During the plenary session (11-14 February 2019) of the European Parliament in Strasbourg, MEPs debate on setting up the first EU-level tool to screen foreign direct investment on grounds of security to protect strategic sectors such as water, transport, or communications, and technologies, including semiconductors, artificial intelligence, and robotics.

Framework for screening of foreign direct investments into the European Union: extracts from the debate

SOUNDBITE (French), Franck PROUST (EPP, FR), Rapporteur, And this European mechanism will be a strong mechanism it is a complement to national screening systems. But to quote another Proust we were in search of lost time, our major partners all already have a mechanism. The United States have the CFR US since 1975. And so this mechanism is the symbol of the awareness of Europeans becoming aware that the world isn't just full of investors who are full of good intentions. That was very naive. But the member states now can no longer close our eyes to foreign investments and strange investments in Europe and say well, we didn't know.

SOUNDBITE (French), Franck PROUST (EPP, FR), Rapporteur,We didn't know that there was an entire European value chain that had been acquired by one single foreign state enterprise. We didn't know that dual use technology civil and military and had been acquired by a foreign army. And we didn't know that the ultimate investor hiding behind a traditional investor whose aim was to sabotage a European program. Now not knowing is a fault when part sometimes the proof of this fear is part and parcel of the economic political planning of certain foreign powers.

SOUNDBITE (French), Franck PROUST (EPP, FR), Rapporteur, And it is an opportunity that we do have to seize for public order and the security of Europeans because we are in the single market. But not only in a market. And we need this instrument so that we can be guard against the butterfly effect of investment, and not to talk about this race to investment of the United States and China. Europe cannot be a supermarket simply a shop window. Yes we've come a long way and in record time for new regulation we have got this agreement. And now we can say that we do know where we're going towards a Europe that stands up for its interests and defends them both offensive and defensive.

SOUNDBITE (German), Reinhard B&#220;TIKOFER (Greens/EFA, DE), ITRE, This is not a form of protectionism. That's not what we want but nor are we blue eyed and naive. It's not an industrial policy instrument. No, it's an instrument in order to provide for public order and for security and safety.

SOUNDBITE (English), Cecilia MALMSTR&#214;M, Member of the EC in charge of Trade, We are open in the European Union to foreign investment. That is and has been and will be fundamental to growth jobs etc. but a condition for being open is of course to be able to trust that foreign investors will not threaten our security and our strategic interests.

SOUNDBITE (English), Cecilia MALMSTR&Ouml;M, Member of the EC in charge of Trade,  Thanks to the new regulation member states and the commission will have a much better overview of foreign investment in the EU. Moreover for the first time they will have the possibility to collectively assess potential risks to their security and public order. The cooperation mechanism has been reinforced in many aspects. For instance with the possibility for a member states to proactively seek opinions or comments.

Framework for screening of foreign direct investments into the European Union: extracts from the debate

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