Articles for category: Focus

National Security and Investment Screening: the UK proposal and its problems

In its white paper published in July 2018, the government has acknowledged the key role of foreign investment for the UK’s growth and development, whilst also noting that ‘a small number of investment activities, mergers and transactions in the UK economy pose a risk to our national security.’ The aim of the proposed reforms is to ensure that in these cases the UK government is able to intervene in order to prevent or mitigate such risks.

11. Februar 2019

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Inter-institutional Agreement Reached on Framework for Screening of Foreign Direct Investments

The EU has one of the world's most open investment regimes, and collectively EU Member States have the fewest restrictions in the world on foreign direct investment. A proposal for a Union Act on the Screening of foreign investment in strategic sectors was tabled by ten Members of International Trade Committee (INTA) at the European Parliament (EP). The inter-institutional “provisional” agreement is going to be voted by the full House of the EP on the 14th of February 2019.

11. Februar 2019

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Access to Legal Redress in an EU Investment Screening Mechanism

The proposal for a regulation of the European Parliament and of the Council establishing a framework for screening of foreign direct investments into the European Union (Draft Proposal) presupposes (some would even say: proposes) investment screening and control mechanisms (ISCMs) at member state level. Approaching ISCMs from the angle of legal redress raises three questions: Legal redress to what end? Legal redress by who? Legal redress by which material standards? Sorting out these questions is of vital interest for stakeholders. For investors and their counsel confronted with a new layer of regulation and uncertainty, as much as for member states ... continue reading

8. Februar 2019

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Investment Screening in the Defence Industry – News from the Bermuda Triangle of EU Law

The national investment screening mechanisms for the defence and security sector are the Doyen of the existing screening mechanisms, and their bases in EU secondary and primary law are not so hidden. The discrimination of investors on grounds of nationality have some specific bases in topical EU Regulations or Directives, but most importantly in the EU-Treaties themselves: Article 346 TFEU allows Member States to prevent foreign investments on grounds of national security considerations, and that, interestingly, irrespective of a takeover attempt from a company from inside the European Union, or from a third country. Before taking a closer look at ... continue reading

7. Februar 2019

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Rebuilding the Berlin Wall?

On 19 December 2018, the German government has passed amendments to the German Foreign Trade and Payments Act (»AWG”) and to the German Foreign Trade and Payment Ordinance (»AWV”) whose compatibility with European law is highly questionable. The structure and scope of investment review provided for under the AWG in conjunction with the AWV is that the Federal Ministry of Economics, the competent German authority, possesses an extensive ex-post examination competence regarding the acquisition of shares of German companies by third-country nationals. Of particular importance for foreign direct investments (FDI) is the screening of sector specific and cross-sectoral investments by ... continue reading

6. Februar 2019

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Avenues in European Company Law to Screen Foreign Direct Investment

Screening of foreign direct investments could take place through European company law. The harmonization of company law in the European Union as well as the CJEU’s case law offer mechanisms which could be used for the screening of foreign direct investments. Although their primary objective is »the protection of the interests of members and others«, they could also contribute significantly to an effective screening of foreign direct investments. There are five main avenues in European company law that could be used to screen foreign direct investment: the Takeover Bids Directive in the context of listed companies, the lawful golden shares ... continue reading

5. Februar 2019

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Debate: A Common European Law on Investment Screening?

Volvo Personvagnar AB, Kuka, Aixtron, OSRAM Licht, Daimler, Saxo Bank, the harbour terminal in Zeebrugge, Spain’s Noatum Port, Italy’s Vado Ligure Port or the Port of Piraeus – the list of discussed controversial company takeovers and acquisitions of major stakes in Europe is getting longer and longer. The political will in the European Union (EU) and its Member States is growing to more actively screen, control, or even prevent investments flowing into Europe. Third country investments stirring controversies archetypically share three common characteristics. The target companies typically operate in »politically sensitive areas«, the owner structure of the immediate buyer is ... continue reading

4. Februar 2019

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A Citizenship Maze: How to Cure a Chronic Disease?

European Union (EU) citizenship is in crisis. If the Eurozenship debate, composed of experts on EU citizenship, is analogized to a doctor’s diagnosis, the outcome is more extensively polarized than initially thought—a chronic disease, not just a temporary disorder. As I follow the debate, it is no longer clear what the problem is—there seem to be too many, real and imaginary—or how to heal it. Some issues seem to be “genetic,” part of the EU’s DNA, yet others resemble a concrete illness that may be cured, so the argument goes, by a “doctor's prescription,” which in law means a legal design.

30. Januar 2019

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Member State and EU Citizenships Should be Strengthened Rather than Disentangled

While perhaps appealing as a gesture towards addressing problems such the anticipated deprivation of rights following Brexit, statelessness, or wide variation in Member State naturalization and denaturalization policies, these proposals are impracticable in the absence of international recognition of EU citizenship (which would normally require recognizing the EU as a state, which in turn should normally mean that the Member States cede competence over citizenship), challenge deeply rooted national stories of peoplehood with an emerging story of European peoplehood, and risk undermining fragile public support for EU rights.

29. Januar 2019

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EU Citizenship as an Autonomous Status of Constituent Power

I would argue, however, that Kostakopolou’s argument for a “co-determined Eurozenship” would not go far enough in realising the potential of the status. This post develops this argument first by grounding the normative appeal of autonomous EU citizenship in the context of Member State withdrawal. Next, it is suggested that the co-determination of the status by Member States and the EU institutions would be incompatible with the current legitimacy foundation of the EU. The post concludes by considering the more radical alternative of EU citizenship being made autonomous so that individuals can exercise constituent power to re-establish these foundations of the European Union constitutional order.

28. Januar 2019

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