66 Amendments of Fernando NAVARRETE ROJAS related to 2024/0017(COD)
Amendment 29 #
Proposal for a regulation
Recital 1
Recital 1
(1) Investments in the Union contribute to its growth by improving its competitiveness, creating jobs and economies of scale, stimulating entrepreneurial drive through incentives for innovation and development of industries, and bringing in capital, technologies, innovation and expertise.
Amendment 30 #
Proposal for a regulation
Recital 1 a (new)
Recital 1 a (new)
(1a) Foreign investments in the Union are a vital source of capital that fosters new financial resources, new technologies, advanced business practices and access to international markets.
Amendment 31 #
Proposal for a regulation
Recital 2
Recital 2
(2) Article 3(5) of the Treaty on European Union (TEU) specifies that the Union, in its relations with the wider world, is to uphold and promote its values and interests and contribute to the protection of its citizens. Moreover, the Union and Member States have an open investment environment, which is enshrined in the Treaty on the Functioning of the European Union (TFEU), and embeddedthey must maintain a welcoming regime for foreign investments into the Union and its Member States’EU in line with their international commitments.
Amendment 32 #
Proposal for a regulation
Recital 3
Recital 3
(3) However, under international commitments made in the World Trade Organization (WTO), the Organisation for Economic Cooperation and Development (OECD), and the trade and investment agreements concluded with third countries, it is possible for the Union and Members States to restrict foreign direct investments (FDIs) on the grounds of security or public order, subject to certain requiremenwith a view to ensuring a regime that is flexible and strikes the appropriate balance between being open to investments and protecting the Union's legitimate interests.
Amendment 33 #
Proposal for a regulation
Recital 6
Recital 6
(6) However, a new legislative instrument is needed to strengthen the efficiency and effectiveness of Regulation (EU) 2019/452 and ensure a higher degree of harmonisation across the Union. This should be underpinned by a proper and careful impact analysis by the Regulatory Scrutiny Board, which should also include an analysis of the increased administrative burden for businesses.
Amendment 36 #
Proposal for a regulation
Recital 8
Recital 8
(8) A significant majority of Member States, but not all, have a legislative instrument in place that provides for a mechanism to screen FDIs. In many Member States, national laws also extend to screening intra-Union investments. Among the Member States, there are substantial differences as to the scope, thresholds and criteria used to assess whether an investment is likely to negatively affect security or public order. There are also differences in the screening processes. In certain Member States, the investment can be implemented before having received clearance with respect to the impact on security and public order. However, others require that the investment is only finalised after authorisation under the screening mechanism. Such divergences create a problem for the smooth functioning of the internal market. For example, they create an uneven playing field and increase compliance costs for investors seeking to notify transactions in more than one Member State. This Regulation helps in reducing divergences on key elements of the mechanisms implemented at national level. This is crucial to ensure predictability for investors on the applicable national regimes and their characteristics, thereby reducing the associated compliance costs. This is all the more relevant considering the level of integration of internal market, which may result in a single transaction impacting multiple Member States across the Union. It is for example possible that a transaction aimed to the acquisition of a target company in one Member State also affects security and public order in another Member State, due to the supply chain structure or other economic elements connecting the target with other companies based in a different Member States. In order to address these internal market problems and ensure greater consistency and predictability, it is appropriate that the criteria and elements to be used for the assessment of foreign investments are established through Union action. This Regulation should be based on the criterion that there is the probability of a genuine and sufficiently serious threat to a fundamental interest of society, and should be appropriate and necessary as set out in the case-law of the Court of Justice of the European Union.
Amendment 39 #
Proposal for a regulation
Recital 9 a (new)
Recital 9 a (new)
(9a) In order to ensure more efficient management of the screening mechanisms at Union level, when an investor has already undergone a screening process or assessment in accordance with the legislation of a Member State, any additional request for information from the Commission or another Member State will have to be duly justified so as to avoid any unnecessary duplication of information.
Amendment 40 #
Proposal for a regulation
Recital 1
Recital 1
(1) Investments in the Union contribute to its growth by improving its competitiveness, creating jobs and economies of scale, stimulating entrepreneurial drive through incentives for innovation and development of industries, and bringing in capital, technologies, innovation and expertise.
Amendment 41 #
Proposal for a regulation
Recital 1 a (new)
Recital 1 a (new)
(1a) Foreign investments in the Union are a vital source of capital that fosters new financial resources, new technologies, advanced business practices and access to international markets.
Amendment 42 #
Proposal for a regulation
Recital 2
Recital 2
(2) Article 3(5) of the Treaty on European Union (TEU) specifies that the Union, in its relations with the wider world, is to uphold and promote its values and interests and contribute to the protection of its citizens. Moreover, the Union and Member States have an open investment environment, which is enshrined in the Treaty on the Functioning of the European Union (TFEU), and embeddedthey must maintain a welcoming regime for foreign investments into the Union and its Member States’EU in line with their international commitments.
