The Sound of Economics EU foreign direct investment, explained
Sep 17, 2025
Damien Levie, head of the EU's FDI screening unit, and Niclas Poitiers, a researcher at Bruegel, delve into the intricacies of foreign direct investment in Europe. They discuss the EU's strategies for safeguarding itself from non-EU acquisitions, particularly focusing on risks from China and the U.S. The duo explores the need for a harmonized legal framework to streamline assessments and how competition among member states complicates the screening process. The conversation highlights the balancing act between protecting strategic assets and ensuring economic competitiveness.
AI Snips
Chapters
Transcript
Episode notes
Screening Has Rapidly Expanded Since 2020
- The EU screening system expanded from 12 to 24 member states and widened sensitive sectors since 2020.
- The Commission and members share information and review about 10% of notified cases to reduce risks.
Mandate Screening And Require Feedback
- Make member states screen all foreign and intra-EU transactions where control traces to third countries.
- Require feedback loops so commenting states and the Commission get accountability on how concerns were addressed.
FDI Screening Has A Narrow, Strategic Focus
- Investment screening targets a narrow problem: acquisitions that threaten critical technologies or military-relevant know-how.
- Other concerns like political influence or competition distortions sit under different instruments and are not solved by FDI screening alone.