REGULATION OF THE EUROPEAN PARLIAMENT AND THE COUNCIL ESTABLISHING A FRAMEWORK FOR THE SCREENING OF FOREIGN DIRECT INVESTMENTS INTO THE EUROPEAN UNION

DIMITRIJEVIĆ Duško (Institut za međunarodnu politiku i privredu, Beograd), dimitrijevicd@diplomacy.bg.ac.rs

Foreign direct investment represents one of the decisive factors for accelerated economic growth, employment, and technological development in the member states of the European Union. Its advantages are clearly recognized and encouraged by the European Union through the implementation of measures leading to a healthy economic environment open to foreign investors. Given that they fall within the scope of common trade policy, the European Union devotes special attention to foreign direct investment. This is particularly evident in the recent period in which deviation from the usual standards of international trade has been established, which has caused serious concerns to the European Union. In this regard, in the focus of its competent authorities, there have been cases of dealing with state-owned enterprises from third countries that have committed to merging European companies in key industrial areas. In order to protect its own strategic interests, on 19 March 2019, the European Union adopted Regulation 2019/454 establishing a framework for screening of foreign direct investment from third countries. With reference to the reasons regarding security and public order, the Regulation provides for cooperation mechanisms between member states which, at the same time, leave some flexibility necessary to check foreign direct investment in a specific national framework. The Regulation also provides for investment control mechanisms that may affect projects or programs of vital interest for the European Union itself.

Ključne reči: Foreign direct investment, European Union, third countries, security, public order, screening, projects, programs