Amendment 42 #
Proposal for a regulation
Recital 10
Recital 10
(10) Regulation (EU) 2019/452 only covers FDIs made from third countries into the Union. However, it On that basis, also necessary to extend the scope of the cooperation mechanism to investments made between Member States, where the investor in one Member State is controlled, directly or indirectly, by a foreign entity regardless of whether distinction should be made between investments made within the EU where the EU entity is controlled by an ultimate owner located in a third country and those where the ultimate owner is not located in the Union or elsewhere. In particular, this extended scope is appropriate to ensure that any inva third country. It is particularly important for the risk assestsment creating a lasting link between the foreign investor and the Union target, whether it is carried out directly by a foreign investor or through an entity established in the Union and controlled by a foreign investor, is consito take into consideration whether the ultimate owner has decision-making power on the investmently captured and assessed. This should foster the consistency and predictability of screening rules across Member States, which in turn will reduce compliance costs for foreign investors and limit incentives to target an investment in Member States where such transactions are out of scope. The assessment should also maintain sufficient flexibility to make it possible to take into consideration the specific character and structure of investments within the EU carried out by foreign investors.
Amendment 43 #
Proposal for a regulation
Recital 3
Recital 3
(3) However, under international commitments made in the World Trade Organization (WTO), the Organisation for Economic Cooperation and Development (OECD), and the trade and investment agreements concluded with third countries, it is possible for the Union and Members States to restrict foreign direct investments (FDIs) on the grounds of security or public order, subject to certain requiremenwith a view to ensuring a regime that is flexible and strikes the appropriate balance between being open to investments and protecting the Union's legitimate interests.
Amendment 45 #
Proposal for a regulation
Recital 6
Recital 6
(6) However, a new legislative instrument is needed to strengthen the efficiency and effectiveness of Regulation (EU) 2019/452 and ensure a higher degree of harmonisation across the Union. This should be underpinned by a proper and careful impact analysis by the Regulatory Scrutiny Board, which should also include an analysis of the increased administrative burden for businesses.
Amendment 46 #
Proposal for a regulation
Recital 11
Recital 11
(11) Investments in Union targets carried out by foreign investors, including investments executed through a controlled entity in the Union, may present specific risks to security and public order in the Union and its Member States. Such investor-related risks should not be present and therefore do not need to be addressed in an investment that only involves entities where no ownership, control, connection to or influence from foreign investors is present, including when a foreign investor participates in the Union entity without a controlling stake. Avoiding any divergence in the rules applicable to the treatment of foreign investments, regardless of whether they are made from outside the Union directly or through an entity already established in the Union, is necessary to ensure a coherent investment screening framework and the Union control mechanism. This framework reflects the importance of protecting security and public order and is exclusively targeted at risks that may arise from investments involving foreign entities. Therefore, Member States should ensure at least the screening of those foreign investments, which relate to projects or programmes of Union interest or where the Union target is active in areas, where a foreign investment may affect security or public order in more than one Member State. Member States should also be able to screen other foreign investments. When they do so, such screening should also comply with the provisions of this Regulation. Transactions with no foreign investor involvement or in which the level of involvement does not lead to the direct or indirect control of the Union entity are not covered by this Regulation.
Amendment 48 #
Proposal for a regulation
Recital 12
Recital 12
(12) Screening foreign investments should be carried out in accordance with this Regulation, taking into account all factual information available and adhering to the principle of proportionality and other principles enshrined in the Treaties. Moreover, the screening of foreign investments which are carried out through subsidiaries of the foreign investor established in the Union should in all cases comply with the requirements stemming from Union law, and in particular with the Treaty provisions on freedom of establishment and free movement of capital, as interpreted in the case-law of the Court of Justice of the European Union, consistently with the objective of preserving an open and inclusive internal market. Any restrictions to the freedom of establishment and free movement of capital in the Union, including the screening and measures arising from screening, such as mitigating measures and prohibitions, should be based onduly justified on the basis of a genuine and sufficiently serious threat to a fundamental interest of society, and should be appropriate and necessary as set out in the case law of the Court of Justice. At the same time, when assessing the justification and proportionality of a restriction, the specificities of investments within the Union operated through a subsidiary of a foreign investor may be taken into account when assessing any restrictions on freedom of establishment or to the free movement of capital, including where appropriate in any Commission opinion adopted pursuant to this Regulation. This should be done taking into account the integration of Member State schemes into a Union-wide cooperation mechanism.
