Foreign direct investments screening in EU law at the time of the crisis caused by the pandemic

Abstract

The European Union is generally open to inward foreign direct investments (FDI). However, over recent years there is a rising trend in screening of inward FDI from third countries in the Member States. As a result, the Regulation (EU) 2019/452 on screening of foreign direct investments was enacted. In this paper the author, firstly, explains the reasons for a change in treatment of inward FDI from third countries within the Member States and the EU itself. The second part of the paper contains an analysis of the legal framework for FDI in the EU, in order to determine the possibility of their restrictions through national legislations. Special attention is given to the FDI-Screening Regulation and its minimum standards for national screening mechanisms. Finally, the author examines how the COVID-19 pandemic affects the treatment of FDI in the EU and concludes that the current crisis has contributed to further expanding the scope and importance of their screening and control.

Keywords

• foreign direct investment
• fdi-screening regulation (eu) 2019/452
• coronavirus (covid-19) pandemic