During the plenary session of the European Parliament in Brussels, MEPs debate plans to shield European industries weakened by the COVID-19 crisis and ways to protect strategic industries from foreign takeovers. (rec 17/06)

Brussels

debate

plenary session

VESTAGER, Margrethe (DK)

HOGAN, Phil (IE, EC)

JONGERIUS, Agnes (S&D, NL)

HANSEN, Christophe (LU, EC)

YON-COURTIN, Stéphanie (Renew, FR)

VAN SPARRENTAK, Kim (Greens/EFA, NL)

BRNJAC, Nikolina (EPP, HR)

Coronavirus outbreak (T)

economic situation in Europe (T)

Protecting European strategic sectors from foreign takeovers in a post-Covid world: extracts from the debate (rec 17/06)

Exterior views of the European Parliament, Brussels, 1 shot

SOUNDBITE (English), Nikolina BRNJAC, Croatian Presidency, Members of the European Council also welcomed the Commission guidelines on the screening of Foreign Direct Investment and called on the member state to take all the necessary measures to protect strategic assets and technology from foreign investments that could threaten legitimate public policy objective. In the words of the leaders, this will this will contribute to the EU strategic autonomy during the crisis and afterwards. It is clear that the European Union will not get out of this crisis by closing its doors to the international trade and investments.

SOUNDBITE (English), Margrethe VESTAGER, Executive Vice-President of the EC in charge of Europe fit for the Digital Age, So today, the European Commission has adopted a white paper which launches a public consultation on ideas for future rules to make sure that foreign subsidies won't undermine the level playing field in Europe's single market. Right now, as we start to rebuild from the damage that the Corona virus is doing, we need the single market more than ever.

SOUNDBITE (English), Phil HOGAN, European Commissioner for Trade, Covid 19 emergency has exposed our vulnerability in many respects. And one of them is the resilience of our strategic industries in their capacity to respond to the vital needs of the European people. We all agree that investment, including foreign direct investment, will play a central role in our economic recovery.

SOUNDBITE (English), Phil HOGAN, European Commissioner for Trade, In each member state, would foreign direct investment would also contribute to bridging the gap of domestic financing for the U.S. economic recovery and future ambitions, including greening our economy and making it fit for the digital age. In addition, foreign direct investment, turbochargers, research and innovation. Foreign owned firms account for a quarter of business in terms of R&amp;D in France, Germany and Spain.

SOUNDBITE (English), Phil HOGAN, European Commissioner for Trade, Between 30 and 50 percent in Portugal and Sweden. And more than 50 percent in Austria, Belgium and Ireland. But foreign investments should not happen at the expense of our own internal security. This is where our FDI screening regulation plays a very important role in addressing the concerns when foreign investment may put European security or public order at risk. So the commission is closely following developments in the European Union and at the end of March, we issued, as the Council president has said, a special guidance to member states on the protection of Europe's strategic assets ahead of the full application of this FDI screening regulation in October 2020.

SOUNDBITE (English), Christophe HANSEN (EPP, LU), MEP 8 - 9th parliamentary terms, But more can be done. A task force, to speak with China with one single voice on all different levels. Secondly, beefing up our FDI screening instrument. Thirdly, moving forward on the instrument for public procurement.

SOUNDBITE (Dutch), Agnes JONGERIUS (S&amp;D, NL), MEP 8 - 9th parliamentary terms, The rules on foreign investment need to be reviewed, with a clear definition of what strategic sectors are. Are those just the factories that make medical devices, for example? Or are we willing to recognize other strategic sectors and to insure that we have them on our European soil?

SOUNDBITE (French), St&#233;phanie YON-COURTIN (RE, FR), MEP 9th parliamentary term, We need to adapt our rules to the current situation in order to correct two legal gaps. First, our state aid rules do not apply to non-European operators who have full access to our single market. Finally, neither the antitrust rules nor the EU's merger control take into account foreign subsidies. Imagine, ladies and gentlemen, a football match where the rules of the foreign team would be much more easier than that of the home team. What is the point of watching the match?

SOUNDBITE (English), Kim VAN SPARRENTAK (Greens/EFA, NL), MEP 9th parliamentary term, President Trump's alleged interest to buy German biotech company Cure Vak was an eye opener. I welcome the initiatives taken by the Spanish and German governments to better screen foreign direct investment and create the possibility to veto hostile foreign takeover bids on health care companies. And the further steps taken by the Commission are also a good step in the right direction.