Understanding Foreign Investment by the EU: A Breakdown
The European Union is currently deliberating on ways to determine the importance of deals involving non-EU investments in companies and critical infrastructure. This discussion, which addresses the issue of protecting the EU from investors from countries like China and the U.S., is gaining significant attention.
The conversation was recently the focus of the event "Rethinking global supply chains: insights for a changing world," held on 18 September 2025. The event, hosted by The Sound of Economics, featured Niclas Poitiers and Damien Levie, head of the FDI screening unit in the European Commission's Directorate-General for Trade and Economic Security, as guests.
While the event was not directly related to the EU's revised FDI screening mechanism, it did touch upon the need to reduce risks, track projects, and coordinate national procedures related to these investments. It is important to note that the European Union's Horizon Europe research and innovation programme is not directly related to this aim.
The EU's Horizon Europe research and innovation programme, however, is funding a project titled "Rethinking Global Supply Chains". The project, known as RETHINK-GSC, has received funding under the programme and has a grant agreement number of 101061123.
As for the EU's revised FDI screening mechanism, several EU countries have already implemented the EU FDI Screening Regulation, including Germany, France, and Italy. Other member states are currently preparing to introduce the screening mechanism in line with the EU framework. This reflects a phased or staggered adoption process across the Union, with specific details on all countries and their status varying.
It is worth mentioning that the European Union's Horizon Europe research and innovation programme is not a potential solution to avoid bureaucratic backlogs in the EU Commission, member states, and the European Parliament talks on revising the rules regarding these investments. A potential solution discussed is a 28th regime or a pan-EU legal framework to avoid such backlogs.
In conclusion, the European Union is actively engaged in discussions aimed at protecting critical infrastructure from non-EU investments. While the EU's Horizon Europe research and innovation programme is funding projects related to global supply chains, it is not directly involved in the discussions on the revised FDI screening mechanism or the aim to reduce bureaucratic backlogs.
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