Europe: Foreign Direct Investment Under Scrutiny

Responding to recent calls from France, Germany and other Member States for stricter controls on foreign takeovers, Jean-Claude Juncker, the President of the European Commission, has proposed a new EU framework for the screening of foreign direct investment. Although the proposed Regulation comes in large part in reaction to the rise in Chinese investment into the EU in recent years, its impact might be felt more broadly.

In this snapshot, we look at what drove the Commission to propose the foreign investment screening instrument and what companies can expect from the discussions in Brussels.

Claire Harris and John Clancy are Senior Advisors; Jan Hückmann and Martin Zech are Senior Consultants at FTI Consulting in Brussels.

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