The European Union (EU) is pushing to establish its first-ever comprehensive economic security response strategy, including regulations on 'overseas investment.'
On the 20th (local time), the European Commission, the EU's executive body, announced that it adopted a communication named the 'European Economic Security Strategy' at the weekly meeting of the College of Commissioners.
A communication is a document outlining the policy direction the EU Commission intends to pursue. Although it has no legal binding force, it generally marks the start of necessary discussions and legislative work to advance the policy.
This communication is scheduled to be specifically discussed at the EU summit at the end of this month.
The 14-page communication was released on the day, with the most notable part suggesting regulations on 'overseas investment' of EU products or technologies.
The Commission stated, "We will closely cooperate with member states to investigate security risks that may arise from (EU companies') overseas investments," and plans to establish a consultative body composed of experts from each country. Based on the results of this investigation, measures to respond to security risks related to overseas investment will be reviewed by the end of the year. Controls on the export of 'dual-use' products that could potentially be used for military purposes will also be strengthened.
In addition, the review of foreign direct investment screening regulations and the strengthening of cooperation with third countries to stabilize economic security supply chains will be promoted.
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