Amendment 50 #
Proposal for a regulation
Recital 8
Recital 8
(8) A significant majority of Member States, but not all, have a legislative instrument in place that provides for a mechanism to screen FDIs. In many Member States, national laws also extend to screening intra-Union investments. Among the Member States, there are substantial differences as to the scope, thresholds and criteria used to assess whether an investment is likely to negatively affect security or public order. There are also differences in the screening processes. In certain Member States, the investment can be implemented before having received clearance with respect to the impact on security and public order. However, others require that the investment is only finalised after authorisation under the screening mechanism. Such divergences create a problem for the smooth functioning of the internal market. For example, they create an uneven playing field and increase compliance costs for investors seeking to notify transactions in more than one Member State. This Regulation helps in reducing divergences on key elements of the mechanisms implemented at national level. This is crucial to ensure predictability for investors on the applicable national regimes and their characteristics, thereby reducing the associated compliance costs. This is all the more relevant considering the level of integration of internal market, which may result in a single transaction impacting multiple Member States across the Union. It is for example possible that a transaction aimed to the acquisition of a target company in one Member State also affects security and public order in another Member State, due to the supply chain structure or other economic elements connecting the target with other companies based in a different Member States. In order to address these internal market problems and ensure greater consistency and predictability, it is appropriate that the criteria and elements to be used for the assessment of foreign investments are established through Union action. This Regulation should be based on the criterion that there is the probability of a genuine and sufficiently serious threat to a fundamental interest of society, and should be appropriate and necessary as set out in the case-law of the Court of Justice of the European Union.
Amendment 51 #
Proposal for a regulation
Recital 9 a (new)
Recital 9 a (new)
(9a) In order to ensure more efficient management of the screening mechanisms at Union level, when an investor has already undergone a screening process or assessment in accordance with the legislation of a Member State, any additional request for information from the Commission or another Member State will have to be duly justified so as to avoid any unnecessary duplication of information.
Amendment 53 #
Proposal for a regulation
Recital 10
Recital 10
(10) Regulation (EU) 2019/452 only covers FDIs made from third countries into the Union. However, it On that basis, also necessary to extend the scope of the cooperation mechanism to investments made between Member States, where the investor in one Member State is controlled, directly or indirectly, by a foreign entity regardless of whether distinction should be made between investments made within the EU where the EU entity is controlled by an ultimate owner located in a third country and those where the ultimate owner is not located in the Union or elsewhere. In particular, this extended scope is appropriate to ensure that any inva third country. It is particularly important for the risk assestsment creating a lasting link between the foreign investor and the Union target, whether it is carried out directly by a foreign investor or through an entity established in the Union and controlled by a foreign investor, is consito take into consideration whether the ultimate owner has decision-making power on the investmently captured and assessed. This should foster the consistency and predictability of screening rules across Member States, which in turn will reduce compliance costs for foreign investors and limit incentives to target an investment in Member States where such transactions are out of scope. The assessment should also maintain sufficient flexibility to make it possible to take into consideration the specific character and structure of investments within the EU carried out by foreign investors.
Amendment 55 #
Proposal for a regulation
Recital 11
Recital 11
(11) Investments in Union targets carried out by foreign investors, including investments executed through a controlled entity in the Union, may present specific risks to security and public order in the Union and its Member States. Such investor-related risks should not be present and therefore do not need to be addressed in an investment that only involves entities where no ownership, control, connection to or influence from foreign investors is present, including when a foreign investor participates in the Union entity without a controlling stake. Avoiding any divergence in the rules applicable to the treatment of foreign investments, regardless of whether they are made from outside the Union directly or through an entity already established in the Union, is necessary to ensure a coherent investment screening framework and the Union control mechanism. This framework reflects the importance of protecting security and public order and is exclusively targeted at risks that may arise from investments involving foreign entities. Therefore, Member States should ensure at least the screening of those foreign investments, which relate to projects or programmes of Union interest or where the Union target is active in areas, where a foreign investment may affect security or public order in more than one Member State. Member States should also be able to screen other foreign investments. When they do so, such screening should also comply with the provisions of this Regulation. Transactions with no foreign investor involvement or in which the level of involvement does not lead to the direct or indirect control of the Union entity are not covered by this Regulation.
Amendment 55 #
Proposal for a regulation
Recital 20
Recital 20
(20) To ensure that foreign investments likely to negatively affect security or public order in the Union are adequately identified, in accordance with the case- law of the Court of Justice of the European Union, Member States should screen foreign investments where the Union target is part of or participates in a project or programme of Union interest or where the Union target’s economic activity relates to a technology, asset, facility, equipment, network, system or service of particular importance for the security or public order interests of the Union. In addition to these criteria, screening mechanisms may apply to other sectors, Union targets or economic activities that the relevant Member State considers critical for its security or public order.
