Trade Committee Chair on economic security: We need effectiveness and restraint

Trade Committee Chair Bernd Lange made the following statement today about the Commission's planned European economic security strategy, set to be unveiled on Wednesday.

"The Commission's economic security package should strike the right balance between effectiveness and restraint. Yet, at first impression, it appears that the concept of 'security' is too narrowly defined. What we truly seek is stability, prosperity and security for our citizens, a goal achievable only by incorporating the social and climate dimensions into our economic policy.

The revision of the FDI Screening Regulation is very welcome. The current regulation is very useful but has also shown shortcomings. We anticipate that the proposed changes will remedy some of these issues, in particular foster a more harmonised and effective investment screening regime that will be applied by all Member States.

Regarding outbound investments, both the Commission and Member States have diligently laid the groundwork in recent months, identifying potential security risks to the EU stemming from European firms' investments in third countries. Continuing this analysis is useful, and I commend the cautious approach with no rushed legislative proposal. The US experience underscores the complexity of this task.

In the area of dual use and export controls, it is justifiable to reassess whether our rules can withstand the evolving geopolitical situation. Opting for a unilateral approach at the member state level is misguided. Let's make sure that our existing rules are fully implemented."

Background

The EU Commission is expected to unveil its economic security package on Wednesday. It aims to minimise risks arising from certain economic flows in the context of increased geopolitical tensions and accelerated technological shifts, while preserving maximum levels of economic openness and dynamism. Sabine Weyand, Director-General of DG Trade in the Commission on Wednesday will present to the Trade Committee the trade and investment related aspects of the European economic security strategy. On Thursday, the Commission's Chief Trade Enforcement Officer, Denis Redonnet will present revision of the rules on foreign direct investment screening.