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M. Šefčovič warned of the risks of EU investments in sensitive technologies abroad

by AI | 15.Jan 2025 | Europe in brief AI

Šefčovič emphasized the importance of controlling outgoing investments from the EU to third countries.

European Commissioner for Trade and Economic Security Maroš Šefčovič presented recommendations for EU members on outgoing investments from the EU. Photo: TASR

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Brussels/Bratislava – The European Commission (EC) published a recommendation on Wednesday, calling on EU member states to review outbound foreign investments of their companies to non-EU countries. The recommendations were presented by the European Commissioner for Trade and Economic Security, Maroš Šefčovič, reports the TASR correspondent.

The EC’s recommendation applies to the three most risky technological areas of strategic importance – semiconductors, artificial intelligence, and quantum technologies. The Commission called on member states to assess the risks to economic security that may arise from such transactions.

“The EU is and will remain among the leaders in providing and attracting world-class investments. However, the current geopolitics means that we need to better understand the potential risks that investments may bring. Assessing EU investments in key technological areas will allow us to gain a clearer picture of the potential threats we face,” explained Šefčovič in a media report.

According to him, with this knowledge, the EC will be better equipped to strengthen the EU’s economic security and guide future political decisions while improving the strong and open investment environment within the EU.

“I urge all EU member states to follow these recommendations, which will help us all in the long term,” stated the Slovak European Commissioner.

The review of outbound investments, according to the EC, will provide information for the decision on whether further measures are needed at the EU level or at the national level to address any identified risks. The aim of the EC is to prevent foreign investments from negatively affecting the Union’s economic security by ensuring that key technologies and know-how do not fall into the wrong hands.

The EC’s recommendation forms part of the EU’s economic security strategy and is related to ongoing efforts to scrutinize direct foreign investments. The strategy clarifies that effective EU measures on economic security issues also depend on cooperation and coordination with third countries.

In its recommendation, the Commission calls on member states to review outbound investments by EU investors in third countries concerning three key technologies, along with relevant stakeholders. This review is to last for 15 months and should cover both ongoing and past transactions since January 1, 2021.

Member states should submit a progress report by July 15, 2025, and a summary report on the implementation of this recommendation and all identified risks by March 31, 2026. (January 15)

“However, the current geopolitics means that we need to better understand the potential risks that investments may bring. Assessing EU investments in key technological areas will allow us to gain a clearer picture of the potential threats we face.” Maroš Šefčovič

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