scholarly journals The European Union’s Position in Global Foreign Direct Investment Flows and Stocks: Institutional Attempts to Improve It

2021 ◽  
Vol 24 (1) ◽  
pp. 27-43
Author(s):  
Janina Witkowska
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Investment Project ◽  
Developed Countries ◽  
Investment Policy ◽  
The European Union ◽  
Eu Member States ◽  
Dispute Settlements ◽  
Actual Shape ◽  
The Eu

Global flows of foreign direct investment (FDI) have slowed down in recent years, which particularly affected developed countries, including those in the European Union (EU). A general decrease in capital circulation in the form of FDI between the EU and the rest of the world has been observed. The aim of this paper is to assess the changes in the EU’s position in global FDI flows and stocks and to discuss attempts made by EU institutions and the EU member states to improve this position. The EU can use the common investment policy to strengthen its investment position. The EU acquired the competence to conduct this policy based on the Lisbon Treaty, while its actual shape was determined in practice. Improving the EU’s position in global FDI flows requires agreements regarding foreign investment, concluded at the EU level with other countries and integration groupings. Ensuring national treatment of investors before and after investing is important, as are solutions used for inwestor protection, inwestor-state-dispute-settlements (ISDS), and the use of investment project screening to protect strategic sectors of the EU economy. The EU investment policy can mitigate the effects of slowing down FDI flows, create a more favorable climate for outgoing FDI, and protect vital interests for FDI coming into the EU from third countries.

scholarly journals Foreign Direct Investment Between Asian Developing Countries and the EU Member States: The Role of Integration Processes

2013 ◽  
Vol 16 (2) ◽  
pp. 5-23
Author(s):  
Janina Witkowska
Keyword(s):  
European Union ◽  
Developing Countries ◽  
Foreign Direct Investment ◽  
East Asia ◽  
Direct Investment ◽  
The European Union ◽  
Member States ◽  
Eu Member States ◽  
Western Asia ◽  
The Eu

This article discusses the conditions surrounding the flow of foreign direct investment (FDI) between the developing countries of Asia (East Asia, South-East Asia, Southern Asia, and Western Asia) and the countries with membership in the European Union (EU), including the so-called ‘new’ Member States (EU12). At the intra-regional and inter-regional levels, the flow is especially affected by the world economic crisis, which has effected changes in the positions of the analyzed countries on a global scale. The integration processes taking place in the EU also significantly affect the intensity of FDI flow within the group, while the processes taking place in the developing countries of Asia are not yet sufficiently enough advanced to significantly affect the flow of FDI. Inter-regional FDI flows take place between the subject regions and sub-regions. The observed phenomenon of emerging Asian net exporters of capital in the form of FDI to the European Union may be strengthened by the process of Asian integration. For the new EU Member States the developing Asian countries may constitute an alternative source of capital in the crisis conditions.

scholarly journals The European Union’s Screening Framework for Foreign Direct Investment: Consequences for External Relations

2020 ◽  
Vol 23 (1) ◽  
pp. 19-36
Author(s):  
Janina Witkowska
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Investment Decision ◽  
Developed Countries ◽  
The European Union ◽  
Member States ◽  
Political Consequences ◽  
The Right ◽  
Common Trade ◽  
The Eu

The Lisbon Treaty gives the European Union (EU) institutions new external competences, including foreign direct investment (FDI) in the common trade policy. Using these competences the European Commission formulated a proposal for a regulation establishing the screening framework for FDI, which entered into force in April 2019. The aim of this paper is to discuss the issue of FDI screening as an element of policies towards FDI applied by developed countries, to assess the justifications for its introduction, as well as the potential consequences of the screening framework for inflowing FDI into the EU. A need to protect the EU’s strategic economic interests in relations with third countries was the reason for the introduction of the new tool at the EU level. The new system of screening FDI inflows into the EU is not centralized. The right to screen remains the sole responsibility of the Member States. The co-ordination mechanism at the level of the EU which has been constructed seems to give guarantees that common interests will be protected. The economic and political consequences of the EU’s screening framework for FDI should be foreseen. Apart from administrative and compliance costs, as well as uncertainty and delays related to investment decision processes, two categories of potential consequences seem to be important. These are the expected reduced access to capital by some Member States, especially the ‘new’ ones, and the worsening of relations with external partners, especially China.

