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Foreign Direct Investment and National Security: Perspectives from the EU and the US


Foreign direct investment (FDI) serves as a cornerstone of the global economy, driving economic growth and development across nations. However, amidst rising geopolitical tensions and uncertainties, there is a discernible shift towards strengthening or establishing new frameworks for FDI screening. This proactive approach is observable both in the United States and in the European Union and its member states. The growing reliance on these measures, designed to protect critical sectors and assets from potentially hostile third country acquisitions, may have implications that go beyond purely economic considerations, affecting transatlantic relations and the broader geopolitical landscape.

Revised version of a paper presented at the IAI Transatlantic Security Symposium 2023–24, held in Rome on 22 April 2024.

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