CFIS 24 Background Paper on Panel: FDI Screening Mechanisms in the EU and its Member States – FDI and EU Strategic Autonomy

Prepared by Marcelo Sequeira de Sousa, CFIS 24 Programme Sherpa and Junior Associate at BLOMSTEIN

The purpose of this Paper is to set the scene and provide the state of play and background information to the participants in Panel 3.

Balancing Growth and Strategic Protection: How can the EU effectively balance its desire to remain an attractive destination for global investment while simultaneously protecting its strategic interests and critical infrastructure? This involves navigating the complex interplay between economic growth and national security concerns.

Sector-Focused Agenda: The EU’s pursuit of economic independence and technological sovereignty is becoming a central pillar of its strategic autonomy agenda. This focus on sectors such as technology, healthcare, and energy is not only shaping FDI policies but also creating new opportunities for investors who align with the EU’s priorities, as evidenced by initiatives like the European Chips Act and the Digital Europe Programme.

EU-Wide Security Concept:  There is a significant transition occurring from individual Member States’ national security concerns to a broader, EU-wide concept of security. The European Commission is increasingly positioning itself as the guardian of the EU’s economic strategic autonomy, which is reshaping the current EU FDI regime. This shift is likely to lead to more harmonized and stringent FDI screening processes across the EU.