On Jan. 15, EC issued outbound investment review recommendation.
EC issued recommendation 2025/63 on reviewing outbound investments in technology areas critical for economic security of European Union, following earlier White Paper.
Follows EC Feb. 2024 sought views re monitoring outbound investments, see #200157.
Background
EU and member states need to assess whether there are any risks to economic security related to outbound investments, identify any gaps in existing EU policies.
And design proportionate and targeted responses to mitigate identified risks.
Process started with Feb. 2024 White Paper seeking views from stakeholders.
Recommendation
Following publication of the White Paper respondents agreed that there is a need to assess potential risks related to outbound investments, EU CMSN now issues its recommendation and lays out common scope to structure review and risk assessment.
Member states will individually decide on the details of its implementation.
Review and risk assessment by states should focus on advanced semiconductors, artificial intelligence (AI), quantum technologies, as these are identified as likely to pose most significant risks of technology leakage through outbound investment.
Review should cover wide range of outbound transactions, excluding transactions that are unlikely to enable/facilitate development or transfer of critical technologies.
Should be country-neutral, not exclude specific destinations, however, member states may prioritize their review activities based on risk profiles of individual countries.
Review should also establish whether outbound investments from EU to 3rd countries accelerate or increase tech developments in countries that could undermine security.
Outcome of the risk assessment should allow for a shared understanding of risks.
Will inform decision on whether further action needed at EU and/or national levels.
Effectiveness
States must designate single contact point for communications by Mar. 15, 2025.
Member states should provide update of progress to European Commission by Jul. 15, 2025, and submit a comprehensive final report by Jun. 30, 2026.
Official Journal
On Jan. 15, 2025, EU CMSN published Rec 2025/63 in the Official Journal of the EU.
