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The EU Foreign Direct Investment Screening Mechanism - Potential conflicts with International Investment Standards in EU IIA's

Granroth, Robert Sebastian LU (2024) HARN63 20241
Department of Business Law
Abstract
Following national security concerns regarding foreign direct investments targeting strategically important industries within the EU, a framework regulation on the screening of foreign direct investments was introduced in 2019. However, the vague effects of the regulation on national investment screening mechanisms has enabled constantly increased tightening of these regimes. Therefore, the purpose of this research is to clarify whether the EU screening regime has the potential of conflicting international investment standards in EU IIA ́s which protect the foreign investor from arbitrary and discriminatory treatment from the host state of the investment.
The research begins with the assesment of the background for the regulation followed... (More)
Following national security concerns regarding foreign direct investments targeting strategically important industries within the EU, a framework regulation on the screening of foreign direct investments was introduced in 2019. However, the vague effects of the regulation on national investment screening mechanisms has enabled constantly increased tightening of these regimes. Therefore, the purpose of this research is to clarify whether the EU screening regime has the potential of conflicting international investment standards in EU IIA ́s which protect the foreign investor from arbitrary and discriminatory treatment from the host state of the investment.
The research begins with the assesment of the background for the regulation followed by an overview on the impact of the regulation on investment screening. Hereinafter, the focus is shifted to the purpose of fundamental investment standards and their application in EU IIA ́s. The research concludes with the elaboration of potential conflicts between investment screening and investment standards. The findings in the research indicate that there indeed is potential for investment standard violations both in the pre- establishment stage and the post-establishment stage of an investment. However, the protection available to the investor varies depending on the applicable EU IIA and despite the vast safeguards and efforts to limit the applicability of the standards to avoid infringements, Member States cannot rely in perpetuity that these safeguards will cover the ever expanding investment regimes. (Less)
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author
Granroth, Robert Sebastian LU
supervisor
organization
course
HARN63 20241
year
type
H1 - Master's Degree (One Year)
subject
keywords
Investments screening, Foreign direct investment, Screening Regulation, IIA, Investment protection, Safeguards
language
English
id
9158513
date added to LUP
2024-06-10 09:59:40
date last changed
2024-06-13 14:48:02
@misc{9158513,
  abstract     = {{Following national security concerns regarding foreign direct investments targeting strategically important industries within the EU, a framework regulation on the screening of foreign direct investments was introduced in 2019. However, the vague effects of the regulation on national investment screening mechanisms has enabled constantly increased tightening of these regimes. Therefore, the purpose of this research is to clarify whether the EU screening regime has the potential of conflicting international investment standards in EU IIA ́s which protect the foreign investor from arbitrary and discriminatory treatment from the host state of the investment.
The research begins with the assesment of the background for the regulation followed by an overview on the impact of the regulation on investment screening. Hereinafter, the focus is shifted to the purpose of fundamental investment standards and their application in EU IIA ́s. The research concludes with the elaboration of potential conflicts between investment screening and investment standards. The findings in the research indicate that there indeed is potential for investment standard violations both in the pre- establishment stage and the post-establishment stage of an investment. However, the protection available to the investor varies depending on the applicable EU IIA and despite the vast safeguards and efforts to limit the applicability of the standards to avoid infringements, Member States cannot rely in perpetuity that these safeguards will cover the ever expanding investment regimes.}},
  author       = {{Granroth, Robert Sebastian}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{The EU Foreign Direct Investment Screening Mechanism - Potential conflicts with International Investment Standards in EU IIA's}},
  year         = {{2024}},
}