The European Commission’s Regulation proposal establishing a
framework for screening FDI into the EU has been widely commented on from
different perspectives. The purpose of this article is neither to carry out an
exhaustive technical analysis of the proposal nor to assess its practical
impact but rather to discuss a few points highlighting its limits,
indecisiveness, contradictions as well as its ambiguities. This proposal,
reflecting a change in the Commission’s stance on non-EU FDI flows, can be
criticised on a number of grounds. While it has limited added value for Member
States’ existing FDI screening mechanisms, it imposes on Member States an
implied obligation to establish FDI screening mechanisms and could serve as the
basis of a ‘soft’ blocking for the Commission. In addition, the framework
envisaged by the proposal appears to rest on a questionable legal basis
(Article 207 TFEU) and can be seen as a missed opportunity for not addressing
the issue of competitive neutrality in FDI transactions.