“New European framework regulation on foreign direct investment entered into force on 10 April 2019” published in Florida Bar ILS’s quarterly publication (“ILQ”)
This short article explains the new regulation and its effects. The European Union (“EU”) has one of the world’s most open investment rules and is one of the main destinations for foreign direct investment (“FDI”) in the world. FDIs are substantial for innovation, growth and jobs in the EU. But takeovers of EU companies by non-EU investors in the past years and their cross-border effects raised concerns and led to this new legislation. This regulation is fundamental because it is the first time the screening of FDI is regulated at European Union level while major trading partners of the EU have already established such frameworks.