EU consultation: Monitoring and risk assessment of outbound investment

The European Commission has issued a call for all stakeholders with experience of EU outbound investment to share their ‘views on its proposal for targeted fact-finding and analysis of selected outbound investments from the EU to determine the nature and extent of risks related to such investments and the need for policy responses.’

All stakeholders ‘with experience in the field of EU outbound investment and an interest in the EU’s initiative on the matter – such as businesses and their associations, law firms and consultants, or EU Member States’ public authorities’ are invited to contribute, the Commission said, 24 January.

Think-tanks, academic and research institutions, NGOs, civil society organisations, international organisations, and governments of non-EU countries are equally welcome to send in comments, it said.

A white paper by the Commission, published 24 January, said: ‘The EU already restricts the export of dual-use technologies. However, there are growing concerns that some sensitive technologies and know-how could end up in the wrong hands as a result of outbound investment transactions that are not currently subject to control mechanisms.’

It added: ‘A similar link exists between outbound investment and inbound foreign direct investment (FDI). The EU already has a framework to screen inbound FDI, notably, in sensitive technologies. While an inbound investment into EU companies holding sensitive technologies by risky investors could be restricted or prohibited by measures imposed under an FDI screening regime, there is a potential risk that the targeted EU companies could make those technologies available to the same investors by means of outbound investments.’

The Commission proposes first to monitor certain past and current outbound investments, during a monitoring phase that should last 12 months. Then, based on the outcome of the monitoring, it ‘proposes to carry out an assessment of risks linked to such monitored transactions, with a view to informing the policy debate on the need to propose any policy responses.’

The deadline to respond is 17 April and contributed comments will be made available to the public.

https://policy.trade.ec.europa.eu/consultations/monitoring-and-risk-assessment-outboundinvestment_en