Amendment 57 #
Proposal for a regulation
Recital 12
Recital 12
(12) Screening foreign investments should be carried out in accordance with this Regulation, taking into account all factual information available and adhering to the principle of proportionality and other principles enshrined in the Treaties. Moreover, the screening of foreign investments which are carried out through subsidiaries of the foreign investor established in the Union should in all cases comply with the requirements stemming from Union law, and in particular with the Treaty provisions on freedom of establishment and free movement of capital, as interpreted in the case-law of the Court of Justice of the European Union, consistently with the objective of preserving an open and inclusive internal market. Any restrictions to the freedom of establishment and free movement of capital in the Union, including the screening and measures arising from screening, such as mitigating measures and prohibitions, should be based onduly justified on the basis of a genuine and sufficiently serious threat to a fundamental interest of society, and should be appropriate and necessary as set out in the case law of the Court of Justice. At the same time, when assessing the justification and proportionality of a restriction, the specificities of investments within the Union operated through a subsidiary of a foreign investor may be taken into account when assessing any restrictions on freedom of establishment or to the free movement of capital, including where appropriate in any Commission opinion adopted pursuant to this Regulation. This should be done taking into account the integration of Member State schemes into a Union-wide cooperation mechanism.
Amendment 57 #
Proposal for a regulation
Recital 21
Recital 21
(21) To ensure that the cooperation mechanism focuses only on those foreign investments where the characteristics of the foreign investor or the Union target makhave an effect on security or public order likely, it is appropriate to establish, risk- based conditions for the notification of foreign investments undergoing screening in a Member State to the other Member States and the Commission should be established. Where a foreign investment does not meet any of the conditions, the Member State where the foreign investment is undergoing screening may notify the foreign investment to the other Member States and the Commission, including where the Union target has significant operations in other Member States, or belongs to a corporate group that has several companies in different Member States.
Amendment 66 #
Proposal for a regulation
Recital 20
Recital 20
(20) To ensure that foreign investments likely to negatively affect security or public order in the Union are adequately identified, in accordance with the case- law of the Court of Justice of the European Union, Member States should screen foreign investments where the Union target is part of or participates in a project or programme of Union interest or where the Union target’s economic activity relates to a technology, asset, facility, equipment, network, system or service of particular importance for the security or public order interests of the Union. In addition to these criteria, screening mechanisms may apply to other sectors, Union targets or economic activities that the relevant Member State considers critical for its security or public order.
Amendment 67 #
Proposal for a regulation
Recital 21
Recital 21
(21) To ensure that the cooperation mechanism focuses only on those foreign investments where the characteristics of the foreign investor or the Union target make an effect on security or public order likely, it is appropriateessential to establish risk-based conditions for the notification of foreign investments undergoing screening in a Member State to the other Member States and the Commission. Where a foreign investment does not meet any of the conditions, the Member State where the foreign investment is undergoing screening may notify the foreign investment to the other Member States and the Commission, including where the Union target has significant operations in other Member States, or belongs to a corporate group that has several companies in different Member States.
Amendment 67 #
Proposal for a regulation
Recital 32
Recital 32
(32) Member States or the Commission, as appropriate, might consider relevant information received from economic operators, civil society organisations, social partners (such as trade unpublicly available informations) about a foreign investment likely to negatively affect security or public order according to the case-law of the Court of Justice of the EU.
Amendment 68 #
Proposal for a regulation
Recital 34
Recital 34
(34) To ensure the efficiency and effectiveness of the cooperation mechanism, it is necessary to align deadlines, documents required and procedures when several foreign investments linked to the same broader transaction are screened in several Member States. In such multi-country transactions, the applicant should file the different requests for authorisation in the Member States concerned simultaneously. In addition, those Member States should notify the requests simultaneously to the cooperation mechanism. To ensure an efficient handling of these multi-country transactions, the Member States concerned should coordinate and agree on whether the foreign investments are notifiable and when they should be notified. Furthermore, the Member States concerned should also coordinate on the final decision. If the Member States concerned intend to authorise the foreign investment with conditions, they should ensure that these conditions are compatible with one another and address cross-border risks adequately. Before prohibiting a foreign investment, the Member States concerned should consider whether a conditional authorisation with coordinated measures and their coordinated enforcement is not sufficient to address the likely effect on security or public order according to the case-law of the Court of Justice of the EU. The Commission should be able to participate in such coordination.
