Filenews 29 June 2022 - by Theano Thiopoulou
Restrictive measures on foreign direct investment for reasons of security or public order are being promoted by Europe, and already the Ministry of Finance announced yesterday that consultation on certain provisions and the submission of comments have begun by July 8. In order to determine whether a foreign direct investment is likely to affect security or public order, Member States and the European Commission may examine its possible consequences, inter alia, with regard to:
(a) critical infrastructure, whether physical or virtual, including infrastructure in the fields of energy, transport, water, health, communications, media, data processing or storage, airspace, defence, electoral or financial services, sensitive facilities, as well as land and property, crucial for the use of such infrastructure;
(b) critical technologies and dual-use items including technologies in the fields of artificial intelligence, robotics, semiconductors, cybersecurity, aerospace, defence, energy storage, quantum and nuclear technologies as well as nanotechnologies and biotechnologies
(c) the supply of critical inputs, including energy or raw materials, and food security;
(d) access to sensitive information, including personal data, or the possibility of controlling such information, or
(e) media freedom and pluralism.
Control by a government of a third country
In determining whether a foreign direct investment is likely to affect security or public order, Member States and the European Commission may take into account whether the foreign investor is directly or indirectly controlled by a government of a third country, including state bodies or armed forces, including through the ownership structure or the provision of significant funding. Also, if the foreign investor has already been involved in activities affecting the security or public order of a Member State or if there is a serious risk that the foreign investor will engage in illegal or criminal activities. It is also noted that a mechanism should be set up to enable Member States to cooperate and assist each other where foreign direct investment in one Member State could affect the security or public order of other Member States. Member States should have the possibility to submit comments to the Member State where such an investment is planned or has been made, irrespective of whether that Member State has a screening mechanism or an audit of the investment is carried out.
