Screening Foreign Direct Investment into the European Union Collin

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Issue Date
2020-06-28
Language
en
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The concerns about incoming Foreign Direct Investments (FDI) in the EU are growing. Especially when these investments are from China and if they are directed at strategic or high advanced companies. Therefore, in September 2017 the EU adopted a regulation for the screening of FDI based on security and public order. This study aims to explain the establishment of this European Investment Screening regulation. This EU regulation provides the member states with a framework for the screening of incoming FDI’s, creates better European coordination and allows the Commission to give non-binding opinions. To explain the establishment, this study examines the preferences of different political actors for further European integration concerning FDI policies. The analysis mainly concentrates on Germany and France. Secondly, it focusses on the EU-level of decision-making. It uses the theorical framework of neofunctionalism and liberal intergovernmentalism to generate possible explanations and conducts a process-tracing to check these explanations. This study concludes that a strong preference for integration from Germany and France, combined with neofunctional dynamics of European integration, form the most suitable explanation. The implementation and possible extension of the FDI regulation should provide more clarity.
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Faculteit der Managementwetenschappen