Current challenges arising from the new common European investment policy

The first examines rules for inward investment, an area that has attracted considerable attention with the rise of state-owned enterprises (SOEs) and sovereign wealth funds (SWFs). In shaping effective rules to screen inward FDI, the EU will note the rules and screening mechanisms in place in EU Member States and the US. The emerging EU investment policy makes the establishment of an EU-wide screening mechanism attractive. This study will ask: what is the practice and track record of the US Committee on Foreign Investment?  What are the current national approaches of EU countries? What are the options for framing the "national security“ definition in an EU common foreign investment policy? What institutional form might a future policy take?

The second strand looks at the effects of new EU competence on third parties. The overlap of BITs by individual member states with third parties and comprehensive FTAs concluded by the EU with the same parties may lead to fragmentation. The emphasis of the study will be on whether the EU can develop an investment policy towards third states that will co-exist with existing BITs between some of its Member States and third states. The same question can be asked with regard to EFTA.