LORDS

EU Foreign Direct Investment screening framework

On 26 October 2017, the EU External Affairs Sub-Committee considered the Communication from the Commission Welcoming Foreign Direct Investment while Protecting Essential Interests and 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.

The Committee agreed to retain the items under scrutiny, and wrote to the Rt Hon Greg Hands MP, Minister of State for Trade Policy. The Committee's letter included the following questions:

  • How the additional process of sharing information could prevent the UK from acting swiftly in cases of genuine national security concern, and how important would the ability to act swiftly be;
  • Which elements of the information sharing proposal would be unacceptable to the UK;
  • Where in the proposal Commission overstep has been identified;
  • What the UK's position is on the overall proposal and to what extent the UK will take this proposal into account when developing its new screening mechanism;
  • What the Government's assessment is of the implications of the UK being subject to this mechanism after its exit from the EU as a third country; and
  • How the UK is balancing its current interests in the proposal as a Member State, and the future implications of the proposal for the UK - as a third country likely to invest in EU Member States after it has left the EU.

The Committee agreed to release this item from scrutiny on 16 November 2017.

Letters from the Minister

Letter from the Rt Hon Greg Hands MP, Minister for Trade Policy, 7 November 2017: Foreign Direct Investment screening (PDF PDF 398 KB)

Letter from the Rt Hon Greg Hands MP, Minister for Trade Policy, 28 November 2017: Foreign Direct Investment screening (PDF PDF 134 KB)

Letters to the Minister

Letter from the Committee to the Rt Hon Greg Hands MP, Minister for Trade Policy, 26 October 2017: Foreign Direct Investment screening (PDF PDF 63 KB)

Letter from the Committee to the Rt Hon Greg Hands MP, Minister for Trade Policy, 16 November 2017: Foreign Direct Investment screening (PDF PDF 70 KB)

Related documents

Explanatory Memorandum from the Government, 5 October 2017 (PDF PDF 292 KB)

Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions

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

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