Amendment 70 #
Proposal for a regulation
Recital 35
Recital 35
(35) To ensure a consistent approach to the screening of investments across the Union, it is essential that the standards and criteria used to assess likely risks to security and public order are those set at Union level in this Regulation. Those should include the impact on the security, integrity and functioning of critical infrastructure, the availability of critical technologies (including key enabling technologies) and the continued supply of critical inputs for security or public order, the disruption, failure, loss or destruction of which would have a significant impact on security and public order in one or more Member States or on the Union as a whole. In that regard, Member States and the Commission should also take into account the context and circumstances of the foreign investment. This should include, in particular, whether an investor is controlled directly or indirectlyby an ultimate owner, for example through significant funding, bythat is the government of a third country or is involved in pursuing policy objectives of third countries to facilitate their military capabilities. In this context, if applicable, Member States and the Commission should also consider why the foreign investor, its beneficial owner or any of its subsidiaries or a person acting on behalf or at the direction of such a foreign investor is subject to any type of Union restrictive measures pursuant to Article 215 TFEU.
Amendment 71 #
Proposal for a regulation
Recital 36
Recital 36
(36) Where the Member State where the foreign investment is planned or completed considers that a foreign investment is likely to negatively affect security or public order in the Union, according to the case-law of the Court of Justice of the EU, it is appropriate to require that Member State to take appropriate measures to mitigate the risks, where such measures are available, and it considers them adequate, taking into utmost consideration the comments issued by other Member States and the opinion issued by the Commission, if applicable. Foreign investments should be prohibited only on an exceptional basis, and where mitigating measures or measures available under Union or national law other than the screening mechanism are not sufficient to mitigate the effect on security or public order.
Amendment 73 #
Proposal for a regulation
Recital 40
Recital 40
(40) Member States and the Commission should be encouraged to cooperate with the responsible authorities of like-minded third countries on issues related to the screening of foreign investments that could affect security or public order. Such administrative cooperation should aim to strengthen the effectiveness of the framework for screening foreign investments by Member States and the cooperation between Member States and the Commission pursuant to this Regulation. The Commission should be kept informed of such bilateral contacts to the extent that they relate to systemic issues related to investment screening. It should also be possible for the Commission to monitor developments with regard to screening mechanisms in third countries.
Amendment 79 #
Proposal for a regulation
Recital 32
Recital 32
(32) Member States or the Commission, as appropriate, might consider relevant information received from economic operators, civil society organisations, social partners (such as trade unpublicly available informations) about a foreign investment likely to negatively affect security or public order according to the case-law of the Court of Justice of the EU.
Amendment 79 #
Proposal for a regulation
Recital 49
Recital 49
(49) In order to take into account developments relating to projects or programmes of Union interest and to adapt the list of technologies, assets, facilities, equipment, networks, systems, services and economic activities of particular importance for the security or public order interests of the Union, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of amendments to the Annexes to this RegulationUnion interest list set out in Annexes I and II to this Regulation should be regularly reviewed. The list of projects and programmes of Union interest set out in Annex I should cover projects or programmes covered by EU law which provide for the development, maintenance or acquisition of critical infrastructure, critical technologies or critical inputs which are essential for security or public order. The list of technologies, assets, facilities, equipment, networks, systems, services and economic activities of particular importance for the security or public order interests of the Union set out in Annex II should include areas where a foreign investment may affect security or public order in more than one Member State or in the Union as a whole through an Union target, which does not participate in or receive funds from a project or programme of Union interest. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work for the legislative amendment of the annexes, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making16. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts. _________________ 16 OJ L 123, 12.5.2016, p. 1.
Amendment 83 #
Proposal for a regulation
Recital 34
Recital 34
(34) To ensure the efficiency and effectiveness of the cooperation mechanism, it is necessary to align deadlines, documents required and procedures when several foreign investments linked to the same broader transaction are screened in several Member States. In such multi-country transactions, the applicant should file the different requests for authorisation in the Member States concerned simultaneously. In addition, those Member States should notify the requests simultaneously to the cooperation mechanism. To ensure an efficient handling of these multi-country transactions, the Member States concerned should coordinate and agree on whether the foreign investments are notifiable and when they should be notified. Furthermore, the Member States concerned should also coordinate on the final decision. If the Member States concerned intend to authorise the foreign investment with conditions, they should ensure that these conditions are compatible with one another and address cross-border risks adequately. Before prohibiting a foreign investment, the Member States concerned should consider whether a conditional authorisation with coordinated measures and their coordinated enforcement is not sufficient to address the likely effect on security or public order according to the case-law of the Court of Justice of the EU. The Commission should be able to participate in such coordination.
