European institutions are expected to kick off their negotiations on the review of the screening of foreign direct investment (FDI) in May, with the legislative work expected to be concluded this year, the EU’s trade chief Maroš Šefčovič said on Thursday.
The European Commission’s proposal to revamp its rules on screening FDI mostly aims at harmonizing the bloc’s fragmented system of screening of foreign investments across member states. This regulation is one of the key planks of the Commission’s broader economic security strategy that seeks to bolster Europe against the risks of growing geopolitical tensions.
“I look forward to trilogues starting in May, and I see no reason for us not to complete this work by the end of this year,” Šefčovič told trade lawmakers, referring to the negotiations with the European Parliament and the Council of the EU.
In the talks, the scope of the sectors required to be screened as well as the role of the European Commission in screening the investments are expected to be the most prickly issues.
While capitals removed a list of critical technologies such as AI and semiconductors that would be subject to mandatory screening, the Parliament has added more areas of screening in its draft report.
Neither the Council of the EU nor the Parliament has yet finalized their positions ahead of the negotiations. The Parliament is expected to do so during a vote on April 7 or 8.
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