concern". Currently, there is no scrutiny of outbound
investment.
Putting into place more EU-wide measures will prove tricky
because export and investment controls are competences that EU
members guard as their own. There is though a growing
appreciation that the bloc needs to combine its economic weight
to compete with the likes of China and the United States.
"It's a hot potato that could take some time to go forward.
Implementation will be difficult... but there is a new
geopolitical reality," one EU diplomat said.
The EU executive launched debate on the European Union's
economic security in June, saying the COVID pandemic, Russia's
invasion of Ukraine, cyber and infrastructure attacks and
increased geopolitical tensions had exposed multiple new risks.
Part of the strategy involves bolstering EU competitiveness,
diversifying supply and export markets, boosting research and
investment in advanced semiconductors, quantum computing and
biotechnology and closer partnerships with allies.
(Reporting by Philip Blenkinsop; Editing by Nick Macfie)
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