Amendment 85 #
Proposal for a regulation
Article 2 – paragraph 1 – point 1
Article 2 – paragraph 1 – point 1
(1) ‘foreign investment’ means a foreign direct investment or an investment within the Union with foreign control, which enables effective participation in the management or control of a Union target, except those made by undertakings whose direct investment entities are European managers of qualified collective investment funds;
Amendment 86 #
Proposal for a regulation
Recital 35
Recital 35
(35) To ensure a consistent approach to the screening of investments across the Union, it is essential that the standards and criteria used to assess likely risks to security and public order are those set at Union level in this Regulation. Those should include the impact on the security, integrity and functioning of critical infrastructure, the availability of critical technologies (including key enabling technologies) and the continued supply of critical inputs for security or public order, the disruption, failure, loss or destruction of which would have a significant impact on security and public order in one or more Member States or on the Union as a whole. In that regard, Member States and the Commission should also take into account the context and circumstances of the foreign investment. This should include, in particular, whether an investor is controlled directly or indirectlyby an ultimate owner, for example through significant funding, bythat is the government of a third country or is involved in pursuing policy objectives of third countries to facilitate their military capabilities. In this context, if applicable, Member States and the Commission should also consider why the foreign investor, its beneficial owner or any of its subsidiaries or a person acting on behalf or at the direction of such a foreign investor is subject to any type of Union restrictive measures pursuant to Article 215 TFEU.
Amendment 90 #
Proposal for a regulation
Recital 36
Recital 36
(36) Where the Member State where the foreign investment is planned or completed considers that a foreign investment is likely to negatively affect security or public order in the Union, according to the case-law of the Court of Justice of the EU, it is appropriate to require that Member State to take appropriate measures to mitigate the risks, where such measures are available, and it considers them adequate, taking into utmost consideration the comments issued by other Member States and the opinion issued by the Commission, if applicable. Foreign investments should be prohibited only on an exceptional basis, and where mitigating measures or measures available under Union or national law other than the screening mechanism are not sufficient to mitigate the effect on security or public order.
Amendment 90 #
Proposal for a regulation
Article 2 – paragraph 1 – point 7
Article 2 – paragraph 1 – point 7
(7) ‘foreign investor’s subsidiary in the Union’ means an economically active undertaking established under the laws of a Member State meeting the conditions set out in Article 22(1) of Directive 2013/34/EU of the European Parliament and of the Council of 26 June 201318, and directly or indirectly controlled by a foreign investorcontrolled by an ultimate owner located outside the EU; _________________ 18 Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC (OJ L 182, 29.6.2013, p. 19–76, ELI: http://data.europa.eu/eli/dir/2013/34/oj).
Amendment 92 #
Proposal for a regulation
Recital 40
Recital 40
(40) Member States and the Commission should be encouraged to cooperate with the responsible authorities of like-minded third countries on issues related to the screening of foreign investments that could affect security or public order. Such administrative cooperation should aim to strengthen the effectiveness of the framework for screening foreign investments by Member States and the cooperation between Member States and the Commission pursuant to this Regulation. The Commission should be kept informed of such bilateral contacts to the extent that they relate to systemic issues related to investment screening. It should also be possible for the Commission to monitor developments with regard to screening mechanisms in third countries.
Amendment 93 #
Proposal for a regulation
Article 2 – paragraph 1 – point 8 a (new)
Article 2 – paragraph 1 – point 8 a (new)
(8 a) ‘European managers of qualified collective investment funds’ are fund managers located in the EU whose objective is to pool capital from more than one investor, including foreign investors, to generate a joint return for these investors in the fund. In addition, they must be able to demonstrate at all times that none of the foreign investors has the capacity to influence business decisions, nor has direct access to confidential information, including intellectual property rights or technology transfers, of the companies in which the fund has invested;
Amendment 99 #
Proposal for a regulation
Recital 49
Recital 49
(49) In order to take into account developments relating to projects or programmes of Union interest and to adapt the list of technologies, assets, facilities, equipment, networks, systems, services and economic activities of particular importance for the security or public order interests of the Union, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of amendments to the Annexes to this RegulationUnion interest list set out in Annexes I and II to this Regulation should be regularly reviewed. The list of projects and programmes of Union interest set out in Annex I should cover projects or programmes covered by EU law which provide for the development, maintenance or acquisition of critical infrastructure, critical technologies or critical inputs which are essential for security or public order. The list of technologies, assets, facilities, equipment, networks, systems, services and economic activities of particular importance for the security or public order interests of the Union set out in Annex II should include areas where a foreign investment may affect security or public order in more than one Member State or in the Union as a whole through an Union target, which does not participate in or receive funds from a project or programme of Union interest. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work for the legislative amendment of the annexes, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making16. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts. _________________ 16 OJ L 123, 12.5.2016, p. 1.
Amendment 100 #
Proposal for a regulation
Article 4 – paragraph 2 – point a
Article 4 – paragraph 2 – point a
(a) adequate procedures shall be provided for the screening authority to determine whether it has jurisdiction over a foreign investment filed for authorisation and to carry out an initial review followed by, where necessary, an in-depth investigation to determine whether that foreign investment is likely to negatively affect security or public order, according to the case-law of the Court of Justice of the EU. The purpose of the in-depth investigation shall be, in particular, to determine whether a screening decision as referred to in Article 14(1) is appropriate and to determine its content.
