In January 2024, the European Commission published a ‘white paper’ on outbound investments, in which it suggested collecting data on outbound flows before potentially making proposals. As part of its public consultation, it received around 15 opinions from business associations. They are unanimous: monitoring outbound investments is anything but beneficial.
From Finland to France via Austria, business representatives from a wide range of sectors are calling on the Commission to carry out in-depth consultations before deciding on such a measure, which they feel is unnecessary. It “would put a chilling effect on European investments abroad, and would thus threaten European economic growth It risks restricting the free movement of investment and slowing down European investment abroad, which would have a negative impact on European economic growth”, says the Bitkom association, which represents digital companies in Germany.
The authors of the opinions received by the Commission consider that the framework for monitoring exports of dual-use items is sufficient to ensure the EU’s economic security. “Current export control regimes take into account the transfer of technology, and thus should be sufficiently effective in preventing any technology outflows in safety-critical areas”, insists the German business representative, BDI.
The Commission also plans to present a recommendation on export controls in the summer of 2024, the main aim of which is to further coordinate the scope of controls carried out by the Member States.
As far as outbound investments are concerned, the Estonian communications agency Media Scope Group considers it inappropriate to define investment too broadly. This “could create an environment in which EU investors might prefer to change their residence or establishment and choose a jurisdiction that offers a more friendly business and investment landscape”.
In its ‘white paper’, the Commission suggests that Member States monitor direct outbound investments of all types (acquisitions, mergers, venture capital, etc.) as part of the information collection exercise. It excludes only portfolio investments, the sole purpose of which is to generate income. It invites stakeholders to express their views on this broader scope, as well as on another option: focusing on sensitive technologies (advanced semiconductors, artificial intelligence, quantum computing, biotechnologies).
See the white paper on outbound investments: https://aeur.eu/f/ajv (Original version in French by Léa Marchal)