FDI screening
States use foreign direct investment (FDI) screening (investment screening for short) to prevent foreign investors from buying national assets at bargain prices or reducing competition, and to protect national security and critical infrastructure.[1] As of 2023, FDI screening mechanisms are employed by around 50 countries among those participating in OECD discussions on freedom of investment.[2] FDI screening methods include procedures to assess, investigate, authorise, condition, prohibit or unwind FDIs.[3]
Per state[edit]
European Union[edit]
The European Union's foreign direct investment screening framework is defined in its FDI screening Regulation.
The Regulation applies in all member states directly. It does not currently harmonise the FDI screening procedures of the EU member states; they may conduct FDI screening as they wish. However, they must make their screening policy transparent by notifying the European Commission and the other member states. This is to ensure that the FDI screenings operate fast, yet do not discriminate between different non-EU countries and do not disclose confidential and commercially sensitive information.References[edit]
- ^ Evenett, Simon J. (May 2021). "What Caused The Resurgence In FDI Screening?" (PDF). SUERF Policy Notes (240).
- ^ OECD (2023). "Investment policy developments in 61 economies between 16 October 2021 and 15 March 2023" (PDF). p. 9.
At present, over 80% of the 61 economies that participate in the FOI Roundtables have some instruments in place to manage security implications of foreign investments.
- ^ "Screening framework for foreign direct investments | EUR-Lex". eur-lex.europa.eu. Retrieved 2024-01-24.