YEREVAN, June 29. /ARKA/. The European Commission (EC) announced on Friday the publication of updated rules for screening foreign investments aimed at improving the identification and mitigation of risks to the security of the European Union (EU).
The EC's communiqué states that the updated rules introduce “mandatory screening mechanisms in all member states, ensuring a more reliable approach to the oversight of foreign investments.” The scope of the screenings has been expanded to include, among other things, indirect foreign investments.
The screenings apply to EU investors “who are ultimately controlled by natural or legal persons from a non-EU country.” The rules establish a minimum level of national screening mechanisms that cover “investments in sensitive and strategic areas such as dual-use goods, critical technologies, critical raw materials, financial services, transport, energy, and election infrastructure.”
“The revised foreign investment screening system is another important step in the EU's efforts to further strengthen our economic security toolkit. It allows the EU and its member states to identify and mitigate risks associated with foreign investments that may affect security or public order, while also ensuring the protection of critical technologies, infrastructure, and supply chain resilience,” said EC member for trade and economic security Maroš Šefčovič.
At the same time, he noted that the updated system “ensures the openness of the European Union to foreign investments and helps keep it a safe and attractive place for business.”
