The package aims at enhancing the EU's economic security while upholding the openness of trade, investment and research for the bloc’s economy, in line with the June 2023 European Economic Security Strategy, the Commission said in a release.

The proposals are part of a broader three-pillar approach to EU economic security by promoting the EU's competitiveness, protecting against risks and partnering with the broadest possible range of countries to advance shared economic security interests.

The initiatives aim at further strengthening the protection of EU security and public order by proposing improved screening of foreign investment into the EU and stimulating discussions and action for more European coordination in the area of export controls, in full respect of existing multilateral regimes and member states' prerogatives.

These also aim at consulting with member states and stakeholders to identify potential risks stemming from outbound investments in a narrow set of technologies and proposing that the European Council recommends measures aimed at enhancing research security at national and sector level.

Future EU actions will continue to be informed by the on-going risk assessments and by strategic coordination with member states to reach a shared understanding of the risks that Europe faces and of the appropriate actions, the release noted.

The proposal ensures that all member states have a screening mechanism in place for foreign investments, with better harmonised national rules. It allows extending EU screening to investments by EU investors that are ultimately controlled by individuals or businesses from a non-EU country.

The Commission's white paper on outbound investments has proposed a step-by-step analysis of outbound investments to understand potential risks linked to them.

Fibre2Fashion News Desk (DS)