The Covid-19 pandemic and the disruptions from Russia’s war in Ukraine have reshaped the outlook on economic security. The European Union now treats economic security as a top priority. Last June the European Commission unveiled its first major strategy to shield the economy from attempts by actors such as Russia or China to distort markets or erode stability. This week it advanced that effort with a set of five initiatives aimed at strengthening surveillance over foreign investments, mapping out countries that could threaten EU security, and preventing European assets from strengthening the military or intelligence capabilities of actors that undermine international stability. — European Commission briefing
“The EU remains the leading force in global trade. Exports total over 3.1 trillion euros and imports approach 2.8 trillion euros in goods and services. But in a time of geopolitical strain and rapid tech change, we must be realistic about the risks we face,” stated the Commission vice president during a joint session with the executive vice president. — European Commission remarks
As noted last June, the plan stays focused on a consistent objective: reduce risks and vulnerabilities by tightening control over foreign investments; double down on export controls; identify high-risk foreign investments; promote greater research into dual-use technologies that serve both civilian and military purposes; and strengthen national and sectoral research security. — European Commission summary
In essence, the aim is to close gaps in the system and remedy deficiencies exposed by recent years and more than 1,200 foreign direct investment transactions examined over the last three years. Brussels believes the current control mechanism is functioning well, yet it seeks to refine it further by prioritizing higher-risk deals—particularly in areas like artificial intelligence, semiconductors, biotechnology, and quantum technologies—while broadening oversight to include investments by EU entities controlled by third-country actors. — European Commission briefing
Dual-use technologies
Brussels underscores the importance of tightening controls on dual-use goods that can serve civil and military ends, such as advanced electronics, nuclear materials, missile technology, or toxins. “We do not want these items ending up in the wrong hands and jeopardizing EU or global security,” the commission noted. Although the plan does not introduce new legislation right away, a white paper outlines short- and medium-term steps to harmonize controls across the union, addressing obstacles posed by certain countries, notably Russia, in regulating specific products. — European Commission report
The commission also announced plans to present a proposal next summer coordinating national checklists before controls are adopted. This is intended to prevent a patchwork of national approaches and ensure a unified EU stance. A formal evaluation of dual-use regulations is not slated to occur until 2025. — European Commission statement
Outgoing investments
Policy makers in Brussels are intensifying oversight of foreign investment, especially in technologies that could boost military or intelligence capabilities. The current landscape lacks systematic EU or member-state monitoring. The proposed approach includes building a database focused on a select group of sensitive technologies to pinpoint risk hotspots. The plan envisions a three-month consultation and a year of monitoring and evaluation at the national level. Depending on the risk assessment, the Commission will determine whether new measures or monitoring tools are needed. — European Commission outline