Outbound Investment Screening Regime—EU May Follow In U.S. Footsteps

Foreign direct investment control has historically been centred on inbound FDI, meaning investment inflow into a country.

The tide is turning, as the U.S. comes close to introducing an outbound FDI control mechanism, whereby capital outflow towards third countries are to be subjected to a screening process.  Similarly, the European Commission 2023 Work Programme indicates that the Commission will “examine whether additional tools are necessary in respect of outbound strategic investments controls”, and is “prepared to revise the EU’s FDI screening regulation.”

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