OPINION 2/15 OF THE CJEU: DELINEATING THE SCOPE OF THE NEW EU COMPETENCE IN FOREIGN DIRECT INVESTMENT

2018 ◽  
Vol 77 (1) ◽  
pp. 29-32
Author(s):  
Rumiana Yotova
Keyword(s):  
European Union ◽  
Foreign Direct Investment ◽  
Free Trade ◽  
Direct Investment ◽  
Free Trade Agreement ◽  
Trade Agreement ◽  
The European Union ◽  
Member States ◽  
Court Of Justice ◽  
The Eu

ON 16 May 2017, the Court of Justice of the European Union (CJEU) delivered its Opinion 2/15 concerning the competence of the EU to conclude the Free Trade Agreement with Singapore (EUSFTA) (ECLI:EU:C:2017:376). The Opinion was requested by the Commission which argued, with the support of the European Parliament (EP), that the EU had exclusive competence to conclude the EUSFTA. The Council and 25 of the Member States countered that the EUSFTA should be concluded as a mixed agreement – that is, by the EU and each of its members – because some of its provisions fell under the shared competence of the organisation or the competence of the Member States alone.

scholarly journals The Attitudes of the European Union and China Towards Foreign Direct Investment: Implications for Bilateral Relations

2019 ◽  
Vol 22 (3) ◽  
pp. 83-98
Author(s):  
Janina Witkowska
Keyword(s):  
Foreign Direct Investment ◽  
Foreign Investment ◽  
Direct Investment ◽  
Member States ◽  
Independent State ◽  
Eu Countries ◽  
Eu Member States ◽  
Bilateral Relations ◽  
New Eu Member States ◽  
The Eu

The aim of this paper is to discuss new trends that have occurred in the policies of the EU and China towards foreign direct investment (FDI), to examine some implications of the EU‑China Comprehensive Agreement on Investment (CAI) – which is currently being negotiated – for their bilateral relations, and to assess the role which China’s “One Belt One Road’ (OBOR) initiative might play in its relations with the new EU Member States. The EU established freedom of capital movement with third countries; however, the introduction of the common investment policy has encountered some obstacles. These are related to investor protection and ISDS issues. In turn, China is carrying out an independent state policy towards foreign investment with limited liberalization of FDI flows. The negotiated EU‑China CAI is expected to create conditions conducive to bilateral foreign investment flows, and it might bring positive effects for their economies in the future. However, the progress made thus far in the negotiations is still limited. The relations between China and the new EU Member states (CEE countries) are characterized by common interests in the field of FDI flows. The new EU countries are interested in attracting Chinese FDI and seem not to show the fears that have arisen in the old EU countries.

scholarly journals Investment Policy of the European Union. Empirical Evidence of the Effects of Foreign Direct Investment on The European Union Economy

2021 ◽  
Vol 2021 (1) ◽  
pp. 1-10
Author(s):  
Corneliu Russu
Keyword(s):  
European Union ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Empirical Studies ◽  
Investment Policy ◽  
The European Union ◽  
Foreign Investors ◽  
Community Economy ◽  
Definition Of ◽  
Main Effects

The paper deals with the evolution during a period of over 60 years of the investment policy of the European Union, pointing out the main moments that marked the steps taken towards the progressive shaping of an increasingly unitary character of this policy. The increase of the interest of foreign investors for strategic, sensitive sectors of the economy of the member countries determined, after 2017, a change in the philosophy of establishing and applying the Union's investment policy, materialized in the more precise definition of "foreign investor" and in implementing a more rigorous mechanism of control of foreign direct investment. Further on are presented the main effects of foreign investment in the Community economy, resulting from empirical studies on this topic, the conclusions reached by these studies being sometimes divergent.

scholarly journals European Union Foreign Direct Investment Outflows to ASEAN Countries

2013 ◽  
Vol 16 (1) ◽  
pp. 5-19
Author(s):  
Agnieszka Drzymała
Keyword(s):  
European Union ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Southeast Asia ◽  
Direct Investment ◽  
Positive Impact ◽  
The European Union ◽  
Asean Countries ◽  
Economic Ties ◽  
The Eu

The paper analyses foreign direct investment outflows from the European Union to the ASEAN countries. The region of Southeast Asia is very important for the EU in terms of economic cooperation. Previous relations between the European Union and ASEAN countries laid the foundations and became the basis for subsequent business initiatives, first encompassing trade and later investment initiatives. Today the liberalisation of foreign direct investment (FDI) flows is taking place, which has a positive impact on the increase in exports of ASEAN countries and in turn affects the economic development of these countries. The European Union deepens its economic ties with the region through FDI, which results in increased economic interdependence.

scholarly journals La propuesta de reglamento estableciendo un marco para la evaluación de las inversiones extranjeras directas en la Unión Europea de septiembre de 2017 = Proposal for a regulation establishing a framework for screening of foreign direct investments into the European Union of september’17

2018 ◽  
Vol 10 (1) ◽  
pp. 164
Author(s):  
Carlos Esplugues Mota
Keyword(s):  
European Union ◽  
Foreign Direct Investment ◽  
Emerging Economies ◽  
Foreign Investment ◽  
Direct Investment ◽  
Investment Policy ◽  
Foreign Direct Investments ◽  
The European Union ◽  
Investment Control ◽  
The Common