Amendment 103 #
Proposal for a regulation
Article 2 – paragraph 1 – point 1
Article 2 – paragraph 1 – point 1
(1) ‘foreign investment’ means a foreign direct investment or an investment within the Union with foreign control, which enables effective participation in the management or control of a Union target, except those made by undertakings whose direct investment entities are European managers of qualified collective investment funds;
Amendment 104 #
Proposal for a regulation
Article 2 – paragraph 1 – point 7
Article 2 – paragraph 1 – point 7
(7) ‘foreign investor’s subsidiary in the Union’ means an economically active undertaking established under the laws of a Member State meeting the conditions set out in Article 22(1) of Directive 2013/34/EU of the European Parliament and of the Council of 26 June 201318, and directly or indirectly controlled by a foreign investorcontrolled by an ultimate owner located outside the EU; _________________ 18 Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC (OJ L 182, 29.6.2013, p. 19–76, ELI: http://data.europa.eu/eli/dir/2013/34/oj).
Amendment 105 #
Proposal for a regulation
Article 2 – paragraph 1 – point 8 a (new)
Article 2 – paragraph 1 – point 8 a (new)
(8 a) ‘European managers of qualified collective investment funds’ are fund managers located in the EU whose objective is to pool capital from more than one investor, including foreign investors, to generate a joint return for these investors in the fund. In addition, they must be able to demonstrate at all times that none of the foreign investors has the capacity to influence business decisions, nor has direct access to confidential information, including intellectual property rights or technology transfers, of the companies in which the fund has invested;
Amendment 114 #
Proposal for a regulation
Article 4 – paragraph 2 – point a
Article 4 – paragraph 2 – point a
(a) adequate procedures shall be provided for the screening authority to determine whether it has jurisdiction over a foreign investment filed for authorisation and to carry out an initial review followed by, where necessary, an in-depth investigation to determine whether that foreign investment is likely to negatively affect security or public order, based on the case-law of the Court of Justice of the EU. The purpose of the in-depth investigation shall be, in particular, to determine whether a screening decision as referred to in Article 14(1) is appropriate and to determine its content.
Amendment 117 #
Proposal for a regulation
Article 4 – paragraph 2 – point c
Article 4 – paragraph 2 – point c
(c) the screening authority shall be empowered to start screening foreign investments by its own initiative for at least 15 months after the completion of a foreign investment that is not subject to an authorisation requirement where the screening authority has grounds to consider that the foreign investment may affect security or public order, based on the case- law of the Court of Justice of the EU;
Amendment 122 #
Proposal for a regulation
Article 7 – paragraph 1 – subparagraph 1 – point a
Article 7 – paragraph 1 – subparagraph 1 – point a
(a) considers that a foreign investment is likely to negatively affect its security or public order, according to the case-law of the Court of Justice of the EU; or
Amendment 124 #
Proposal for a regulation
Article 7 – paragraph 2 – subparagraph 1 – point a
Article 7 – paragraph 2 – subparagraph 1 – point a
(a) it considers that such a foreign investment is likely to negatively affect the security or public order of more than one Member State, according to the case-law of the Court of Justice of the EU;
Amendment 125 #
Proposal for a regulation
Article 7 – paragraph 2 – subparagraph 1 – point b – paragraph 1
Article 7 – paragraph 2 – subparagraph 1 – point b – paragraph 1
it considers that such a foreign investment is likely to negatively affect projects or programmes of Union interest on grounds of security or public order, according to the case-law of the Court of Justice of the EU;
Amendment 134 #
Proposal for a regulation
Article 9 – paragraph 1
Article 9 – paragraph 1
1. A Member State that considers that a foreign investment in the territory of another Member State which has not been notified to the cooperation mechanism is likely to negatively affect its security or public order, itaccording to the case-law of the Court of Justice of the EU, may open an own initiative procedure in relation to that foreign investment. Before opening the procedure, the Member State shall check that the Member State where the investment is planned or completed does not intend to notify the foreign investment to the cooperation mechanism.
