Brussels calls for greater scrutiny of European investments abroad in key technologies

The European Commission calls on Member States to strengthen control over European investments in foreign markets. Brussels has published a recommendation this Wednesday in which it asks governments for greater scrutiny of the investments their companies make in non-EU countries, especially those linked to microchips, artificial intelligence and quantum technologies.

Economic security is one of the axes that will underpin the second term, which is beginning, of Ursula von der Leyen. Therefore, this recommendation from the Community Executive opens the door to taking complementary actions if necessary, that is, if risks to the community’s economic security are identified with these investments abroad.

One of the pillars that the German company was laying down for this new legislature is to reduce dependencies on third countries in the supply chain. An idea that is now being transferred to greater control over the investments that European companies make abroad and that is part of the bloc’s Economic Security Strategy.

“Current geopolitics requires us to have a deeper understanding of potential risks. Assessing EU outbound investment in key technological areas will allow us to have a clearer idea of ​​the potential threats we face,” he contextualized. Commissioner for Trade and Economic Security, Maroš Šef?ovi?.

With this movement, Brussels lays the foundations to demand that companies invest in the community space. The idea is to prevent key links in the supply chain of strategic sectors from settling abroad and, therefore, from being subject to interference from third countries or putting supply in key sectors at risk.

This is how the European Commission learns the lesson of what happened during the coronavirus pandemic. The automobile production chain was forced to paralyze its activity due to the break in the microchip supply chain, coming mainly from China. A situation that led to losses in the European automotive sector and the complementary industry.

The current geopolitical situation is also a catalyst for such a step. Trade tensions between Beijing and Brussels have increased in the last year, with successive investigations into Chinese subsidies to various industries such as the automobile industry and growing tensions that have led to complaints, by both parties, before the World Trade Organization. The entry of the new American president, Donald Trump, on the scene threatens to further strain the dynamics between the great world powers.

However, Brussels intends to have the involvement of its allies from third countries to analyze these investments abroad. This scrutiny on three key technologies will extend over 15 months and should cover transactions in progress and those that have already been carried out since January 1, 2021. Countries will have to submit a progress report to Brussels on July 15 of this year. and a complete report on the implementation of this measure by the end of March 2026.

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Brussels calls for greater scrutiny of European investments abroad in key technologies