The proposal for a regulation on screening foreign direct investment (FDI) was one of the key items on the Trade Council's agenda in Brussels on Friday 9 November (see other articles).
Earlier in the week, the inter-institutional negotiations enabled substantial progress on this politically sensitive file, particularly on the third cluster (the most politically delicate) of the negotiations (see EUROPE 12131).
According to sources close to the file, the meeting enabled major progress, especially on the role of the European Commission – when it can give an opinion, the structure and architecture of the mechanism. An agreement was also reached on the annex containing the European plans and programmes, and a (non-exhaustive) list of screening factors.
According to a source close to the file, this list will include critical infrastructure, energy, space, water control, transport, key technologies, and food security and other essential supplies.
"I am positively surprised at the constructive discussions we have had from the outset with our trilogue partners. I have the impression that we are all aware of the need to reach an agreement as quickly as possible", the rapporteur on this file, Franck Proust (EPP, France), told EUROPE.
"My impression was not belied at the meeting on Tuesday. Of course there are still important elements to be discussed, but I remain confident", he said.
Indeed, still remaining on the negotiation table are the most sensitive subjects, which will be addressed at the next meeting on 20 November. These subjects include the entry into force of the regulation, the formalisation of the coordination group of member state experts – a group which will be able, for example, to amend the list of strategic sectors – and the deadlines for implementing the regulation.
In this final stretch of the talks, the 'third scenario proposed by the European Parliament will be addressed, which would enjoin an FDI-recipient country to talk to its European partners when at least a third of the member states deem their national security to be threatened.
But according to Council sources, this 'cherry on the cake' requested by the European Parliament has little chance of being retained by the member states.
A second date is planned on 27 November if the talks do not come to an end beforehand.
A first step
"We need to see this perhaps as a first step", Jean-Baptiste Lemoyne, France's Secretary of State for Trade, said when he arrived in Brussels. He added that "there are a number of nations in the world that have understood what this meant (...) being concerned about this regulation". "We can see that this regulation is a first interesting step because it enables coordination and mutual information, and there is also legislation, at national level, that enables us to go further", he continued.
Recent progress tends to prove this strategy of small steps right. Hungary recently created an investment protection mechanism, and other member states that still do not have this type of system acknowledged they would "think about it".
Italians in awkward position
The Italian position on this regulation has evolved since the new government coalition took up its duties, abandoning the role of initiator that Rome had taken on with Berlin and Paris in favour of a more sovereignist position.
This change of direction should not however have a determining role on a file on which the decision of the Council is taken by qualified majority. (Original version in French by Hermine Donceel)