Juncker’s new FDI Regulation needs to be studied carefully – Hayes
Brian Hayes MEP today said that European Commission President Jean-Claude Juncker’s new proposed regulation on Foreign Direct Investment should be studied carefully by Ireland.
“During his State of the Union address today, President Juncker announced new measures to be introduced regulating foreign direct investment. Given that Ireland depends heavily on foreign direct investment, we need to give these proposals careful scrutiny.
“Juncker’s FDI proposition intends to give EU countries the right to block foreign takeovers of European companies, particularly Chinese takeovers. There has been a more than two-thirds surge in Chinese investment last year into Europe’s high-tech manufacturing, infrastructure and energy sectors.
“While the intent is not to go after individual Member State FDI policy, we should study these proposals carefully to ensure that our FDI regime is not adversely affected.
“The new regulation intends to introduce cooperation mechanisms to monitor foreign investment all over the EU. We have to consider new proposals which would allow Member States to raise concerns about a foreign direct investment in another Member State.
“Investment screening, as Juncker puts it, should not be an attempt to block the long-standing system of how we do business with the rest of the world. It should not be an attempt to prevent real investment coming to Europe which can boost jobs and growth for Member States. There has to be a differentiation here between how we attract foreign direct investment which is completely up to Member States to decide, and competition policy, on the other hand, which is decided at EU level.”