The governments of Germany, France and Italy have welcomed the proposal for a regulation tabled by the Commission on Wednesday 13 September to screen foreign investment in strategic EU sectors, hailing it as “an important step towards level playing field in Europe and better protection in case of corporate acquisitions” by third countries in the EU.
“We are highly interested in foreign investment when it takes place under market conditions. But we need to prevent other states from taking advantage of our openness in order to push through their industrial policy interests”, said German Economic Affairs Minister Brigitte Zypries. “The proposals ensure fair competition in the EU and also offer better protection against company acquisitions that do not comply with market rules. In future, the member states will have clear powers to intervene in the case of state-controlled direct investment in European companies”, she added.
“Foreign investments are essential for economic growth ... but the EU must be ready to stand up for its interests and protect itself – in particular when competition is not fair and we are dealing with important national strategic interests”, stated French Economy Minister Bruno Le Maire. The proposal “is an important first step towards fairer competition and a level playing field at a global level. It needs to be complemented by further work to ensure reciprocity in public procurement and more widely in all our trade relationships”, he went on.
“We are by far the largest destination of Foreign Direct Investments, we are proud of it and we want to consolidate this leadership. In the meantime, we realise that more and more strategic European assets could be achieved by third countries through unfair means, especially in terms of financial resources. We have to ensure a level playing field for our industry to compete at global level”, said Italian Economic Development Minister Carlo Calenda, calling on the EU to come to agreement swiftly on the new system of rules.
In February, Germany, France and Italy launched the debate in the EU on establishing a legal base in European law that would allow EU member states to intervene in specific cases of foreign investment in strategic assets, in particular when this investment comes from state controlled or financed companies (see EUROPE 11726 and 11844).
“If a foreign, state-owned, company wants to purchase a European harbour, part of our energy infrastructure or a defence technology firm, this should only happen in transparency, with scrutiny and debate. It is a political responsibility to know what is going on in our own backyard so that we can protect our collective security if needed”, stated Commission President Jean-Claude Juncker with regard to this keenly awaited proposal in his speech on the state of the Union on Wednesday. (Original version in French by Emmanuel Hagry)