In a letter to European Commissioner for Trade Cecilia Malmström seen by EUROPE on Wednesday 15 February, Germany's Minister for the Economy, Brigitte Zypries, and her French and Italian counterparts, Michel Sapin and Carlo Calenda, ask for more protection against third country investments in strategic sectors, and for reciprocity in access to foreign markets.
"In the last few years, non-EU investors have taken over more and more European companies with key technological competences for strategic reasons. At the same time, European investors do not enjoy the same rights in the respective countries of origin as these non-EU investors in the investment-friendly EU", the three ministers state.
"We are worried about the lack of reciprocity and about a possible sell-out of European expertise, which we are currently unable to combat with effective instruments", they add, proposing some approaches for a response in a common paper. For this reason, the German, French and Italian governments have reflected on possibilities for a response at the EU level and have elaborated a common paper.
Berlin, Paris and Rome advocate a principle of reciprocity for authorising foreign investments in the EU from countries whose market access is limited (by requiring, for example, a partnership with an operator of the country) or banned in certain sectors, or if the foreign investments planned relate to a state policy or are facilitated by state aid.
"The same concerns prevail regarding public procurement where EU companies still face great difficulties to benefit from a fair access and equitable treatment abroad in a number of countries, whereas the EU market is open to competitors", the letter concludes.
Responding to this letter, the European Commission said it is ready to hold discussions. "The Commission fully shares the concern regarding the limited access that EU companies have to third-countries' procurement markets as compared to the openness of the EU procurement market. An agreement needs to be reached at EU level about how to tackle theses imbalances", a Commission spokesperson, Daniel Rosario, stated, saying that in January 2016 the Commission had already tabled a revised proposal on the mechanism for ensuring reciprocity from third countries on public procurement access (see EUROPE 11479).
In addition, the EU is involved in "important" negotiations for free trade and investment agreements "with the aim of opening up new markets and thus ensuring a level-playing field", Rosario added. "The ideas of the German, French and Italian ministers merit being discussed", he assured, but warning that "any initiative at EU level will have to be compatible with EU treaties and the EU's international commitments". (Original version in French by Emmanuel Hagry)