The Sound of Economics EU foreign direct investment, explained
Sep 17, 2025
Damien Levie, head of the EU's FDI screening unit, and Niclas Poitiers, a researcher at Bruegel, delve into the intricacies of foreign direct investment in Europe. They discuss the EU's strategies for safeguarding itself from non-EU acquisitions, particularly focusing on risks from China and the U.S. The duo explores the need for a harmonized legal framework to streamline assessments and how competition among member states complicates the screening process. The conversation highlights the balancing act between protecting strategic assets and ensuring economic competitiveness.
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Screening Must Be Country-Neutral And Case-Based
- Investors from the US lead EU M&A volumes, with China and others following, so risks are country-neutral and case-specific.
- Member states assess transactions by specific security dimensions and local sensitivities vary widely.
Assess Customers And Organize Cross-Border Talks
- When assessing dual-use targets, examine actual customers and cross-border dependencies.
- Organize informal multi-country expert discussions to converge on risks and alternatives.
Leverage EU Expertise And Improve Information Access
- Use Commission-wide expertise (DEFIS, etc.) to support national screening teams for technical cases.
- Prioritize access to cross-border information to speed decisions and reduce investigative gaps.