Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/259223 
Year of Publication: 
2020
Citation: 
[Journal:] Comparative Economic Research. Central and Eastern Europe [ISSN:] 2082-6737 [Volume:] 23 [Issue:] 1 [Publisher:] Łódź University Press [Place:] Łódź [Year:] 2020 [Pages:] 19-36
Publisher: 
Łódź University Press, Łódź
Abstract: 
The Lisbon Treaty gives the European Union (EU) institutions new external compe-tences, including foreign direct investment (FDI) inthe common trade policy. Using these competences the European Commission formulated aproposal for aregulation establishing the screening framework for FDI, which entered into force inApril 2019. The aim ofthis paper isto discuss the issue ofFDI screening asan element ofpoli-cies towards FDI applied bydeveloped countries, toassess the justifications for its introduction, aswell asthe potential consequences ofthe screening framework for inflowing FDI into the EU. Aneed toprotect the EU's strategic economic interests inrelations with third countries was the reason for the introduction ofthe new tool atthe EU level. The new system ofscreening FDI inflows into the EU isnot central-ized. The right toscreen remains the sole responsibility ofthe Member States. The co-ordination mechanism atthe level ofthe EU which has been constructed seems togive guarantees that common interests will beprotected. The economic and politi-cal consequences ofthe EU's screening framework for FDI should beforeseen. Apart from administrative and compliance costs, aswell asuncertainty and delays related toinvestment decision processes, two categories ofpotential consequences seem tobe important. These are the expected reduced access tocapital bysome Member States, especially the 'new' ones, and the worsening ofrelations with external part-ners, especially China.
Subjects: 
Foreign direct investment (FDI)
screening framework
the European Union
external relations
Chinese investment abroad
JEL: 
F21
F23
F42
K33
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

Files in This Item:
File
Size
305.81 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.