Amendment 141 #
Proposal for a regulation
Article 7 – paragraph 1 – subparagraph 1 – point a
Article 7 – paragraph 1 – subparagraph 1 – point a
(a) considers that a foreign investment is likely to negatively affect its security or public order, according to the case-law of the Court of Justice of the EU; or
Amendment 142 #
Proposal for a regulation
Article 7 – paragraph 2 – subparagraph 1 – point a
Article 7 – paragraph 2 – subparagraph 1 – point a
(a) it considers that such a foreign investment is likely to negatively affect the security or public order of more than one Member State, in accordance with the case-law of the Court of Justice of the EU;
Amendment 145 #
Proposal for a regulation
Article 7 – paragraph 2 – subparagraph 1 – point b – paragraph 1
Article 7 – paragraph 2 – subparagraph 1 – point b – paragraph 1
it considers that such a foreign investment is likely to negatively affect projects or programmes of Union interest on grounds of security or public order, in accordance with the case-law of the Court of Justice of the EU;
Amendment 148 #
Proposal for a regulation
Article 7 – paragraph 3
Article 7 – paragraph 3
3. The Commission may issue a duly motivated opinion addressed to all Member States if it considers that several foreign investments or other similar investments if they were to be made, taken together, and having regard to their characteristics could affect the security or public order of the Union, in accordance with the case-law of the Court of Justice of the EU. After a Commission opinion is issued, the Commission may, as appropriate, discuss with Member States how to address the identified risks.
Amendment 148 #
Proposal for a regulation
Article 13 – paragraph 1
Article 13 – paragraph 1
1. Member States shall determine, for the purposes of taking a screening decision pursuant to Article 14 or issuing a duly motivatjustified comment pursuant to Article 7(1) or Article 9(7), whether a foreign investment is likely to negatively affect security or public order.
Amendment 149 #
Proposal for a regulation
Article 13 – paragraph 2
Article 13 – paragraph 2
2. The Commission shall determine, for the purpose of issuing a duly motivated opinion pursuant to Article 7(2) or (3) or Article 9(7), whether it considers a foreign investment to be likely to negatively affect security or public order, without undermining the need to maintain an open and welcoming regime for investment into the Union, fully compatible with Union law and international commitments.
Amendment 164 #
Proposal for a regulation
Article 14 – paragraph 1 – subparagraph 2
Article 14 – paragraph 1 – subparagraph 2
The screening decision shall comply with the principle of proportionality and take into consideration all circumstances of the foreign investment, as well as the need to maintain an open regime for investment into the Union.
Amendment 180 #
Proposal for a regulation
Article 19
Article 19
Amendment 183 #
Proposal for a regulation
Article 20
Article 20
Amendment 190 #
Proposal for a regulation
Article 9 – paragraph 1
Article 9 – paragraph 1
1. A Member State that considers that a foreign investment in the territory of another Member State which has not been notified to the cooperation mechanism is likely to negatively affect its security or public order, itn accordance with the case- law of the Court of Justice of the EU, may open an own initiative procedure in relation to that foreign investment. Before opening the procedure, the Member State shall check that the Member State where the investment is planned or completed does not intend to notify the foreign investment to the cooperation mechanism.
Amendment 205 #
Proposal for a regulation
Article 13 – paragraph 1
Article 13 – paragraph 1
1. Member States shall determine, for the purposes of taking a screening decision pursuant to Article 14 or issuing a duly motivatjustified comment pursuant to Article 7(1) or Article 9(7), whether a foreign investment is likely to negatively affect security or public order, in accordance with the case-law of the Court of Justice of the EU.
Amendment 208 #
Proposal for a regulation
Article 13 – paragraph 2
Article 13 – paragraph 2
2. The Commission shall determine, for the purpose of issuing a duly motivatjustified opinion pursuant to Article 7(2) or (3) or Article 9(7), whether it considers a foreign investment to be likely to negatively affect security or public order, in accordance with the case-law of the Court of Justice of the EU, without undermining the need to maintain an open and welcoming regime for investment into the Union, fully compatible with Union law and international commitments.
Amendment 209 #
Proposal for a regulation
Article 13 – paragraph 3 – introductory part
Article 13 – paragraph 3 – introductory part
3. When determining whether an investment is likely to negatively affect security or public order, the Member States or the Commission shall in particular considerconsider, based on the case-law of the Court of Justice of the EU, in particular, whether the investment concerned is likely to negatively affect:
Amendment 221 #
Proposal for a regulation
Article 13 – paragraph 4 – introductory part
Article 13 – paragraph 4 – introductory part
4. When determining whether an investment is likely to negatively affect security or public order, based on the case- law of the Court of Justice of the EU, the Member States or the Commission shall also take into account information related to the foreign investor, including:
Amendment 230 #
Proposal for a regulation
Article 14 – paragraph 1 – subparagraph 2
Article 14 – paragraph 1 – subparagraph 2
The screening decision shall comply with the principle of proportionality and take into consideration all circumstances of the foreign investment, as well as the need to maintain an open regime for investment into the Union.
Amendment 235 #
Proposal for a regulation
Article 19
Article 19
Amendment 240 #
Proposal for a regulation
Article 20
Article 20