EU Reaches Deal to Heighten Foreign Investment Screening
Summarize this article with:
Article content(Bloomberg) — The European Union reached a preliminary agreement to strengthen its screening of foreign direct investments, the latest move meant to help shield the local economy from China and the US.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe deal, reached on Thursday, will give the EU more power to review and intervene in foreign investments that affect public order and security. It will also set a baseline EU standard for reviewing these investments, which does not currently exist. Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article content“We achieved a balanced and proportionate framework, focused on the most sensitive technologies and infrastructures,” said Morten Bodskov, Denmark’s minister for industry, business and financial affairs, whose country is chairing the EU’s rotating presidency. Article contentArticle contentNegotiators from the Council of the EU, representing the member states, and the European Parliament finalized the agreement on Thursday morning. Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentThe stricter guidelines are part of the EU’s work to protect its economy as Europe grapples with US President Donald Trump’s tariff war and China’s restrictions on the critical materials that fuel industrial production. Article contentEarlier this month, the EU issued its first economic security doctrine, which stressed that the bloc must ensure inbound investments don’t expose critical sectors to hostile ownership. It also insisted such investments should bring added value to the EU and not hollow out the bloc’s technological edge. Article contentThe new screening rules update a mechanism first implemented in 2020. They set a minimum scope for review that includes so-called dual-use items, which can have civilian and military uses. The scope also covers military equipment and critical technologies such as artificial intelligence and semiconductors. Article contentAdditionally, the scope includes critical entities in energy, transport and digital infrastructure, electoral infrastructure, and some financial entities, such as central securities depositories. Article contentNegotiators excluded critical medicines and limited the types of financial services under the scope.Article contentThe updated rulebook, which still needs formal ratification, will apply 18 months after the regulation enters into force.Article contentTrending David Rosenberg: 10 reasons why we're now bullish on the Canadian dollar for the first time in many years News Posthaste: A market phenomenon not seen in 50 years is raising red flags at the world's central bank News This generation of Canadians is rapidly increasing its wealth and may soon unseat the boomers Wealth Bank of Canada tempers expectations for any moves on rates in 2026, economists say Economy This Canadian mine is as big as a city. It has a basketball court and its chefs serve 4,000 meals daily Commodities Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. David Rosenberg: 10 reasons why we're now bullish on the Canadian dollar for the first time in many years News Posthaste: A market phenomenon not seen in 50 years is raising red flags at the world's central bank News This generation of Canadians is rapidly increasing its wealth and may soon unseat the boomers Wealth Bank of Canada tempers expectations for any moves on rates in 2026, economists say Economy This Canadian mine is as big as a city. It has a basketball court and its chefs serve 4,000 meals daily Commodities