EU Outbound Investments Assessment

BRUSSELS (Reuters) – The European Commission requested that the 27 EU members conduct a 15-month risk assessment of outbound investments in semiconductor, artificial intelligence, and quantum technologies. This assessment could lead to measures aimed at protecting EU economic security.

EU members are to review investments made by their companies in non-EU countries starting from 2021, with a progress report due in July 2025 and a final report in June 2026. This recommendation, issued on Wednesday, is non-binding.

Last year, the EU outlined plans to enhance economic security by increasing scrutiny of foreign investments and implementing more coordinated controls over exports and technology outflows to countries such as China.

These initiatives were a response to various risks revealed by the COVID-19 pandemic, Russia’s invasion of Ukraine, cyberattacks, and geopolitical tensions, which are expected to escalate during President-elect Donald Trump‘s second term.

The EU is particularly concerned about technology leakage that could be exploited by hostile military or intelligence services.

The Commission stated, “This review of outbound investments will inform a decision on whether further action is needed – at the EU and/or national levels – to address any identified risks.”