Resumen: Las inversiones extranjeras han aumentado de forma constante en las últimas décadas. Sin embargo, la crisis financiera y el protagonismo de algunas economías emergentes, esencialmente China, están afectando a su vitalidad. No puede hablarse todavía un cambio de tendencia, pero sí se constata una actitud de creciente prevención, cuando no de rechazo, hacia ellas. La introducción de mecanismos de control de las inversiones extranjeras refleja este cambio de actitud. La situación alcanza una particular relevancia en el seno de la UE debido, entre otros extremos al estado embrionario de la política de inversiones común La Propuesta de Reglamento de 2017 estableciendo un marco para la evaluación de las inversiones extranjeras directas en UE cumple la doble función de poner de manifiesto la relevancia del tema y de aportar un primer texto para el debate.Palabras clave: Inversiones extranjeras directas, control de inversiones extranjeras, seguridad nacional, política común europea de inversiones, mecanismos de control de inversiones extranjeras.Abstract: Foreign investment flows have increased steadily in the last decades, although the financial crisis and the role played by certain emerging economies, mainly PRC, are negatively influencing them. A change of trend is not ascertainable yet, but some backlash against foreign direct investment exists in particular countries. The development of mechanisms of control of foreign investment shows this change of attitude. The situation is especially relevant in the European Union because of the embryonic condition of the Common Investment Policy. The publication of the Proposal for a Regulation establishing a framework for screening of foreign direct investments into the European Union reflects the relevance of the topic at the same time that offers a first text for debate.Keywords: Foreign Direct Investment, Control of Foreign Direct Investment, National Security, Common Commercial and Investment Policy, Screening systems of evaluation of foreign direct investment.

scholarly journals Older Knowledge Workers as the Labour Market Potential (Slovenia versus Finland)

2016 ◽  
Vol 62 (4) ◽  
pp. 33-41 ◽  
Author(s):  
Magda Zupančič
Keyword(s):  
Labour Market ◽  
Knowledge Workers ◽  
Developed Countries ◽  
Market Potential ◽  
Management Policy ◽  
Active Ageing ◽  
The European Union ◽  
Member States ◽  
Eu Member States ◽  
The Eu

Abstract This article refers to the challenge of demographic changes gaining attention in many developed countries. The European Union recognized the need to activate older knowledge workers, who are underrepresented and pushed out of the labour market or are inadequately motivated to continue their employment for various reasons, despite their accumulated knowledge and experiences. EU member states respond differently to their ageing, with more or less successful national policies. This article is based on research of the labour market development for older knowledge workers in Slovenia compared to the Finnish age management policy at the end of the 1990s that successfully increased Finnish older knowledge workers’ employment through focused and holistic measures. Slovenia stagnated in the same period due to a lack of holistic solutions-a situation that continues today. The results and deficiencies of past bad and good practices in these two compared EU member states might offer some further reflections on possible steps to follow or avoid regarding active ageing solutions in the EU.

Trends in FDI, Home Country Measures and Competitive Neutrality

2014 ◽  
Author(s):  
Sauvant Karl P ◽  
Economou Persephone ◽  
Gal Ksenia ◽  
Lim Shawn ◽  
Wilinski Witold P
Keyword(s):  
Foreign Direct Investment ◽  
Emerging Markets ◽  
Direct Investment ◽  
Home Country ◽  
Investment Decisions ◽  
Developed Countries ◽  
Investment Policy ◽  
Outward Foreign Direct Investment ◽  
Detailed Survey ◽  
Area Of Concern

This chapter begins by describing and assessing trends in foreign direct investment (FDI) in 2012. It then turns to an understudied but increasing area of concern in investment policy—home country measures (HCMs), which influence and often direct investment flows to certain destinations. These measures have an effect on “competitive neutrality” by affecting companies' decisions about where to invest and even about whether to invest; some measures effectively subsidize outward foreign direct investment so long as it is directed in particular ways. The chapter provides a detailed survey of HCMs in the top ten developed countries and the top ten emerging markets, and an analysis of the potential effects of those measures on investment decisions and the policies that home countries seek to effectuate with the establishment of measures that encourage and direct investment.

scholarly journals An Analysis of China's Outward Foreign Direct Investment to the EU: Features and Problems

2014 ◽  
Vol 41 (1) ◽  
pp. 45-59
Author(s):  
Fan Ying
Keyword(s):  
European Union ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Outward Foreign Direct Investment ◽  
The European Union ◽  
Chinese Enterprises ◽  
Depth Analysis ◽  
Organic Combination ◽  
The Eu ◽  
China’S Economy

Abstract This research paper reviews the development of China's outward foreign direct investment (OFDI) to the European Union since the global fnancial crisis, summarizes the apparent characteristics and causes behind that development, provides an in-depth analysis of the problems and deep rooted risks in such investment, and predicts that with China's economy being stronger the scale of China's OFDI will be greater in the coming period. However, since Chinese enterprises are really newcomers of OFDI, they are far from being mature and successful players, which requires not only capital, but also an organic combination of intangible elements regarding economy, society, and culture etc.

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